N 


Republican 
Campaign  Text-Book 

1904 


ISSUED  BY  THE 

REPUBLICAN    NATIONAL    COMMITTEE 


PRESS  OF  THE  EVENING  WISCONSIN  CO. 

366-368-370   Milwaukee  Street, 

130-132-134-136  Michigan  Street 

Milwaukee,  Wis. 


it  outline  of  contents. 

Paoh. 

Things  for  which  the  Republican  party  stands 329 

Republican  legislation,  1860  to  1904 ;tt2 

Laws  enacted  by  the  Republican  party 888 

Work  of  the  Departments,  1897  to  1904 :v,U,  392 

Department  of  State 334 

Treasury    Department 340 

War    Department 347 

Department  of  Justice 362 

Post-Offlce  Department  366 

Navy    Department 371 

Department   of  the   Interior 379 

Department  of  Agriculture 883 

Department  of  Commerce  and  Labor 386 

The    Civil    Service 393 

Railway   Regulation 395 

Merchant  Marine 398 

Pensions  and  Pension  Laws 408 

The  problem  of  our  colored  citizens 416 

Vote  for  representatives   in   Congress,    1900-1902 423 

Vote  for  President,   1900 424 

Vote  for  President,  1856  to  1900 425 

McKInley  and  Bryan  states,   conditions  In 426 

Work    of   the   58th    Congress 427 

German-Americans  for  Roosevelt 432 

Budgets  of  principal  countries  of  the  world,   1880-1902 435 

Progress  of  the  United  States  in  principal  Industries 436-440 

Development  of  the  United  States,  1800  to  1903 442,  443 

Railways  in   the   United   States,    1883-1902   condition* 444 

Financial   and  commercial   conditions  of  principal   countries 445 

Last  speech  of  William  McKUiley 449 

Last  s£e,ech   of  Mascus*  £j  .Hr.nna 452 

Fifty  yaars  of  the'« Republican*  party,  Hon.  John  Hay 456 

Fifty  .years  pf  the.  Republican  party,  Hon.  C.  W.  Fairbanks 464 

Spe*icl/  of  Hod.  EHhnI  Root,  Republican  National  Convention,  1904...   466 
Speech  of  Hon.  J.  G.' Ca'ririon,  Republican  National  Convention,  1904.   479 

Platform  of  Republican  party,   1904 482 

Platform   of   Democratic   party,    1904 486 

Platform    of    People's    party,    1904 491 

Democratic  platform  and  candidate  discussed 493 

The  St.   Louis   Esopus  episode 497 

The   trusts   and   Judge   Parker 503 

Democratic  record  on  the  gold  standard  act  of  1900 505 

Silver  planks   of  Democratic   platforms,   of  1890-1900 507 

Rejected  gold  plank  of  St.   Louis  platforms,   1904 508 

Judge  Parker's  telegram  and  the  Convention's  reply 508 

Gold  standard  act  of  1900 509 

Currency  record  of  Republican  and  Democratic  parties 512 

Commerce  of  gold  and  silver  standard  countries  of  the  world..  516 

Gold  and  silver  production  of  United  States,  1792-1903 517 

Gold  imports  and  exports  of  United  States,  1825-1903 518 

Commerce  of  the  United  States  and  Canada 522 

Coinage  of  the  United   States'   mints  1846-1903 519 

World's   production   of   gold   and   silver   1492-1903 520 

Stocks  of  money  in  13  principal  countries,  1873-1903 521 

Commerce  of  the  United  States  with  Canada,   1850-1903 522 

Passports  and  protection  to  American  Citizens  abroad 523 

President  Roosevelt's  speech  to  notification  committee 529 

Senator   Fairbanks'   speech   to   Notification    Committee 533 

Judge  Parker's  speech  to  the  Notification  Committee 541 

Republican  National   Committee 547 

Republican   Congressional   Committee 548 

Electoral   votes  by  states,   1864   to  1900 549 

Electoral  votes  allotted  to  each  state  in  1904 549 


INDEX 


A 

Page. 

Advance  in  prices  chiefly  in  natural  products 247 

Advance    in    prices 241 

Advance  in  prices  in  other  countries 243 

Adversity  vs.   prosperity   in   three  presidential   periods 105 

Adversity  under  low  tariff  of  1894 100 

Agitation  of  tariff,   effect  on  manufactures  and  business 47 

Agriculture  Department  of,   work  of,  1897-1904 383 

Agricultural  interest  benefited  by  return  to  protection 103 

Agricultural  products,  exportation  of,  1850  to  1903 130 

Agricultural  products,  prices  compared  with  articles  consumed 145 

Agricultural  prosperity  under  Republican  Administration 136 

Agricultural   products,   exportation   of,   under   low   tariff 139 

Allison,  Hon.  W.  B.  on  trusts  and  tariff 195 

American  citizen   protected  abroad 526 

American   tariffs,    1789   to   1903 56 

American  vessels  engaged  in  foreign  and  domestic  trade,  1860-1903..  405 
American  wheat  crop  and  consumption  of  in  United  States,  1877-1903.  141 

Animals  on  farm,  number  and  value,  by  groups,   1875-1903 140 

Animals  on  farms,  value  of,  1850-1903 440 

Animals  on  farm  value  of,  under  four  Presidents 141 

Area,   population  wealth,   etc.,  of  United  States,  1800-1903 442 

Arid   lands,   irrigation   for 160,  162 

Army   reduction   and  organization 348 

Asia,  commerce  with  United  States,  growth  of,  1899-1903 322 

Australia,     tariff    of 8 

Average  wage  increase  or  decrease,  1890-1903 204 

B 

Balance  of  trade  before  and  since  March,  1897 , 62 

Balfour,  Sir  Arthur,  on  British  prosperity. 94 

Bank  clearings  in  New  York,   1850-1904 437 

Bank  clearings  in  United  States,  1890-1903 437 

Bank  deposits,  (all  classes  of  banks)  1875  to  1903 109 

Bank  deposits  by  states,   1892-96-1903 113 

Bank   deposits,   savings,   1820   to   1903 107 

Bank  deposits,  in  United  States,  1875-1903 438 

Banks,  national,  1863  to  1903 110 

Banks,    national    organized 346 

Barrett,  Hon.  John,  on  extension  of  American  influence 323 

Barrett,   Hon.  John,   on   shipping  question 402 

Beet  sugar,  production  in  the  United  States 155 

Beet  and  cane  sugar  production  in  United  States 157 

Beet  sugar,   produced  in  United  States,  1880-1903 159 

Beet    sugar    and    Cuban    reciprocity 156 

Beet  sugar  and  cane  sugar  production  of  the  world,  1840-1903 159 

Beet  sugar  production  of  the  United  States,   1880-1903 440 

Belgium,   tariff  of 7 

Bismarck  on  protection  in  United  States 95 

Boots  and  shoes,  did  tariff  on  hides  affect  prices  of? 44,  46 

Boots  and  shoes,   prices  1897  to  1904 66 

Budgets  of  the  principal  countries  of  the  world,  1880-1903 435 


Page. 

Boltftio  speech  of  President  McKlnley 449 

Bureau  of  corporations,   Its  work  since  orgnnlzntlon 888 

BostnetS   and    industrial    conditions,    18964)6 V2~> 

r.usincss  of  Post  Office  Department,  statistical  details,  1790-1903...  370 

Rrltlsh  and  American  Industrial  growth  compared 04 

Rritish   arguments   for   protection 57 

Rrltlsh  colonies,  tariffs  of 8 

Rritish    Imports    of   manufactures 8 

Hrltlsh  Iron  and  steel  commission,  views  on  United  States  Industry..  52 

I'.ritish   tariff  and   revenues   produced   thereby 70 

British   tariff,   detailed   statement 70 

British  view  of  protection '. 49 

Bryan  and  McKInley  states  of  1900,  conditions  In 420 

Bryan,  Wm.  Jennings,  speech  on  Parker  etc 52!» 

c 

Cable,  the  Pacific 293 

Panada,  commerce  of  United  Staffs  with,   1850-1903 522 

Canada,    reciprocity   with 45 

Canada,  tariff  of 8 

Canal  Sault  Ste.  Marie,  tonnage  of  vessels,  1800-1903 440 

Canal,  Panama  discussed 207 

Cane  and  beet  sugar  production  of  the  world,  1840-1903 159 

Cannon,  Hon.  J.  G.,  speech  at  Republican  National  Convention,  1904.   479 

Capital  and  labor,  relative  share  In  prosperity 37 

Capital  Invested  in  manufacturing  1850  to  1900 07 

Census  of  1900  on  share  of  manufactures  produced  by  trusts 15 

Census  report  on  irrigation 1G3 

Chamberlain,  Hon.  Joseph,  on  British  prosperity 94 

Cheap  transportation  destroys  natural  protection 6 

Circulation  of  money  in  the  United  States,  July  1st,  1904 397 

Circulation   of  money,   increase,   1896  to  1904 341 

Circulation  of  money  in  the  United  States,   1800-1903 442 

Circulation  of  money  in  United  States,   1850-1904 437 

Civil  service,  the 393 

Clearing  house  returns  in  New  York  and  United  States 112 

Cleveland's  administration,   record  of  trusts 191 

Cleveland  low  tariff  adversity 100 

Coal  consumption  as  a  measure  of  industrial  activity 01 

Coal  consumption  in  free  trade  and  protection  countries 01 

Coal  consumption  In  high  and  low  tariff  countries 12 

Coal,  growth  in  production  in  United  States 39,  01 

Coal,  prices  of  before  and  after  removal  of  tariff 45 

Coal  production  of  United   States,   1850-1903 439 

Coal    strike,    President    Roosevelt's    action 201 

Coinage   of  United   States  mints,    1840-1902 523 

Colonies,  trade  of  Great  Britain  with   its,   1809-1902 321 

Colored  citizens,   problem  of 410 

Colored  employees  in  the  service  of  the  United  States  government. .  42'J 

Combinations,  industrial,  in  England 13 

Combinations,  wages  paid  by,  before  and  after  consolidation.. 230 

Commerce,  effect  of  protection  upon 20,  02 

Commerce,  growth  under  reciprocity 40 

Commerce  and  Labor,  department  of,   its  work  since  organization..   380 

Commerce  of  countries  commercially  adjacent  to  the  Philippines 322 

Commerce  of  gold  and  silver  standard  countries  of  the  world 519 

Commerce  of  the  United  States,  1790  to  1904 128 

Commerce  of  United  States  with  Asia,  1899-1903,  growth  of 322 


INDEX.  Vll 

P4.GE. 

Commerce  of  'United  States  with  Canada 522 

Commerce  of  the  U.  S.  in  American  and  foreign  vessels,  1860-1903..   400 
Commerce  of  U.  S.  compared  with  Germany  and  United  Kingdom..   122 

Commerce  with  countries  protesting  against  Dingley   law 30 

Commerce  with  our  Island  possessions 292 

Commerce  with  Oceania 295 

Commerce  of  the  Orient,  importance  to  the  United  States 291 

Commerce  of  the  Pacific,  development  of 290 

Commerce  of  the   United  Kingdom,   growth  compared   with   U.    S...  122 

Commerce  of  the  United  Kingdom,  with  its  colonies,  1869-1902 321 

Commercial  failures  in  United  States,  1880  to  1903 114 

Commercial  and  financial   statistics  of  principal  countries 445 

Commercial  relations  of  United  States  with  its  islands 318 

Committee,   Republican  National 547 

Committee,   Republican  congressional 548 

Conditions  in  Bryan  and  McKinley  states,  of  1900 426 

Conditions  in  United  States  compared  with  other  countries 122 

Conditions  of  prosperity  1S92-96-1900  and  1903 116 

Congress,   the  58th,   its   work  discussed 427 

Congressional  election  record,   1900-1902 423 

Congressional  Record,   "Extracts  From"   described 4 

Congressional  Record,  "Pages  From"  described 4 

Consumption  of  coal  in  free  trade  and  protection  countries 61 

Consumption  of  cotton   as   test  of  prosperity 102 

Control  of  markets  and  prices  by  corporations 15 

Corn,   average  value  per  bushel,   1870-1903. 441 

Corporations,  bureau  of,   its  work  since  organization 388 

Corporations,  can  they  control  markets  and  prices 15 

Corporations,    Judge  Grosscup   on 16 

Corporations,  President  Roosevelt  on 17 

Cost  of  living  in  United  States  and  England  compared 34 

Cotton  consumed  by  manufacturers  of  United  States,  1850-1903 440 

Cotton  consumption  as  test  of  prosperity 102 

Cotton  industry  of  United  States,  1850  to  1900 92 

Cotton  Manufacturing  development  under  protection S8 

Cotton  production,   manufacture,   importation   and   exportation 92 

Cotton  production  of  United  States,  1800-1903 443 

Cotton  production  of  the  United  States,   1830-1903 440 

Countries  protesting  against  Dingley  law,  trade  with 29 

Crops,  principal,  value  of,  1866-1903 139 

Cuba,  Democratic  record  regarding 288 

Cuba,  naval  stations  in 376 

Cuba  record  of  action  by  United  States 284 

Cuban  reciprocity  and  beet  sugar 156 

Currency  of  all  kinds  in  circulation  July  1st,  1904 397 

Currency   of   13.  principal    countries 525 

Currency   record  of   Republican   and   Democratic   parties 515 

Currency  system  element  of  elasticity   development 343 

D 

Day's  wages,  purchasing  power  of,  1896-1903 211 

Debt  and  wealth  of  leading  nations 124 

Debt  of  United  States,  1800-1903 442 

Debt  of  United  States  1850-1903 437 

Debt  of  U.  S.  1865-1903 135 

Democracy  and  panic  periods 58,  60 

Democratic  adversity,   record   of   1893-96 125 


viii  index. 

Page. 

Democratic  convention  reply  to  Judge  Parker's  telegram.. 511 

Democratic  party,   Its  policy  of  opposition,   Littleton 2 

I  democratic    platform,    iD04 489 

I  democratic  platform  discussed   and  analyzed 496 

Democratic  press  on  exports  below  home  prices 22 

1  democratic  record  in  Cuban   legislation 288 

Democratic  record  on  rural  free  delivery 165 

Democratic  record  on  trusts 168,  101 

Democratic  silver  planks  1896-1900 510 

Democratic  vote  against  gold  standard  act / 508 

Democratic  and  Republican  pension  legislation  record 411 

Democratic  and  Republican  record  on   currency 515 

Democratic  and  Republican   States,  labor  laws  in 236-238 

Department  of  Agriculture,   its   work,   1897-1904 383 

Department  of  Commerce  and   Labor,   Its   work * 386 

Department  of  Commerce  and  Labor,  work  regarding  trusts 176 

Department  of   Interior,   its  work,    1897-1904 379 

Department  of  Justice,   its  work,   1897-1904 362 

Department  of  Justice,   work  regarding  trusts 172 

Department  of  State,   its  work,   1897-1904 334 

Department  of  State,  work  in  the  Orient 324 

Deposits  in  all  classes  of  banks,  1875  to  1903 109 

Deposits  in  Savings  Banks,  1820  to  1903 107,  108 

Deposits,  savings,  in  various  countries 108 

Dingley  law,  imports  of  raw  material  under 42 

Dingley    tariff,    prosperity    urder 12 

Dingley  law,  trade  with  countries  protesting  against 29 

Diplomacy  of  the  United  States  in  Orient 324 

Duties  collected  under  low  and  protective  tariffs 30,  59 

Duties  paid  per  capita  on  imports,  1870  to  1903 133 

E 

Earnings  in  various  occupations,  1903  compared  with  J.896 206 

Earnings  of  railway  employees,  1896  and  1903 236 

Earnings  of  various  occupations,   1890-1903 200-203 

Effect  of  tariff  agitation  on  manufactures  and  business. 47 

Effect  of  protection  on  export  trade 25 

Elasticity   in   currency  system  development 343 

Election  laws  in  the  South  and  North 420 

Election  of  members  of  Congress,  vote  on,  1900-1902 423 

Electoral  votes  by  States,  1864  to  1900 '. 537 

Electoral  and  popular  vote  for  President,  1900 424 

Electors,  number  to  earn  State,  1904 549 

Employers  and  employees  in  United  States,   English  views  on 53 

Employees  of  manufacturing  establishments  in  U.  S.,  1850  to  1900..  67 

Employees  of  railways,  earnings  of  1896  to  1903 * 236 

Employment  and  wages  paid  in  manufacturing,  1850  to  1900 67 

England  and  the  United  States,  wages  of  labor  in 222 

England  and  United  States,  relative  to  industrial  growth 64 

England  and  United  States,  wages  in  cities. 226 

England  and  United  States,  retail  prices  in 227 

England,  experience  with   free  trade 16 

England,  growth  of  wealth  and  manufacturing 38 

England,  imports  and  exports  of  manufactures,  1860  to  1902 40 

England,  sales  abroad  below  home  prices 21 

England,   trusts   in 181 

English    argument  for   protection 57 


Page. 
English  attitude  toward  trusts 13 

English   imports  of  manufactures 8 

English  Iron  and  Steel  Commission  to  United  States 52 

English  Labor  Commission  to  United  States 51 

English  tariff,  detailed  statement 70 

English  tariff  and  revenue  produced  thereby 70 

English  views  of  American  tin  plate  industry 54 

English   view    of   protection 49 

Esopus-St.    Louis    episode    500 

Europe,    trusts    in 180 

European  combinations  against  the  United  States 27 

European  exports  below  home  prices 22 

Excess  of  exports  before  and  since  March  4th,  1897 62 

Exchange  value  of  food  products,  1896  and  1903 216 

Expansion   and   its   results 296 

Expenditures  and  receipts  of  United  States,  1790  to  1903 134 

Expenditures  of  the  United  States  compared  with  other  countries..  115 

Expenditures  of  leading  nations  per  capita 124 

Expenditures  for  military  and  navy  services  of  principal  countries.  .  435 

Expenditures  of  principal  countries  of  the  world,  1880-1903 435 

Expenditures   of   principal   countries   for   navy 378 

Expenses  of  living  in  United  States  and  England  compared 34 

Exportation  of  agricultural  products,  1850  to  1903 130 

Exportation  of  farm  products  under  low  tariff 139 

Exportation  of  manufactures  1850  to  1903 130 

Exports  and  imports  of  the  United  States,  1790  to  1904 128 

Exports  and  imports,  excess  of  under  high  and  low  tariffs 62 

Exports  below  home  prices,  democratic  press  on 22 

Exports  by  England  below  home  prices 21 

Exports  of  U.  S.  to  Grand  Divisions,  1850  to  1903 132 

Exportation  by  great  groups,  1850  to  1903 130 

Exports,  excess  of,  before  and  since  March  4th,  1897 62 

Exports  from  the  United  States,  1850-1904 438 

Exports  from  United  States,  1800-1903 '. 443 

Exports  of  manufactures  below  home  prices 18,  80 

Exports  of  manufactures  from  the1  United  States,  1850-1904 438 

Exports  per  capita,  1870  to  1903 i 133 

Exports  to  Asia  and   Oceania 294 

Exports  to  countries  protesting  against  Dingley  law 30 

Exports  to  the  Orient,  by  articles 294 

Export  trade,  effect  of  protection  on 25 

Exports  under  high  and  low  tariffs  of  United  States 26,  62 

Extension  of  National  bank  system 344 

"Extracts  from  Congressional   Record"   described 4 

F 

Failure  of  crops  not  cause  of  panic  of  1893-4 60 

Failures  in  United   States,   1880  to   1903 114 

Failures,  strikes,  etc.,  1893-1896 125 

Fairbanks,  Hon.  C.  W.,  speech  at  Jackson,  Mich 456 

Fairbanks,  speech  to  Notification  Committee 539 

Farm  animals,  increase  in  value 137 

Farm  animals,  number  and  value,  by  groups,  1875-1903 140 

Farm   animals,   value   of,   1850-1903 440 

Farm  animals,  value  of,  under  four  presidents 141 

Farm  crops,  value  of,  1866-1903 139 

Farm  crops,,  value  of,  1895  to  1903 .- 114 


X  INI" 

Page. 

Farm  earnings  in  manufacturing  and  nonraanufacturing  sections.  . . .   148 

■  products,  exportation  of,  under  low  tariff 130 

Farm  products,  freight  rates  of  18681003 146,  147 

■  products,  price,  by  states,  1802-1003 142,  143 

Farm  products,  prices  compared  with  articles  consumed  1877-1003.144, 145 

Farm  prodm -ts.  purchasing  power  of,  1806  and  1003 217,  210 

l  arm  products,  share  used  by  manufacturers 31 

Farm  values,  growth  of 08 

Farm  values,  increase  in,  since  1895 114 

Farm  values,  Increase  of,  under  Republican  administration 136 

Farmers  benefited  by  return  to  protection 103 

Farmer,  relation  of  manufacturing  to 91 

Farmer's  prosperity  under  Republican  administration 136 

Farmer,   value  of  factory  to 148 

Fifty  years  of  Republican  party,  Hon.  John  Hay 456 

Fifty-eighth  Congress,  Its  work 427 

Financial,  commercial  and  industrial  conditions,  1802  to  1003 116 

Financial  and  commercial  statistics  of  principal   countries 445 

Financial  record  of  the  Republican  and  Democratic  parties 515 

Food  in  England,  prices  of,  increase  in 225 

Food  products,  exchange  value  of,  1806  and  1003 215 

Food  purchased  with  one  day's  wages,  by  articles,  1806-1003 211 

Food,  relative  prices,  1800-1003 200 

Foreign  carrying  trade  in  American  and  foreign  vessels,  1860-1003..   406 

Foreign  commerce  of  the  United  States 128 

Foreign  countries,  tariffs  of 7 

Foreign  sales  below  home  prices 18,   80 

"Free  raw  materials"  under  Dingley  and  Wilson  laws 42 

Free  trade  between  the  U.  S.  and  Porto  Rico,  Hawaii,  and  Alaska. . .   207 

Free  trade  destructive  In  England 16 

Free  trade,   English   arguments   against 57 

Freight  rates  on  farm  products,  1868-1003 146,  147 

France,  tariff  of 7 


Q 

Garfield,   Hon.   James  A.,  on  great  corporations 180 

German-Americans   for    Roosevelt 432 

Germany,   tariff  of 7 

Germany,  wages  affected  by  protection 63 

Gold  certificates  in  circulation  in  United  States,  July  1st,  1004 307 

Gold,  excess  of  Imports  over  exports,  1850-1003 439 

Gold   imports   and   exports 521 

Gold  in  circulation  in  United  States  July  1st,  1004 397 

Gold  and  sliver  production  of  the  world,  1403-1002 524 

Gold  and  silver  standard  countries  of  the  world,  their  commerce 51.0 

Gold  and  silver  produced  by  principal  countries  1002 524 

Gold  and  silver  productions  in  the  United  States,  1402-1003 520 

Gold  standard  act,  Democratic  vote  against 508 

Gold  standard  act,  copy  of r)12 

Government  expenditures  of  the  United  States,  1850-1003 437 

Government  receipts  under  low  and  protective  tariffs 30    50 

Gray,  Judge,  on  President's  attitude  in  coal  strike 2G3 

Great  Britain,  Chamberlain  and  Balfour  on  lack  of  prosperity 04 

Great  Britain,   labor  conditions  in 34 

Great  Britain,  trade  with  its  colonies,  1860-1002 321 


Page. 

Great    Britain,    trusts    in 13 

"Greenbacks"  in  circulation,  July  1st,  1904 397 

Grosscup,    Judge,    on    corporations 16 

Growing  demand  for  tropical  products  in  the  United  States 292 

Growth  of  exports  to  Asia  and  Oceania 294 

Growth  of  exports  under  protection 26,   62 

Growth  in  imports  and  exports  of  manufactures,  England  and  U.  S. .     41 

Growth  of  wealth  in  United  States  and  other  countries 37,  38 

Growth  of  wealth  under  protection 98 

Guenther,  on  European  exports  below  home  prices 22 

H 

Hanna,  Marcus  A.,  last  words  of  advice  to  the  party  and  people. . . .   452 

Hawaiian  Islands,   commerce  with,   1897-1903 319 

Hawaiian  Islands,  Philippines  and  Porto  Rico,  conditions 299-322 

Hawaiian  Islands,  work  of  United  States  in 311 

Hay,  Hon.  John,  speech  at  Jackson,  Mich 456 

History  of  Republican  party,  Hon.  John   Hay  on 456 

History  of  Republican  party,    Senator  Fairbanks  on 464 

Home  market,  equals  world's  international  commerce 32 

Home  markets,  value  under  protection 31,  32 

Homestead  entries  in  United  States,  1890-1903 441 

I 

Immigrants  arriving  in  United  States,  1850-1903 441 

Importation  of  manufacturers'  materials,  1850  to  1903 129 

Importation,  production  and  consumption  of  sugar,   1880-1903 158 

Imports  and  exports  of  gold  coin  and  bullion,  1825-1903 521 

Imports  and  exports  of  United  States,  1790  to  1904 128 

Imports  by  Grand  Divisions,  1850  to  1903. 131 

Imports  into  the  United  States,   1850-1904 438 

Imports  into  United  -States,  1800-1903 443 

Imports  of  material   for  manufacturing,    1850-1903 439 

Imports  of  the  United  States  by  great  groups,  1850  to  1903 129 

Imports,    prices   advance   in 244 

Imports,  tropical  into  the  United  States,  by  articles,  1870-1903 ....  320-321 

Increase  and  decrease  of  earnings,  1890-1903 204 

Increase  in  prices  of  food  in  England 225 

Increased  earnings  of  various  occupations,  1896-1903 206 

Industrial   combinations,  effect  on   wages 230 

Industrial  combinations  in  England v 13 

Industrial  Commission  on  trusts  abroad 14 

Industrial  Commission  on  prices  in  foreign  markets 18-80 

Industrial  growth  in  England  and  United  States 64 

Industrial  life  insurance  under  high  and  low  tariffs 33 

Industrial  life  insurance  in  force  in  United  States,  1880-1902 438 

Insular   tariff    cases 362 

Insurance,   life,   in  force  in  United  States,   1850-1902 438 

Interdependence  and  home  exchange  under  protection 32 

Interest  charge,   United   States,   per  capita,  1850-1903 437 

Interest  on  public  debt,   1865-1903 135 

Interest  charge  on  public  debt  of  United  States,  1850-1903 437 

Interior   Department,    its   work,   1897-1904 379 

Interstate  commerce  commission,  its  work 395 

Investigation    of    Post-Office    Department 367 

Iron  and  coal  as  an  index  of  prosperity 99 

Iron  and  steel  consumption  in  United  States  and  other  countries....     78 


XII  INDI.X. 

Page. 
Iron  and  steel  Industry  In  the  United  tSates 77 

Iron  and  steel,  share  produced  by  steel  corporation 15,  05 

Iron  ore,  prices,  1898  to,  1903 83 

Irrigation,  President  Roosevelt  on HH),  1G2 

Irrigation  statistics,   what  has  been  accomplished li;.". 

Islands  of  the  United  States,  commerce  with 318 

Island  territories  of  the  United  States,  conditions 29,9  322 

Isthmian  canal,  advantage  to  western  ports 296 

Isthmian   canal   discussed 1M!7 

Italy,    tariff    of 7 

J 

Jarrett  on  English  exports  below  home  prices 21 

Jeans,  English  steel  expert,  on  manufacturing  In  United  States 52 

Jenks,   Prof.,   on  trusts   abroad 14 

Jewish  citizens,  passports  question  discussed 526 

Judge  Gray  on  President's  attitude  in  coal  strike 263 

Justice,  Department  of,  its  work,  1897-1904 362 

L 

Labor  and  capital,  relative  share  in  prosperity 37 

Labor  conditions  in  Great  Britain 34 

Labor  and   protective   tariff 33 

Labor  Bureau  reports  by  states 231 

Labor  Commission,  English,  visit  to  United  States 51 

Labor,  effect  of  trusts  on 227 

Labor  in  United  States,  English  views 53 

Labor  in  United  States  and  England,  wages  of 222 

Labor  laws  in  Republican  and  Democratic  states 236-238 

Labor,  relative  compensation  in  United  States  and  England 36 

Labor,  wages  and  prices 200 

Land  frauds,  work  of  Interior  Department  regarding 379 

Last  speech  of  Marcus  A.   Hanna 452 

Last  speech  of  Wm.   McKinley 449 

Laws  enacted  by  Republican  party 332 

Laws,  labor  in  Republican  and  Democratic  states 236-238 

Leather  manufactures,  prices  not  affected  by  tariff  on  hides 44,  46 

Legislation,    Republican,    on    labor 332 

Life  insurance  in  force  in  United  States,  1850-1902 438 

Life  insurance,  industrial,  under  high  and  low  tariffs 33 

Lincoln  on  tariff 48 

Littleton,  Hon.  Martin  W.,  on  Democratic  party 2 

Live  stock  on  farms,  value  of  under  four  Presidents 141 

Live  stock  on  farms,  number  and  value  of,  by  groups,  1875-1903 ....    140 

Living,  cost  of  in  United  States  and  England  compared 34 

Living,  cost  of,  compared  with  wages 208 

Losses  of  wage  earners  under  low  tariff 100 

M 

Manufactures,  annual  value  of  products 150 

Manufactures  exported  from  the  United  States,  1850-1904 438 

Manufactures  exported  from  United  States,   1800-1903 443 

Manufactures,   exports   of 130 

Manufactures,  exports  less  than  home  prices 18-80 

Manufactures,  imports  and  exports,  England  and  U.  S.,  1860  to  1903.     41 
Manufactures,  imports  and  exports  of  England,  1860-1902 40 


INDEX.  Xlll 

Page. 

Manufactures,  imports  into  Great  Britain 8 

Manufactures  of  the  United  States  by  great  groups  in  1900 150 

Manufactures  of  leading  countries  compared  with  United  States 124 

Manufactures  in  the  United  States,  value,  1850-1900 150 

Manufactures,  prices  not  controlled  by  trusts 44 

Manufactures,  relative  growth  under  high  and  low  tariffs 38 

Manufactures,  value  of  product  in  United  States,  1850  to  1900 67 

Manufacturer's  materials,  advance  in  prices  of 242 

Manufacturer's   material   imported,   1850*1903 439 

Manufacturers,  use  of  farm  products  by 31 

Manufacturing  in  the  United  States,  capital,  wages,  etc.,  1850  to  1900  6T 

Manufacturing  in  United  States,  Moseley  commission  on 51 

Manufacturing,  progress  in  the  United  States,  1850  to  1900 .  67 

Manufacturing,   value  to  the  farmer 148 

Markets,   can  corporations  control 15 

Markets  supplied  by  islands  of  United  States 318 

Materials  for  use  in  manufacturing  imported  into  U.   S.,  1850-1903..  439 

Materials  for  use  in  manufacturing,  imported,  1850-1903 439 

Materials  used  in  manufacturing,  1850  to  1900 67 

McKinley,  Wm.,  last  speech  of 449 

McKinley  tariff,  prosperity  under 12 

McKinley  and  Bryan  states  of  1900,  conditions  in 426 

Merchant  marine  of  United  States  and  the  world 398 

Merger  suit,  what  it  saved 193 

Merger  case,  New  York  World  on 196 

Military  and  naval  expenditures  of  leading  countries 435 

Military  service,  its  work,  1897-1904 348 

Mineral  productions  as  test  of  prosperity 102 

Mineral  production  of  the  United  States,  1870-1903 440 

Mints,  United  States,  coinage  of,  1846-1902 523 

Money  in  circulation  in  United  States,  1800-1903 442 

Money  in  circulation  in  United  States,  1850-1903 437 

Money  in  circulation  in  United  States,  July  1st,  1904 397 

Money  in  circulation,  increase,   1896  to  1904 341 

Money  in  13  principal  countries  of  the  world,   1873  and  1902 525' 

Money  supply,   elasticity  in  system,   development  of 343 

Moseley  commission  to  United  States,  views  of  members 51 

Moseley,  English  manufacturer  on  United  States 35,  50 

Mulhall  on  Protection  in  United  States 95 

N 

National  banks,  1863  to  1903 110 

National  bank  notes  in  circulation,  July  1st,  1904 397 

National  banks  organized  since  March  4th,  1900 346 

National  bank  system,  its  extension 344 

National   bank   statistics,   1904 121 

National  expenditures  of  leading  nations  compared,  per  capita . .   124 

National  expenditures  of  leading  countries,  per  capita • 115 

Natural    protection    destroyed   by    cheap   transportation 6 

Naval  expenditures  of  principal  countries 378 

Naval  and  military  expenditures  in  leading  countries 435 

Naval  stations  in  Cuba 376 

Navy  Department,   work   of,   1897-1904 371 

Netherlands,    tariff    of 7 

New  York  World  on  Merger  case 196 

New   Zealand,  tariff  of 8 


XIV  INDEX. 

Page. 
Noncontiguous  territories  of  the   United   States,  conditions 299-322 

Nondurable   articles,   advance   in   prices 119 

Northern  securities  decision 177 

Norway,   tariff  of 7 

Number  of  persons  engaged  In  manufacturing,  1850  to  1900 67 

o 

Ocean  mall  service  payments  by  U.  S.  and  United  Kingdom,  1848-1903.  407 

Oceania,    commerce    with 295 

Old  age  pension  order,  Gen.  Sickles  on 412 

Old  age  pension  order,  Secretary  Hitchcock  on 413 

Old  age  pension  order  issued  by  Lochran,  in  1893 414 

Open  shop  order  of  President  Roosevelt 259 

Organization  and  reduction  of  the  army 348 

Orient  exports  to,  by  articles 294 

Orient,  importance  of  its  commerce  to  the  United  States 291 

P 

Pacific,  the,  development  of  commerce  on 290 

Pacific  cable   293 

Pacific  coast  brought  nearer  European  markets  by  canals 296 

"Pages  from  Congressional  Record"  described 4 

Panama  Canal,  advantage  to  Western  ports 296 

Panama    Canal    discussed 267 

Panama  Canal,  distance  between  ports  via 283 

Panama,  extract  from  President's  message  on 276 

Panama  Republic  recognized  by  foreign  governments 274 

Panama,    Secretary    Root    on 274 

Panic  of  1893-4  not  due  to  crop  failures 60 

Panic  periods  and  Democracy 58,     60 

Parker  and  trust  managers .' 198 

Parker   and   the   trusts 506 

Parker,   Wm.  Jennings   Bryan  on 529 

Parker's  letter  on  his  vote  for  free  silver,  1896-1900 500 

Parker  telegram  to  St.  Louis  convention 511 

Parker  ;  speech  to  Notification  Committee 541 

Passports  and  protection  to  American  citizens  of  all  classes 526 

Pensions,   cost  of,   1866-1903 410 

Pensions   and   pensioners 408 

Pension  legislation,  Republican  and  Democratic  record  contrasted....  411 

Pension  Order  No.  78,  Secretary  Hitchcock  on. 413 

Pension  Order  No.  78,  General  Sickles  on 412 

Pensioners,   number  on  the  roll,   1866-1903 410 

People's   party,   platform   of,   1904 494 

Per  capita  of  exports  and  imports,  1870-1903 133 

Per  capita  of  imports  and  duties  paid,  1870-1903 133 

Per  capita  of  national  debt  and  interest,  1865-1903 135 

Per  cent  of  increase  or  decrease  in  hours  of  labor 205 

Per  cent  of  world's  sugar  production  by  beet  and  cane,  1840-1903.  .    159 

Philippines,    commerce    with,    1897-1903 319 

Philippines,  commerce  of  countries  commercially  adjacent  to 322 

Philippine  Islands,  work  of  the  United  States  army  in 350 

Philippines,  work  of  United  States  in 299-311 

Philippines,  Porto  Rico,  and  Hawaiian  Islands,  conditions 299-322 

Pig  iron,  growth  in  production  in  United  States 39,     78 

Pig  iron,  production  of  the  United  States,  185&1903 439 


INDEX.  XV 

Page. 

Platform  of  Democratic  party,  1904 489 

Platform  of  Democratic  party  discussed  and  analyzed 496 

Platform  of  the  People's  party,  1904 494 

Platform  of  Republican  party,  1904 485 

Popular  and  electoral  vote  for  President  by  states,  1900 424 

Popular  and  electoral  vote  for  President,  1856  to  1900 425 

Population  of  the  United  States,  1850-1903 437 

Population,  wealth,  and  area,  etc.,  of  the  United  States,  1800-1903. .  442 

Populist  party,  platform  of,  1904 494 

Porto  Rico,  commerce  with,   1897-1903 319 

Porto  Rico,  work  of  United  States  in 313 

Porto  Rico,  Hawaiian  Islands,  and  Philippines,  conditions 299-322 

Portugal,  tariff  of 7 

Post-Office  Department,  its  development,  1790-1903 370 

Post-Office  Department,  its  work,  1803-1904 366 

Post-Office   Department   investigation 367 

Post-Office  Department,  revenues  of,  1790-1903 370 

Post-offices,  number  in  United  States,  1790-1903 370 

Post  routes  in  United  States,  length  of,  1790-1903 370 

Postal  fraud  case,  result  of 368 

Postal  investigation,  result  of  cases  tried 368 

Postal  receipts,  1893-1904 306 

Postal  statistics  of  United   States,   1790-1903 370 

President  Roosevelt's  administration,  record  of 252 

President  Roosevelt  and  the  coal  strike 261 

President   Roosevelt    on    irrigation 160,  162 

President  Roosevelt  on  public  lands 160 

Presidential  vote,  electoral  and  popular,  1900 424 

Presidential  vote,  electoral  and  popular,  1856-1900 125 

Prices,  1880-1903,  annual  average 245 

Prices,   advance  of,  in  articles  imported 244 

Prices,  advance  is  chiefly  in  natural  products 247 

Prices  and  advance  in  other  countries 243 

Prices  and  relation  of  trusts  thereto 15 

Prices  and  tariff,  English  views  on 55 

Prices  at  home,   does  protection  increase 43 

Prices,    can   corporations   control 15 

Prices,   does  tariff  control 119 

Prices  not  controlled  by  trusts , 44 

Prices  of  articles  of  farm  production  and  consumption,  1877-1903. .  144,  145 

Prices  of  boots  and  shoes,  1897-1904 66 

Prices  of  coal  before  and  after  removal  of  tariff 45 

Prices  of  cotton  and  cotton  goods  in  United  States,  1880-1003;. 93 

Prices  of  farm  products  by  states,  1892-1903 142,  143 

Prices  of  food  in  England,  increase  in 225 

Prices  of  manufactures  reduced  by  domestic  prosperity 99 

Prices^  of  iron  ore,   1898-1903 83 

Prices  of  tin  plate  and  fall  under  protection 85 

Prices  of  trust-made  articles,  decline  in 118 

Prices,   relative,   of  food,   1890-1903 209 

Prices,  retail,  in  United  States  and  England 227 

Prices,  wages,  and  labor 200 

Problem  of  our  colored  citizens 416 

Production  of  gold  and  silver  in  the  world,   1493-1902 524 

Production  of  gold  and  silver  by  principal  countries.  1902 524 

Production,  importation,  and  consumption  of  sugar,  1880-1903 158 

Production  of  minerals  as  test  of  prosperity 102 


XVI  INDEX. 

Page. 

Progress  of  manufacturing  in  the  United  States,  1850-1900 t>7 

Progress  of  United  States  in   area,   population,   etc.,   1800  loo:;.  ..  .  I  ij 

Progress  of  United  States  In   its  material   industries 487440 

Promise  of  tariff  changes  causes  immed'ate  check  in  prosperity....  LOO 

Prosperity  and  relation  to  the  various  tariffs  of  the  United  States,  i  86 

Prosperity,  conditions  in  1892-96,  1900-03 110 

Prosperity  in  the  United  States !)  I 

Prosperity  of  the  farmer  under  Republican  adniiuislr.it  ion i;;r, 

Prosperity  permanent  under  permanent  protection 07 

Prosperity,  return  of,  under  DIngley  tariff 101 

Prosperity,  relative  growth  by  labor  and  capital 37 

Prosperity  under  Roosevelt's  administration 104 

Prosperity  under  present  tariff 12 

Prosperity  vs.  adversity  in  three  presidential  periods 105 

Protection  and  development  of  Iron  and  steel  industry 77 

Protection  and  labor 33 

Protection  as  viewed  by  English  Steel  Commission 52 

Protection  as  viewed  by  Moseley  Commission 51 

Protection,   British   view  of 49 

Protection  does  not  increase  home  prices 43 

Protection,  effect  on  steel  rail  industry 78 

Protection,  effect  on  export  trade 25 

Protection,   English  arguments   for 57 

Protection,   growth  of  exports  under 26,  f>L> 

Protection  in  Germany  and  effect  on  wages 63 

Protection,  natural,  destroyed  by  cheap  transportation (5 

Protection,  permanent,  gives  permanent  prosperity 97 

Protection  reduced  prices  of  steel  rails 43 

Protective  tariff  as   revenue  producer 30,  59 

Protection,  value  to  sheep  and  wool  industry .■ 151 

Public  buildings,  new,  erected  in  United  States  since  1897 342 

Public  debt  of  United  States,  1865-1903 131 

Public  debt  and  wealth  of  principal  countries 109 

Public  lands,  president  Roosevelt  on 160 

R 

Rails,  steel,  exports  below  home  prices 23 

Rails,  steel,  prices  reduced  under  protection 43 

Rails,  steel,  production,  tariff,  and  prices,   1867-1903 82 

Railroads,    earnings,    passenger,   freight    carried,    etc.,    1885-1902. . .  .  440 

Railroads  placed  under  receivership  and  sold,  1876  to  1903 112 

Railway  employees,  earnings  of,  1896  and  1903 236 

Railways  In  length,  business  transactions,  etc.,  1883-1902 4t4 

Railway  legislation,   recent 395 

Railway  regulations,  work  of  interstate  commerce  commission 395 

Rates  of  freight  on  farm  products,  1868-1903 146,  147 

Raw  materials,  advance  in  prices 242 

Raw  material,  importations  under  Dingley  law 42 

Raw  silk,  imports  into  United  States,  1870-1903 440 

Receipts  and  expenditures  of  United  States,  1790-1903 134 

Receipts  of  the  Post-Office  Department,  1893-1904 306 

Receipts  of  United  States  Treasury,  1850-1903 437 

Receivership,  railroads  placed  under,  1876-1903 112 

Reciprocity,  Blaine  on 45 

Reciprocity,  commerce  with  Canada  during 522 


.. 

INDEX.  XV11 

I 

Page. 

Reciprocity,  Democratic   46 

Reciprocity,  Democratic  platform  of  1892 47 

Reciprocity,  Democratic  text-book  of  1902  on 47 

Reciprocity,  expenses  of  United  States  with 45 

Reciprocity,  growth  of  commerce  under 46 

Reciprocity,   Hawaiian  Treaty 46 

Reciprocity,   McKinley  on 45 

Reciprocity,   Republican   45 

Reciprocity,  treaties  under  McKinley  law 46 

Recognition   of   Panama  by   foreign   governments 274 

Record  of  Republican  and  Democratic  parties  on  currency 515 

Record  of  two  parties  on  rural  free  delivery '. 165 

Record  of  two  parties  on  trust  legislation 168 

Reduction  and  organization  of  the  army 348 

Relative  prices  of  food,  1890-1903 209 

Relative  value  of  lands,  manufacturing  and  other  sections 148 

Retail  prices  in  England  and  United  States 227 

Retaliation,   tariff,   by  foreign  countries 27 

Reports  of  State  Labor  Bureau 231 

Republican  and  Democratic  record  on  currency 515 

Republican  and  Democratic  record  on  pension  legislation 411 

Republican  and  Democratic  states,  labor  laws  in 236-238' 

Republican    legislation    . . . ; 332 

Republican  congressional  committee 548 

Republican  national   committee. J 547 

Republican  party,  some  of  the  things  for  which  it  stands 329 

Republican  party,  50  years  of,  Hon.  John  Hay  on 456 

Republican  party,  50  years  of,  Senator  Fairbanks  on 464 

Republican  platform,  1904 485 

Republican  record  on  rural  free  delivery 165 

Republican   record  on   trusts 168 

Republic  of  Panama  recognized  by  foreign  governments 274 

Result  of  expansion 296 

Returns  of  clearing  house  in  New  York  and  United  States 112 

Revenue  under  British  tariff 70 

Revenue  of  United  States  under  low  and  protective  tariffs,  1790-1903.     59 

Revenues  of  the  Post-Office  Department,  1790-1903 370 

Revenue  production  under  low  and  protective  tariffs 30,     59 

Revision  of  present  tariff 13 

"Rich  growing  richer  and  poor  poorer" 37 

River  and  harbor  improvements  under  United  States  army 357 

Roosevelt's  administration,  record  of 252 

Roosevelt,  extract  from  message  on  Panama 276 

Roosevelt,  German  Americans  for 432 

Roosevelt's  labor  record 258 

Roosevelt,  President,  on  trusts  and  corporations 17 

Roosevelt  on  trusts  and  corporations 171 

Roosevelt,  prosperity  under  his  administration 104 

Roosevelt,   speech  to  notification  committee 530 

Roosevelt,  Theodore,  personal  history  and  record 248 

Root,  Hon.  Elihu,  speech  at  Republican  National  Convention,  1904...  466 

Rural  free  delivery,  appropriations  of  1904 167 

Rural  free  delivery,  record  of  two  parties  on 165 

Rural  free  delivery,  work  of  Post-Office  Department  in 366 

Russia,  passports  and  persons  visiting 526 

Russia,  tariff  of 7 


XVU1  INDEX. 

Sai<s  abroad  beibvi   borne  prices is.    s6 

Sales  to  Asia  and  Oeeanii -jui 

sales  to  eouotrlei  protesting  aga'lnsl  Dlngley  law go 

Sau it  Ste.  Marie  Caual,  tonnage  of  vessels,  I860  r.ui:; in 

Savings    bank    deposits,     1820-1908 Iu7,    ins 

Savings  bank  deposits  under  hi^li  and  low  tariffs ;;;; 

Savings  deposits'  in   various  countries 108 

Share  of  iron  and  steel  mfrs.  produced  by  Steel  Corporation 06 

Share  of  iron  and  steel  produced  by  steel  corporation 15 

Share  which  manufactures  form  of  imports,   1870-11)03 !.;:; 

Shaw,  Hon.  L.  M.,  on  Democratic  trust  record i:n 

BhaWi  Hon.  L.  M.,  on  exports  below  home  prices 18 

Sheep  and  wool  Industry,  1878-1900 lift) 

Sheep  and  wool  industry  of  United  States 151 

Sheep  on  farms  and  wool  production  and  importation 154 

Shipping  of  the  United  States  and  the  world 398 

Shipping  of  the  world  in  1904,  by  countries 405 

Sickles,  Gen.  Daniel  E.  on  old  age  pension  order 412 

Silk  industry  of  U.  S/,  1850  to  1900 92 

Silk  manufacturing  and  development  under  protection 90 

Silver  and  gold  produced  by  principal  countries,  1902 524 

Silver  and  gold  productions  in  United  States,  1492-1902 520 

Silver  and  gold  production  of  the  world,  1493-1902 524 

Silver  certificates  in  circulation  July  1st,  1904 397 

Silver  dollars  in  United  States  and  in  circulation,  July  1st,  1904 397 

Silver  plank  of  Democratic  platform  1896-1900 ! 511 

Silver,  subsidiary  in  circulation   July  1st,   1904 397 

South  African  tariff : 8 

South,  election  laws  in 420 

Spain,  tariff  of 7 

Spain,  tariff  of 8 

Speech  of  President  Wm.  McKinley,  at  Buffalo 449 

Speech  of  Hon.  Elihu  Root,  at  Republican  National  Convention,  1904.   466 

St.    Louis-Esopus    episode 500 

St.  Louis  platform,  rejected  gold  plank 511 

States,  bank  deposits  in  each",  1892-96-1903 113 

State  Department,  its  work,  1897-1904 334 

State  Department,  its  work  in  the  Orient 1 324 

State    Labor   Bureau    reports 231 

Steel  and  iron,  share  produced  by  steel  corporation 15 

Steel  production  of  the  United  States,  1870-1903 439 

Steel  rails,  exports  below  home  prices 23 

Steel   rail   industry,    effect   of   tariff  on 78 

Steel  rails,  prices  reduced  under  protection 43 

Steel  rails,  produced  in  United  States,  1870-1903 439 

Steel  rails,  production,  tariff  and  prices,   1867  to  1903 82 

Strike  of  Coal  miners,  President  Roosevelt's  action 261 

Subsidies  and  payments,  Ocean  mail  service,  England  and  U.  S 407 

Subsidiary  silver  in  circulation,  July  1st,  1904 397 

Sugar  production,   importation  and  consumption,   1880-1903 158 

Sugar  production  in  the  United   States 157 

Sugar,  world's  production  of,  1880-1903 158 

Sugar,  world's  production  of  beet  and  cane  sugar,  1840-1903 159 

Summarization  of  earning  power  in  food  products,  1890-1903 213 

Swank  on  exports  below  home  prices 25 

Sweden,  tariff  of 7 

T 

Taft,  Hon.  Wm.  H.,  on  conditions  in  Philippines 309 

Tariff  agitation,  effect  of  on  manufactures  and  business 47 

Tariff  and  prices  of  coal 45 

Tariff  and  prices,    English   views   on 55 

Tariff   and    trusts 13 

Tariff  and  trusts,  Hon.  W.  B.  Allison  on 195 

Tariffs   and  trust,   English   views   on 55 

Tariff   discussed 5-65 

Tariff  does  not  control  prices 119 

Tariff,  effect  on  Steel  Rail  Industry 78 

Tariff,  Lincoln  on 48 


Page. 

Tariffs  of  foreign  countries 7 

Tariff  of  the  United  Kingdom 70 

Tariffs  of  the  United  States  and  their  relation  to  prosperity 96 

Tariffs  of  the  United  States,  historical 8-12 

Tariffs  of  U.  S.,  1789  to  1903 .  .  .. 56 

Tariff  of  1894,  adversity  under 100 

Tariff  relations  between  the  United  States  and  its  island  territories.  .  296 

Tariff  retaliation  by  European  countries. . 27 

Tariff  revision 13 

Textile  industry  development  under  protection .' 88 

Textile  industry  of  U.  S.,  1850  to  1900 92 

The  army,  its  work,  1897-1904 348 

Theodore  Roosevelt's  record  and  personal  history.- 248 

The  Orient,  American  diplomacy  in 324 

The  Pacific,  development  of  its  commerce 290 

Things  for  which  the  Republican  party  stands 329 

Tin  plate  industry  in  United  States,  English  views  on 54 

Tin  plate   prices   and   fall  under   protection 85 

Tin  plate  prices  in  United  States  and  United  Kingdom 84 

Tin   plate  production   in   United  States   and  England 36-54 

Tin  plate  productions  in  United  States  and  United  Kingdom 84 

Trade  of  countries  commercially  adjacent  to  Philippines 322 

Trade  relations  of  United  States  with  its  islands 318 

Trade  with  countries  protesting  against  Dingley  law 30 

Trade  with  our  Island  possessions 292 

Transportation,  low  rates  destroy  natural  protection 6 

Treasury  Department,  its  work,  1897-1904 340 

Treasury  receipts  of  United  States,  1850-1903 437 

Tropical  imports  into  the  United  States,  by  articles,  1870-1903. . .   320-321 

Tropical   products,   growing   demand   for 292 

Tropical  requirements  of  the  U.  S.  supplied  by  island  possessions.  ..  .  292 

Trusts  and  control  of  prices 44 

Trusts  and   industrial   combinations  discussed 168 

Trusts  and  Judge  Parker 506 

Trust  and  labor,  effect  of  wages 227 

Trusts  and  prices 15 

Trusts  and  prices  of  sales  abroad 18,  80 

Trusts   and   tariff 13 

Trusts  and  tariff,  Hon.  W.  B.  Allison,  on 195 

Trusts   and  tariff,   English   views   on •.  .  .  .  55 

Trusts,  attitude  of  the  two  great  parties  on 179 

Trusts,' can  they  control  markets  and  prices 15 

"Trust   controlled"   articles   reduced   in   prices 119 

Trusts,  do  they  control  prices? 118 

Trusts,   English  attitude  toward 13 

Trusts   in   England 13 

Trusts   in   Europe 180 

Trusts  in  Europe,  Industrial  Commission  on 14 

Trusts    in   the    United    Kingdom 181 

Trusts.    Judge    Grosscup    on 16 

Trust  made  articles,  decline  in  prices 118 

Trust  officials  and  Parker  candidacy 198 

Trusts,   President  Roosevelt  on 17 

Trusts,  record  of  Cleveland's  administration  on 191 

Trusts,   share  of  manufactures  produced   by  them 15 

Trusts,  wages  paid  before  and  after  consolidation 230 

Trade  with  the  island  territories  of  the  United  States .' 296 

Trusts,  work  of  the  Department  of  Justice 170,  172 

u 

United  Kingdom,  growth  of  wealth  and  manufactures 38 

United  Kingdom,  imports  of  manufactures 8 

United  Kingdom,  imports  and  exports  of  manufactures,  1860  to  1902     40 

United  Kingdom,  labor  conditions  in 34 

United  Kingdom  tariff  and  revenue 70 

United  Kingdom  trade  with  its  colonies,  1869-1902 321 

United  Kingdom,  trusts  in 181 

United  Kingdom,  trusts  in 13 

United  States  and  England,  retail  prices  in 227 

United  States  and  England,  wages  in  cities 226 

United  States  and  England,  wages  of  labor  in 222 


XX  INDEX. 

United  States,  business  success,  views  of  Bismarck,  and  Mulhall  on..  95 

United    States,    coriunerce   with    Canada 522 

United  States,  conditions  in,  compared  with  other  countries 122 

United  States,   debt  of,   1850-1003 437 

United  States,  expenditure!  compared  with  other  countries 115 

United  States,  exports  of  manufactures  from,  1850-1004 438 

United  States  government  expenditures,  1850-1903 437 

United  States,  growth  of  wealth  and  manufactures 88 

United  States  Imports  and  exports,  1850-1904 438 

United  States  notes  in  circulation  July  1st,  1904 397 

United  States  progress  in  its  material  Industries,  1850-1903 437 

United  States,  silver  and  gold  productions,  1492-1902 520 

United  States  Steel  Corporation,  its  share  in  steel  output  of  U.  S. ..  15 

United  States  steel  corporation,  share  of  iron  and  steel  produced  by. . .  65 

United  States  tariffs,  effect  on  export  trade 26,  62 

United  States  tariff  history 8-12 

United  States  Treasury  receipts,  1850-1903 437 

United   States,   United   Kingdom   and   Germany,   coal,   consumption . .  61 

V 

Value  of  the  factory  to  the  farmer 148 

Value  of  home   market 32 

Value  of  manufacturing  Interest  to  farmer 31 

Value  of  principal  farm  crops,  1895  to  1903 114 

Value  of  protection  to  sheep  and  wool  industry 151 

Vessels  of  U.  S.  in  foreign  and  domestic  trade,  1860-1903 405 

Victories   of  our   Eastern   diplomacy 324 

Vote  for  representatives  in  Congress,  1900-1902 423 

Vote  for  President,  1856-1900 425 

Vote  for  President  by  states  in  1900 424 

w 

Wage  earners  and  losses  under  low  tariff 100 

Wage  earners  employed  In  manufacturing,  1850  to  1900 67 

Wage  increase  and  decrease,   1890-1903 204 

Wages,  abroad  and  at  home 63 

Wages  and  cost  of  living,  1896-1903 208 

Wages,  effect  of  trusts  on 227 

Wages  in  cities  of  the  United  States  and  England 226 

Wages  in  Germany,  affected  by  protection 63 

Wages  in  United  States  and  England 36 

Wages,  labor  and  prices , 200 

Wages  of  labor  in  the  United  States  and  England 222 

Wages  of  various  occupations,  1890-1903 200-203 

Wages  paid  in  tin  plate  manufacturing,  U.  S.  and  United  Kingdom..     86 

Wages  paid  by  trusts  before  and  after  consolidation 230 

War  Department,   its  work,   1897-1904 347 

Wealth  and  debt  of  leading  nations 124 

Wealth  and  public  indebtedness  of  principal  countries 109 

Wealth,   growth   of,    under   protection 98 

Wealth  of  United  States,  growth  of 37,  38 

Wealth,   population   area,   etc.,   of  United   States,   1800-1903 442 

Western  coast  brought  nearer  European  markets  by  canals 296 

Wheat,   average   value   per  bushel,    1870-1903 441 

Wheat,  corn  and  oats,  production  and  farm  prices,  1885  to  1903....     60 

Wheat  crop  of  the  United  States  and  the  world,  1877,  1903 141 

Wheat  production,  export  and  consumption  of  in  U.  S.,  1877-1903..   141 

Wilson  law,  imports  of  raw  material  under 42 

Wool  consumption  in  United  States,  per  capita 133 

Wool  industry  of  United  States,  1850  to  1900 92 

Wool .  manufacturing  development  under  protection 89 

Wool,   production,  importation  and  consumption 154 

Wool  production  of  the  United  States,  1850-1903 440 

Work  of  the  58th  Congress  discussed 427 

Workingmen  and  capital  in  United  States,  English  views  on 53 

Workingmen,  wages  in  United  States  and  United  Kingdom 36 

World's  production  of  sugar,   1880-1903 158 

World's  production  of  beet  and  cane  sugar,  1840-1903 159 

World's  shipping  by  countries  and  classes  of  vessels,  1904 405 


TABLES.  XXI 


TABLES. 

Page. 
Exports  to  the  countries  protesting  against   the   Dingley   law 30 

National   wealth  of  the  United  Kingdom,   Germany  and   the  United 

States,    1870   to    1903 38 

i 
Share    which    manufactures    form    of    the    imports    and    exports    of 

Great    Britain,    1860   to   1902 40 

Exports  of  manufactures  from  Great  Britain  and  the  United  States 

respectively,    1860   to   1902 41 

Imports  of  manufactures  into  Great  Britain  and  the  United  States 

respectively,   1860   to   1902 41 

Tin  plate,  exports  from  Great  Britain,  imports  of  the  United  States 

and  protection  in  the  United  States,  1889  to  1901 54 

Revenue,  surplus  or  deficit  under  low  and  protective  tariffs  respec- 
tively,   1790    to    1903 59 

Wheat,  corn  and  oats  production  and  farm  value  of,  1885  to  1903...    60 

Coal,  production  and  consumption  of  in  Great  Britain,  Germany  and 

the    United    States,    1860    to    1902 61 

Trade   balances  under   low   and  protective   tariffs,   respectively,    1790 

to    1903 62 

Relative^  increase  in  employment  in  leading  industries  in  the  United 

Kingdom  and  United  States,  1881  to  1901 64 

Share  of  the  iron  and  steel   manufactures   produced  by  the  United 

States    Steel    Corporation 65 

Boots  and   shoes,   prices  of,   1897  to  1903 66 

Manufacturers  of  the  United  States,  •  value  of  products,  capital  In- 
vested and  persons  employed,  1850  to  1900 67 

Imports  and  exports  and  excess  of  imports  or  exports  in  each  year 
from  1790  to  1903,  grouped  to  show  periods  of  low  and 
protective     tariffs    respectively 68 

Revenue  and  expenditure  and  excess  of  revenue  or  expenditure,  from 
1790  to  1904,  grouped  to  show  periods  of  low  and  protective 
tariffs   respectively 69 

British  revenue  and  source  from  which  obtained 70 

Tariffs   of   Great   Britain 71 

Steel  rails,  production,  prices  and  rates  of  duty,  1867  to  1903 82 

Iron  ore,  prices,  1893  to  1903 83 

Tin    plate    exports    from    Great    Britain,    imports    into    the    United 

States,  manufactures  in  the  United  States,  prices .84,     86 

Cotton    manufacturing    in    the    United    States,    capital,    wages,    etc., 

1870    to    1900 89 

Woollen,   manufacturing  In   the  United   States,   capital,    wages,    etc., 

1870  to   1900 90 

Silk  manufacturing  in  the  United  States,   capital,   wages,   etc.,   1870 

to    1900 90 

Textile    industry    of   the    United    States,    capital,    wages,    etc.,    1850 

to    1900 92 

Cotton  products,  manufacturing  Imports  and  exports,  1884  to  1903. .    92 

Cotton    production    and   prices   and   prices   of   manufactures   of   cot- 
ton,   1880   to   1903 93 

Conditions  during  administration  of  Cleveland,  McKinley  and  Roose- 
velt       105 

Savings  bank  deposits  in  the  United  States,  1820  to  1903 107 

Savings  bank   deposits   by   states 108 

Savings   deposits   and    number   of   depositors   In    principal    countries 

of  the   world 108 


XX11  TABLES. 

Paqh. 
Bank   deposits,    (all   classes   of   banks,)    In    the    United    States,    1875 

to    1903 109 

Wealth,   debt,    revenue   and   population   of   leading   countries   of  the 

world  109 

National  banks  of  the  United  States,  1863  to  1903 f. no 

Money  in  circulation  in  the  United  States  by  classes,  and  per  capita, 

1800  to  1903 Ill 

Clearing  house  returns,  1880  to  1903 112 

Railroads    placed    in    the    hands    of   receivers   and    sold    under   fore- 
closures,   1876   to   1903 112 

Bank  deposits  in  each  state  in  1892,  1896,  and  1903 113 

Business  failures  in  the  United  States,  number  and  liabilities,   1880 

to.  1903 114 

Farm  products,  value,  1897  and  1904 114 

Farm  animals,  average  value  per  head,  1897,  and  1904 114 

Government    expenditures    and    expenditures    per    capita    in    leading 

countries  of  the   world 115 

Conditions  in  the  United  States  in  1892,  1896,  1900  and  1903 116 

Prices     of    imported    and    domestic    articles     in     March     1903     and 

March    1904 118 

Prices  of  certain  "trust  controlled"  articles,  1896  to  1904 119 

National   bank    statistics,    1904   compared    with    1893 121 

Conditions  in  the  United  States  compared  with  those  in  Great  Britain.  122 

Conditions  in  the  United  States  compared  with  those  of  the  principal 

countries  of  the  world 122 

Growth   of  commerce   of  the  United   States  compared   with   that  of 

the   United   Kingdom    and   Germany 123 

Commerce  of  principal  countries  of  the  world,  1830  to  1903 123 

Expenditures  and   per  capita  expenditures  of  the   leading  countries 

of  the  world. 124 

Wealth  and  indebtedness  of  the  leading  countries  of  the  world 124 

Manufactures  of  the  leading  countries  of  the  world,  value  of 124 

Business  and  industrial   record,   1893,   1896 125 

Imports  and  exports  of  the  United  States,  1790  to  1903 128 

Imports   into   the    United   States   by    great   groups    of   articles,    1850 

to    1903 . . 129 

Exports   from   the   United   States  by   great   groups   of  articles,   1850 

to    1903 T 130 

Imports    into    the    United    States    from    each    Grand    Division,    1850 

to  1903 131 

Exports    from    the    United    States    to    each    Grand    Division)    1850 

to   1903 132 

Imports  for  consumption  arranged  by  groups,  1870  to  1903 133 

Merchandise   imported   and   exported   and   retained   for  consumption, 

1871   to  1903 133 

Receipts  and  expenditures  of  the  United  States,  1790  to  1903 134 

Debt  of  the  United  States,  1865  to  1903,  analysis  of 135 

Farm  products  exported  under  McKinley,  Wilson  and  Dingley  laws..  139 

Principal  farm  crops  in  the  United  States,  value  of,  1866  to  1903 139 

Farm  animals,  number  and  value,  by  groups,  1875  to  1904 140 

Wheat  production,  consumption  and  exportation,  1877  to  1903 141 

Farm  animals,  value  of  In  1892,  1897,  1900  and  1904 141 

Farm  prices  of  principal  products  by  states,  1892  to  1903 142,  143 

Prices     of     articles     of     farm     production     and     consumption,     1877 

to  1903 144,  145 

Freight  rates  on  grain  from  Chicago  to  New  York,  1868  to  1903...  146 
Freight  rates  on  live  stock  and  meats,  1880  to  1903 146 


TABLES.  XX111 

Page. 
Freight  rates  on  flour  and  grain  from  Chicago  to  Europe,  1894  to  1903.  147 

Freight  rates  by  rail  and  canal  respectively,  from  Chicago  to  Buffalo 

and  New  York,   1870  to  1903 147 

Freight  rates  on  canned  goods,  Pacific  coast  to  New  York,  1870  to  1903  147 
Value   of  the  factory   to  the   Farmer 150 

Manufactures  of  the  United  States,  1850  to  1900,  value  of  products, 

also  value  in  1900  by  groups 150 

Sheep,  number  and  value  of,  under  various  tariffs 152 

Wool   products,    imports,    woollen   goods    imported,    price,    etc.,    1875 

to  1903 154 

Sugar  production   of  the  world,   1903-4 157 

Sugar,  production,  importation  and  consumption  of  the  United  States 

and  prices  per  pound,   1880  to  1903 158 

Sugar   production    of   the    world,    beet    and    cane,    respectively,    1840 

to  1903 159 

Irrigation,    statistics   of   the    United    States,    number   of   farms   and 

acres  irrigated 163 

Wages  per  hour,    1890-1903 200,  203 

Increase  in  average  wages  per  hour,    1890-1903 204 

Per  cent  of  increase  or  decrease  in  hours  of  work,  1890-1903 205 

Employees,  hours  of  labor  and  wages  in  certain  countries 207 

Retail  prices  of  food  by  articles,  1890-1903 209 

Retail  prices  of  all  foods,  1890-1903 210 

Summarization  of  employees,  wages,  and  prices,  1890-1903 213 

Relative  advance  in  prices  of  farm  products  and  other  commodities. .  217 

Relative  advance  in  prices  of  related  commodities 218 

Purchasing  power  of  farm  products  in  articles  of  common  use 219 

Wages  in  the  United   States  and   Great   Britain 223-224 

Increase  in  prices  in  England,  1896-1902 225 

Wages  in  cities  of  United  States  and  England 226 

Retail   prices  in  the  United   States  and  England 227 

Wages  paid  by  trusts  before  and  after  combination 230 

Out  of  work  benefits  paid  in  certain  years, 231 

State  Labor  Bureau  reports 231-35 

Compensations  paid  to  railway  employees,  1896-1903 ..'.  236 

Labor  laws  in  Republican  and  Democratic  states 237  to  238 

Import  prices  of  leading  articles  used  in  manufacturing  1897  to  1903. .  244 

Prices,    annual    average    in    1880-90-1900    and    1903, 245 

Panama  Republic  dates  of  recognition  by  principal  countries 274 

Distances  between  leading  ports,   via  Panama  and  Suez  Canals 283 

Exports  to  Asia  and  Oceania,   1896  to  1903 294 

Exports  to  the  Orient,   principal  articles  1890  and  1903 294 

Commerce  with   Oceania   1893  to   1903 295 

Distances  from  Western  coast  cities  to  leading  ports  via  Panama  and 

Suez  Canals 298 

Expenditures  under  military  operations  in  the   Philippines,    Hawaii, 

commerce  of 309 

Hawaiian   Islands,    commerce  of 312 

Sugar  exported  from  Hawaiian  Islands,   1896  to  1903 312 

Importation  of  the  Philippine  Island  from  principal   countries,   1897 

to  1903 317 

Commerce  of  Porto  Rico  and  its  commerce  with  the  United  States, 

1893  to  1903 318 

Commerce   between   the   United    States    and    its   non-contiguous   ter- 
ritories    319 


xxiv  TABLES. 


T 


Page. 
Tropical  productions  imported  by  principal  articles,  1870  to  1903 320-21 

Commerce  of  the  United  Kingdom  with  Its  colonies,  1869  to  1902. .  321 

Commerce    of    countries    commercially    adjacent     )<>     th€    Philippine 

Islands,  1902 "•« 

National    banks   established    In    the    United    States,    March    14,    1900, 
to  April  30th,  1904 3- 

Postal   receipts,   1893  to   1903 

Postal  statistics  of  the  United  States,   1790  to  1903 370 

Naval  expenditures  of  the  principal   countries  of  the  world 378 

Money  In  circulation  in  the  United  States  July  1,  1904 397 

American  Merchant  Marine,  1892  to  1903 398 

Shipping  subsldities  paid  by  principal  countries  of  the  world 401 

World's  production  of  pig  Iron,  1790  to  1903 404 

American   merchant  marine,    18G0-1903 405 

Merchant  marine  of  the  world,  1903 405 

Foreign  carrying  trade  of  the  United  States,  1860-1903 406 

Subsidies  and  payments  for  ocean  mail  service,  1848-1903 407 

Pensions  and  pensioners  of  the  United  States 408-10 

Colored  officers,   clerks  and  employees  in  the  government  service. .  45 

Vote   for   representatives   in    Copgress,    1900-1902 423 

Vote  for  President  by  states,   1900 424 

Popular  and   electoral   vote   for  President,    1856-1900 425 

Conditions  in  McKinley  and  Bryan  states  of  1900 

Budgets   of  principal   countries   of   the   world,    1880-1902 435 

Military  and  naval  expenditures  of  principal  countries 435 

Progress   of   the    United   States   in   manufacturing,    production,    etc., 

1850-1903 437-440 

Progress  of  United   States  in  population,   area,   production,   business 

conditions,    etc.,    1800,    1903 441-442 

Railways  in  United  States,  mileage,  earnings,  freight  and  passengers 

carried,  etc 444 

Financial  and  commercial  statistics  of  principal  countries 445' 

Iron   and   steel   industry  of  the   United   States,   capital,    wages,    and 

labor    employed    446 

Iron  and  steel  production  of  the  United  States,  growth  of 447 

Railway  employes  of  the  United  States,  1893  to  1903 448 

Commerce  of  the  gold  standard  and  silver  standard  countries  of  the 

world     519 

Gold  and  silver  product  of  the  United  States,  1792-1902 520 

Imports    and    exports    of    gold    into    and    from    the    United    States, 

1825-1903   521 

Commerce  of  the  United  States  with  Canada,  1850-1903 522 

Coinage  of  the  United  States'  mints,  1846-1903 523 

Gold  production  of  the  world,   1492-1902 524 

Stocks  of  money  in  13  principal  countries 525 

Electoral  vote  cast  by  each  state  in  each  election,  1864  to  1900 549 

Electoral  vote  of  each  state  and  number  necessary  to  choice  in  1904. .  549 
■ 


"FOUR  GREAT  FACTS/ 

"Four  great  facts  seem  to  justify  vhe  Republican  party  in  ask- 
ing the  voters  of  the  United  States  to  continue  it  in  control  o>"  tne 
affairs  of  the  Government.  First,  th3  pJ-p.riptness  •  v,*i-x ,  vv].'h«h  ,it 
has  fulfilled  the  pledges  of  its  platform  upon  which  it  success- 
fully appealed  to  the  people  in  1896;  second,  the  prosperity  which 
has  come  to  all  classes  of  our  citizens  with,  and  as  a  resuit  of,  the 
fulfillment  of  those  pledges;  third,  the  evidence  which  that  pros- 
perity furnishes  of  the  fallacy  of  the  principles  offered  by  the 
opposing  parties  in  1896,  and  still  supported  by  them;  and,  fourth, 
the  advantages  to  our  country,  our  commerce,  and  our  people  in 
the  extension  of  area,  commerce,  and  international  influence  which 
have  unexpectedly  come  as  an  incident  of  the  fulfillment  of  one 
of  the  important  pledges  of  the  platform  of  1896,  and  with  it  the 
opportunity  for  benefiting  the  people  of  the  territory  affected." — 
From  the  Republican  Campaign  Text-Book  of  1900. 

The  above  quotation  from  the  opening  pages  of  the  Republican 
Campaign  Text  Book  of  1900  applies  with  equal  force  to  condi- 
tions in  the  present  campaign.  The  four  great  facts  which  justi- 
fied the  party  in  asking  the  support  of  the  public  in  1900  were: 
First,  that  its  pledges  of  1896  had  been  redeemed;  second,  that 
prosperity  had  come  as  a  result;  third,  that  developments  since 
1896  had  shown  the  fallacy  of  the  principles  upon  which  the 
Democracy  then  appealed  for  public  support ;  and,  fourth,  the  con- 
ditions which  had  come  to  other  parts  of  the  world  and  their 
people  as  a  result  of  promises  fulfilled  by  the  Republican  party  in 
the  United  States.  These  assertions  made  in  the  Text  Book  of 
1900  have  been  fully  justified  by  the  added  experiences  of  another 
four  years.  The  pledges  of  1896  and  those  made  in  1900  have  been 
redeemed  The  Protective  Tariff  has  been  restored;  the  Gold 
Standard  made  permanent ;  Cuba  freed  and  given  independence ; 
the  Panama  Canal  assured  under  the  sole  ownership  and  control 
of  the  United  States;  a  Department  of  Commerce  and  Labor 
established ;  Rural  Free  Delivery  given  to  millions  of  the  agricul- 
tural community ;  the  laws  for  the  proper  regulation  of  trusts  and 
great  corporations  strengthened  and  enforced;  prosperity  estab- 
lished ;  commerce  developed ;  labor  protected  and  given  ample  em- 
ployment and  reward;  intelligence,  prosperity,  and  good** govern- 
ment established  in  distant  islands;  and  the  flag  of  the  United 
States  made  the  emblem  of  honor  in  every  part  of  the  world. 

All  of  these  great  accomplishments  have  been  the  work  of  the 
Republican  party.  In  each  of  them  it  has  met  the  discouragement, 
the  opposition,  and  the  hostilities  of  the  Democracy.  The  Pro- 
tective Tariff  was  fought  at  every  step,  and  is  to-day  denounced 
by  the  platform  of  the  Democrats  as  a  "robbery."  The  act  estab- 
lishing the  Gold  Standard  was  opposed  and  the  Democratic  vote 
cast  almost  solidly  against  it,  and  that  party  in  its  convention  and 
platform  of  1904  deliberately  refused  to  retract  in  the  slightest 
degree  its  advocacy  of  the  free  and  unlimited  coinage  of  silver. 
In  the  war  for  the  freedom  of  Cuba,  the  work  of  the  Republicans 
was  met  with  harsh  criticism  and  discouragements  at  every 
step.  In  the  efforts  to  establish  peace  and  good  government  in 
the  newly  acquired  territory,  each  step  met  with  opposition  and 
false  charges  and  the  demand  that  .the  territory  and  its  millions 
of  people  be  abandoned  to  internal  strife  or  control  by  a  mon- 
archial  government.  The  acquirement  of  the  right  to  construct 
the  Panama  Canal  was  met  with  opposition  and  obstruction  at 

1 


'J  i  01  i:  OBI  a  r    PACTS. 

every   point     The  enforcement   of  law   against   trusts  and  other 
i prorations  aw  denounced  as  ineffective  ana  designed  to 

deoelte  .the  public.  The  establishment  of  rural  free  delivery  was 
discouraged  Tho  u\)h '"'i<l  prosperity  which  followed  the  restora- 
tion u\'  Uft  protective  tariff  was  decried  and  denounced  as  ficti- 
tious and  temporary,  and  an  attempt  made  to  sow  the  seeds  of 
dissatisfaction  and  discord  among:  the  people  by  complaints  of  the 
higher  cost  of  food  which  eanie  as  the  natural  results  of  the  in- 
creased demand  accompanying  general  prosperity  and  high  wages. 
It  is  upon  this  additional  evidence  of  the  past  four  years,  evi- 
dence that  the  Republican  party  is  the  party  of  progress,  and  the 
Democracy  the  party  of  inaction,  retardment,  and  fault-finding, 
that  the  Republican  party  again  confidently  appeals  for  public 
support  in  the  Presidential  and  Congressional  elections  of  1904. 


"THE  POLICY  OF  OPPOSITION." 

Mr.  Littletou's  Real  View  of  Democratic  Pollcien  and  ProHpeet*. 

[Extract  from  speech  before  New  York  Southern  Society,  Feb.  22, 
1904,  by  Hon.  Martin  W.  Littleton,  sponsor  for  Judge  Parker 
at  Democratic  National  Convention,  July  8th,  1904.] 

"While  the  war  between  the  United  States  was1  in  Progress  it 
(the  Democratic  party)  attempted  to  swim  against  the  tide  on  a 
policy  that  declared  the  war  a  failure,  and  met  that  fate  which  all 
parties  have  met  that  attempt  it. 

"The  Democratic  party  sought  to  destroy  the  evil  of  some  mon- 
opolies by  assuming  an  antagonistic  attitude  to  all  large  corporate 
concerns  just  at  a  time  when  the  business  of  the  country  was 
being  conducted  almost  wholly  by  corporate  agency,  and  it  went 
down  under  the  influence  of  a  fact. 

"It  attempted  to  arrest  the  course  of  events  in  the  Spanish- 
American  war  just  at  a  time  when  our  fleets  were  fighting  and 
or.  armies  marching,  and  it  went  down  again  under  the  influence 
of  a  fact. 

'It  endeavored  to  undo  events  which  had  taken  place  in  the 
Philippines  and  to  reverse  an  accomplished  thing,  and  it  went 
down  under  the  weight  of  a  fact. 

"It  is  now  seeking  to  delay  the  progress  of  a  great  commercial 
enterprise  on  the  Isthmus  of  Panama  by  opposing  the  treaty  with 
the  new  republic  just  at  a  time  when  the  nation,  and  especially 
the  South,  needs  and  demands'  such  an  enterprise,  and  it  will  again 
go  down  under  the  influence  of  a  fact,  if  it  persists. 

"It  sought  to  change  the  money  standard  of  the  country  from 
gold  to  silver  just  at  a  time  when  the  powerful  nations  of  the  earth 
were  holding  or  changing  to  gold,  and  it  went  down  under  the  in- 
fluence of  another  fact. 

"The  policy  of  opposition  is  not  the  true  tradition  of  the  party. 
It  held  for  nearly  fifty  years  the  affirmative  place  in  the  politics 
of  the  country.  It  stood  upon  aggressive  grounds,  it  recognized 
events,  it  was  not  a  doctrinaire,  it  held  to  the  facts.  It  was  until 
the  war  a  constructive  party  of  conservative  principles,  and  under 
the  misfortune  of  slavery  it  paused  to  defend  that  institution,  and 
allowed  the  Republicans  to  take  the  ground  from  it,  and  since  that 
time  it  has'  thought  it  wise  to  oppose  its  own  policies,  if  they 
chanced  to  be  espoused  by  the  Republicans. 

"It  does  not  need  to  return  to  ante-bellum  policies',  but  it 
does  need  to  go  back  to  the  ante-bellum  method  of  dealing  with 
events.  It  must  understand  that  if  Jefferson  said  he  was  opposed 
to  expansion,  and  then  proceeded  to  expand,  what  he  did  is*  the 
thing,  and  not  what  he  said.  It  must  understand  that  if  he  said  he 
was  opposed  to  a  Navy,  and  then  found  it  necessary  to  establish  a 
Navy,  what  he  did  is  the  thing,  and  not  what  he  said.  It  must 
understand  that  if  Madison  or  Monroe  said  that  they  were  opposed 
to  national  banks,  but  found  they  were  necessary  to  establish  a 
sound  financial  system,  and  did  establish  them,  what  they  did  is 
the  thing,  and  not  what  they  said.  It  must  understand  that  if 
Jefferson,  Madison,  Monroe.  Calhoun,  Jackson,  and  Benton  all  in- 
sisted that  the  Constitution  should  be  strictly  construed,  but  found 
on  actual  experiment  that  it  was'  best  to  give  it  a  liberal  con- 
struction, and  did  so,  what  they  did  is  the  thing,  and  not  what  they 
said." 


INTRODUCTION. 


INTRODUCTION. 

The  purpose  of  this  book  is  to  furnish  in  concise  and  con- 
venient form  for  reference  such  information  as  is  likely  to  be  re- 
quired by  speakers,  writers  and  others  participating  in  the  dis- 
cussions of  the  Presidential  campaign  of  1904.  However  well  ad- 
vised the  speaker  or  writer  may  be  upon  the  topics  of  the  cam- 
paign, he  will  require  for  reference  many  facts  and  figures  which 
can  only  be  had  by  consulting  numerous  publications,  many  of 
them  so  bulky  as  to  be  practicable  for  desk  use  only.  This  work 
is  intended  to  present  in  concise  and  portable  form  the  more  im- 
portant of  these  facts  and  figures,  so  condensed  and  arranged  as 
to  be  convenient  for  ready  reference  in  the  field,  on  the  stump, 
upon  the  train,  or  wherever  they  may  be  desired.  The  arrange- 
ment of  the  book  will  be  apparent  upon  an  examination  of  the 
table  of  contents  which  occupies  the  opening  page.  It  will  be  seen 
that  each  of  the  subjects  likely  to  require  discussion  in  the  cam- 
paign is  treated  under  its  proper  title  and  that  these  discussions 
of  the  various  subjects  are  followed  by  such  statistical  statements 
as  may  be  required  for  further  reference,  while  a  copious  index 
which  follows  the  table  of  contents  and  occupies  the  opening  pages 
of  the  book  will,  it  is  hoped,  enable  those  utilizing  the  volume 
readily  to  find  the  detailed  facts  which  they  may  require  for 
instant  reference.  Care  has  been  exercised  so  to  arrange  the  mat- 
ter with  headings  and  subheadings  as  to  add  to  the  convenience 
of  the  volume  as  a  reference  work,  while  a  line  at  the  top  of  each 
page  indicates  the  general  subject  discussed  upon  the  page.  The 
statistical  and  historical  statements  presented  in  the  discussions 
have  been  carefully  verified  and  the  authority,  in  the  more  impor- 
tant statements,  cited,  while  the  tables  are  in  most  cases  from 
official  publications  of  the  Government  or  from  accepted  authori- 
ties *and  duly  accredited,  thus  enabling  those  utilizing  them  to 
quote  their  authority  for  the  figures  presented. 

While  a  text  book  which  must  be  a  pocket  companion  in  the 
field  is  necessarily  limited  in  size,  it  has  been  deemed  proper  to 
present  as  fully  as  practicable  in  a  book  of  this  character  infor- 
mation upon  subjects  likely  to  receive  especial  attention,  and  the 
space  allotted  to  the  chapters  on  Tariff,  Trusts,  Wages  and  Prices, 
the  Philippines,  and  the  Work  of  the  Army  has  been  adjusted  to 
the  possible  requirements  of  those  desiring  information  upon  these 
subjects.  Much  unfounded  criticism  has  been  offered  by  the  Dem- 
ocrats with  reference  to  the  enlargement  of  the  army  and  the 
expenditures  under  its  operations,  and  it  has  therefore  been 
deemed  proper  to  present  somewhat  in  detail  information  regard- 
ing the  work  which  it  has  so  successfully  accomplished  both  in 
war  and  in  the  development  of  conditions  at  home  vital  to  the 
general  requirements  of  a  great  nation  and  to  the  fact  that  the 
great  expenditures  under  its  operations  have  been  made  with  the 
utmost  fidelity.  The  criticisms  of  the  work  of  the  party  in  regard 
to  the  Philippines,  coming  from  a  party  which  has  already  the 
record  of  having  hauled  down  the  American  flag  in  islands  of  the 
Pacific  suggest  the  importance  of  a  full  presentation  of  the  splen- 
did work  done  in  those  islands  and  the  improved  conditions  there 
which  have  resulted.  The  constant  but  unfounded  assertions  that 
cost  of  living  has  advanced  more  than  wages  justifies  the  detailed 
discussion  of  this  subject  which  will  be  found  in  the  chapter  en- 
titled "Labor,  Wages,  and  Prices,"  and  especial  attention  is  called 
to  the  information  there  presented  which  fully  disproves  these 
assertions.  This  information  is  especially  valuable  by  reason  of 
its  official  character,  being  the  work  of  the  Bureau  of  Labor, 
whose  accuracy  and  absolute  fairness  have  never  been  called  in 
question,  and  also  by  reason  of  the  further  fact  that  it  brings  the 
study  of  the  relative  advance  in  wages  and  cost  of  living  down  to 
the  very  latest  date,  covering  fully  the  year  1903  with  reference 
to  retail  prices — the  prices  which  directly  affect  the  consumer  and 
wage-earner.  These  facts  are  the  result  of  studies  given  to  the 
public  by  the  Bureau  of  Labor  in  its  July,  1904,  Bulletin,  and 
therefore  the  very  latest,  most  complete,  and  absolutely  reliable 
information  upon  this  vital  topic,  and  will  fully  answer  the  asser- 
tions of  the  Democracy  upon  this  subject, 


4,  INTRODUCTION. 

While  many  of  the  facts,  historical  and  statistical,  here  pre- 
sented are,  In  general  terms  at  least,  familiar  to  a  large  number 

of  those  who  will  have  occasion  to  utilize  this  work,  their  presen- 
tation in  convenient  form  for  reference  is  deemed  proper  In  view 
of  the  tact  that  of  the  20  millions  of  potential  voters  in  t lie  United 
States  in  I'.iol  a  Large  number  have  never  before  had  opportunity 
to  participate  in  a  Presidential  election  and-i:hereforo  require  spe- 
cial Information  of  a  fundamental  Character,  and  seems  to  justify 
the  inclusion  in  this  volume  of  many  statements  generally  familiar 
to  those  who  have  had  longer  experience  in  national  affairs. 

Two  other  publications,  intended  for  the  convenience  and  use 
of  speakers,  have  been  issued  and  should  be  consulted  by  those  <!«■ 
siring  thoroughly  to  prepare  themselves  for  the  discussions  of  the 
campaign. 

One  of  these  volumes,  entitled  "Pages  from  the  Congressional 
Record,"  contains  the  more  important  speeches  delivered  in  Con- 
gress upon  the  subjects  likely  to  be  discussed  in  the  present  cam- 
paign, including  the  Tariff,  Trusts,  Labor,  Reciprocity,  the  Treaty 
with  Cuba,  the  Panama  Canal,  the  Philippines,  the  Relations  with 
the  Orient,  the  Record  of  the  Republican  Party  and  the  Present 
Administration,  the  Post-Office  Department  Investigation,  Rural 
Free  Delivery,  Government  Expenditures,  the  Merchant  Marine, 
the  Navy,  the  Old  Age  Pension  Order,  and  other  subjects  of  this 
character.  These  speeches  are  in  many  cases  the  result  of  much 
careful  study  of  the  subjects  discussed,  studies  made  by  men 
thoroughly  familiar  with  national  affairs  and  able  to  obtain  the 
best  and  latest  information  bearing  upon  the  subjects  under  con- 
sideration, and  should  be  of  great  assistance  to  those  desiring 
thoroughly  to  acquaint  themselves  with  every  feature  of  the  great 
subjects  to  be  considered  in  the  present  campaign.  Not  only  do 
they  present  the  views  and  arguments  of  the  speakers  upon  the 
subjects  to  which  these  discussions  are  respectively  devoted,  but, 
since  they  are  verbatim  reports  of  the  Congressional  proceedings, 
they  include  in  many -eases  the  arguments  of  the  opposition  in- 
jected into  the  speech  in  the  form  of  questions  and  answered  by 
the  speaker  in  the  running  debate,  which  frequently  form  an 
important  and  instructive  feature  of  the  speech  itself.  This  docu- 
ment, which  contains  several  hundred  pages  of  the  size  of  the 
Congressional  Record,  while  too  bulky  for  other  than  desk  use, 
will  prove  valuable  to  those  desiring  to  have  in  a  single  volume 
the  latest  and  best  discussions  upon  these  rvital  subjects  by  men 
who  have  studied  them  under  exceptionally  advantageous  circum- 
stances. 

Another  volume,  entitled  "Extracts  from  the  Congressional 
Record,"  contains  brief  extracts  from  speeches  delivered  in  Con- 
gress upon  subjects  likely  to  be  discussed  in  the  present  campaign. 
This  work  was  compiled  with  great  care  from  speeches  and  ad- 
dresses by  leading  members  of  the  party,  not  only  in  the  recent 
Congress  but  in  earlier  sessions  of  that  body,  and  contains  the  best 
utterances  of  the  party  leaders  during  its  entire  history  upon  the 
great  subjects  likely  to  be  considered  in  this  campaign.  Protection, 
Reciprocity,  Trusts,  Prices,  Republican  Prosperity,  Democratic  Ad- 
versity, the  Workingman,  the  Farmer,  the  Soldier,  the  Colored 
Voter,  Rural  Free  Delivery,  the  Post-Office  Investigation,  Panama, 
Cuba,  the  Philippines  and  the  Pacific,  Shipping,  the  Navy,  and 
the  Record  of  President  Roosevelt  are  discussed  in  these  concise 
extracts  from  the  public  utterances  of  party  leaders  past  and 
present.  The  volume  containing  these  extracts  is  of  such  com- 
pact size  and  form  that  it  may  readily  be  used  as  a  pocket  com- 
panion, in  the  field  or  on  the  train,  and  will  prove  a  valuable  sup- 
plementary work  in  connection  with  this  text  book. 

Both  of  the  above  volumes,  "Pages  from  the  Congressional 
Record"  and  "Extracts  from  the  Congressional  Record,"  may  be 
obtained  upon  application  to  the  National  Committee. 


THE    TARIFF. 


THE  TARIFF. 

"We  denounce  Protection  as  a  robbery."— Democratic  Plat  form ,  1904. 


"Protection  which  guards  and  develops  our  industries  is  a  cardinal 
policy  of  the  .Republican  party."— Republican  Platform,  1904. 

The  question  as  to  whether  tariffs  should  be  levied  solely  for 
the  purpose  of  producing  revenue  or  should  also  be  so  adjusted  as 
to  protect  domestic  industries  from  undue  foreign  competition  has 
been  a  controverted  one  for  many  years — through  generations  in 
fact. 

The  primary  idea  in  levying  a  tax  upon  merchandise  entering 
a  community  or  State  was  to  require  persons  from  abroad  trading 
in  that  community  to  bear  their  proper  share  in  the  public  ex- 
penditures. The  tranquillity  and  order  of  the  community, 
and  hence  its  commercial  possibilities,  were  maintained 
by  the  government,  for  whose  support  the  local  producers 
and  merchants  were  taxed,  and  it  was  held  that  merchants  from 
abroad  desiring  to  enjoy  the  privilege  of  trading  in  that  com- 
munity should  contribute  their  proper  share  to  the  maintenance 
of  the  government,  which  assured  commercial  privileges,*and  that 
they  should  contribute  a  relatively  larger  percentage  of  the  value 
of  the  merchandise  sold  than  was  required  of  the  local  dealer, 
because  the  foreign  merchant  carried  away  with  him  his  profits 
while  the  domestic  producer  or  dealer  expended  his  profits  in  the 
home  community  in  the  support  of  his  family  or  in  the  employ- 
ment of  other  members  of  the  community.  Hence  the  tariff — a 
tax  upon  merchandise  entering  a  community  from  abroad. 

While  it  is  true  that  the  actual  payment  of  tariff  duties  is, 
under  modern  methods,  made  by  the  residents  of  the  community 
who  import  the  merchandise  or  act  as  local  agents  for  the  foreign 
producer,  it  is  also  true  that  at  least  a  part  of  this  is  compensated 
for  by  the  foreign  producer  or  dealer  through  a  reduction  in  his 
prices  as  an  offset  to  the  duty  which  the  importer  must  pay.  The 
claim  that  the  foreign  producer  or  merchant  pays  at  least  a  part 
of  the  tariff  levied  on  imported  goods  is  now  admitted  in  free- 
trade  England,  whose  manufacturers  and  merchants  have  had 
long  practical  experience  as  sellers  to  high  tariff  countries  and 
are  now  urging  the  adoption  of  a  protective  tariff  system  for 
their  own  country. 

ALL    NATIONS    HAVE   TARIFFS. 

All  nations  raise  a  large  share  of  their  revenue  by  a  tariff. 
The  view  which  many  have  held  that  "free-trade"  nations,  such  as 
the  United  Kingdom,  have  no  tariff  is  an  erroneous  one.  The  total 
amount  collected  from  tariff  duties  on  merchandise  entering  the 
United  Kingdom  is  more  than  150  million  dollars  per  annum — a 
larger  sum  per  capita  of  her  population  than  the  per  capita  of 
tariff  collected  in  the  United  States.  See  discussion  of  British 
tariff,  page  70. 

This  sum,  however,  is  collected  from  duties  levied  upon  non- 
competing  articles,  such  as  coffee,  tea,  tobacco,  etc.  This  illus- 
trates the  difference  between  the  methods  of  the  free-trade  and 
the  protective-tariff  schools.  Under  methods  of  the  free-trade 
school  tariff  duties  are  placed  upon  articles  of  general  consump- 
tion with  the  sole  purpose  of  raising  revenue,  which  articles  must  be 
obtained  solely  from  abroad,  while  under  protective  tariffs  they 
are  levied  upon  articles  of  a  class  which  can  be  produced  at  home 
and  which  if  brought  in  in  unlimited  quantities  and  without  pay- 
ment of  tariff  taxes  would  place  the  cheap  labor  of  foreign  coun- 
tries in  direct  competition  with  home  labor. 

The  question  upon  which  men  have  divided1  with  reference  to 
tariff,  then,  is  not  as  to  the  wisdom  of  collecting  funds  through 
tariff  taxation,  but  whether  the  tariff  shall  be  so  adjusted  as  to 
protect  home  producers  and  workmen  from  undue  competition  by 
low-priced  labor  abroad,  as  well  as  to  encourage  the  establish- 
ment of  new  industries  through  similar  protection. 


6  THE   TABirr. 

DANGER  FROM    OUTSIDE  (COMPETITION   CONSTANTLY  INCREASING. 

Originally  the  danger  to  domestic  industries  from  foreign  com- 
petition was  much  less  than  at  the  present  time.  Merchandise 
brought  into  any  country  from  abroad  must  first  bear  the  cost  of 
transportation,  and  in  times  when  the  cost  of  transportation  was 
great,  and  when  goods  were  necessarily  transported  by  animal  power 
and  by  sailing  vessels  only,  this  high  cost  of  carriage  was  of  itself 
a  protection  to  the  domestic  producer  in  any  country.  True,  the 
producer  of  merchandise  just  across  the  border  line  of  a  country 
had  an  enormous  advantage  over  the  producer  a  thousand  or  five 
thousand  miles  distant,  but  as  only  a  small  proportion  of  the  pro- 
ducers were  located  near  to  the  border  line  such  coun- 
tries did  not  find  it  necessary  to  establish  high  tariffs 
to  protect  their  own  producers  or  manufacturers.  The 
distance  which  foreign  goods  must  be  carried  and  the 
cost  of  transportation  over  that  distance  alone  serve  to 
create  a  protective  wall  for  the  domestic  producer.  In  late  years 
those  conditions  of  distance  and  transportation  have  absolutely 
changed.  The  railroad  and  the  modern  steamship  have  reduced 
the  cost  of  transportation  compared  with  that  in  the  early  part  or 
even  in  the  middle  of  the  century  just  ended;  while  the  telegraph 
and  the  telephone  have  annihilated  distance  and  time.  Merchan- 
dise from  the  interior  of  Europe,  ordered  by  telephone,  telegraph, 
and  cable,  transported  from  its  place  of  production  by  trolley  road, 
canalized,  rivers,  or  boats  operated  by  steam  or  electricity,  or  by 
railway  to  the  Atlantic,  and  thence  by  great  steamships,  built  to 
carry  hundreds  of  carloads  at  a  single  voyage,  across  the  ocean, 
and  again  transported  to  the  interior  of  the  United  States  by  the 
cheapest  land  transportation  ever  known  to  man,  can  be  placed 
at  the  door  of  the  consumer  in  the  Mississippi  Valley  for  a  very 
small  percentage  of  the  cost  of  transporting  the  same  at 
the  middle  of  the  last  century.  As  a  result  the  pro- 
tection which  distance  and  the  cost  of  transportation  af- 
forded to  the  local  producer  has  disappeared,  and  without  a  pro- 
tective tariff,  established  by  the  Government,  he  has  as  his  direct 
competitor  the  low-priced  labor  of  any  and  every  part  of  the 
world.  The  cheap  labor  of  the  densely  populated  countries  of 
Europe,  the  140  million  low-priced  workers  of  Russia,  the  300 
million  people  of  India,  whose  average  wage  is»  but  a  few  cents 
per  day,  and  the  400  million  workers  of  China  are  to-day  as  much 
the  competitors  of  the  workman  of  the  United  States  as  though 
they  were  located  but  just  across  the  border.  Modern  methods  of 
transportation  and  communication  have  brought  these  great  masses 
of  producers  to  our  very  doors,  and  without  the  protection  which 
the  tariff  affords  would  place  that  cheap  labor  in  as  close  competi- 
tion with  our  own  as  it  would  have  been  a  half  century  ago  if 
located  but  a  hundred  miles  away. 

DESTRUCTION   OF   NATURAL    PROTECTION. 

As  an  example  of  the  reduction  in  cost  of  transportation  may 
be  cited  the  fact  that  the  annual  average  freight  rate  on  wheat 
from  Chicago  to  Liverpool,  by  the  cheapest  method  of  trans- 
portation, in  1873  was  40  cents  per  bushel  and  in  1903 
8  cents  per  bushel,  or  but  one-fifth  that  of  only  30 
years  earlier.  Comparing  conditions  now  with  those  of 
the  early  part  of  the  last  century-  the  reduction  is  still 
greater,  and  the  cost  of  transportation  at  the  present  time  may 
safely  be  said  to  be  less  than  one-tenth  of  that  then  existing.  An 
illustration  of  the  reduction  in  cost  of  transportation  througli 
modern  methods  is  found  in  the  fact  that  the  census  of  1880 
showed  that  the  railways  could  transport  a  ton  of  wheat  for  a 
given  distance  as  cheaply  as  a  single  bushel  could  be  transported 
the  same  distance  by  horse  power,  and  railway  rates  have  fallen 
practically  one-half  since  that  time.  That  high  authority  the 
Encyclopedia  Britannica  states  in  its  1903  edition  that  the  me- 
chanic in  Liverpool  may  now  pay  with  one  day's  wages  the  entire 
cost  of  transporting  a  year's  supply  of  oread  and  meat  for  one  man 
from  Chicago  to  that  city. 

These  facts  illustrate  how  completely,  modern  methods  have  de- 
stroyed the  protection  Which  the  local  producer  formerly  had 
against  foreign  competitors,  and  explain  the  reason  why  modern 
governments  have  found  it  necessary,  one  by  one,  to  adopt  the  pro- 


THE   TARIFF.  7 

tective  system,  until  now  the  most  ardent  and  only  remaining  sup- 
porter of  the  nonprotective  system,  the  United  Kingdom,  is  seri- 
ously discussing  the  adoption  of  a  protective  tariff.  This  gradual 
destruction  of  the  natural  protection  formerly  afforded  by  distance 
and  cost  of  transportation  accounts  for  the  fact  that  it  has  been 
found,  necessary  to  maintain  the  protective  tariff  on  the  various 
industries  as  they  have  developed,  and  that  this  necessity  for 
maintaining  protection  for  those  industries  has  meantime  been 
recognized  by  all  other  leading  manufacturing  countries  of  the 
world  whose  industries  were  developed  even  before  those  of  the 
United  States,  except  in  the  case  of  the  United  Kingdom,  whose 
people  are  now  clamoring  for  a  return  to  protection  of  their  long 
established  domestic  industries.  This  reduction  in  cost  of  trans- 
portation is  indeed  one  of  the  chief  causes  of  the  steady  movement 
toward  protection  which  has  characterized  the  history  of  the 
world  during  the  last  half  century.  The  fact  that,  with  improved 
methods  of  transportation  and  a  narrowing  of  distances  and  cheap- 
ening of  cost  of  transportation,  the  whole  world  has  become  the 
next-door  neighbor  of  each  community  has  compelled  that  com- 
munity to  establish  tariff  duties  of  a  character  which  would  reduce 
the  competition  offered  by  the  cheap  labor  of  those  communities 
against  which  distance  no  longer  affords  protection. 

Practically  all  of  the  500,000  miles  of  railway  and  16  million 
tons  of  steamship  tonnage  with  which  the  world  is  now  supplied 
have  been  created  since  the  middle  of  last  century;  the  world's 
international  commerce  has  quadrupled  while  the  world's  popula- 
tion was  increasing  but  50  per  cent,  and  during  that  very  period 
the  nations  of  the  world  have  one  by  one  found  it  necessary  to 
establish  tariff  protection  to  take  the  place  of  that  protection 
which  distance  and  high  cost  of  transportation  formerly  afforded. 

TARIFFS    OF    OTHER    COUNTRIES. 

France,  which  adopted  a  protective  system  in  the  early  part  of 
the  nineteenth  century,  experimented  briefly  with  free  trade  between 
I860  and  1880,  but  promptly  returned  to  the  protective  system, 
which  she  has  maintained  ever  since  that  time  with  great  pros- 
perity to  her  people.  Germany  experimented  with  free  trade  be- 
tween 1868  and  1878  by  a  reduction  of  the  tariff  schedules  of  the 
Zollverein,  but  gladly  returned  to  protection  in  1879  and  1881,  and 
since  that  time  the  development  of  German  industries  and  the 
progress  and  prosperity  of  the  nation  and  its  people  have  com- 
manded the  attention  and  admiration  of  the  whole  world.  Russia 
had  a  protective  tariff  system  in  the  early  years  of  the 
last  century  which  she  abandoned  in  1819,  but  after  ex- 
periments in  the  line  of  free  trade  gradually  returned  to  the 
protective  system,  and  under  it  has  developed  in  recent 
years  manufacturing  industries  of  great  magnitude.  Austria- 
Hungary  experimented  between  1853  and  1882  with  a  series  of 
comparatively  low  tariffs,  but  in  1882  restored  thoroughly  protec- 
tive duties  and  has  further  increased  them  since  that  time,  develop- 
ing a  great  manufacturing  system  and  prosperity  far  greater  than 
that  of  earlier  years.  Italy  had  low  tariffs  prior  to  1870,  but 
began  about  that  time  a  system  of  protection,  adding  articles  from 
time  to  time  to  the  tariff  schedule  and  making  her  tariff  system  a 
thoroughly  protective  one,  resulting  in  a  rapid  development  in  re- 
cent years  of  her  manufacturing  industries  and  in  generally  im- 
proved conditions.  Belgium  adopted  a  protective  tariff  system  in 
1844,  and  under  it  her  manufacturing  industry  has  become  of 
greater  importance  in  proportion  to  population  than  that  of  almost 
any  other  European  country.  Netherlands  adopted  the  pro- 
tective system  in  1845,  abandoning  it  in  1862,  but  has  now  taken 
a  step  toward  a  return  to  protection,  a  tariff  measure  increasing 
the  rates  of  duty  on  manufactured  articles  having  been  recently 
sent  by  the  Government  to  the  legislative  body  with  a  recommenda- 
tion for  its  adoption.  Sweden  and  Norway  have,  after  experi- 
ments with  low  tariffs,  adopted  a  protective  system  which  is  de- 
scribed by  Curtiss  as  "perhaps  on  the  whole  more  protective  than 
that  of  any  other  European  country,"  the  tariff  act  of  1892  having 
been  termed  the  "McKinley  Bill  of  Sweden."  Spain  and  Portugal 
experimented  with  free  trade  from  1859  to  1882,  unsuccessfully, 
and  have  since  those  experiments  materially  increased  their  tariff 
rates    with    a    strong    protective    tendency.      In    other    parts 


8  THE  TARIFF. 

of  tho  world  protection  is  also  gaining  steadily.  The  prin- 
cipal British  colonies  Canada,  South  Africa.  Australia,  and 
New  Zealand— have  adopted  protective  tariff  systems.  India  lias 
recently  Increased  her  tariff  rates.  Japan  a  couple  of  years  ago 
adopted  a  new  tariff  which  increased  and  in  some  cases  doubled 
the  raics  of  <luty,  especially  those  on  manufactured  articles. 

BRITISH    REVOLT   AGAINST    FREE   TRADE. 

In  the  United  Kingdom,  which  has  been  pointed  out  by  free 
traders  as  a  marked  example  of  the  success  of  their  system,  lead- 
ing statesmen  are  now  urging  the  abandonment  of  that  system 
and  a  return  to  protection;  and  are  supporting  their  proposition  by 
statements  showing  that  the  export  trade  of  the  protected  coun- 
tries has  grown  much  more  rapidly  than  that  of  free-trade  Eng- 
land, and  that  in  the  absence  of  protection  against  those  countries 
English  manufacturers  and  workingmen  are  being  deprived  of 
their  home  markets  through  large  importation  of  manufactures 
from  other  countries.  The  official  reports  of  the  British  Govern- 
ment show  that  the  imports  of  manufactured  goods  into  the 
United  Kingdom  increased  71  per  cent  between  1880  and  1901, 
while  into  the  protected  country  of  Germany  the  increase  was 
only  36  per  cent,  into  France  28  per  cent,  and  into  the  United 
States  20  per  cent  in  the  same  period.  In  exports  of  manufac- 
tured goods  the  British  official  figures  show  that  the  United  King- 
dom increased  only  12  per  cent  from  1880  to  1901 ;  France,  22  per 
cent ;  Germany,  73  per  cent,  and  the  United  States  300  per  cent 
in  the  same  period.  It  is  because  of  stubborn  facts  such  as  these 
that  the  United  Kingdom,  which  has  stood  out  in  favor  of  free 
trade  while  all  the  rest  of  the  world  is  abandoning  it,  is  now  pro- 
posing to  adopt  protection.    For  British  tariff  see  page  70. 

Tariffs  of  the  United  States. 

The  question  of  raising  revenues  was  one  of  the  chief  motives 
in  the  formation  of  the  national  constitution.  The  different 
states  or  colonies  under  the  confederation  were  levying  duties 
either  for  revenue  or  for  the  protection  of  their  manufactures  in 
competition  with  other  colonies  or  states,  and  thus  conflicts  arose 
and  it  seemed  necessary  to  have  uniformity  and  also  provide  a 
certain  and  effective  way  for  raising  revenue  to  carry  on  the 
operations  of  the  general  government.  There  was  a  prejudice 
against  levying  taxes  upon  property  in  the  colonies  for  this 
purpose,  therefore  it  was  in  the  minds  of  those  who  framed  the 
constitution  that  the  principal  source  of  revenue  would  be  found 
in  the  levying  of  duties  upon  foreign  imports,  so  that  one  of  the 
compromises  of  the  constitution  provided  that  direct  taxes  should 
be  levied  upon  the  basis  of  population,  and  not  upon  the  basis 
of  property.  It  was  also  then  generally  believed  that  the  im- 
position of  duties  upon  imports  would  gradually  stimulate  and 
develop  manufacturing  industries  in  our  own  country.  So  that 
under  the  constitution  the  power  given  to  Congress  to  levy 
duties  on  imports  was  a  plenary  one,  and  not  subject  to  limita- 
tion either  as  to  rates  of  duty  or  as  to  the  articles  upon  which 
duties  should  be  levied.  It  was  expected  that  the  revenue  for 
national  purposes  would  be  chiefly  derived  from  tariff  duties, 
and  although  there  was  a  difference  of  opinion  as  to  the  rates 
of  duty,  the  general  purpose  of  a  tariff  lawT  was  distinctly  stated 
in  the  first  tariff  act  under  the  constitution  in  1789,  which  purpose 
was  declared  as  follows :  "Whereas,  it  is  necessary  for  the  sup- 
port of  government,  for  the  discharge  of  the  debts  of  the  United 
States  and  the  encouragement  and  protection  of  manufactures 
that  duties  be  levied  on  goods,  wares,  and  merchandise  imported, 
etc.,  etc.,"  thus  showing  in  the  beginning  the  general  view  as 
respects  this  subject.  This  view  was  the  generally  accepted  one 
for  a  considerable  time,  but  later,  owing  to  a  diversity  of  interests 
as  between  the  several  states  and  to  the  partial  localization  of 
manufactures  and  the  rapid  development  of  the  growth  of  cotton, 
it  was  urged  that  the  impositions  of  such  a  tariff  worked  in- 
jury to  one  part  of  the  country  for  the  benefit  of  another,  there- 
fore, the  question  was  raised  whether  a  tariff  should  be  raised 
solely  for  the  purpose  of  raising  revenue  or  should  also  be  so 
adjusted  as  to  protect  domestic  industries  from  undue  foreign 
competition.  The  agitation  of  this  question  was  stimulated  by 
the  agitation  of  free  trade  in  Great  Britain,  having  for  its  chief 
Durnose  the  reneal  of  the  corn  laws. 


THE  TABIFF.  9 

Thus  from  the  beginning  the  obtaining  of  revenue  and  the 
encouragement  and  protection  of  manufactures  were  united  as 
motives  for  levying  duties  on  articles  imported.  This  mode  at 
that  time  generally  prevailed  in  foreign  countries,  and  received 
general  acquiescence  here,  and  thereby  in  levying  a  tax  upon  mer- 
chandise entering  a  community  or  state,  persons  from  abroad 
trading  in  that  community  or  state  were  required  to  bear  their 
proper  share  in  the  expenditures  of  such  community  or  state. 

THE  PROTECTIVE  THEORY  IN  EARLY  TARIFFS. 

The  protective  theory  was  recognized  in  the  first  tariff  of  the 
United  States,  which  declared  in  its  opening  words  that — 
"Whereas  it  is  necessary  for  the  support  of  government,  for  the 
discharge  of  the  debts  of  the  United  States,  and  the  encourage- 
ment and  protection  of  manufactures  that  duties  be  levied  on 
goods,  wares,  and  merchandise  imported,"  etc.  That  tariff  im- 
posed duties  upon  about  75  articles,  the  rates  of  duty  ranging 
from  iy<z  to  15  per  cent  on  those  articles  upon  which  an  ad 
valorem  duty  was  imposed,  though  on  more  than  half  of  the  arti- 
cles named  the  rates  of  duty  were  specific.  One  year  later  an  ad- 
ditional number  of  articles  were  placed  upon  the  dutiable  list,  still 
others  in  1792,  and  again  in  1794,  the  average  rates  on  dutiable 
articles  by  that  time  reaching  13  per  cent.  In  the  year 
1812  the  war  tariff  doubled  the  rates  of  duty,  making  an 
average  rate  of  32.7  per  cent,  alid  under  that  tariff,  coupled  with 
the  stimulus  given  by  the  war,  occurred  great  activity  in  manu- 
facturing. 

In  1816  the  Lowndes-Calhoun  bill  went  into  effect,  giving  an 
average  rate  of  about  26  per  cent,  which,  however,  was  too  low 
to  prevent  vast  importations  from  England  which  were  sent  at  less 
than  cost  prices  with  the  distinct  purpose  of  crushing  out  of  ex- 
istence the  infant  industries  which  had  been  developed  during  pre- 
ceding years,  and  especially  during  the  short  protective  period 
from  1812  to  1816. 

TARIFF  OF  1824. 

In  1824  a  higher  protective  tariff  was  enacted,  giving  an 
average  rate  on  all  imports  of  37  per  cent,  and  in  1828  this 
was  increased  to  bring  the  average  up  to  about  48  per  cent,  and 
continued  in  operation  until  1834.  During  that  time  great  pros- 
perity came  to  the  people  of  the  United  States,  both  to  the  manu- 
facturing industries  and  to  those  supplying  the  food  and  materials 
consumed  by  persons  engaged  in  those  industries.  Henry  Clay, 
commenting  on  conditions  of  that  period,  said :  "If  the  term  of 
seven  years  of  the  greatest  prosperity  which  its  people  have  en- 
joyed since  the  establishment  of  their  present  Constitution  were  to 
be  selected  it  would  be  exactly  that  period  of  seven  years  which 
immediately  followed  the  passage  of  the  tariff  act  of  1824."  Major 
McKinley,  commenting  later  upon  conditions  of  that  period,  said : 
"The  entire  country,  under  that  tariff,  moved  on  to  higher  triumphs 
in  industrial  progress,  and  to  a  higher  and  better  destiny  for  all  of 
its  people."  President  Jackson,  in  a  message  to  Congress  in  1834, 
the  year  prior  to  the  repeal  of  this  protective  tariff  law,  said : 
"Our  country  presents  on  every  side  markets,  prosperity,  and 
happiness  unequaled  perhaps  in  any  other  portion  of  the  world." 

LOW    TARIFF    AND    THE    CRASH    OF    1837. 

In  1833,  however,  under  pressure  of  the  low  tariff  supporters  the 
Clay  compromise  tariff  act  was  passed,  reducing  the  rates  of  duty 
and  providing  for  a  further  gradual  reduction  during  a  term  of 
years  to  bring  the  average  rate  on  all  imports  down  to  about  17 
per  cent.  This  was  followed  by  a  decline  in  trade  and  industry, 
by  an  inundation  of  foreign  goods,  by  financial  depression,  assign- 
ments and  bankruptcies,  until  the  culmination  came  in  the  finan- 
cial crash  of  1837,  one  of  the  most  appalling  and  disastrous  finan- 
cial revulsions  ever  known,  the  revenue  so  falling  off  that  the 
Government  was  obliged  to  borrow  money  at  high  rates  of  interest 
to  pay  current  expenses,  while  workingmen  were  idle,  the  farmers 
without  markets,  and  their  products  sold  by  sheriff  to  pay  debts. 

In  1842  a  protective  tariff  was  enacted  which  was  followed  by 
general  prosperity  during  the  short  period  of  four  years  in  which 


10  U1K     1AKI1I. 

it  was  in  operation.  So  prosperous  wns  the  country  under  this 
that  President  Polk,  in  his  message  of  December,  1846,  said :  "La- 
bor in  all  its  branches  is  receiving  an  ample  reward,  and  the 
progress  of  our  country  in  her  career  of  greatness,  not  only  in 
extension  of  territorial  limits  and  in  the  rapid  increase  of  her 
population  but  in  resources  and  wealth  and  the  happy  condition 
of  her  people,  is  without  an  example  in  the  history  of  nations." 

THE    WALKER    TARIFF. 

At  that  very  date  (December,  1846),  however,  the  celebrated 
Walker  tariff  went  into  effect,  making  a  general  and  great  reduc- 
tion in  duties,  being  a  thoroughly  free-trade  measure  in  its  prin- 
ciples. The  war  with  Mexico,  the  discovery  of  gold  in  California, 
and  the  unusual  demand  abroad  for  agricultural  products  main- 
tained prosperity  in  the  United  States  during  the  earlier  years  of 
this  Walker  tariff,  but  much  of  the  gold  was  drawn  abroad  in 
payment  for  the  foreign  goods  imported  and  within  a  few  years 
came  a  great  depression,  the  closing  of  manufacturing  establish- 
ments, lack  of  employment  for  labor  and  lack  of  home  markets  for 
the  farmer.  In  1850,  Mr.  Samuel  Bowles,  editor  of  the  .Springfield 
Republican,  and  other  representative  citizens  of  Massachusetts 
sent  a  petition  to  Congress  entreating  it  to  revise  the  tariff  of 
1846  in  the  interest  of  protection,  and  saying:  "Previous  to  the 
passage  of  that  law  the  manufacturing  and  mechanical  interests  of 
this  community  were  in  a  flourishing  condition.  Since  that  time 
the  condition  of  things  has  entirely  changed,  and  it  is  fully  be- 
lieved that  much  of  the  stagnation  of  business  will  be  traced  to 
the  operation  of  that  law.  Manufacturing  languishes,  mechanics 
are  thrown  out  of  employment,  business  of  all  kinds  is  'dull,  and 
unless  protection  can  be  afforded  to  our  laboring  classes  poverty 
will  overtake  them."  In  1854  Hunts's  Merchant  Magazine,  a  well- 
known  free  trade  journal  of  that  period,  said:  "Confidence  is 
shaken  everywhere  and  all  classes  are  made  to  realize  the  inse- 
curity of  worldly  possessions.  The  causes  which  led  to  this  have 
(been  a  long  time  at  work.  Goods  which  had  accumulated  abroad 
'  when  the  demand  had  almost  ceased  were  crowded  upon  our 
shores  at  whatever  advance  could  be  obtained,  thus  aggravating 
the  evil."  The  answer,  of  Congress  to  these  appeals,  however,  was 
a  further  reduction  of  duties  made  in  1857,  and  this  was  followed 
by  a  panic  and  commercial  ruin,  and  such  conditions  that  the 
Government  was  compelled  to  pay  as  high  as  12  per  cent  and  13 
per  cent  for  money  borrowed  to  pay  the  running  expenses  of  the 
Government  Of  this  condition  President  Buchanan,  the  last  Dem- 
ocratic President  before  Grover  Cleveland,  said  in  his  message  of 
1860:  "With  unsurpassed  plenty  in  all  the  productions  and  all  the 
elements  of  natural  wealth,  our  manufacturers  have  suspended, 
our  public  works  are  retarded,  our  private  enterprises  of  different 
kinds  are  abandoned,  and  thousands  of  useful  laborers  are  thrown 
out  of  employment  and  reduced  to  wrant.  We  have  possessed  all 
the  elements  of  material  wealth  in  rich  abundance,  and  yet,  not- 
withstanding all  these  advantages,  our  country  in  its  monetary 
interests  is  in  a  deplorable  condition." 

TARIFFS   AND    CONDITIONS    SINCE    1861. 

In  the  36th  Congress  a  majority  of  the  House  of  Representa- 
tives, being  Republican,  favored  the  substitution  of  a  protective 
tariff  for  the  amended  tariff  of  1846,  and  under  the  leadership 
of  the  then  Chairman  of  the  Committee  on  Ways  and  Means.  Mr. 
Morrill,  of  Vermont,  the  House  of  Representatives  during  the  long 
session  of  1859-60  passed  a  protective  tariff  measure,  which,  during 
the  short  session  of  1860-61,  after  the  abdication  of  many  Southern 
Senators,  received  a  majority  in  the  Senate,  and  was  signed  by 
President  Buchanan  before  he  vacated  his  office  in  March,  1861.  Thus 
with  the  advent  of  the  Republican  party  to  control  came 
the  adoption  of  the  protective  system,  and  this  became  perma- 
nently a  part  of  the  policy  of  the  Government  until  1894,  when  the 
Wilson-Gorman  low  tariff  act  was  passed.  The  prosperity  which 
developed  during  that  period  is  so  well  known  that  it  need  scarcely 
be  alluded  to.  The  value  of  farms  and  farm  property  increased 
from  a  little  less  than  8  billions  of  dollars  in  1860  to  over  16 
billions  in  1890,  as  shown  by  the  United  States  census.  The  value 
of  farm  animals  increased  from  one  billion  dollars  in  1860  to  2y2 


run;  TARIFF.  11 

billions  in  1890.  The  value  of  manufactures  increased  from  less 
than  2  billion  dollars  in  18(30  to  9  billions  in  1890 ;  the  wages  and 
salaries  paid  to  persons  employed  by  the  manufacturing  industries 
increased  from  379  million  dollars  in  1860  to  2,283  millions  in  1890. 
The  deposits  in  savings  banks  grew  from  150  million  dollars  in 
1860  to  1,712  millions  in  1892,  or  about  12  times  as  much  in  1892 
as  in  1860.  Meantime  the  national  debt,  incurred  by  the  war,  had 
been  reduced  from  2,636  million  dollars  in  1866  to  841  millions  in 
1892 ;  the  per  capita  indebtedness  from  $77  in  1865  to  $13  in  1892, 
and  the  annual  interest  charge  per  capita  from  $3.98  in  1865  to  35c 
cents  in  1892.  Imports  during  that  long  period  of  protection  increased 
from  353  million  dollars  in  1860  to  827  millions  in  1892,  and  ex- 
ports increased  from  333  millions  in  1860  to  over  one  billion  dol- 
lars in  1892.  The  share  which  manufacturers'  raw  materials 
formed  in  the  imports  increased  from  17  per  cent  in  1860  to  24  per 
cent  in  1892,  and  the  share  which  manufactured  articles  ready 
for  consumption  formed  in  the  imports  fell  from  35  per  cent  in 
1860  to  17  per  cent  in  1892.  The  manufacturers  of  the  country 
not  only  supplied  the  home  markets  which  had  been  heretofore 
supplied  from  abroad,  but  increased  their  exportation  of  manufac- 
tures from  40  million  dollars  in  1863  to  160  millions  in  1892;  and 
the  farmers  not  only  supplied  the  greatly  increased  demand  of  the 
home  market  but  increased  their  exportation  of  agricultural  pro- 
ducts from  256  millions  in  1860  to  798  millions  in  1892.  As  a  re- 
sult of  this  unexampled  activity  and  prosperity  the  money  in  cir- 
culation 3n  the  country  grew  from  435  million  dollars  in  1860  to 
1,601  millions  in  1892,  and  the  amount  per  capita  increased  from 
$13.85  in  1860  to  $24.56  in  1892.  Wealth  meantime  increased  from 
16  billions  of  dollars  in  1860  to  65  billions  in  1890,  and  the  per 
capita  wealth  from  $514  in  1860  to  $1,038  in  1890. 

THE  WILSON-GORMAN  TARIFF. 

Then  followed  the  Wilson-Gorman  low-tariff  law.  True,  it  was 
not  enacted  until  1894,  but  the  election  in  1892  of  a  Democratic 
President  and  Congress  notified  the  people  of  the  United  States 
that  a  change  in  the  tariff  might  be  expected,  and  from  that- mo- 
ment business  began  to  decline.  The  certainty  of  a  tariff  reduc- 
tion, coupled  with  the  uncertainty  as  to  how  great  its  extent  might 
be  upon  each  individual  article,  caused  the  manufacturers  to  im- 
mediately curtail  their  production,  and  the  reduction  of  employ- 
ment which  followed  reacted  upon  all  classes  in  a  reduction  of 
the  demand  for  their  products  and  a  reduction  of  price  for  that 
which  found  a  market.  As  a  result  the  bank  clearings,  that  great 
barometer  of  business  conditions,  fell  from  61  billions  of  dollars  in 
1892  to  52  billions  in  1896,  the  year  of  the  election  of  McKinley, 
whose  very  name  was  a  promise  of  protective  tariff.  Money  in 
circulation  fell  from  1,601  million  dollars  in  1892  to  1,506  millions 
in  1896,  and  the  per  capita  from  $24.56  in  1892  to  $21.41  in  1896. 
Exports  fell  from  1,015  million  dollars  in  1892  to  863  millions  in 
1896 ;  those  of  agricultural  products  alone  falling  from  798  mil- 
lions in  1892  to  570  millions  in  1896,  while  imports  of  manufac- 
tured articles  ready  for  consumption  increased  from  142  millions 
in  1892  to  160  millions  in  1896.  The  revenue  of  the  Government 
fell  off  and  loans  became  necessary  to  meet  the  current  expendi- 
tures, and  as  a  result  the  national  indebtedness  increased  from 
841  million  dollars  in  1892  to  955  millions  in  1896— all  during  a 
time  of  profound  peace.  The  effect  upon  all  industries  was 
strongly  marked.  The  value  of  animals  on  farms  fell  from  2,461 
million  dollars  in  1892  to  1,728  millions  in  1896 ;  the  production  of 
wool,  under  free  trade  in  that  article,  fell  from  294  million  pounds 
in  1892  to  272  millions  in  1896  and  its  value  from  59 
million  dollars  in  1892  to  33  millions  in  1896;  and  the 
value  of  sheep  on  farms  from  45  million  dollars  in 
1892  to  38  millions  in  1896.  Pig-iron  production  fell 
from  over  9  million  tons  in  1892  to  6%  millions  in 
1894.  Rates  of  wages  were  reduced  in  all  lines  of  industry ;  mil- 
lions of  men  were  out  of  employment,  and  as  a  result  prices  of 
farm  products  were  greatly  reduced.  Railroad  building,  which 
had  been  proceeding  at  the  rate  of  from  four  to  five  thousand 
miles  per  annum,  fell  to  1,700  miles  in  189a  Over  25,000  miles  of 
railway,  or  one-third  of  the  total  of  the  country,  went  into  the 
hands  of  receivers,  and  the  wages  of  their  employes  were  greatly 


12  THE   TABIFF. 

reduced.  As  a  result  of  these  conditions  the  commercial  failures 
Increased  from  10,344  in  number  in  1892  to  15,244  in  1893  and 
15,088  in  1890,  and  the  amount  of  liabilities  from  114  million  dol- 
lars in  1892  to  340  millions  in  1893  and  226  millions  in  1896. 

THE    PRESENT    TABIFF. 

Following  the  election  of  William  McKinley  and  a  Congress 
Republican  in  both  branches  a  special  session  was  held  as  soon  as 
possible  after  McKinley's  inauguration,  and  a  protective  tariff — 
that  now  upon  the  statute  books — enacted.  Under  it  has  come 
prosperity  to  every  branch  of  industry  and  prosperity  to  the  Gov- 
ernment as  well  as  to  its  people.  The  interest-bearing  debt,  neces- 
sarily increased  by  reason  of  the  war  with  Spain,  has  been  re- 
duced from  1,040  million  dollars  in  1899  to  895  millions  in  1904; 
the  per  capita  indebtedness  from  $15.55  in  1899  to  $11  at  the 
present  time,  and  the  annual  interest  payments  from  40  million 
dollars  in  1899  to  25  millions  at  the  present  time.  The  money  in 
circulation  has  increased  from  1,506  million  dollars  in  1896,  the 
year  of  McKinley's  election,  to  2,503  millions  on  March  1,  1904; 
the  per  capita  money  in  circulation  from  $21.41  in  1896  to  $30.75 
on  March  1,  1904 ;  the  bank  clearings  from  51  billion  dollars  in 
1896  to  114  billions  in  1903  (having  thus  more  than  doubled),  and 
the  total  bank  deposits  from  4,916  millions  in  1896  to  9,673  millions 
in  1903.  Farm  animals  increased  in  value  from  1,728  millions  in 
1896  to  3,102  millions  in  1903;  pig-iron  production  from  8%  mil- 
lion tons  in  1896  to  18  millions  in  1903 ;  steel  production  from  5^4 
million  tons  in  1890  to  15  millions  in  1903 ;  coal  production  from 
171  million  tons  in  1896  to  270  millions  in  1902 ;  the  value  of  min^ 
erals  produced  from  623  million  dollars  in  1896  to  1,260  millions 
in  1902.  Exports  of  agricultural  products  grew  from  570  million 
dollars  in  1896  to  873  millions  in  1903,  and  exports  of  manufac- 
tures from  228  millions  in  1896  to  407  millions  in  1903,  while 
manufacturers'  raw  materials,  which  formed  but  26%  per  cent  of 
the  imports  in  1896,  formed  38  per  cent  in  1903.  As  a  result  of  all 
these  things  came  increased  wages,  increased  employment,  and 
increased  savings  by  the  workingmen,  as  is  shown  by  the  fact  that 
the  money  deposited  in  the  savings  banks  increased  from  1,907 
million  dollars  in  1896  to  2,935  millions  in  1903,  and  the  number  of 
depositors  from  5,005,000  in  1896  to  7,305,000  in  1903.  Railroads 
passed  out  of  the  hands  of  receivers ;  railroad  building  has  re- 
sumed, the  mileage  of  railroads  increasing  from  182,776  in  1896  to 
205,000  in  1903,  and  the  number  of  tons  of  freight  carried  by  the 
railroads  increasing  from  773  millions  in  1890  to  1,192  millions  in 
1902.  With  this  great  activity  and  prosperity  has  come  an  increase 
in  national  wealth  from  77  billions  of  dollars  in  1895  to  100  billions 
at  the  present  time,  placing  the  United  States  at  the  head  of  the 
list  of  the  world's  nations,  and  with  a  national  wealth  actually  50 
per  cent,  greater  than  that  of  the  United  Kingdom,  and  as  great 
as  that  of  France  and  Germany  combined. 

As  to  Further  Tariff  Revision. 

Much  has  been  said  during  the  past  year  as  to  the  importance 
of  a  revision  of  the  present  tariff.  To  this  it  is  only  necessary 
to  say  in  reply,  that  the  Republican  party  has  adjusted,  revised, 
increased,  or  reduced  the  tariff  whenever  such  adjustment,  in- 
crease, or  decrease  seemed  necessary  during  all  of  the  40  years 
since  it  assumed  government  in  1861.  In  that  period  of  40  years 
there  have  been  more  than  20  different  tariff  changes.  A  consid- 
erable number  of  these  have  been  changes  of  a  broad,  general 
character,  many  of  them  increases  or  decreases  all  along  the  line, 
while  others  were  of  less  importance  and  relating  to  certain 
classes  of  merchandise  only,  but  any  of  them  sufficient  to  show 
the  willingness  of  the  Republican  party  at  any  period  of  its  con- 
trol to  make  any  necessary  changes,  revisions,  or  reductions 
which  in  view  of  new  conditions  may  be  demanded  by  public 
opinion.  No  body  of  men  is  more  sensitive  to  public  opinion  or 
public  demand  than  a  Congress  formed  in  the  manner  in  which 
that  of  the  United  States,  is  chosen  and  whose  members  are  di- 
rectly dependent  upon  popular  approval  for  a  continuation  of 
their  services.  No  body  of  men  is  more  accessible  to  the  public 
than  a  body  to  which  each  citizen  of  the  United  States  is  guar 
anteed  by  the  Constitution  the  right  of  petition.    An  examination 


THE   TARTFF.  13 

of  the  history  of  our  tariff  legislation  shows  that  while  the  pro- 
tective tariff  was  adopted  early  in  1861,  changes  in  rates  of  duty 
were  made  in  1862,  1863,  1864,  1865,  1866,  1867,  1869,  1870,  1872, 
1875,  1879,  1880,  1882,  1883,  1890,  1894,  and  in  1897,  and  that  all  of 
these  as  well  as  many  minor  changes  were,  except  that  of  1894, 
made  by  the  Republican  party,  by  Republican  votes  in  Congress, 
and  approved  by  a  Republican  President  In  many  of  these 
changes  there  was  a  marked  reduction  in  rates  of  duty.  Indeed, 
there  has  never  been  a  time  during  the  40  years  of  Republican 
control  that  a  Republican  Congress  did  not  respond  to  a  popular 
demand  for  tariff  changes,  whether  of  advance  or  reduction. 
With  this  record  it  seems  not  unreasonable  to  assume  that  any 
changes  in  the  tariff  justified  by  conditions  will  be  not  only  de- 
manded of  Congress  by  the  people  through  their  usual  channels 
of  approach,  but  that  the  changes  thus  demanded  will  be  prompt- 
ly made  as  they  have  always  been  during  the  record  of  the  Re- 
publican party.  A  history  of  tariffs  changes  from  1789  to  1897  is 
given  on  page  56. 

Relative    Growth  in    Coal   Consumption   In   the   Leading   Protected 
and  Free-Trade  Countries. 

Another  measure  of  the  relative  business  and  manufacturing 
activity  in  the  low-tariff  and  protected  countries  is  found  in  the 
coal  consumption  of  the  two  classes  of  countries.  The  United 
Kingdom,  Germany,  and  the  United  States  are  the  great  coal- 
producing  and  the  great  manufacturing  countries,  and  the  United 
Kingdom  is  a  marked  example  of  free  trade  and  the  United  States 
and  Germany  are  marked  examples  of  protection.  Usually  at- 
tempts to  measure  coal  consumption  have  been  based  on  the 
mere  figures  of  production,  but  these  are  misleading  because  of 
the  fact  that)  the  United  Kingdom  exports  such  large  quantities 
of  coal.  A  table  presented  on  page  61  shows  the  quantity 
of  coal  consumed  in  each  of  these  countries,  as  well  as 
the  quantity  produced  and  the  increase  in  consumption  since 
1875.  This  table  will  justify  a  very  careful  study.  It  shows  that 
the  coal  consumption  of  the  United  Kingdom  has  increased  less 
than  50  per  cent  since  1875,  that  of  Germany  has  increased  about 
200  per  cent  and  that  of  the  United  States  nearly  500  per  cent. 
These  figures  have  been  very  carefully  compiled  from  official  in- 
formation and  their  accuracy  cannot  be  doubted. 

Trusts  and  the  Tariff. 

The  Democratic  assertion  that  the  tariff  is  responsible  for  the 
existence  of  trusts  and  that  it  should  be  removed  for  the  pur- 
pose of  destroying  those  organizations  seems  scarcely  justified 
either  in  fact  or  theory.  It  does  not  seem  to  be  a  fact  that  the 
tariff  is  responsible  for  the  existence  of  trusts,  nor  does  the 
theory  of  repeal  of  the  tariff  for  the  purpose  of  destroying  them 
seem  to  be  justified  in  view  of  the  adverse  effect  upon  industries 
in  general  which  would  follow.  No  one  familiar  with  the  history 
of  trusts  and  great  combinations  in  other  parts  of  the  world  can 
for  a  moment  accept  as  accurate  the  assertion  that  the  tariff  is 
responsible  for  the  existence  of  organizations  of  this  general 
character,  whether  under  the  title  of  trusts  or-,  otherwise.  Mr. 
Blaine,  in  1888,  on  returning  from  a  visit  to  Europe,  declared  in 
his  speech  opening  the  Presidential  campaign  of  that  year  that 
trusts  and  combinations  to  control  prices  even  at  that  early  date 
existed  in  free-trade  England  in  large  numbers ;  or,  as  Senator 
Dolliver  has  recently  expressed  it,  "England  was  even  then 
plastered  all  over  with  trusts."  In  October,  1895,  a  steel-rail 
trust  which  embraced  the  steel-rail  manufacturers  of  Great 
Britain  was  organized,  and  on  February  5,  1896,  the  London  Iron- 
monger announced  the  details  of  its  agreement,  the  chief  among 
them  being  that  "there  is  to  be  no  under  selling."  In  1895  the 
Sheffield  Telegraph  published  the  draft  of  a.  scheme  proposing 
the  combination  of  200  iron  firms  in  the  various  cities  of  England 
for  the  purpose  of  regulating  the  prices  of  all  classes  of  iron.  In 
1897  the  details  of  the  combination  between  the  great  armament 
manufacturing  firms  were  announced.  Some  of  the  great  combi- 
nations in  England  for  the  control  of  prices  of  articles 
in  common  use  were  organized  as  early  as  1890,  among 
them  the  following:  The  Salt  Union,  Limited,  with  a 
capital    of    $10,000,000;    in    the    same    year,    the    Alkali    Com- 


11  THE    TARIFF.  -^. 

pany,  combining  43  manufacturing  establishments,  with  a 
capital  of  #30,000,000;  the  J.  &  P.  Coates  Company, 
thread  manufacturers,  in  1896,  a  combination  of  four  busi- 
nesses with  a  capital  of  $27,000,000;  another  cotton  thread  organi- 
zation, i  v»ar  later,  combining  15  manufacturing  establishments 
with  a  capital  of  $14,000,000;  a  combination  of  cotton  spinners  in 
1898,  combining  31  establishments  with  a  capital  of  $30,000,000; 
in  the  same  year  a  combination  o{  the  dyeing  interests, 
combining  22  establishments  with  a  capital  of  $22,000,000;  also 
in  the  same  year  a  combination  of  the  Yorkshire  Wool  Combers, 
combining  38  establishments  with  a.  capital  of  $12,000,000;  also 
in  1808  a  combination  of  00  calico  printing  establishments  with 
a  capital  of  $46,000,000;  in  1900  a  combination  of  28  wall  paper 
manufacturers  with  a  capital  of  $21,000,000,  and  in  the  same 
year  a  combination  of  40  establishments  of  cotton  and  wool  dye- 
ing establishments  with  a  capital  of  $15,000,000.  In  the  decade 
1890-1900  the  public  announcements  of  combinations  in  free- 
trade  England  included  328  different  business  concerns  amalga- 
mated into  15  great  organizations  with  a  total  capital  of  $230,- 
000,000,  while  a  very  large  number  of  minor  organizations  and 
those  which  were  not  made  public  should  be  added  to  the  list 
to  render  it  complete.  Many  great  combinations  have  been  or- 
ganized in  free-trade  England  since  1900,  but  this  history  of  the 
decade  in  which  great  combinations  of  capital  of  this  character 
have  been  common  in  all  parts  of  the  world  where  manufactur- 
ing capital  is  plentiful  is  sufficient  to  show  that  such  combina- 
tions and  organizations  are  not  confined  to  protection  countries, 
but  on  the  contrary  flourish  with  equal  vigor  in  the  one  free- 
trade  country  of  the  world  in  wThich  a  sufficient  amount  of  capital 
exists  to  justify  the  organization  of  combinations  of  this  kind. 

ENGLISH    ATTITUDE   TOWARD   TRUSTS. 

The  United  States  Industrial  Commission  made  a  thorough 
investigation  of  trusts  and  trust  operations  in  foreign  countries 
as  well  as  in  the  United  States  in  1900,  sending  an  expert  (Prof. 
J.  W.  Jenks,  of  Cornell  University)  to  the  principal  European 
countries  and  giving  the  subject  much  careful  attention  and 
study.  The  report  stated  that  "there  is  a  strong  tendency  toward 
the  formation  of  industrial  combinations  everywhere  in  Europe," 
and  of  the  situation  in  England  says:  "There  were  in  earlier 
days  very  many  local  combinations  to  keep  up  prices,  and  in 
some  cases  these  rings  have  proved  very  successful.  Within  the 
last  three  years  a  very  active  movement  toward  the  concentration 
of  industry  into  large  single  corporations,  quite  after  the  form 
that  has  been  common  in  the  United  States,  may  be  observed. 
Nearly  all  the  feeling  that  one  notes  in  England  on  this  subject 
has  reference  to  the  later  corporations  formed  by  the  buying  up 
of  many  different  establishments  in  the  same  line  of  business — 
corporations  that  through  combination  have  succeeded  in  ac- 
quiring in  many  particulars  a  good  degree  of  monopolistic  con- 
trol. *  *  *  Industrial  combinations  in  Europe  do  not  seem  to 
have  awakened  the  hostility  in  any  country  that  is  met  with  in 
the  United  States.  In  England  one  finds  in  the  papers  a  little 
expression  of  fear  of  the  newer  large  corporations.  The  Govern- 
ment has  taken  no  action  whatever  regarding  them  further  than 
to  pass,  August  8,  1900,  an  amendment  to  the  Companies  Act. 
which  provides  for  greater  publicity  regarding  the  promotion  and 
the  annual  business  of  corporation®  than  before.  *  *  *  There 
is,  relatively  speaking,  little  objection  to  combinations  in  Europe, 
and  in  some  cases  the  governments  and  people  seem  to  believe 
that  they  are  needed  to  meet  modern  industrial  conditions.  They 
do  believe  that  they  should  be  carefully  supervised  by  the  Gov- 
ernment and,  if  necessary,  controlled.  *  *  *  The  great  degree 
of  publicity  in  the  organization  of  corporations  has  largely  pre- 
vented these  evils  arising  from  stock  watering,  and  has  evidently 
had  much  effect  in  keeping  prices  steady  and  reasonable  and  in 
keeping  wages  steady  and  just  There  seems  to  be  no  inclination 
toward  the  passage  of  laws  that  shall  attempt  to  kill  the  combi- 
nations. This  is  believed  to  be  impossible  and  unwise.  Laws 
should  attempt  only  to  control,  and  that,  apparently,  chiefly 
through  publicity,  though  the  governments  may  be  given  re- 
strictive power  in  exceptional  cases." 


THE   TASOfV.  15 

TRUSTS  AND  PRICES. 

Combinations  of  the  general  character  looseiy  designated  as 
"trusts"  are  in  fact  the  grouping  together  under  one  manage- 
ment of  several  industrial  concerns  making  articles  similar  in 
character,  primarily  for  the  purpose  of  reducing  expenses  of  pro- 
duction and  sale,  and  also  of  securing  uniformity  in  prices  of 
the  products  of  the  organizations  thus  grouped.  Unless  the  or- 
ganizations so  combining  include  all  or  at  least  a  large  share  of 
those  existing  in  the  country  in  question,  it  is  obviously  impossi- 
ble for  them  to  control  prices  in  that  country.  They  may  de- 
termine the  price  at  which  their  own  product  shall  be  sold,  and 
insist  upon  receiving  that  price  or  refusing  to  sell,  but  they  can 
not  control  the  prices  at  which  others  shall  sell  in  competition 
with  them  unless  the  original  organization  is  sufficiently  strong 
to  buy  in  all  competitors  or  to  drive  them  ou".  of  existence  by 
selling  at  prices  below  the  cost  of  production. 

It  will  be  conceded  that  unless  a  combination  of  manufac 
turers  of  a  given  article  thus  controls  the  price  of  a  very  large 
proportion  of  that  article  produced  in  the  country  of  operation 
it  can  not  exact  excessive  prices  because  of  the  competition 
which  would  be  offered  by  other  producers  not  within  that  or- 
ganization. Let  us  see  what  the  relation  is  of  the  great  manu- 
facturing combinations  in  the  United  States  to  the  total  manu- 
facturing capacity  in  the  line  of  industry  in  which  they  operate. 
The  most  marked  example  of  organizations  of  this  kind  is,  of 
course,  the  United  States  Steel  Corporation.  Mr.  James  M. 
Swank,  who  has  been  secretary  of  the  American  Iron  and  Steel 
Association  since  long  before  the  trust  era,  and  editor  of  the 
Bulletin  of  the  Iron  and  Steel  Association,  in  a  table  recently 
published  compares  the  product  of  the  United  States  Steel  Cor- 
poration in  1902  with  the  product  of  all  other  iron  and  steel 
manufacturing  companies  in  the  United  States.  These  statistics  have 
been  gathered  with  great  care ;  those  of  production  by  the  Steel 
Corporation,  from  its  own  official  statements,  and  those  of  other 
companies  from  authentic  sources.  They  show  that  in  1902  the 
United  States  Steel  Corporation  produced  50.8  per  cent  of  the 
finished  rolled  iron  and  Lteel  products  manufactured  in  the 
United  States.  The  total  of  all  finished  rolled  products  by  the 
United  States  Steel  Corporation  in  1902  was  7,086,658  gross  tons, 
and  by  the  independent  companies,  6,857,458  gross  tons.  It  is 
obvious  that  a  company  producing  only  one-half  of  any 
given  article  entering  a  given  market  could  not  maintain  exces- 
sively high  prices  against  the  competition  which  would  be  of- 
fered by  a  large  number  of  unorganized  individuals  whose  total 
product  is  equal  to  that  of  the  company  attempting  to  maintain 
such  excessive  prices,  and  each  seeking  to  find  a  market  for  its 
product  and  willing  to  sell  it  at  a  fair  profit,  thus  insuring  con- 
stant work  for  its  millc  and  workmen.  It  is  quite  apparent, 
therefore,  that  the  competition  thus  offered  by  uncombined 
manufacturers  operating  in  their  individual  capacity,  whose  ag- 
gregate production  is  equal  to  that  of  the  corporation,  must  ren- 
der impossible  the  control  of  the  market  by  that  corporation  and 
compel  it  either  to  sell  its  product  at  a  reasonable  price  or  ex- 
clude them  from  the  market.    For  above-mentioned  table  see  index. 

TRUSTS  UTTERLY  UNABLE  TO  CONTROL  THE  MARKETS. 

This  condition  of  the  impossibility  of  a  control  of  the  mar- 
kets by  combinations  of  this  character  applies  with  even  greater 
force  when  we  take  into  consideration  the  relation  of  the  indus- 
trial combinations  of  the  country  as  a  whole  to  the  manufactur- 
ing industries  of  the  country  as  a  whole.  The  census  of  1900 
made  an  examination  into  this  question  and  the  share  which  in- 
dustrial combinations  produced  in  that  year  of  the  total  manu- 
factures of  the  country  as  a  whole.  Under  the  term  "industrial 
combinations"  it  included  all  those  organizations  which  consisted 
of  "a  number  of  formerly  independent  mills  which  had~been 
brought  together  into  one  company  under  a  charter  obtained  for 
that  purpose."  This  is  distinctively  the  "trust"  or  "combination" 
idea— the  grouping  together  under  one  management  a  number  of 
establishments  manufacturing  similar  articles  with  the  purpose 
of  reducing  cost  of  production  and  sale  and  of  securing  uniform- 
ity in  prices  of  their  product    The  result  of  that  inquiry,  found 


16  THE   TAKIM  . 

on  page  lxxi,  table  xxvi,  of  part  one  of  the  Census  Eepcrt  on 
Manufactures,  1900,  showed  that  all  of  the  manufacturing  es- 
tablishments of  the  United  States  which  could  be  included  under 
this  designation  produced  only  14.1  per  cent  of  the  aggregate 
factory  product  of  the  United  States  in  that  year,  and  employed 
but  8.4  per  cent  of  the  factory  labor  of  the  country.  Here,  then, 
is  a  fair  indication  of  the  power  of  the  industrial  combination, 
whether  under  the  term  trust  or  otherwise,  to  control  prices  of 
manufactures  in  the  United  States.  They  produced  in  the  year 
1900,  the  latest  year  in  which  accurate  statistics  are  available, 
but  14.1  per  cent  of  the  total  manufactures  of  the  country, 
while  85.9  per  cent  of  the  manufactures  of  the  country  were 
produced  by  men  and  manufacturing1  establishments  not  in- 
cluded in  or  a  part  of  these  industrial  combinations.  Can  any- 
body suppose  for  a  moment  that  the  producers  of  only  14.  per 
cent  of  a  given  article  or  class  of  articles  would  have  the  power 
to  fix  prices  and  maintain  them  at  an  excessive  or  exorbitant 
figure  against  the  competition  which  would  be  offered  by  the 
producers  of  the  other  86  per  cent?  Not  only  is  it  true  that 
the  industrial  combinations  were  in  this  great  minority  as  to 
power  of  production  but  it  is  also  true  that  in  many  cases  these 
very  organizations  were  competitors  among  themselves.  It  fre- 
quently happens  that  one  trust,  so  called,  or  combination  is  a 
competitor  of  another  trust  or  combination  making  the  same 
article,  so  that  in  fact  the  competition  was  not  merely  that  of 
86  per  cent  of  unorganized  industry  against  14  per  cent  of  or- 
ganized, but  there  was  also  competition  between  various  sec- 
tions of  the  14  per  cent  included  under  the  general  group  of 
industrial  combinations.  While  it  is  true  that  there  has  been  a 
large  increase  in  the  number  and  capitalization  of  trusts  since 
1900,  the  developments  of  the  past  year  have  shown  that  these 
apparently  rapid  developments  in  the  trust  creation  and  control 
were  largely  fictitious,  and  that  many  of  them  have  not  even  the 
power  to  continue  their  own  existence,  to  say  nothing  of  the 
power  to  control  prices. 

FREE  TBADE  PROVING  DESTRUCTIVE   IN   ENGLAND. 

Even  if  we  assume  that  all  of  the  industrial  combinations, 
manufacturing  14  per  cent  of  the  total  manufactures  of  the 
country,  were  cooperating  among  themselves  to  maintain  and 
demand  high  prices,  this  fact  would  not  justify  the  destruction 
of  the  other  86  per  cent  of  the  manufacturing  industries  of  the 
country  as  a  result  of  the  punishment  which  the  friends  of 
free  trade  would  deal  out  to  the  corporations  producing  this  14 
per  cent  of  the  manufactures  of  the  country.  That  free  trade 
would  immediately  injure  and  ultimately  destroy  the  great  man- 
ufacturing interests  of  the  country  is  illustratetd  by  the  cries 
now  coming  from  free-trade  England  that  her  manufacturing 
industry,  which  was  established  under  protection  before  that 
of  the  United  States  began  its  great  development,  is  now  being 
destroyed  by  the  competition  made  possible  through  open  doors- 
free  trade.  The  proposition  to  bring  about  the  punishment  of 
industrial  combinations  which  are  alleged  to  be  maintaining 
excessively  high  prices,  by  the  wholesale  destruction  which 
would  result  from  free  trade  in  their  products,  is  like  a  propo- 
sition to  burn  the  barn  to  destroy  the  rats.  Regulation,  to  pre- 
vent a  control  of  the  markets  and  the  establishment  of  exces- 
sively high  prices,  is  the  logical  and  proper  remedy  rather  than 
destruction  of  the  great  interests  directly  involved  and  the  far 
greater  interests  of  manufacturers  not  in  those  combinations, 
who  would  equally  suffer. 

JUDGE    GROSSCUP    ON    TRUSTS. 

On  this  subject  Judge  Peter  S.  Grosscup,  whose  vigorous 
expressions  in  hostility  to  combinations  which  seek  to  control 
prices  have  attracted  universal  attention  both  in  this  country 
and  elsewhere,  said  in  an  address  at  Des  Moines,  Iowa,  on  April 
27,  1904:  "To  the  great  corporations  we  now  go  for  almost 
every  help  in  life.  The  farmer  turns  up  the  soil  with  a  cor- 
poration-made plow;  the  rains  may  mellow  the  soil,  but  a  cor- 
poration drill  puts  in  the  seed.  The  gathered  harvest  is  stored 
in   corporation  warehouses,    transported   over   an    incorporated 


THE  TAEIFF.  17 

railway,  ground  into  flour  by  incorporated  rollers,  and  baked  in- 
to bread  in  corporation  ovens.  And  tbey  whose  mouths  feed  upon 
the  loaves  pay  for  them,  for  the  most  part,  out  of  earnings  re- 
ceived from  a  corporation  treasury.  As  an  ally  to  the  farmer 
corporation  enterprise  helps  to  feed  us.  As  an  ally  to  the  manu- 
facturer it  helps  to  clothe  us.  As  an  ally  to  the  moral  agencies 
of  mankind  it  helps  us  through  the  pathway  of  advancement. 
Without  corporate  enterprise  this  great  State  would  be  a  hermit 
in  a  wilderness  of  unsettled  prairie  lands.  The  great  corpora- 
tion is  here  to  stay.  The  problem  before  us  is  not  how  to'  de- 
stroy the  corporation  nor  how  to  hamper  it  or  trip  it  up,  but  to 
make  it  a  helpful  servant  to  the  uses  of  mankind.  *  *  *  The 
first  step  to  this  end  and  the  great  step  is  to  nationalize  the 
corporation.  Five  and  forty  masters  now  ordain  its  policies.  It 
should  be  governed  by  one  master  and  one  policy.  The  corpor- 
ation is  no  longer  the  sole  concern  of  the  State  where  its  books 
happen  to  be  kept  or  its  directors  meet,  it  has  become  the  con- 
cern of  the  whole  country  over  which  its  enterprises  reach.  The 
day  of  the  New  Jersey  policy  is  gone,  and  the  New  York  policy 
and  the  Iowa  policy — the  day  has  come  for  an  American  cor- 
porate policy." 

PRESIDENT  ROOSEVELT'S   OPINION. 

On  this  same  subject  of  regulation  as  against  the  Demo- 
cratic doctrine  of  destruction  of  the  trusts,  President  Roosevelt 
said  at  Milwaukee,  on  April  3,  1903:  "I  think  I  speak  for  the 
great  majority  of  the  American  people  when  I  say  that  we  are 
not  in  the  least  against  wealth  as  such,  Avhether  individual  or 
corporate;  that  we  merely  desire  to  see  any  abuse  of  corporate 
or  combined  wealth  corrected  and  remedied;  that  we  do  not 
desire  the  abolition  or  destruction  of  big  corporations,  but,  on 
the  contrary,  recognize  them  as  being  in  many  cases  efficient 
economic  instruments,  the  results  of  an  inevitable  process  of 
economic  evolution,  and  only  desire  to  see  them  regulated  and 
controlled  so  far  as  may  be  necessary  to  subserve  the  public 
good.  We  should  be  false  to  the  historic  principles  of  our  Govern- 
ment if  we  discriminated,  by  legislation  or  administration,  for  or 
against  a  man  because  of  either  his  wealth  or  his  poverty.  There 
is  no  proper  place  in  our  society  either  for  the  rich  man  who  uses 
the  power  conferred  by  his  riches  to  enable  him  to  oppress  and 
wrong  his  neighbors,  nor  yet  for  the  demagogic  agitator  who, 
instead  of  attacking  abuses,  as  all  abuses  should  be  attacked  wher- 
ever found,  attacks  men  of  wealth,  as  such,  whether  they  be  good 
or  bad,  attacks  corporations  whether  they  do  well  or  ill,  and 
seeks,  in  a  spirit  of  ignorant  rancor,  to  overthrow  the  very  founda- 
tions upon  which  rest  our  national  well-being." 

Speaking  upon  this  subject  in  1902,  President  Roosevelt  said : 
"The  necessary  supervision  and  control,  in  which  I  firmly  believe 
as  the  only  method  of  eliminating  the  real  evils  of  the  trusts,  must 
come  through  wisely  and  cautiously  framed  legislation,  which 
shall  aim  in  the  first  place  to  give  definite  control  to  some  sover- 
eign over  the  great  corporations,  and  wiich  shall  be  followed, 
when  once  this  power  has  been  conferred,  by  a  system  giving  to 
the  Government  the  full  knowledge,  which  is  the  essential  for 
satisfactory  action.  Then,  when  this  knowledge — one  of  the 
essential  features  of  which  is  publicity — has  been  gained,  what 
further  steps  of  any  kind  are  necessary  can  be  taken  with  the  con- 
fidence born  of  the  possession  of  power  to  deal  with  the  subject, 
and  of  a  thorough  knowledge  of  what  should  and  can  be  done  in 
the  matter.  We  need  additional  power,  and  we  need  knowledge. 
*  *  *  Such  legislation — whether  obtainable  now  or  obtainable 
only  after  a  constitutional  amendment — should  provide  for  a  rea- 
sonable supervision,  the  most  prominent  feature  of  which  at  first 
should  be  publicity;  that  is,  making  public,  both  to  the  Govern- 
ment authorities  and  to  the  people  at  large,  the  essential  facts  in 
which  the  public  is  concerned." 

Such  laws  as  those  suggested  by  Judge  Grosscup  and  recom- 
mended by  President  Roosevelt  would  not  only  prevent  the  fixing 
and  maintenance  of  excessive  prices,  but  would  prevent  such  ex- 
periences as  those  of  the  past  year  in  which  the  public  were  in- 
duced to  make  large  investments  in  overcapitalized  trusts  upon 
the  assumption  that  all  trusts  were  great  money  makers ;  and  had 


18  THE   TABIFF. 

such  regulations  been  in  existence  during  the  past  two,  years  they 
would  have  saved  to  the  public  hundreds  of  millions'  of  dollars 
invested  in  stocks  of  corporations  whose  shrinkage  in  value,  as  es- 
timated  by  the  Wall  Street  Journal,  October  26,  1003,  amounted 
at  that  time  to  $1,753,050,700. 

Sales   Abroad  at   Figure*  Belovr   Home  Prices. 

It  is  doubtless  true  that  occasional  wles  of  American  manu- 
factures are  made  abroad  at  less  than  the  established  and  regular 
prices  at  home,  just  as  the  manufacturer  »r  merchant  frequently 
sells  below  his  regular  prices  in  the  home  market,  for  the  sake  of 
gaining  new  customers  or  of  disposing  of  his  surplus  products  at 
cost,  rather  than  close  down  his  factories  and  deprive  his  work- 
men of  employment.  A  very  careful  estimate  of  the  value  of 
American  manufactures  exported  at  less  than  the  current  prices 
charged  in  the  home  market  was  made  by  the  Industrial  Com- 
mission, an  official  body  of  the  United  States  Government,  com- 
posed of  members  of  both  parties,  having  power  to  call  before 
it  witnesses,  to  administer  oaths,  to  take  testimony,  and  to  punish 
witnesses  for  refusal  to  answer  such  questions  as  it  might  choose 
to  put  to  them.  That  inquiry  extended  over  a  long  period  of  time, 
and  was  very  far-reaching.  Inquiries  were  sent  to  a  large  number 
of  manufacturing  establishments  in  all  parts  of  the  country  and 
the  replies  received  came  from  manufacturers  of  all  classes,  includ- 
ing iron  and  steel,  machinery  and  metal  products,  typewriters, 
engines,  agricultural  implements,  vehicles,  leather  and  its  manu- 
factures, boots  and  snoes,  manufactures  of  wood,  paper  and  pulp, 
textiles  and  manufactures  therefrom,  flour,  provisions,  canned 
goods,  condensed  milk,  chemicals  and  drugs,  optical  goods,  manu- 
factures of  glass,  clay  and  stone  products,  and  numerous  other 
classes  of  products.  Much  attention  was  given  to  an  examination 
and  discussion  of  the  replies,  which  were  received  from  hundreds 
of  manufacturers  in  every  part  of  the  country,  and  the  Commis- 
sion, discussing  these  replies,  says:  "A  great  majority  of  the 
answers  indicate  that  prices  are  no  lower  abroad  than  they  are 
for  domestic  consumers,  and  a  considerable  number  indicate  that 
foreign  prices  are  higher."  This  would  indicate  that  but  a  small 
percentage  of  the  400  million  dollars'  worth  of  manufactures  ex- 
ported annually  is  sold  at  less  than  domestic  prices,  and  when  it 
is  remembered  that  the  gross  value  of  the  manufactures  of  the 
country  in  1000  was  13  billions  of  dollars  it  will  be  seen  that  the 
share  of  that  product  sold  in  foreign  markets  at  prices  less  than 
those  charged  at  home  must  be  extremely  small. 

It  is  urged  by  the  Democratic  free  traders  that  because  of 
these  sales  abroad  at  prices  less  than  those  charged  in  the  home 
market  the  tariff  on  the  class  of  articles  so  sold  abroad  should 
be  removed.  As  these  sales  are  liable  to  occur  in  any  class  of 
manufactures  under  the  conditions  above  suggested  this  remedy 
would  mean  the  removal  of  the  duty  on  al]  classes  of  manufac- 
tures. Would  it  be  worth  while  to  destroy  our  home  manufactur- 
ing industry,  which  employes  5%  million  wage-earners  and  pays  to 
them  nearly  3  billion  dollars  per  annum  for  their  services,  just 
because  the  manufacturers  choose  to  sacrifice  their  profits  on 
a  very  small  percentage  of  the  value  of  their  products  for 
the  sake  of  keeping  labor  employed  and  of  increasing  their  em- 
ployment of  labor  through  the  added  markets  which  they  expect 
to  obtain  by  such  sales? 

A  PRACTICE  PREVAILING  IN  ALL  COUNTRIES. 

While  the  statements  obtained  by  the  Industrial  Commission 
indicate  that  but  a  small  percentage  of  the  manufactures  exported 
are  sold  at  less  than  domestic  prices,  other  testimony  obtained 
by  that  Commission,  and  statements  obtained  from  other  sources, 
show  that  the  custom  of  selling  merchandise  abroad  at  less  than 
home  prices  is  one  which  exists  and  always  has  existed  in  free- 
trade  England  as  well  as  in  all  other  countries  attempting  to  culti- 
vate markets  abroad.  Mr.  C.  R.  Flint,  of  the  great  exporting  firm 
of  Flint,  Eddy  &  Co.,  of  New  York,  in  his  testimony  before  the 
Commission  said : 

"There  are  times  when  there  is  a  surplus,  when  manufacturers 
will  seek  a  foreign  market  at  a  concession.  This  is  true  in  all 
manufacturing  countries.  It  does  not  apply  especially  in  the 
United  States,  but  it  is  true  in  all  countries.  It  is  true  in  England. 
where  there  is  free  trade." 


THE   TAMFF.  19 

Being  asked  if  there  was  any  difference  in  that  particular  be- 
tween trust-made  goods  and  goods  made  independently  of  trusts, 
he  replied  that : 

"There  was  far  more  of  !L  disposition  to  make  concessions  be- 
fore these  combinations,  from  the  fact  that  individual  manufac- 
turers were  under  more  pressure  of  necessity  to  realize  on  their 
investments.  The  great  industrial  combinations,  by  reason  of  the 
great  advantage  they  have  in  regulating  production,  avoid  exces- 
sive production,  and  therefore  are  less  likely  to  be  under  financial 
pressure."  *     % 

'  Mr.  John  Pitcairn,  president  of  the  Pittsburg  Plate  Glass  Co., 
in  his  testimony  before  the  Commission,  said  of  plate  glass  ex- 
portations : 

"Various  manufacturing  powers  in  Europe  have  combined  into 
one  strong  international  syndicate  in  order  to  regulate  and  divide 
among  themselves  the  world's  markets.  Only  the  United  States  is 
left  out  of  this  protecting  combination.  This  market  (the  United 
States)  is  therefore  a  desirable  dumping  ground  for  the  surplus 
of  European  production,  and  exceptionally  low  prices  are  being 
made  by  the  foreign  manufacturers  for  glass  intended  for  the 
United  States*  For  example,  the  present  European  price  for  pol- 
ished plate  glass  cut  to  size  is,  for  the  United  States  40  and  50 
per  cent  discount  from  a  certain  price  list;  for  England,  10  per 
cent  discount  from  the  same  price  list,  which  means  a  difference 
in  price  of  58  per  cent.  European  discounts  for  stock  sizes  of  pol- 
ished-plate glass  are,  for  the  United  States,  30  per  cent  off  the 
list;  for  England,  5  per  cent  off  the  same  lists,  which  shows  a 
difference  of  36  per  cent." 

On  this  subject,  Prof.  W.  J.  Ashley,  former  professor  of  eco- 
nomic history  in  Harvard  University,  and  now  professor  of  com- 
merce in  the  University  of  Birmingham,  England,  in  a  work  en- 
titled "The  Tariff  Problem,"  issued  in  London  in  1904,  says : 

"This  dumping  of  which  we  have  heard  so  much  is  nothing 
new.  It  is  the  ordinary  outcome  of  mercantile  ethics — the  ethics 
of  industrial  war.  The  policy  of  selling  abroad  for  a  time  cheaper 
than  at  home  was  naturally  resorted  to,  when  it  seemed  expedient 
by  English  manufacturers  in  earlier  decades,  just  as  it  was 
later  by  German  manufacturers  to  secure  sale  in  Russia.  In- 
deed, a  German  economist,  writing  in  1897,  before  we  in  England 
had  begun  to  complain  of  being  dumped  upon  ourselves,  expressly 
designates  the  policy  of  low  foreign  prices  as  'the  German-Eng- 
lish system.'  *  *  *  It  has  long  been  realized  by  economists 
that  in  times  of  depressed  trade,  when  the  market  is  glutted,  it  is 
often  expedient  to  sell  goods  abroad  at  'slaughter  prices.'  It  may 
be  well  to  dispose  of  them  abroad  at  any  price  which  will  get  rid 
of  them,  in  order  to  prevent  their  continuing  to  press  on  the  home 
market.  *  *  *  From  an  economic  and  from  a  business  point  of 
view  there  is  no  unfairness  in  the  matter.  Exceedingly  low  prices 
are  made  for  a  certain  time  and  for  certain  markets  simply  be- 
cause this  is  expected  to  inure  to  the  best  financial  result  over  the 
whole  range  of  transactions  or  over  a  period  of  years.  And  it  is 
necessity  that  drives,  in  most  cases,  and  not  the  free  will  of  the 
exporter.  *  *  *  The  abolition  of  the  protective  tariff  on  the 
too-cheaply  exported  goods  is  an  improbable  result.  The  com- 
binations which  are  complained  of  can  reply  with  much  reason 
that  their  export  policy  is  for  the  good  of  the  country  as  a  whole. 
The  subject  was  thoroughly  discussed  in  the  German  Reichstag  in 
November  last;  and  Dr.  Moller,  the  Prussian  Minister  of  Commerce, 
summed  up  the  prevalent  opinion  in  official  circles.  He  could  not 
but  rejoice  to  see  that  the  exportation  of  great  quantities  of  iron, 
etc.,  to  the  United  States  and  to  England  had  alleviated  the  crisis 
in  Germany.  True,  this  would  not  suffice  to  put  the  whole  of  the 
German  production  into  a  healthy  condition;  but  if  this  outlet  had 
not  been  found,  the  burden  of  over-production  would  have  weighed 
upon  the  country  for  years.  The  motion  that  the  import  duties 
should  be  lowered  on  goods  produced  by  syndicates  and  sold  more 
cheaply  to  foreigners  was  thereupon  defeated  by  166  votes  to  68." 

SECRETARY  SHAW'S  VIEW. 

As  bearing  upon  this  subject,  the  following  quotation  »from  a 
speech  delivered  by  Hon.  Leslie  M.  Shaw,  Secretary  of  the  Treas- 
ury, at  the  Auditorium  Opera  House  during  the  session  of  the 
Republican  National  Convention,  is  submitted : 

"Our  opponents  lay  much  stress  upon  the  fact  that  some 
American  manufactures  are  sold  abroad  cheaper  than  at  home. 
Our  friends  sometimes  deny  this,  and  they  sometimes  apologize 
for  it,  and  a  few,  in  times  past,  have  joined  our  opponents  in 
recommending  a  removal  of  the  tariff  from  all  such  articles.  It  is 
useless  to  deny,  and,  in  my  judgment,  unwise  to  apologize  and 
little  short  of  foolishness  to  attempt  to  remedy  the  assumed  evil 
in  the  manner  proposed  by  the  opposition. 

"A  nonpartisan  commission  appointed  by  Congress  to  investi- 
gate the  subject,  with  authority  to  compel  the  attendance  of  wit- 
nesses, made  a  careful  and  detailed  report.  Basing  his  computa- 
tions upon  the  facts  set  forth  in  that  report,  Senator  Gallinger,  of 
New  Hampshire,  in  a  speech  made  in  the  United  States  Senate  on 


20  THE  TABIFF. 

April  23rd,  last,  placed  the  value  of  exports  sold  at  a  lower  price 
abroad  than  at  home  at  $4,000,000.  I  cannot  find  that  the  sub- 
stantial correctness  of  this  estimate  was  ever  questioned  l>v  the 
"['position.  But  in  any  event  the  amount  is  so  small  as  compared 
with  the  aggregate  output  of  our  factories  as  to  be  unworthy  of 
consideration.  The  report  of  the  Industrial  Commission  shows 
that  some  of  these  articles  are  protected  in  this  country  by  pat- 
ents, and  are  not  so  protected  in  the  foreign  market.  If  the  sup- 
posed evil  as  applied  to  patented  articles  is  worthy  of  dr 
remedial  measures,  the  most  feasible  would  be  the  repeal  of  our 
patent  laws.  w 

"There  is  one  other  important  feature  not  often  recognized. 
The  Republican  party  has  always  provided  a  method  whereby  a 
manufacturer  can  have  the  benefit  of  free  raw  material  for  the 
production  of  merchandise  actually  exported.  Under  regulations 
prepared  by  the  Secretary  of  the  Treasury,  the  consumer  of  im- 
ported material  is  allowed  to  recover  back  the  duty  paid  thereon 
whenever  he  exports  the  same  or  any  article  manufactured  there- 
from. During  the  fiscal  year  1903,  the  amount  of  drawbacks  thus 
actually  paid  exceeded  $5,000,000.  A  portion  of  this  was  upon  goods 
exported  direct  from  warehouses  and  upon  which  no  labor  had 
been  expended.  But  if  Senator  Gallinger's  estimate,  based  upon 
the  data  furnished  by  the  Industrial  Commission,  be  correct,  that 
only  $4,000,000  worth  of  merchandise  is  annually  sold  abroad 
cheaper  than  at  home,  then  the  annual  drawback  onVmported  ma- 
terial would  seem  to  remove  any  presumption  that  an  injustice  is 
being  perpetrated  upon  the  American  consumer.  A  very  small 
portion  of  the  $5,000,000  drawback  would  cover  the  difference  be- 
tween the  price  at  which  this  merchandise  is  sold  abroad,  and  the 
domestic  price. 

"The  United  States  Census  reports  our  aggregate  manufactures 
of  1900  at  $13,000,000,000.  It  is  doubtless  somewhat  larger  now. 
$4,000,000,  the  amount  estimated  to  be  sold  abroad  cheaper  than  at 
home,  is  therefore  only  one-thirtieth  of  one  per  cent  of  the  aggre- 
gate. In  other  words  out  of  every  one  thousand  dollars'  worth 
of  manufactures  produced  by  American  labor,  something  like 
thirty  cents'  worth  is  sold  abroad  cheaper  than  to  our  own  people; 
or,  stated  in  yet  another  form,  every  time  our  shops  and  factories 
pay  five  hundred  dollars  to  labor,  and  therewith  produce  one  thou- 
sand dollars'  worth  of  goods,  they  sell  thirty  cents'  worth  abroad 
for   twenty-nine   cents. 

"Whether  this  practice  is  defensible  or  not,  foreign  producers 
very  generally  and  almost  universally  do  the  same  thing.  Nearly 
every  class  of  goods  imported  into  this  country  is  obtainable  for 
export  to  this  country  below  the  regular  foreign  market.  And  this 
is  as  true  in  free  trade  England  as  in  protection  France  or  Ger- 
many. Our  tariff  law  provides  that  imported  merchandise  shall 
be  appraised  at  its  regular  market  value  at  the  place  whence  it  is 
imported  and  at  the  time  of  importation,  and  a  penalty  is  provided 
for  undervaluation.  To  avoid  this  penalty  the  importer  adds  to 
the  invoice  what  he  admits  to  be  the  difference  between  the  regu- 
lar foreign  market  value  and  the  price  actually  paid.  During  the 
eleven  months  of  the  present  fiscal  year  over  6,000  invoices  entered 
at  the  one  port  of  New  York  have  been  thus  advanced  by  the  im- 
porter to  make  market  value,  and  the  aggregate  of  the  advance- 
ments thus  made  upon  these  invoices  exceeds  $1,200,000.  During 
the  fiscal  year  1903,  $32,000,000  worth  of  merchandise  was  imported 
at  New  York  admittedly  below  the  foreign  market  value,  and  the 
importer  voluntar-ily  added  $1,500,000  to  the  invoice  to  make  mar- 
ket value  as  the  confessed  difference  between  the  price  actually 
paid  and  the  regular  foreign  market  value;  and  Treasury  officials 
added  thereto  an  additional  $400,000  and  imposed  and  collected  a 
penalty  of  $400,000.  The  goods  thus  sold  by  the  foreign  producer 
cheaper  for  exportation  to  the  United  States  than  for  home  con- 
sumption include  woolen  goods,  cotton  goods,  silk  goods,  and  linen 
goods  of  all  kinds;  umbrellas,  ribbons,  trimmings,  velvets,  hosiery, 
rugs,  furs,  cutlery,  glassware,  jewelry,  furniture,  saddlery,  guns, 
wool,  hides,  chemicals,  machinery,  iron  and  steel  products  gener- 
ally, and  groceries.  In  fact,  they  include  about  everything  and 
from  all  countries. 

"So  universal  is  the  practice  of  selling  goods  for  export  to  the 
United  States  cheaper  than  for  domestic  consumption  that  a  very 
large  and  influential  association  of  importers  have  sought  for 
years  to  have  our  tariff  laws  amended  so  as  to  authorize  the  as- 
sessment of  ad  valorem  duties  on  the  foreign  market  value  for  ex- 
portation to  the  United  States  instead  of  as  now  upon  the  regular 
foreign*  value  at  the  place  whence  the  goods  are  imported.  This 
association  of  importers  thus  recognize  and  confess  the  fact  that 
there  are  two  foreign  market  values  of  merchandise,  one  the  mar- 
ket value  for  domestic  consumption  and  the  other  the  market  value 
for  export  to  the  United  States.  They  also  recognize  and  confess 
that  a  change  of.  the  law  permitting  the  assessment  of  ad  valorem 
duties  on  the  market  value  for  export  to  the  United  States  would 
be  as  advantageous  to  them  as  a  reduction  in  the  rate  of  duty. 

"It  is  a  well  known  fact  that  sugar  which  sells  in  the  United 
States,  duty  paid,  at  five  cents  per  pound  retail,  is  worth  in  the 
country  of  production,  seven  and  one-half  cents  per  pound  whole- 
sale. The  very  men  who  grow  the  beets  from  which  this  sugar 
is  made,  pay  ten  cents  per  pound  retail  for  the  same  sugar  which 
we  get  at  five  cents  per  pound,  and  the  foreign  beet  grower  is 
statesman  enough  to  approve  the  policy.  He  is  willing  to  pay  a 
higher  price  for  the  small  amount  of  sugar  which  he  consumes, 
on  condition  that  the  product  of  his  field  shall  supply  the  American 
table.  Speaking  for  myself  alone,  I  am  willing  to  pay  any  reasonable 
price  for  the  small  amount  of  barbed  wire  which  I  consume,  pro- 


THE  TARIFF.  21 

vided  the  wheat  from  my  field,  the  dairy  products  from  my  herd, 
and  the  meat  from  my  stall,  shall  feed  the  men  who  mine  the  coal 
and  iron,  and  the  artisans  who  produce  the  wire  to  fence  the 
farms  of  other  countries." 

Exports   from  England  at  Less  Than  Domestic  Prices. 

That  the  manufacturers  and  exporters  of  free-trade  England 
sell  their  goods  in  foreign  countries  at  less  than  the  prices 
charged  in  the  home  market  is  shown  by  the  following  extracts 
from  official  reports  to  the  Department  of  State  of  a  United 
States  Consul  in  England.  The  correspondence  in  question  oc- 
curred in  1890  and  1891,  and  while  not  intended  as  a  discussion 
of  thei  question  of  exports  at  less  than  domestic  prices,  tells  in- 
cidentally some  important  facts  bearing  upon  certain  questions 
now  at  issue.  The  statements,  which  are  those  of  the  United 
States  Consul  at  Birmingham,  England,  show  habitual  and  con- 
tinuous exports  to  the  United  States  at .  less  than  the  prices 
charged  for  the  same  article  in  the  domestic  markets  of  England. 
This  is  important  in  its  bearing  upon  the  claim  that  exports  at 
less  than  domestic  prices  are  made  possible  through  the  exist- 
ence of  a  protective  tariff,  and  also  in  its  relation  to  the  claim 
which  has  always  been  made  by  protectionists  that  at  least  a 
part  of  the  protective  tariff  duty  is  paid  by  the  foreign  manufac- 
turer or  exporter  to  the  country  in  question. 

The  statements  which  follow  are  extracts  from  a  series  of 
reports  in  1890  and  1891  to  the  State  Department  by  Hon.  John 
Jarrett,  consul  of  the  United  States  at  Birmingham,  England. 
These  reports  are  the  results  of  some  investigations  made  by  Mr. 
Jarrett  with  the  purpose  of  determining  whether  the  statements 
made  to  him  as  to  the  prices  at  which  certain  goods  were  being 
exported  to  the  United  States  were  or  were  not  accurate  and  had 
as  their  purpose  the  determination  of  the  question  as  to  whether 
the  goods  were  being  undervalued.  This  fact  will  account  for 
the  fragmentary  character  of  the  statements,  since  they  were 
made  in  a  discussion  of  a  subject  different  from  that  now  under 
consideration.  The  facts  developed,  however,  that  the  goods 
were  being  sold  at  less  than  the  prices  charged  in  the  home  mar- 
kept,  are  pertinent  to  the  present  issue. 

In  a  communication  to  the  State  Department  dated  April  15, 
1891,  Mr.  Jarrett  says: 

"It  is  extremely  difficult  to  get  at  the  actual  selling-  prices  of 
cycles,  as  there  are  no  wholesale  price  lists  in  general  use,  nor 
are  there  any  market  quotations  or  prices  current  to  be  found  in 
use  in  or  by  the  trade.  The  retail  price  lists  are  in  general  use. 
and  prices  are  made  according  to  quantities  sold,  and  the  standing 
of  the  buyers,  by  discounts  on  the  retail  price.  These  discounts 
range  in  the  foreign  trade  from  30  to  60  per  cent,  and  in  the  home 
trade  from  20  to  40  per  cent.  To  very  large  customers,  especially 
American  customers,  the  manufacturers  furnish  special  prices. 
*  *  *  I  desire  also  again  to  call  your  attention  to  the  difference 
in  discounts  allowed  in  the  home  and  foreign  trade.  In  a  dispatch 
of  September  19,  1890,  I  enclosed  you  a  letter  from  Singer  &  Com- 
pany which  clearly  stated  that  the  higher  discounts  allowed  in  the 
foreign  trade  were  made  necessary  hy  the  tariffs  of  foreign  coun- 
tries. I  was  informed  up  to  the  date  of  that  dispatch  that  the 
discount  allowed  in  the  American  trade  was  the  same  as  that  to 
the  trade  of  all  foreign  countries,  and  now  discover  that  in  cycles 
there  is  a  higher  discount  of  ten  per  cent  allowed  in  the  United 
States  trade  than  that  of  other  countries,  AND  THAT  THTS  IS  BE- 
CAUSE OUR  TARIFF  ON  CYCLES  IS  HIGHER  THAN  THAT  OF 
OTHER  COUNTRIES." 

In  a  communication  to  the  State  Department  dated  September 
16,  1890,  Mr.  Jarrett  also  says: 

"I  desire  briefly  to  call  your  attention  to  another  singular 
fact.  The  prices  charged  in  the  export  trade,  are,  as  a  rule,  in 
nearly  all  trades,'  less  than  the  prices  charged  in  the  domestic 
trade.  I  enclose  you  a  letter  I  have  received  from  Singer  &  Com- 
pany, of  Coventry,  which,  you  will  observe,  is  marked  'confiden- 
tial.' It  is  altogether  impossible  to  get  reliable  information  of 
this  character  in  any  other  way.  Singer  &  Co.  are  large  manufac- 
turers' of  cycles,  etc.,  and  have  a  house  in  Boston  to  which  they 
make  consignments  of  their  manufactures.  I  have  letters  from 
other  cycle  manufacturers  who  also  cite  the  fact  that  their  dis- 
counts in  the  foreign  trade  are  higher  than  those  in  the  domestic 
trade." 

The  letters  referred  to  by  Mr.  Jarrett  in  which  the  manu- 
facturing company  states  that  its  export  rates  are  less  than  those 
charged  in  the  domestic  market  are  as  follows: 


22  '  Hi    I  AMI  I  . 

i  ( 'oiiii.lrntial.) 

CONTRACJTORS  TO  THE  BRITISH  GOVERNMENT. 
SINGER    &    CO 

Cycle  Manufacturers. 

London  17  Holborn  Viaduct. 

August  16,  1890. 
Dear  Sir:  In  reply  to  your  Inquiry  of  the  13th  Inst.,  we  beg  to 
say  that  we  do  not  now  is'sue  any  trade  list,  but  we  charge  our 
agents  special  account  prices  which  vary  according  to  the  number 
of  machines  purchased.  These  prices  represent  discounts  varying 
from  25  per  cent  to  45  per  cent,  the  latter  being  export  discount 
only.  Export  discounts  are  larger  than  those  we  allow  at  home, 
as  in  nearly  every  country  In  Europe  there  is  a  considerable  duty 
on  cycles'  and  we  have  to  help  our  agents  in  this  way. 

We  believe  our  Mr.   Stringer  explained  this  to  you  personally 
on  his  last  visit  to  the  consulate. 
Yours'  faithfully, 

SINGER  &   CO. 
JOHN  JARRETT,  ESQ.., 

United  State  Consulate, 

Birmingham." 
"(Memorandum  from  Starley  Brothers,  Coventry.) 

[ENCLOSURE  3.] 
JOHN  JARRETT,  ESQ., 

United  States  Consul, 

Birmingham. 

March  20th,  1891. 
Dear  Sir:  We  have  much  pleasure  in  enclosing  two  copies  of 
our  price  list  as  requested  by  your  letter  of  the  18th  inst.  The 
lists  are  printed  for  distribution  by  our  agents  and  others,  among 
private  individuals,  and  are  subject  to  discounts  ranging  from  60 
per  cent  downwards,  but  to  large  buyers  our  prices  are,  quoted  net 
and  are  the  subject,  of  special  arrangement.  We  would  direct 
your  attention  to  the  fact  that  these  lists'  are  prepared  for  the 
English  trade.  Our  American  trade  is  done  through  one  firm  only, 
and  as  a  considerable  portion  of  our  whole  trade  is  done  through 
this  Arm,  and  the  machines  are  different  from  the  English  ma- 
chines, our  prices  are  low  and  the  subject  of  a  special  arrangement 
every  year. 

Yours  faithfully,  •         STARLEY  BROTHERS, 

fr.    C.    Bradham." 

DEMOCRATIC    PRESS    ADMITS    MATTER    UNIMPORTANT. 

The  New  York  Evening  Post,  in  its  issue  of  July  21,  1904,  dis- 
cussing the  English  proposition  to  protect  the  home  manufacturer 
against  "dumping"  by  a  protective  tariff,  says  editorially: 

In  earlier  days  it  went  by  the  fairer  name  of  "inundation,"  or  the 
"threatened  flooding"  of  the  markets  of  a  new  country  by  the  un- 
scrupulous producers  of  the  Old  World.  Defined  with  precision, 
it  means'  simply  the  sale  of  goods  in  a  foreign  market  either  at  an 
absolute  loss,  or  at  a  markedly  lower  figure  than  is  obtained  in  the 
home  market  of  the  dumping  manufacturer.  Now  this  so-called 
dumping  process  may  take  two  forms.  It  may  be  done  at  an  in- 
itial loss,  in  order  to  advertise  wares,  or  possibly  to  drive  out  small 
competitors;  or  it  may  be  practiced  in  order  to  clear  the  home  mar- 
ket of  a  surplus  and  thus  maintain  monopoly  prices  in  the  home 
market.  It  is  not  necessary  to  go  abroad  to  find  the  first  kind  of 
dumping.  Every  grocer  who  sells  sugar  below  cost,  in  order  to 
make  custom  for  his  other  wares,  is  a  dumper.  Where  this  prac- 
tice in  England  is  resorted  to  once  by  a  foreign  producer,  it  is 
practiced  by  Englishman  against  Englishman  a  hundred  times. 
Moreover,  it  involves  a  certain  initial  loss',  and  a  doubtful  future 
gain.  No  tariff  can  protect  against  it,  nor  has  the  success  of  this 
kind  of  underbidding  proved  so  frequent  as  to  warrant  any  attempt 
to  prohibit  it  by  law,  even  if  such  an  attempt  were  likely  to  suc- 
ceed. 

The  New  York  Journal  of  Commerce,  Democratic,  a  leading 
financial  and  commercial  publication,  discussing  the  same  subject, 
says  in  its  issue  of  July  22,  1904: 

"However  it  may  be  in  Germany,  there  is  not  here  any  organ- 
ized system"  for  regulating  that  trade  and  "dumping"  a  surplus 
"irrespective  of  cost."  This  "dumping"  is  the  chief  bugbear  of 
the  British  tariff  reformers,  but  it  cannot  be  carried  on  on  any 
considerable  scale  or  for  any  length  of  time  to  the  advantage  of 
the  "dumping"  country.  Exporting  at  a  loss,  to  be  made  up  by 
high  cost  to  domestic  consumers',  cannot  be  a  lasting  policy,  for 
it  is  a  losing  one  for  the  country  that  indulges  in  it;  and  while  it 
may  at  times  cause  disturbance  in  a  single  industry  in  the  country 
where  the  surplus  is  sacrificed,  it  cannot  permanently  injure  that 
country's   trade. 

THE   CUSTOM    A   COMMON   ONE   WITH    EUROPEAN    MANUFACTURERS. 

Hon.  Richard  Guenther,  United  States  Consul-General  at 
Frankfort-on-the-Main,  Germany,  in  a  report  to  the  State  Depart- 
ment in  June,  1904,  says :  "The  manager  of  the  carbon  works  of 
the  General  Lighting  Company  writes  to  the  Daily  Mail  in  refer- 
ence to  the  proposal  of  a  German  firm  to  establish  in  England 
large  works  for  the  manufacture  of  carbons  for  electric  arc  lamps. 
That  the  English  factory  at  Witton,  near  Birmingham,  has  for  the 


THE  TARIFF.      %  28 

last  two  years  turned  out  carbons  for  the  government,  municipali- 
ties, and  other  users  of  a  quality  and  at  prices  which  compete 
with  German  manufacturers.  The  amount  of  'dumping'  with  a 
view  to  killing  the  carbon  industry  in  this  country  would,  he  adds, 
astonish  the  most  inveterate  free  importer.  Foreign  manufac- 
turers sell  at  something  like  40  per  cent  cheaper  than  in  their 
own  country." 

Sales  of  Steel  Ralls  Abroad  at  Less  Than  Home  Prices. 

Much  complaint  has  been  made  by  the  Democrats  of  the  fact 
that  in  certain  instances  steel  rails  have  been  sold  in  foreign 
markets,  especially  in  Mexico  and  Canada,  at  $22  per  ton,  against 
a  uniform  price  of  $28  per  ton  charged  in  the  United  States  by 
the  steel  rail  manufacturers  of  the  country.  Curiously  this  com- 
plaint has  come  from  the  Democratic  politicians  and  not  from 
the  railroads,  the  sole  purchasers  of  steel  rails.  This  fact,  that 
the  railroads  are  making  no  complaint,  justifies  a  careful  examin- 
ation of  the  question  as  to  whether  they  are  being  required  to 
pay  excessive  prices  at  home,  or  whether,  on  the  other  hand,  the 
sales  abroad  are^  being  made  at  cost  or  below  cost  for  purposes 
satisfactory  to  the  manufacturers  who  are  making  those  sales. 

The  question  of  whether  prices  demanded  by  agreement  among 
steel  manufacturers  in  the  United  States  are  excessive,  might  be 
answered  by  an  elaborate  analysis  of  the  cost  of  producing  steel 
i-ails  and  the  percentage  of  profit  which  manufacturers  ought  to 
make  on  their  products ;  but  this  elaborate  and  complicated  method 
of.  determining  the  question  of  whether  the  manufacturers  are 
obtaining  excessive  profits  is  not  necessary.  There  is  a  much 
nore  simple  and  practical  method  of  determining  it.  No  class 
of  business  men  in  the  United  States  are  more  acute,  more  thor- 
oughly posted  on  the  cost  of  producing  the  materials  which  they 
must  constantly  buy  than  the  railway  managers  of  the  coun- 
try, and  no  class  of  men  are  better  able  to  command  the  necessary 
money  with  which  to  establish  factories  for  the  manufacture  of 
those  materials  in  case  they  felt  it  to  be  to  their  advantage  to 
nanufacture  for  themselves  instead  of  buying  them  at  the  prices 
demanded  by  the  present  manufacturers.  It  will  be# conceded 
by  everybody  that  the  railway  managers  of  the  United  States 
number  among  their  ranks  the  most  acute  and  able  business  men 
and  financiers  of  the  country.  They,  of  all  men  in  the  United 
States,  would  be  most  likely  to  know  whether  they  were  being  im- 
posed upon  in  the  prices  demanded  of  them  by  manufacturers  of 
the  article  for  which  they  pay  such  enormous  sums  of  money 
every  year.  The  railroads  pay  to  steel  rail  manufacturers  fully 
75  million  dollars  a  year  for  steel  rails,  and  they,  with  their  keen 
instinct  and  unlimited  facilities,  can  easily  know,  and  certainly  do 
know  whether  the  prices  charged  are  excessive.  What  would  be 
easier  than  for  them  to  establish  steel  rail  works  of  their  own, 
aDd  what  would  they  be  more  certain  to  do  than  this  if 
they  were  being  charged  excessive  prices?  They  can  command 
unlimited  capital.  There  is  no  class  of  business  men  in  the 
United  States  who  could  more  readily  raise  a  million,  ten  mil- 
lions, a  hundred  million  dollars,  or  even  a  greater  sum  with 
which  to  establish  steel  rail  manufacturing  plants  to  supply  them- 
selves with  this  material  for  which  they  are  now  paying  to  the 
manufacturers  75  million  dollars  a  year.  What  would  be  more 
natural  than  that  they  should  establish  steel-rail  plants  if  they  felt 
that  they  were  being  imposed  upon  in  the  prices  now  charged?  The 
very  fact  that  these  trained  and  acute  business  men,  with  their 
knowledge  of  the  cost  of  the  article  for  which  they  are  paying 
such  large  sums  of  money,  and  with  their  facilities  for  obtaining 
unlimited  capital  with  which  to  establish  works  of  their  own,  do 
not  establish  such  works,  but  go  on  quietly  and  uncomplainingly 
paying  for  steel  rails  this  price  of  $28  per  ton  to  the  manufac- 
turers of  the  country  is  sufficient  evidence  that  they  do  not  con- 
sider the  prices  charged  them  excessive,  and  that  those  prices  are 
not  excessive. 

Another  fact  worthy  of  note  in  this  connection  is  that  the 
steel-rail  manufacturers  made  no  advance  in  prices  during  the 
period  of  great  demand  and  general  high  prices  for  iron  and 
steel,  from  1900  to  1903,  though  prices  of  all  other  grades  of  iron 
and  steel  greatly  advanced  meantime.  . 


24  THE   TARIFF. 

REASONS  FOR  FOREIGN  OUT. 

This  brings  us  to  the  question  of,  or  reasons  for,  the  sales 
abroad  at  j trices  less  than  those  charged  at  home.  These  reasons 
are  easily  found.  First,  the  American  manufacturers  who  desire 
to  sell  their  rails  in  Mexico,  for  example,  must  do  so  in  direct  and 
full  competition  with  the  steel  rail  manufacturers  of  Europe.  The 
cheaper  labor  of  European  countries  enables  the  manufacturers 
there  to  produce  rails  at  a  much  lower  cost  than  they  can  be 
made  here,  and  the  fact  that  foreign  rails  can  be  transported 
most  of  the  distance  by  water,  while  those  from  our  own  great 
manufacturing  establishments  must  be  transported  to  Mexico  a 
large  part  of  the  distance  at  least  by  land,  places  European  manu- 
facturers at  least  on  equal  footing  with  those  of  the  United  States 
in  the  Mexican  markets.  And  it  is  also  well  known  that  the 
manufacturers  of  European  countries  make  their  foreign  prices 
below  those  which  they  charge  in  the  home  markets  for  the  pur- 
pose of  building  up  markets  in  those  countries.  This  plan  of  opera- 
tion on  the  part  of  European  manufacturers  in  placing  their  rails 
in  Mexico  brings  to  the  lowest  point  the  prices  with  which  Ameri- 
can steel  rails  must  compete  in  that  market.  If  therefore  the 
steel  rail  manufacturers  of  the  United  States  desire  to  establish 
a  market  in  Mexico  they  must  put  their  prices  at  a  point  at  which 
they  can  compete  with  the  rates  named  by  other  countries,  else 
they  will  make  no  sales  and  establish  no  market,  but  will  abandon 
to  European  manufacturers  a  market  in  a  country  just  alongside 
of  the  United  States.  In  addition  to  this,  steel  works  are  being 
established  in  Mexico,  where  rates  of  wages  are  extremely  low 
and  the  prices  at  which  rails  will  be  turned  out  when  this  ii 
dustry  is  further  developed  will  be  very  low,  hence  the  impoi 
ance  of  retaining  control  of  that  market  even  at  low  rates  of 
profit  Thus  the  steel-rail  manufacturers  of  the  United  States,  if 
they  desire  to  sell  their  products  in  Mexico  at  all,  must  do  so  at 
a  price  which  will  compete  with  European  manufactures  and 
Mexican  manufacturers  and  with  the.  cheap  labor  of  both  coul- 
tries. 

Still  another  condition  with  which  American  manufacturers 
must  conTpete  in  Canada  is  the  fact  that  the  Canadian  govern 
ment  is  now  paying  a  bounty  to  the  steel  manufacturers  of  that 
country,  and  this  supplies  another  form  of  competition  which 
the  American  manufacturer  must  meet  if  he  attempts  to  sell  his 
steel  rails  in  Canada. 

Thus  the  American  steel-rail  manufacturer,  if  he  desires  to 
establish  a  market  for  his  product  in  Mexico,  must  compete  with 
the  cheap  labor  of  Europe  and  the  still  cheaper  labor  of  Mexico ; 
and  if  he  desires  to  sell  his  product  in  Canada  he  must  com- 
pete with  the  cheap  labor  of  Europe,  plus  the  bounty  paid 
to  domestic  manufacturers  by  the  Canadian  government.  Unless 
he  does  make  his  prices  to  meet  those  conditions  in  the  two  coun- 
tries lying  alongside  of  the  United  States  he  must  abandon  the 
hope  of  ever  establishing  in  those  countries  a  market  for  any 
of  his  products.  Under  these  conditions  it  is  not  surprising  that 
he  should  find  it  good  business  policy  to  temporarily  relinquish 
his  profits  for  the  sake  of  establishing  or  holding  markets  in  coun- 
tries at  his  very  door,  and  also  that  he  should  at  times  dispose  of 
his  surplus  stock  in  those  markets  at  cost  or  even  less,  for  the  sake 
of  keeping  his  works  running  and  his  workmen  employed,  rather 
than  to  reduce  his  working  force  and  permit  his  machinery  to  de- 
teriorate by  so  reducing  his  product  as  to  make  it  only  equal  to  the 
home  demand. 

To  put  it  in  a  single  sentence:  It  is  apparent,  first,  that  the 
prices  charged  in  the  home  markets  are  not  excessive,  else  the 
railroads  would  establish  their  own  works  for  the  manufacture 
of  rails ;  and,  second,  that  if  American  manufacturers  are  to  sell 
their  rails  abroad  they  must  put  them  at  a  price  at  which  they 
can  meet  European  competition  and  cheap  labor  competition  in 
Mexico,  and  at  which  they  can  also  meet  European  competition, 
plus  domestic  bounties  in  Canada. 

In  general  terms  it  may  be  said  that  the  sales  abroad  of  steel 
rails  and  of  other  classes  of  iron  and  steel  at  less  than  domestic 
prices  are  exceptional  and  only  made  under  exceptional  condi- 
tions, either  .for  the  purpose  of  gaining  new  trade,  just  as  is  done 
thousands  of  times  every  year  in  many  lines  of  trade  at  home, 


THE  TABTFF.  25 

or  for  the  purpose  of  disposing  of  surplus  stock  and  thus  keeping 
irills  running  at  fuil  rates  and  giving  full  employment  to  labor 
a|id  the  low  prices  of  product  which  full  working  capacity  ren- 
ders possible. 

[  On  this  subject  Mr.  James  M.  Swank,  general  manager  of 
tie  American  Iron  and  Steel  Association,  a  high  authority,  the 
accuracy  of  whose  statements  is  never  called*  in  question,  in  a 
letter  to  Hon.  John  Dalzell  in  February,  1902,  made  the  following 
statement:  • 

/  "With  regard  to  the  prices  at  which  our  iron  and  steel  products 
have  been  sold  abroad  it  can  be  said  with  entire  frankness  that, 
\rhile  there  have  been  some  sales  made  at  lower  prices  than  have 
been  charged  to  domestic  consumers,  the  large  majority  of  the 
sales  have  been  made  at  the  same  prices'  as  have  been  obtained  at 
home  or  at  even  higher  prices.  When  lower  prices  have  been 
charged  the  inducement  to  do  this  has  been  to  dispose  of  a  sur- 
plus, as  during  the  yea"rs  of  depression  following  the  panic  of  1893 
or  during  the  reactionary  year  1900,  or  to  secure  entrance  into  a 
desirable  foreign  market,  or  to  retain  a  foothold  in  a  foreign  mar- 
ket that  has  already  yielded  profitable  returns.  These  reasons  for 
the  occasional  cutting  of  prices  require  no  defense.  They  are  akin 
to  the  reasons  which  daily  govern  sales  of  manufactured  and  all 
other  products  in  domestic  markets. 

"Even  in  years  of  prosperity  it  sometimes  happens  that  a  roll- 
ing mill  or  steel  works,  when  running  to  its  full  capacity,  produces 
a  surplus  of  its'  products  beyond  the  immediate  wants  of  its  custo- 
mers or  of  the  general  market.  If  this  surplus  can  be  sold  abroad, 
even  at  prices  below  current  quotations,  it  is  better  to  do  this  than 
to  reduce  production  by  stopping  the  rolling  mill  or  steel  works 
for  a  few  days'  or  even  for  one  day.  The  men  would  not  only  lose 
their  wages  during  the  stoppage  but  the  manufacturers  would  lose 
in  many  ways.  As  one  incident  of  the  stoppage  the  home  con- 
sumers of  their  products  could  not  be  supplied  so  cheaply  as  when 
the  plants  are  running  full.  A  moment's'  reflection  will  convince 
any  candid  man  that  the  manufacturing  establishment  that  is  not 
kept  constantly  employed,  whether  it  produces  iron  and  steel,  or 
cotton  goods,  or  woolen  goods,  or  pottery,  or  glassware,  or  any 
other  articles,  can  not  be  operated  so  economically  for  its  owners' 
or  so  beneficially  for  its  customers  as  the  establishment  that  is 
kept  running  six  days  in  the  week  and  every  week  in  the  year. 

"It  should  also  be  remembered  that  our  tariff  legislation  for 
at  least  a  generation  has  encouraged  our  manufacturers  to  seek 
foreign  markets  by  remitting  nearly  all  of  the  duties  levied  on  im- 
ported raw  materials  when  these  raw  materials  enter  into  the 
manufacture  of  exported  finished  products.  Under  the  operation 
of  this  drawback  system  our  iron  and  steel  manufacturers  have 
been  able  to  manufacture  their  products  intended  for  foreign  mar- 
kets at  a  much  lower  cost  than  they  could  supply  similar  products 
to  home  consumers.  The  London  Engineering  for  January  17,  this 
year,  says  of  this  drawback  system:  'A  certain  amount  of  trade 
is  brought  into  the  country  that  would  otherwise  be  missed  and  no 
one  loses  anything.'  It  might  have  added  that  the  raw  materials 
we  import  and  subsequently  export  in  the  form  of  finished  prod- 
ucts furnish  employment  to  thousands  of  American  workmen." 

Effect   of  Protection  on  Export   Trade. 

One  of  the  assertions  made  and  offered  as  an  argument  against 
protection  is  that  high  tariffs  established  by  a  country  lead  other 
countries  to  discriminate  against  the  products  of  that  protection 
country  and  exclude  them  from  their  markets,  either  by  adverse 
legislation  or  otherwise.  Let  us  see  about  this.  "The  proof  of 
the  pudding  is  in  the  eating."  The  proof  of  the  effect  of  pro- 
tective tariffs  upon  the  export  trade  of  the  countries  having  such 
protection  is  found  in  the  measure  of  the  actual  growth  of  their 
exports  as  compared  with  the  growth  of  countries  not  having  a 
protective  tariff  and  offering  in  the  world's  markets  the  same 
class  of  goods  as  those  offered  by  the  protection  country.  The 
United  States  Bureau  of  Statistics  has  recently  published  a  Sta- 
tistical Abstract  of  the  World,  which  gives  the  exports  of  do- 
mestic products  by  each  of  the  principal  countries  of  the  world 
during  a  long  term  of  years.  It  is  easy,  then,  to  compare  the 
growth  in  exports  by  the  countries  having  a  protective  tariff  with 
that  of  the  single  remaining  nonprotected  country — the  United 
Kingdom.  The  two  most  strongly  marked  examples  of  protec- 
tive tariff  countries  are  Germany  and  the  United  States,  and  the 
chief  free-trade  country  of  the  world  is  the  United  Kingdom. 
These  three  countries  are  also  especially  suitable  for  contrast  in 
the  effects  of  their  respective  tariff  policies  upon  their  export 
trade  by  reason  of  the  fact  that  they  are  the  chief  competitors  for 
the  great  markets  of  the  world  and  the  only-  countries  of  the 
world  whose  annual  exports  reach  or  pass  the  billion  dollar  line, 
each  of  these  countries  exporting  annually  more  than  one  billion 
dollars'  worth  of  merchandise,  while  no  other  country  of  the  world 


26  THE   TARIFF. 

has  ever  exported  so  much  as  one  billion  dollars'  value  of  domestic 
products  in  a  single  year.  Let  us  see,  then,  what  the  effect  of  pre- 
tention has  beep  upon  sales  abroad  by  the  United  States  aid 
Germany,  the  world's  most  conspicuous  examples  of  protectiv- 
tarilT  countries,  as  compared  with  the  effect  of  free  trade  upai 
exports  from  the  United  Kingdom,  the  world's  most  marked  ex- 
ample of  low-tariff  countries.  The  Statistical  Abstract,  above  re- 
ferred to,  compiled  from  the  official  figures  of  the  countries  to 
question  and  issued  by  the  Bureau  of  Statistics,  shows  that  the 
exports  of  domestic  products  from  free-trade  United  Kingdom 
grew  from  1,085  million  dollars  in  1880  to  1,380  millions  in  1902, 
an  increase  of  28  per  cent;  while  those  from  protection  Ger- 
many grew  from  688  millions  in  1880  to  1,113  millions  in  1902, 
an  increase  of  62  per  cent;  and  those  from  protection  United 
States  grew  from  824  millions  in  1880  to  1,355  millions  in  1902, 
an  increase  of  64  per  cent.  In  other  words,  exports  from  the 
world's  greatest  example  of  free  trade — the  United  Kingdom — 
increased  28  per  cent  in  22  years ;  those  from  protection  Germany 
increased  62  per  cent,  and  those  from  protection  United  States  in- 
creased 64  per  cent  in  the  same  period.  This  certainly  does  not 
justify  the  assertion  that  other  countries  discriminate  against  and 
reject  the  merchandise  of  the  country  having  protective  tariff 
laws  and  favor  that  of  countries  having  free  trade. 

While  of  course  the  general  law  of  supply  and  demand  in- 
fluences in  a  greater  or  les^  degree  the  volume  of  exports  from 
year  to  year,  the  experiences  above  cited  are  sufficient  to  clearly 
indicate  that  the  existence  of  a  protective  duty  on  imports  does 
not  result  in  an  exclusion  of  our  exports  by  other  countries,  since 
our  exports  have  increased  enormously  during  the  operation  of 
protective  tariff  laws. 

EXPORTS  UNDER    THE    UNITED    STATES    TARIFF. 

Another  and  even  more  striking  illustration  of*the  growth 
of  exports  under  low  tariff  and  protection,  respectively,  is  found 
in  a  study  of  the  detailed  history  of  the  tariffs  and  export  trade 
of  the  United"  Stages.  The  only  protective  tariffs  which  the 
United  States  had  prior  to  1861  operated  during  the  years  1813-16, 
1825-33,  and  1843-46,  an  aggregate  of  17  years  prior  to  1861.  Since 
that  time  protective  tariffs  have  covered  the  years  1861-94  and 
1897-1903,  making  the  total  of  the  period  covered  by  protective 
tariffs  58  years,  against  57  years  of  low  tariff,  counting  the  forma- 
tive period  from  1790  to  1812  as  low  tariff.  Thus  the  history  of 
the  United  States  under  the  Constitution  is  about  evenly  divided 
between  protective  tariff  and  low  tariff.  Now,  let  us  see  the 
result  in  its  effect  upon  our  exports  during  those  two  great  periods 
of  protection  and  low  tariff — 58  years  of  protection  and  57  years 
of  low  tariff.  During  the  57  years  of  low  tariff  the  imports  ei 
ceeded  the  exports  by  $514,954,931 ;  during  the  58  years  of  pr* 
tective  tariffs  the  exports  exceeded  the  imports  by  $4,099,026,861. 
These  statements  are  compiled  from  official  reports  of  the 
United  States  Bureau  of  Statistics,  and  their  accuracy  can  not  be 
called  into  question.  During  57  years  of  low  tariffs  imports  ex- 
ceeded exports  by  514  million  dollars ;  during  58  years  of  pro- 
tection exports  exceeded  imports  by  4,099  millions.  Does  this  look 
as  though  protective  tariffs  had  the  effect  of  reducing  or  de- 
stroying the  export  trade? 

To  sum  up  these  official  statements  of  exportation  under  low 
tariffs  and  protective  tariffs — the  statements  being  in  every  case 
from  the  official'  records  of  the  country  in  question — it  may  be 
said  that  exports  from  the  United  Kingdom  under  free  trade  in- 
creased 28  per  cent  from  1880  to  1902;  while  those  from  Ger- 
many and  the  United^  States,  under  protection,  increased  62  per 
cent  and  64  per  cent,  respectively,  in  the  same  period,  and  that 
in  the  history  of  the  United  States,  under  the  present  form  of 
government,  57  years  of  free  trade  gave  an  excess  of  imports 
over  exports  amounting  to  514  million  dollars,  and  58  years  of  pro- 
tection gave  an  excess  of  exports  over  imports  amounting  to  4,099 
million  dollars.  This  is  the  practical  test,  the  "proof  of  the  pudd- 
ing in  the  eating,"  and  should  put  an  end  forever  to  the  assertion 
that  protection  destroys  or  injures  the  foreign  markets  of  the 
country  adopting  it.     Of  the  57  years  of  low  tariff,  47  show  an 


1 


THE   TARIFF.  27 

etcess  of  imports  over  exports,  while  of  the  58  years  of  protective 
tariff,  33  show  an  excess  of  exports  over  imports.  A  table  printed 
on  page  62,  compiled  from  the  official  reports  of  the  Treasury 
Department  and  the  Department  of  Commerce  and  Labor,  shows 
t^e  years  in  which  low  and  protective  tariffs,  respectively,  were 
in  operation,  and  the  excess  of  imports  or  exports  in  each  year, 
also  the  total  excess  of  exports  under  low  and  protective  tariffs, 
respectively. 

Ia    There   Danger   of   European    Combinations    Against   the  United 
States  on  Account  of  Our  Tariff? 

Statements  have  been  made  from  time  to  time  that  European 
countries  were  likely,  by  reason  of  the  high  protective  tariff  in 
the  United  States,  to  enter  into  an  agreement  for  the  exclusion  of 
our  products  from  their  markets.  This  assertion  has  been  made 
over  and  over  again  for  years,  but  more  especially  in  comparatively 
recent  years.  But  such  action  seems  highly  improbable,  for  the 
following  reasons:  1.  The  countries  in  which  these  threats  of 
retaliation  are  most  frequently  heard  are  themselves,  in  all  cases 
except  the  United  Kingdom,  protective-tariff  countries,  and  it  is 
unlikely  that  they  would  seriously  and  through  official  action 
complain  of  a  protective  tariff  established  in  any  other  country. 
2.  The  European  countries  can  not  afford  to  exclude  our  staple 
products,  which  are  required  in  such  large  quantities  by  their 
people  and  which  would  advance  in  price  in  their  markets  if  the 
supply  from  the  world's  largest  producer  were  cut  off.  3.  The 
exclusion  of  these  necessary  products  from  the  United  States  would 
necessitate  their  importation  from  other  countries,  and  by  re- 
ducing the  supplies  in  these  other  countries  would  make  markets 
for  our  products  in  those  countries  drawn  upon  or  in  other  coun- 
tries from  which  they  had  been  accustomed  to  draw  their  sup- 
plies. 4.  Experiments  of  this  kind  for  the  exclusion  of  our  meats 
from  certain  European  countries  have  not  resulted  in  a  reduction 
of  our  total  exports  of  meats  and  other  provisions.  5.  The 
countries  which  have  complained  most  bitterly  of  the  tariff  of  the 
United  States  have  steadily  and  rapidly  increased  their  impor- 
tations of  our  products  meantime.  6.  During  the  very  period 
in  which  the  talk  of  exclusion  from  European  cqgnt^ajgs^f  Amer- 
ican manufactures  have  been  made,  our  exports  of  manufactures 
to  those  countries  have  most  rapidly  increased. 

As  to  the  first  proposition,  it  is  from  the  European  countries 
that  the  threats  of  retaliation  against  the  protective-tariff  laws 
of  the  United  States  are  most  frequently  heard.  Yet  all  of  the 
leading  countries  of  Europe,  with  the  exception  of  the  United 
Kingdom,  have  within  comparatively  recent  years  adopted  pro- 
tective-tariff systems  and  in  most  cases  are  now  increasing  or 
proposing  to  increase  their  rates  of  duty  for  the  avowed  pur- 
pose of  making  their  tariffs  more  thoroughly  protective.  In  the 
case  of  the  United  Kingdom,  the  only  European  country  of  im- 
portance not  having  a  protective  tariff,  the  adoption  of  a  pro- 
tective system  is  being  strongly  urged.  It  seems  highly  improb- 
able that  a  country  officially  adopting  a  tariff  system  with  the 
explicit  purpose  of  protecting  its  own  industries  would  complain 
of  like  action  on  the  part  of  any  other  country,  even  if  the  rates 
which  that  country  imposes  were  higher  than  those  which  it 
imposes. 

RETALIATION  A  BOOMERANG. 

The  European  countries  in  question  are  large  consumers  of  the 
great  products  of  the  United  States — cotton,  wheat,  corn,  meats, 
and  other  forms  of  provisions — as  well  as  of  manufactures.  The 
United  States  is  the  world's  largest  producer  of  every  one  of  these 
articles.  She  produces  three-fourths  of  the  cotton  of  the  world; 
three-fourths  of  its  corn;  three-fifths  of  the  wheat  entering  the 
European  markets  from  extra-European  countries;  and;  two- 
fifths  of  the  meats  which  enter  into  international  commerce.  The 
European  countries,  with  possibly  one  or  two  exceptions,  do  not 
produce  a  sufficient  supply  of  these  articles  for  their  respective 
home  markets'.  They  must  buy  them  in  large  quantities  from  some 
other  part  of  the  world.  One  important  effect  of  excluding  from 
their  markets  the  products  of  the  worfa's  principal  source  of 
these  various  articles  must  be  to  increase  in  their  home  mar- 
kets the  prices  of  those  articles.  If  through  concerted  action  by 
these  countries  three-fourths  of  the  world's  supply  of  cotton  (pro- 


28  THE  TARIFF. 

I 

duced  in  the  United  States)  were  excluded  from  tbeir  markets 
naturally  tho  price  for  the  remaining  one-fourth  of  the  world's 
cotton,  wherever  produced,  would  advance  greatly,  and  this  prn- 
ciple  would  apply  in  the  exclusion  of  any  <>f  the  great  produces 
of  which  the  United  States  exports  a  sufficiently  large  percentile 
to  make  absence  of  its  product  a  factor  in  determining  prices. 
Imagine  the  effect  upon  the  price  of  wheat  if  three-fifths  of  the 
extra-European  supply  for  European  markets  were  destroyed  in 
a  single  hour  or  day.  Imagine  the  effect  upon  prices  of  meats  if 
40  per  cent  of  the  world's  available  supply  for  the  internatioiial 
trade  were  wiped  out  of  existence.  Note  the  effect  upon  the  price 
of  cotton  due  to  a  small  shortage  in  the  crop  of  the  United  States 
last  year,  and  consider  what  would  be  the  effect  if  all  of  the  cotton 
supply  of  the  United  States— three-fourths  of  that  which  the  world 
produces — were  shut  out  of  the  markets  demanding  that  cotton. 

Even  if  certain  countries  were  to  exclude  the  great  products 
of  the  United  States  from  their  markets  they  would  be  com- 
pelled to  draw  their  supply  from  some  other  country  or  countries, 
and  the  products  of  the  United  States  would  find  her  markets  in 
those  countries  thus  drawn  upon  or  in  the  countries  to  which 
they  had  formerly  furnished  their  surplus.  The  world's  pro- 
duction of  the  requirements  of  man — cotton,  corn,  wheat,  pro- 
visions— is  no  more  than  the  quantity  required  by  the  various 
parts  of  the  world  which  are  now  brought  into  such  close  com- 
mercial relationship  by  reason  of  cheap  transportation,  and  if 
through  the  exclusion  of  our  products  from  certain  countries  the 
products  of  other  countries  were  drawn  upon  to  supply  those  mar- 
kets our  products  would  in  turn  find  a  sale  in  the  other  parts  of 
the  world  thus  affected  by  that  change  in  supply.  These  great 
requirements  of  man  for  food  and  clothing,  demanded  as  they  are 
in,  every  part  of  the  world,  and  easily  transported  to  any  given 
spot,  like  water,  seek  their  level,  and  the  exclusion  of  our  pro- 
ducts from  one  country  or  group  of  countries  would  simply  result 
in  their  finding  markets  in  the  spot  from  which  those  consuming 
countries  might  draw  their  supply. 

RESULTS    OF    EXPERIMENTS    IN    RETALIATION. 

Certain  experiments  in  the  exclusion  or  attempt  to  exclude 
American  products  have  been  made  in  European  countries  during 
the  past  twenty  years,  and  the  effect  of  those  experiments  upon  our 
sales  of  the  articles  in  question  is  worth  noting.  Beginning  about 
twenty  years  ago  certain  of  the  European  countries  began  the  ex- 
clusion of  certain  classes  of  meats  from  the  United  States,  charg- 
ing that  they  were  dangerous  to  public  health  by  reason  of  the 
presence  of  trachinaB  in  hogs,  Texas  fever  and  other  diseases  in 
cattle,  and  upon  other  but  somewhat  similar  grounds.  These  rul- 
ings or  legislation  against  American  meats  extended  from  country 
to  country  upon  various  pretexts  during  a  series  of  years  down 
to  a  very  recent  date,  proving  in  each  case  more  or  less  a  barrier 
against  the  meat  products  of  the  United  States.  They  resulted 
in  some  cases  in  more  stringent  export  regulations  by  the  United 
States',  and  in  some  cases  in  a  modification  of!  the  legislation  or 
regulations  in  the  country  of  importation,  and  the  net  result  has 
been  a  steady  growth  in  the  exportation  of  provisions  from  the 
United  States  during  the  very  period  in  question.  The  total  value 
of  provisions  and  animals  for  food  exported  from  the  United 
States  in  1880,  the  approximate  date  at  which  this  adverse  move- 
ment against  provisions  from  the  United  States  began,  was  130 
million  dollars,  and  235  millions  in  1902,  a  growth  of  more  than 
100  million  dollars  in  exports  of  provisions  and  live  animals  for 
food  purposes  during  the  very  period  in  question,  and  a  very  large 
proportion  of  this  growth  was  in  exports  of  those  articles  to 
European  countries. 

Another  evidence  of  the  indisposition  of  other  countries  to  at- 
tempt to  exclude  the  required  products  of  the  United  States  from 
their  markets  is  found  in  the  fact  that  although  a  dozen  of  the 
great  countries  of  the  world  simultaneously  protested  against  the 
Dingley  tariff  act,  no  one  of  those  countries  excluded  any  of  the 
products  of  the  United  States  following  the  enactment  of  that 
law  or  even  reduced  by  a  single  dollar  the  value  of  their  pur- 
chases from  this  country.  These  protests,  while  not  a  joint 
action,  and  while  relating  in  some  cases  to  different  features  of 


THE   TARIFF.  29 

the  act  from  those  complained  of  by  other  protesting  countries, 
were  practically  simultaneous,  and  as  the  passage  of  the  act  with- 
out recognition  of  their  protest  was  a  simultaneous  rejection  by 
the  United  States  of  those  protests,  the  occurrence  offered  to 
them  a  special  and  unique  opportunity  for  combined  action  in  ex- 
cluding our  products  from  their  markets.  Yet  not  a  single  one  of 
those  countries  took  such  action,  and  in  no  case  did  they  reduce 
their  purchases  from  the  United  States.  On  the  contrary,  our 
exports  to  every  one  of  the  12  countries  have  increased.-  Our 
exports  to  the  12  countries  which  protested  against  the  act  in 
question  were  in  1896  $618,688,000,  and  in  1903  $925,447,000,  an 
increase  of  50  per  cent  as  compared  with  1896,  the  year  prior  to 
that  in  which  these  protests  were  made.  (See  table  of  countries 
protesting  against  Dingley  law,  and  exports  to  them,  page  30.) 

Even  in  manufactures,  of  which  the  European  countries  are 
large  producers,  and  against  which  they  have  most  vigorously 
protested,  our  exports  to  those  countries  have  steadily  grown 
during  the  years  in  which  threats  of  exclusion  have  been  most 
frequently  made.  Expressions  of  hostility  to  manufactures  from 
the  United  States  and  threats  of  legislation  or  rulings  to  bring 
about  their  exclusion  have  been  most  strongly  marked  during 
the  short  period  since  1895.  Yet  in  that  period  exports  of  manu- 
factures from  the  United  States  to  Europe,  the  very  section  of  the 
world  from  which  these  threats  of  exclusion  came,  have  doubled, 
our  total  manufactures  exported  to  Europe  in  1896  being  $96,- 
961,020,  and  in  1902,  $197,572,992,  while  those  of  the  fiscal  year 
1904  exceed  200  million  dollars. 

•  Besides,  the  complete  power  of  the  United  States  to  pro- 
tect itself  against  retaliation  must  not  be  overlooked.  The  only 
countries  from  which  there  could  be  any  possibility  of  danger 
are  the  leading  industrial  and  commercial  nations  of  Europe. 
Their  policy  is  protective,  so  is  ours.  But  if  they  are  compelled  to 
buy  largely  of  our  products  from  necessity,  we  buy  largely  of 
theirs  from  choice.  We  are  among  their  best  customers.  Our 
imports  in  1903  were  from  Germany,  $119,772,511;  from  France, 
$77,285,239;  from  Austria-Hungary,  $10,569,929;  from  Belgium, 
$22,567,337;  from  Italy,  $36,246,412;  from  the  Netherlands,  $22,- 
868,978.  What  they  buy  of  us  are  necessaries;  what  we  buy  of 
them  are  chiefly  luxuries.  If  they  were  to  proscribe  our  products 
we  could  more  easily  proscribe  theirs.  So  long  as  we  maintain 
the  protective  policy  we  can  defend  ourselves;  the  more  we  ad 
vance  towards  free  trade  the  fewer  weapons  of  defense  we  hold. 

Thus,  both  the  logic  of  the  situation  and  our  actual  experience 
with  adverse  legislation  and  threats  of  such  legislation  fail  to 
justify  the  assertion  that  our  products  of  any  class  are  being  ex- 
cluded or  are  likely  to  be  excluded  from  the  markets  of  other 
countries  by  reason  of  our  protective  tariff. 


TRADE  OF   THE   UNITED   STATES    WITH    COUNTRIES    PROTESTING   AGAINST 
THE  DINGLEY  TARIFF  ACT. 

The  table  which  follows  shows  the  trade  of  the  United  States 
with  each  of  the  12  countries  which  protested  against  the  Ding- 
ley  tariff  act  during  its  pendency  in  Congress  in  1897.  The 
figures  cover  the  period  from  1896,  the  year  prior  to  the  enact- 
ment of  that  law,  to  and  including  the  fiscal  year  1903.  It  will 
be  seen  that  the  exports  to  each  of  the  countries  have  increased. 
This  record  is  deemed  important  in  its  bearing  upon  the  claim  that 
other  countries  are  likely  to  reduce  their  imports  from  the 
United  States  by  reason  of  the  protective  tariff.  In  this  case, 
12  leading  commercial  countries  of  the  world  had  almost  simul- 
taneously protested  against  certain  features  of  this  act,  not  all 
of  them  against  any  single  feature,  but  each  of  them  had  made 
a  protest ;  yet  the  act  was  passed  in  the  original  form  without 
modification  so  far  as  related  to  the  features  referred  to  in  the 
protests,  and  instead  of  a  reduction  in  exports  to  those  countries 
there,  has  been  a  steady  increase  in  all  cases,  and  the  total  expor- 
tation from 'the  United  States  in  1903  to  the  12  countries  in  ques- 
tion was  $953,585,567.  as  against  $618,687,429  in  1896,  having 
thus  increased  $335,898,138,  or  54  per  cent,  over  the  exports  to 
those  countries  in  1896. 


30 


THE   TARrFF. 


EctporU  from  the  United  States  to  the  countries  which  protested 
against  the  Dingley  tariff  1>M,  showing  Increase  in  ewporU  after 
enactment  of  the  law. 


Count  ri.'s. 

Year  ending  June  30— 

1896. 

1897. 

1898. 

1899. 

United  Kingdom 

$405,741,339 

97.897.197 

*     39,022.899 

27,070.625 

19,143,606 

7,689.685 

6,557,448 

6,921.933 

5.979.046 

2.439,651 

191,046 

32.954 

$483,270,398 

125,246.088 

»  51,045.011 

33.071,555 

21.502.423 

13,255.478 

10.194.857 

11,924.933 

6,384.984 

4,023.011 

110.763 

70,871 

$540,940,605 

155.039,927 

64.274,524 

47,619,201 

23.290,858 

20,385,041 

12,697,421 

9,992,894 

6,429,070 

5,697,912 

127,559 

263,970 

$511,778,705 

Germany 

155.772,179 

Netherlands 

79,305,998 

Belgium 

44.158,03:? 

Italy 

25,034,940 

Japan  

17,264.688 

Denmark 

16,605,  H2H 

14,493  440 

Argentina 

9,563,510 

Austria-Hungary 

7.378,935 

Greece 

213.507 

Switzerland. 

267,732 

Total  to  countries 

618,687,429 

760,099.827 

886.159,527 

881,837.495 

Countries. 

Year  ending  June  30— 

1900. 

1901. 

1902. 

1903. 

United  Kingdom 

$533,819,545 

187.347,889 

89,386,676 

48,307,011 

33,256,620 

29,087,475 

18,487,991 

15,259,167 

11.558.237 

7,046,819 

290,709 

250,447 

$631,177,157 

191,780,427 

84.356.318 

49,389,259 

34,473,189 

19,000,640 

16.175,235 

10.405,834 

11,537.668 

7.222.650 

291.538 

255,360 

$548,548,477 

173,148,280 

75.123,135 

46,271.756 

31,388,135 

21,485,883 

15.464,622 

24,722,906 

9,801,804 

6,167.127 

305,950 

217,515 

$524,262,656 

Germany 

193,841  636 

Netherlands 

78,245,419 

Belgium 

47  087  939 

Italy 

35,032  680 

Japan  

20.933  692 

16  157  583 

18  898  163 

11.437,570 

7.156.688 

330,844 

205  697 

Austria-Hungary « 

Switzerland 

Total  to  countries 

974.098.616 

1.056.065.279 

942.645.590 

953.585.567 

Protective  Tariff  as  a  Revenue  Producer. 

In  the  matter  of  revenue  the  contrast  between  low  and  pro- 
tective tariffs  is  equally  striking.  In  the  57  years  of  low  tariff 
no  less  than-22  of  the  total  showed  an  excess  of  expenditures  over 
receipts  by  the  Government;  while  in  the  58  years  of  protective 
tariffs  44  of  the  total  showed  an  excess  of  receipts  over  expendi- 
tures. Of  the  14  years  under  protective  tariffs  in  which  the  ex- 
penditures exceeded  the  revenues  no  less  than  nine  were  war 
periods,  when,  necessarily,  expenditures  exceeded  receipts  from 
ordinary  sources,  while  in  only  two  of  the  years  in  which  deficits 
occurred  under  low  tariffs  could  that  deficiency  be  charged  to  war 
conditions.  The  war  of  1812-14,  the  civil  war,  and  the  war  with 
Spain  all  occurred  during  protective-tariff  periods ;  while  the  war 
with  Mexico  occurred  during  a  low-tariff  period.  Excluding  the 
war  periods  from  consideration,  it  may  be  said  that  of  the  55 
years  of  peace,  during  which  low  tariffs  were  in  operation,  20 
years  showed  a  deficit;  while  of  the  49  years  of  peace,  during 
which  protective  tariffs  were  in  operation,  only  five  showed  a 
deficit. 

Considering  the  entire  history  of  the  country,  under  the  Con- 
stitution, but  excluding  the  war  years,  it  may  be  said  that  the 
revenues  of  the  Government  during  low  tariff  periods  fell  $33,- 
143,242  below  expenditures,  while  under  protection,  still  exclud- 
ing the  war  years  from  consideration,  the  revenues  exceeded  the 
expenditures  by  the  enormous  sum  of  $2,122,189,005. 

To  sum  up  in  a  single  sentence  the  revenue  records  of  low  and 
protective  tariffs,  respectively,  during  years  of  peace,  low  tariffs 
showed  a  deficit  in  20  out  of  the  55  peace  years  in  which  they 
were  in  operation,  while  protective  tariffs  showed  a  deficit  in 
but  5  of  the  49  peace  years  in  which  they  were  in  operation, 
the  low  tariffs  producing  a  total  deficit  during  their  entire  55 
peace  years  of  operation  amounting  to  33  million  dollars,  and 
the  protective  tariffs  a  surplus  of  2,122  millions  during  the  49 
years  of  peace  in  which  they  were  in  operation.  "The  proof  of  the 
pudding  is  in  the  eating."     Fifty-five  peace  years  of  low  tariff, 


THE    TARIFF.  ,  31 

deficit,  33  million  dollars;  forty-nine  peace  years  of  protection, 
surplus,  2,122  millions.  (For  table  of  revenues  under  low  and 
protective  tariffs,  respectively,  see  page  59.) 

The  Home  Market. 

The  object  of  a  protective  tariff  is  to  conserve  and  develop 
the  home  market  for  the  home  producer.  By  this  is  meant  not 
merely  the  home  manufacturer,  but  the  home  producer  of  every 
class,  because  of  the  development  of  each  domestic  industry 
through  the  prosperity  of  other  domestic  industries.  While  pri- 
marily protection  in  the  United  States  looks  especially  to  the  de- 
velopment of  the  manufacturing  industry,  that  development  of  the 
manufacturing  industry  in  turn  develops  other  industries.  To 
produce  the  enormous  supplies  of  manufactures  required  by  our 
own  people — the  farm,  the  forest,  the  mine,  and  even  the  fisheries 
are  called  upon  for  material  to  aid  in  this  work.  Not  only  are 
all  of  these  branches  of  industry  thus  developed  by  the  mere 
calls  upon  them  for  material  for  use  in  manufacturing,  but  the 
millions  of  men  and  women  engaged  in  manufacturing  and  other 
dependent  industries  through  their  prosperity  and  employment  at 
good  wages  have  the  means  with  which  to  purchase  and  pay  for 
these  products.  The  manufactures  of  the  country  require  from 
the  farmer  cotton,  wool,  hides,  flax,  hemp,  the  grain  which  is 
manufactured  into  flour,  meal,  etc.,  and  the  numerous  other  arti- 
cles of  lesser  importance ;  they  require  the  products  of  the  mine, 
coal,  iron,  copper,  zinc,  tin,  lead,  nickel,  gold  and  silver ;  and 
they  require  of  the  products  of  the  forest  large  supplies.  These 
industries — manufactures,  mining  and  forestry — employ  more  than 
six  million  people  and  pay  them  wages  amounting  to  three  bil- 
lions of  dollars  annually,  which  they  in  turn  expend  for  the  pro- 
ducts of  the  farm,  the  fisheries,  the  mines  and  the  factories.  Thus, 
under  protection,  each  industry,  through  its  activities,  stimulates 
other  industries,  while  those  other  stimulated  industries,  through 
the  prosperity  of  the  persons  engaged  in  them,  in  turn  become 
consumers  and  purchasers,  thus  developing  and  stimulating  the 
production  and  prosperity  of  every  occupation  and  industry  of 
the  country. 

MUTUAL  INTERDEPENDENCE  THE  KEYNOTE. 

The  interdependence  of  the  great  industries  of  the  country 
and  the  dependence  of  each  for  its  prosperity  upon  the  success 
and  prosperity  of  the  others  can  better  be  realized  when  it  is 
stated  that  of  the  2,389  million  dollars'  worth  of  raw  materials 
used  by  the  manufacturers  of  the  United  States  in  1900,  no  less 
than  1,941  million  dollars'  worth  was  the  product  of  agriculture, 
and  only  156  million  dollars'  worth  of  this  was  imported.  These 
figures  are  from  the  official  statements  of  the  United  States  cen- 
sus and  the  Bureau  of  Statistics.  Thus,  75  per  cent  of  the  raw 
material  used  by  the  manufacturing  industries  of  the  country 
is  drawn  from  our  own  farms,  the  remainder  being  products  of 
the  mines  and  forests  and  miscellaneous  imports.  These  figures 
indicate  the  interdependence  of  the  great  industries  of  the  coun- 
try and  the  relation  of  the  prosperity  and  activity,  one  by  one, 
to  the  prosperity  and  activity  of  the  other.  This  interdependence 
is  especially  shown  by  the  figures  which  indicate  the  use  of  agri- 
cultural products  in  the  manufacturing  industries  of  the  coun- 
try. As  already  indicated,  75  per  cent  of  the  raw  materials  used 
by  the  manufacturers  of  the  United  States  are  products  of  our 
own  agriculture. 

The  total  value  of  the  farm  products  of  the  United  States  in 
1900,  according  to  the  census  of  that  year,  was  3,764  million 
dollars,  and  the  total  value  of  agricultural  products  used  in  man- 
ufacturing was  1,940  millions.  Of  this  156  millions  was  im- 
ported and  the  remaining  1,785  million  dollars'  worth  was  drawn 
from  our  own  farms.  Thus,  our  own  agricultural  products  used 
in  the  manufacturing  establishments  of  the  United  States,  ac- 
cording to  the  official  figures  of  the  census  of  1900,  actually 
amounted  to  more  than  one-half  of  the  total  value  of  the  products 
of  the  farms' of  the  country  in  that  year.  When  to  this  we  add  the 
enormous  demands  made  upon  the  farmers  for  food  supplies  for 
the  six  million  people  employed  by  the  manufacturers  and  in  the 
other  industries   from    which   the   manufacturers   draw   part   of 


32  THE  TABIFP. 

their  material,  the  importance  to  the  farmer  of  the  prosperity  of 
the  manufacturers  can  scarcely  be  over-estimated. 

Another  class  of  consumers  whose  prosperity  and  therefore 
purchasing  power  depends  greatly  upon  the  activity  of  the  manu- 
facturing interests  is  those  engaged  in  transportation,  while  still 
another  group  is  those  engaged  in  trade.  These  two  groups  of 
people— those  engaged  in  transportation  and  trade — numbered  in 
1900,  according  to  the  census  of  that  year,  4,766,965  persons,  or 
more  than  16  per  cent  of  those  engaged  in  "gainful  occupations" 
in  that  year. 

THE  WELFABE  OF  EACH  THE  WELFARE  OF  ALL. 

The  total  number  of  persons  engaged  in  "gainful  occupations" 
in  1900,  according  to  the  census  of  that  year,  was  29,074,117.  Of 
these,  10,381,765  were  engaged  in  agriculture;  7,085,992  in  manu- 
facturing and  mechanical  pursuits;  and  4,766,964  in  trade  and 
transportation.  Thus,  of  the  29  million  people  engaged  in  "gain- 
ful occupations"  in  the  United  States  in  1900,  22  millions,  or 
76  per  cent,  of  the  total  number,  were  engaged  in  agriculture, 
manufacturing,  transportation  and  trade — all  dependent  for  their 
activity  upon  the  prosperity  and  activity  of  the  manufacturing 
industries.  On  the  other  hand,  the  manufacturing  industries 
were  equally  dependent  for  their  success  and  for  a  home  mar- 
ket for  their  products  upon  the  prosperity  of  these  three  great 
groups  engaged  in  agriculture,  manufacturing,  transportation,  and 
trade.  There  remain  in  the  census  classification  two  other  groups 
of  people,  viz,  those  engaged  in  domestic  and  personal  services, 
5,580,657,  and  those  engaged  in  professional  service,  1,258,739, 
and  nobody  can  doubt  that  either  of  these  great  groups  is  equally 
dependent  for  its  prosperity  upon  the  prosperity  of  those  engaged 
in  agriculture,  manufacturing,  transportation,  and  trade,  or  that 
their  prosperity  as  consumers  is  in  turn  important  to  the  manu- 
facturer, the  agriculturist,  and  those  engaged  in  trade  and  trans- 
portation. 

Thus  the  interdependence  of  the  people  and  industries  of  a 
great  nation  such*  as  the  United  States,  with  its  enormous  area 
equal  to  that  of  all  Europe,  and  with  its  variety  of  climate,  soil 
and  products  of  field,  forest,  mine  and  factory,  fully  justifies  the 
application  of  the  protective  principle,  which  insures  prosperity 
and  activity  to  that  great  industry  of  manufacturing,  which  in 
turn  contributes  so  greatly  to  the  activity  and  prosperity  of  all 
other  industries.  -The  gross  value  of  the  manufactures  of  the 
United  States  in  1900  was  13  billions  of  dollars,  against  less  than 
four  billions  for  products  of  the  farm,  and  one  billion  dollars,  pro- 
ducts of  the  mine.  The  number  of  persons  employed  in  manufac- 
turing was  5%  millions,  and  the  sum  paid  to  them  as  wages  and 
salaries  2%  billions  of  dollars,  or  more  in  a  single  year  than  the 
entire  amount  of  money  in  circulation  in  the  United  States  todry. 
Practically  all  of  this  sum,  together  with  most  of  the  seven  bil- 
lions of  dollars  expended  for  materials  used  by  the  manufacturers, 
was  distributed  among  the  people  of  the  United  States,  chiefly  to 
the  farmers  whose  products  formed  over  80  per  cent  of  the  value 
of  the  materials  used,  and  who  also  supplied  the  food  consumed 
by  these  five  million  employees,  and  in  addition  profited  by  the  in- 
creased activity  resulting  in  the  other  industries  of  mining,  for- 
estry, transportation,  and  trade. 

THE    HOME   MARKET   THE   GREATEST    MARKET. 

These  great  facts — the  aid  which  each  industry  proves  to  other 
industries  in  a  country  which  supplies  practically  all  of  the  re- 
quirements of  man,  whether  in  manufacturing  or  for  food,  cloth- 
ing, heat,  and  light — make  the  home  market  of  the  United  States 
the  greatest  market  of  the  world.  That -this  home  market  in  the 
United  States  far  exceeds  that  offered  in  any  other  part  of  the 
world  was  shown  by  the  chief  of  the  Bureau  of  Statistics,  Mr.  O. 
P.  Austin,  in  an  address  at  Rochester,  N.  Y.,  on  January  7,  1904, 
in  which  he  said : 

"The  internal  commerce  of  the  United  States  was  in  1900  20 
billions  of  dollars.  With  this  definite  basis  of  20  billions  in  1900, 
and  knowing  what  rapid  development  has  occurred  since  that  time, 
we  may  safely  and  conservatively  put  the  internal  commerce  of 
the  year  1903  at  22  billions  of  dollars,  a  sum  which  actually 
equaled   the   entire    international  commerce    of   the    world   in    that 


THE  TARIFF.  33 

year.  Think  of  it,  you  producers  and  manufacturers,  and  merch- 
ants and  traders  and  bankers  and  transporters,  think  of  it!  The 
market  of  our  own  country — the  home  market  in  which  you  can 
transport  your  goods  from  the  door  of  the  factory  to  the  door 
of  the  consumer  without  breaking  bulk  a  single  time — is  equal  to 
the  entire  international  commerce  of  the  world." 

This  is  the  measure  of  the  home  market,  of  its  value,  and  of 
its  importance  to  every  class  of  citizens,  and  indicates  the  im- 
portance of  maintaining  the  system  under  which  it  has  been  de- 
veloped. Mr.  Austin,  in  his  remarks  above  quoted,  showed  also 
that  this  same  home  market  had  grown  from  only  seven  billions 
of  dollars  in  1870  to  22  billions  in  1903,  basing  his  estimate  in  both 
cases  upon  the  figures  of  the  United  States  census,  having  thus 
trebled  in  33  years,  while  the  international  commerce  of  the  world 
had  only  doubled  during  that  same  period  of  33  years.  Thus  not 
only  is  the  home  market  of  the  United  States  equal  to  the  com- 
bined imports  and  exports  of  the  world,  but  its  growth  is  much 
more  rapid  than  that  of  the  markets  offered  in  other  countries. 

Labor  and  Protective  Tariff. 

The  importance  to  labor  of  the  protective  system  and  the  activi- 
ties which  develop  under  it  can  scarcely  be  overestimated.  Of 
the  29  million  people  engaged  in  "gainful  occupations"  in  1900, 
7  millions  are  directly  dependent  upon  manufacturing  and  mechan- 
ical industries,  and  4%  millions  upon  trade  and  transportation, 
which  are  so  closely  associated  with  and  affected  by  the  activities 
of  manufacturing.  Practically  one-half  of  the  products  of  agricul- 
ture are,  as  indicated  by  the  census,  consumed  by  the  manufactur- 
ing industries.  Hence  a  large  proportion  of  the  10  million  persons 
engaged  in  agricultural  pursuits  are  dependent  for  their  prosperity 
upon  the  activities  of  the  manufacturing  industries,  to  say  noth- 
of  the  6^  millions  engaged  in  professional,  domestic,  and  personal 
service,  whose  employment  must  depend  largely  upon  general 
prosperity  in  manufacturing  and  allied  industries.  It  is  not  mere- 
ly the  2%  billions  of  dollars  paid  as  wages  and  salaries  to  the 
employees  of  the  manufacturing  establishments  of  the  country, 
but  the  earnings  of  more  than  half  of  those  engaged  in  "gainful 
occupations"  which  are  affected  by  and  dependent  upon  the  pros- 
perity of  the  manufactures. 

BANK   DEPOSITS. 

That  labor  has  been  prosperous  under  the  improved  condi- 
tions in  the  manufacturing  industries  since  the  enactment  of  the 
Dingley  tariff  law  is  evidenced  by  the  fact  that  deposits  in  sav- 
ings banks  alone,  those  depositories  of  the  working  people,  widows, 
and  orphans  of  the  United  States,  grevv  from  1,907  million  dol- 
lars in  1896,  the  last  year  under  the  low  tariff,  to  2,935  millions  in 
1903,  an  increase  of  over  50  per  cent.  During  the  period  in 
which  low  tariff  was  in  existence  or  threatening  the  industries  of 
the  country — 1892  to  1897 — savings  banks  deposits  increased  but 
154  million  dollars;  since  1897  savings  bank  deposits  have  in- 
creased under  a  protective  tariff  99G  million  dollars — the  increase 
under  Democratic  low  tariff  being  less  than  40  million  dollars  per 
annum,  and  under  Republican  protective  tariff,  166  million  dollars 
per  annum.  Another  evidence  of  prosperity  among  the  masses  is 
found  in  the  amount  of  life  insurance  policies  in  force  in  the 
United  States.  Life  insurance  is  another  form  of  savings,  and  in 
the  aggregate  of  its  outstanding  policies  is  to  be  found  an  equally 
important  index  of  the  prosperity  of  the  people  of  the  United 
States.  During  the  period  of  threatened  or  actual  Democratic 
low  tariff,  from  1893  to  1897,  the  value  of  life  insurance  policies 
in  the  United  States  increased  from  5,291  million  dollars  in  1893 
to  6,326  millions  in  1897,  or  an  average  of  only  259  millions  per 
annum.  Since  that  time  the  increase  under  a  Republican  pro- 
tective tariff  has  been  from  6,326  millions  in  1897  to  10,508  millions 
in  1902,  or  at  the  rate  of  836  millions  per  annum.  Thus  the  value 
of  life  insurance  policies  in  the  United  States  increased  in  the 
four-year  period  of  threatened  or  actual  low  tariff  but  1,035  mil- 
lions, or  259  millions  per  annum,  while  from  1897  to  1902  the  in- 
crease has  been  4,182  millions,  or  836  millions  per  annum,  the  rate 
of  increase  under  a  Republican  protective  tariff  being  more  than 
three  times  as  great  as  the  annual  rate  of  increase  under  Demo- 
cratic low  tariff. 


I   Ml         1    \HQ-t   . 


INDUSTRIAL    INSURANCE. 


It  may  be  objected  that  life  insurance  includes  among  Its 
patrons  men  oi'  wealth,  and  this  is  true;  though  they  form  but  a 
small  proportion,  of  course,  of  the  total.  But  it  will  be  admitted 
that  this  is  not  true  of  the  industrial  insurance  associations,  Which 
collect  their  premiums  in  small  weekly  sums,  and  certainly  their 
prosperity  and  activity  may  be  accepted  as  a  measure  of  the 
actual  prosperity  of  the  working  men  of  the  country  or 
of  those  dependent  upon  the  prosperity  of  the  great  in- 
dustries. The  statistics  of  industrial  insurance  in  force  in  the 
United  States,  as  published  by  the  Bureau  of  Statistics,  and  sup- 
plied by  that  distinguished  insurance  statistician,  Mr.  Frederick 
L.  Hoffman,  show  the  amount  of  policies  of  industrial  insurance 
in  force  in  the  United  States,  in  1893,  at  $662,030,129;  in  1897. 
$996,139,424,  and  in  1902  at  $1,806,890,804.  Thus  during  the 
period  of  threatened  or  actual  low  tariff  the  amount  of  industrial 
insurance  in  force  increased  by  334  millions,  while  since  that  time, 
<luring  a  period  of  protective  tariff,  the  amount  has  increased  810 
millions,  the  annual  average  rate  of  increase  being,  under  Demo- 
cratic low  tariff,  85  millions  per  annum,  and  under  Republican 
protective  tariff,  162  millions  per  annum.  The  actual  number  of 
industrial  policies  outstanding  in  1893  was  5,751,514;  in  1897, 
8,005,384 ;  and  in  1902,  13,448,134.  Thus  the  increase  in  the  num- 
ber of  policies  outstanding  during  the  threatened  or  actual  low- 
tariff  period  was  2,258,870;  and  from  1897  to  1902,  a  period  of 
Republican  protective  tariff,  5,442,740 — an  average  annual  rate  of 
increase  in  the  number  of  policies  outstanding  of  but  563,470  under 
a  Democratic  low  tariff,  and  of  1,088,548  under  a  Republican  pro- 
tective tariff. 

CONDITION  OF  LABOR  IN  GREAT  BRITAIN. 

No  class  of  merchandise  imported  into  a  country  represents 
labor  in  so  large  a  proportion  as  do  manufactures.  Under  free 
trade  free-trade  United  Kingdom  imported  in  1902  700  million  dol- 
lars' worth  of  manufactured  and  partly  manufactured  goods.  The 
best  experts  estimate  that  labor  forms  fully  one-half  of  the  value 
of  manufactures,  taken  as  a  whole.  Of  course  in  certain  articles, 
such  as  fine  laces,  labor  forms  much  more  than  one-half  of  the 
value,  while  in  certain  other  articles,  such  as  jewelry  of  gold, 
silver,  or  diamonds,  the  material  forms  the  larger  part  of  the 
value,  and  the  labor  a  comparatively  small  proportion  of  the 
value.  Taking  manufactures  as  a  whole,  however,  of  the  general 
class  imported  into  manufacturing  countries  such  as  the  United 
Kingdom  or  the  United  States,  conservative  experts  estimate  that 
labor  forms  fully  one-half  of  the  value  in  each  case.  Accepting  this 
estimate  it  appears  that  the  United  Kingdom  under  free  trade  is 
every  year  permitting  350  million  dollars'  worth  of  foreign  labor  to 
come  into  direct  competition  with  the  working  men  of  that  country. 
In  no  country  in  the  world  is  labor  so  highly  organized  for  its  own 
protection  as  in  England.  Yet  with  all  of  its  organization  for 
self-protection  among  its  own  employers  and  its  own  people,  it 
is  submitting  to  the  introduction  and  competition  in  its  own 
market  and  at  its  own  doors  of  the  labor  of  other  countries  at 
the  rate  of  350  million  dollars  a  year.  During  the  last  decade 
the  value' of  the  manufactures  imported  into  the  United  Kingdom 
amounted  to  six  billions  of  dollars,  one-half  of  which  represented 
foreign  labor  thus  brought  into  competition  with  the  labor  of 
Great  Britain.  Through  the  free  admission  to  the  markets  of  the 
United  Kingdom  during  the  past  decade,  the  labor  of  other  coun- 
tries has  absorbed  three  billion  dollars  of  English  money,  a  large 
part  of  which  otherwise  might  have  been  paid  to  the  workingmen 
of  that  country.  While  the  labor  of  Great  Britain  is  organized 
very  thoroughly  and  persistently  protested  against  competitive  em- 
ployment of  British  labor  not  a  part  of  those  organizations,  it  has 
until  recently  made  no  protest  against  the  introduction  of  labor 
from*other  parts  of  the  world  in  the  form  of  imported  manufac- 
tures, and  in  the  absence  of  such  protest  three  billion  dollars'  worth 
of  labor  has  in  the  last  decade  been  brought  into  the  United  King- 
dom in  competition  with  her  own  labor  and  her  own  manufactures, 
with  the  result  that  the  growth  of  manufactures  is  small-com- 
pared with  that  in  the  protection  countries,  while  the  exports  of 
manufactures  have  fallen  off,  and  the  imports  of  manufactures 


THE   TARIFF.  35 

have  increased.  The  effect  of  this  competition  of  foreign  laborwin 
the  United  Kingdom  or  protection  from  foreign  labor  in 
the  United  States  is  illustrated  in  the  relative  earnings  of  similar 
classes  in  like  occupations  in  the  two  countries.  The  British 
Blue  Book,  which  recently  published  the  results  of  care- 
ful investigation  upon  this  subject,  gives  the  average 
weekly  rates  for  15  skilled  trades  in  the  large  cities 
and  in  smaller  cities  and  towns  in  the  United  Kingdom  and  the 
United  States,  respectively.  These  averages  are  made  up  from  141 
quotations  of  wage  rates  in  the  United  States,  and  471  quotations 
in  the  United  Kingdom.  They  show  the  average  weekly  rate  of 
wages  paid  in  15  skilled  trades  in  the  great  cities  of  the  United 
Kingdom  at  $10.12  (42  shillings)  ;  in  the  great  cities  of  the 
United  States,  $18.25  (75  shillings)  ;  in  other  cities  and  towns  of 
the  United  Kingdom,  $8.76  (36  shillings)  ;  and  in  the  United 
States,  $16.88  (69  s.,  4  d.)  In  the  large  cities  the  rate  of  wages 
for  occupations  and  trades  similar  to  those  in  England  is  80  per 
cent  higher  in  the  United  States  than  in  the  United  Kingdom, 
while  in  the  smaller  cities  and  towns  the  average  was  in  the 
United  States  93  per  cent,  higher  than  in  the  United  Kingdom. 

COLD  FACTS  ABOUT  THE  COST  OF  LIVING. 

In  reply  to  this  stubborn  fact  that  wages  of  labor  in  the 
United  States  are  greatly  in  excess  of  those  in  free-trade  England, 
the  advocates  of  free  trade  have  asserted  that  the  cost  of  living 
in  the  United  States  is  so  much  higher  that  no  real  advantage 
accrues  to  the  American  workman  as  compared  with  that  of  his 
fellow  workman  in  free-trade  England.  This  claim,  however,  can 
no  longer  be  made  in  the  face  of  statements  repeatedly  made  in 
the  report  of  the  Moseley  Labor  Commission  of  Great  Britain, 
which  visited  the  United  States  in  1902.  This  Commission,  headed 
by  Mr.  Albert  Moseley,  a  distinguished  manufacturer  and  phi- 
lanthropist of  England,  was  composed  of  officers  of  the  labor  unions 
of  that  country.  They  visited  the  various  manufacturing  cities 
and  establishments  of  the  United  States  while  in  this  country, 
which  included  about  two  months  of  1902,  and  on  their  return  each 
member  of  the  Commission  was  required  to  submit  a  detailed 
report,  accompanied  by  explicit  statements  in  answer  to  certain 
questions  which  had  been  prepared  by  the  head  of  the  Commission. 
Among  these  questions  were  certain  which  related  to  the  relative 
cost  of  living  in  the  United  States  and  in  England,  the  relative 
wages,  and  whether  or  not  the  industrious,  careful  workingman 
could  accumulate  more  money  as  the  result  of  his  labor  in  the 
United  States  than  in  Great  Britain.  Practically  every  one  of  the 
members  of  the  Commission  replied  that  the  cost  of  living  in  the 
United  States,  aside  from  clothing  and  rent,  was  no  greater  than 
that  of  England,  and  that  beyond  question  a  workingman  in  the 
United  States  could  save  more  money  from  his  earnings  than  one 
engaged  in  a  similar  occupation  in  England.  On  this  subject  Mr. 
Moseley  himself,  whose  conclusions  were  determined  not  alone 
by  his  own  observations  but  through  conferences  with  the  prac- 
tical men  who  accompanied  him — officers  of  the  labor  unions  of* 
his  own  country — said:  "That  the  American  workman  earns 
higher  wages  is  beyond  question.  As  a  consequence  the 
average  married  man  owns  the  house  he  lives  in,  which  gives 
him  not  only  a  stake  in  the  country  but  saves  payment  of  rent, 
enabling  him  to  either  increase  his  savings  or  to  purchase  other 
comforts.  Food  is  as  cheap,  if  not  cheaper,  in  th*e  United  States 
as  in  England,  whilst  general  necessaries  may,  I  think,  be  put 
on  the  same  level.  The  American  workman  is  infinitely  better 
paid,  therefore,  better  housed  and  fed."  In  a  letter  to  the  Lon- 
don Times,  just  after  his  return,  Mr.  Moseley  said :  "The  tariff 
question  in  the  United  States  is  absolutely  a  closed  book.  *  *  * 
There  is  a  disposition  in  some  sections  of  the  community  (al- 
though even  these  are  not  very  large)  to  make  a  revision  of  the 
tariff  by  reducing  the  duty  on  certain  articles ;  but  nobody  dreams 
for  a  single  instant  that  such  reduction  should  be  sufficiently 
large  to  allow  the  foreigner  to  come  in  and  compete  with  them, 
lowering  the  standard  of  wages  and  injuring  industry.  The  work- 
ingman in  the  United  States  is  quite  sufficiently  alive  to  his  own 
interests  to  keep  this  matter  always  before  him   and  no  Prexi- 


36  TUB    TAMPS" 

dential  candidate  would  have  the  smallest  chance  of  election  if  he 
proposed  to  attempt  anything  in  the  way  of  tariff  reform  likely 
to  h>i<(  r  the  standard  of  living  and  affect  the  wage-earning  power 
of  the  American  workman"    See  letter  on  page  50. 

The  l'.ritish  Blue  Book,  entitled  "Memoranda  of  Statistical 
Tables;  etc.,  of  the  Board  of  Trade  with  Reference  to  British  and 
Foreign  Trade  and  Industrial  Conditions,"  in  a  table  prepared  with 
the  purpose  of  showing  industrial  conditions  in  the  United  King- 
dom, United  States,  and  other  countries,  gives  the  current  rates 
of  wages  in  the  great  cities  for  a  few  of  the  leading  trades  in 
the  United  States  and  United  Kingdom,  respectively,  as  follows: 
Carpenters,  United  Kingdom,  $10.05,  United  States,  $24.00;  com- 
positors, United  Kingdom,  $9.65,  United  States,  $19.25;  fitters, 
United  Kingdom,  $9.65,  United  States,  $15.20. 

The  London  Telegraph,  discussing  these  figures  of  wages  and 
cost  of  living  in  the  two  countries,  puts  the  average  weekly  in- 
come per  family  of  approximately  equal  earnings  relatively  to  the 
standard  of  wages  in  the  United  Kingdom  and  the  United  States 
as  follows:  In  the  United  Kingdom  $7.83,  in  the  United  States 
$11.30;  the  total  expenditure,  including  rent  and  clothing,  in  the 
United  Kingdom  $7.56,  in  the  United  States  $10.50;  and  the 
weekly  surplus,  in  the  United  Kingdom  27  cents ;  and  in  the  United 
States  80  cents — the  surplus  of  earnings  over  necessary  expendi- 
tures therefore  being  three  times  as  great  in  the  United  States 
as  for  like  occupations  in  the  United  Kingdom.  The  above  state- 
ments, from  British  authority,  that  American  workingmen  can 
save  more  from  their  earnings  than  can  those  in  free-trade  Eng- 
land is  fully  sustained  by  the  savings  banks  statistics  of  the  two 
countries,  which  show  that  in  the  latest  years  for  which  figures 
are  available  the  deposits  in  savings  banks  in  the  United  Kingdom 
amounted  to  959  million  dollars,  or  $22.86  per  capita,  and  in  the 
United  States  to  2,935  millions,  or  $36.52  per  capita. 

A  further  indication  of  the  relative  effect  of  protection  or 
low  tariff  upon  the  actual  savings  of  the  workingmen  as  evi- 
denced by  savings  banks  deposits  is  found  in  the  fact  that  savings 
banks  deposits  in  the  United  States  during  the  period  of  threatened 
or  actual  low  tariff  (1893-97),  increased  but  154  million  dollars,  or 
but  9  per  cent ;  while  from  1897  to  1903,  under  protection,  the  in- 
crease was  996  million  dollars,  or  51  per  cent.  (For  savings  banks 
tables  see  page  107. ) 

Tin  Plate  in  the  United  States. 

An  illustration  of  the  advantage  to  labor  which  comes  through 
the  establishment  and  maintenance  of  protection  to  domestic  in- 
dustries is  found  in  the  history  of  tin-plate  manufacturing  in  the 
United  States.  In  1890  there  were  no  tin-plate  factories  in  the 
United  States.  The  McKinley  tariff  act  placed  a  heavy  duty  on 
tin  plate,  with  the  distinct  purpose  of  creating  a  tin-plate  in- 
dustry. The  result  has  been  the  creation  of  tin-plate  establish- 
ments which  in  1900  employed  15,552  wage  earners  and  paid  them 
salaries  and  wages  amounting  to  $11,106,078  in  that  year.  While 
the  figures  of  men  employed  and  wages  paid  are  only  available  for 
the  census  year  1900,  the  figures  of  tin-plate  production  are 
available  for  each  year  from  that  following  the  passage  of  the 
McKinley  act  down  to  the  present  time.  A  comparison  of  these 
figures  of  production  year  by  year  with  those  of  the  year  1900, 
in  which  the  wages  paid  amounted  to  $11,106,078,  fully  justifies 
the  assertion  that  the  wages  paid  to  American  workmen  in  the 
tin-plate  factories  of  the  United  States  since  the  enactment  of  the 
McKinley  law  amount  to  $100,000,000,  while  their  consumption  of 
material  for  manufacturing  has  aggregated  200  millions.  Mean- 
while the  cost  of  tin  plate  to  the  consumer  in  the  United  States 
has  been  greatly  reduced,  despite  the  maintenance  of  the  high 
tariff.  The  average  price  paid  for  tin  plates  in  the  New  York 
markets  in  1890  was  $5.15  per  box  of  100  pounds,  while  in  April, 
1904,  the  price  in  the  same  market  was  but  $3.65.  Thus,  as  a  net 
result  of  the  protective  tariff  on  tin  plate  a  market  has  been  made 
for  200  million  dollars'  worth  of  domestic  products,  the  workingmen 
of  the  country  have  been  paid  100  millions  in  wages  and  the  cost 
of  tin  plate  to  the  consumer  has  been  reduced  29  per  cent.  See 
detailed  discussion  of  tin  plate  industry,  page  84. 


THE  TABIFB^i  87 

Are  the  Rich  Growing  Richer  and  the  Poor  Poorer? 

The  frequent  assertion  that  the  protective  tariff  is  especially 
in  the  interests  of  the  manufacturers  and  capitalists,  and  that 
under  it  "the  rich  grow  richer  and  the  poor  poorer"  may  be  an- 
swered in  a  word  by  some  of  the  figures  which  have  already  been 
quoted.  While  it  is  doubtless  a  fact  that  the  manufacturers  and 
capitalists  are  prosperous,  it  is  equally  true  that  the  workingmen 
are  prosperous  and  that  the  share  of  labor  in  the  general  pros- 
perity of  the  country  is  steadily  increasing.  No  more  accurate 
evidence  of  the  prosperity  of  the  workingman  can  be  found  than 
the  figures  of  deposits  in  savings  banks  and  industrial  life  in- 
surance. The  statistics  of  deposits  in  savings  banks  show  that 
the  total  deposits  in  1880  were  819  million  dollars ;  in  1890,  1,525 
millions,  and  in  1903,  2,035  millions.  Thus,  in  1903,  the  deposits 
in  savings  banks  are  over  SV2  times  as  much  as  in  1880  and  nearly 
twice  as  much  as  in  1890.  Industrial  life  insurance  policies  in 
force  in  the  United  States  amounted  in  1880  to  20  million  dollars 
value ;  and  in  1890,  to  429  millions ;  and  in  1902,  to  1,806  millions. 
Thus  the  amount  of  industrial  insurance  outstanding  in  1902  was 
90  times  as  much  as  in  1880,  and  over  four  times  as  much  as  in 
1890.  Now  let  us  compare  these  savings  of  the  workingmen — 
this  growth  in  their  accumulated  wealth — with  the  general  growth 
of  wealth  in  the  United  States.  The  census  puts  the  wealth  of  the 
United  States  in  1880  at  42  billion  dollars ;  in  1890,  at  65  billions : 
and  experts  estimate  it  at  the  present  time  as  being  fully  100 
billions,  the  total  for  1904  being,  therefore,  about  2%  times  as 
great  as  in  1880,  and  50  per  cent,  in  excess  of  that  of  1890.  De- 
posits in  savings  banks,  as  already  shown,  are  today  Sy2  times 
as  much  as  in  1880  and  nearly  twice  as  much  as  in  1890;  and 
the  value  of  industrial  life  insurance  policies  in  force  at  the 
present  time  is  90  times  as  much  as  in  1880,  and  four  times  as 
much  as  in  1890.  This  seems  to  justify  the  conclusion  that  the 
accumulations  of  the  masses,  the  patrons  of  savings  banks  and  in- 
dustrial life  insurance  associations,  are  proportionately  much 
more  rapid  than  the  general  growth  of  wealth,  and  that  they  are, 
therefore,  steadily  increasing  their  share  in  the  general  prosperity 
and  the  general  accumulations  of  wealth. 

Growth  of  National  Wealth  Under  Protection  and  Free  Trade. 

That  national  wealth  and  therefore  general  prosperity  is  cre- 
ated more  rapidly  under  protection  than  under  free  trade  is 
illustrated  by  a  comparison  of  the  figures  of  wealth  in  free-trade 
United  Kingdom  and  protected  Germany  and  the  United  States, 
respectively,  in  1870  and  1903.  These  statements  of  national 
wealth  at  the  dates  named  are,  in  the  case  of  the 
United  States,  those  of  our  own  census,  while  in  the  case  of 
the  United  Kingdom  and  Germany  they  are  based  upon  careful 
estimates  by  the  most  eminent  statisticians  and  economists  of  the 
world,  among  the  number  being  Sir  Robert  Giffen,  Yves  Guyot, 
Michael  Mulhall,  and  Professor  Soetbeer.  They  show  that  from 
1870  to  1903  the  wealth  of  the  United  Kingdom,  under  continuous 
free  trade,  increased  66  per  cent. ;  that  of  Germany,  with  protec- 
tion during  a  large  part  of  the  period,  95  per  cent.,  and  that  of  the 
United  States,  with  continuous  protection  except  during  the  period 
1894-97,  233  per  cent.  Thus,  growth  in  domestic  wealth  is  not  only 
the  logical  result  of  protection,  but  has  proved  the  actual  result 
in  its  practical  operation.  The  nation  which  excludes  such  pro- 
ducts of  other  countries  as  her  own  people  can  produce  not  only 
prevents  the  sending  of  wealth  out  of  the  country  to  purchase 
those  products  but  stimulates  her  own  people  to  produce  them 
from  the  elements  which  nature  supplies — the  products  of  the  soil, 
the  forest,  and  the  mine.  The  larger  the  country,  the  greater  the 
variety  of  its  natural  products  which  can  be  turned  into  manu- 
factures, and  the  larger  the  population  to  create  a  home  market, 
the  more  rapid  the  increase  of  wealth.  The  United  States  pro- 
duces 43  per  cent  of  the  world's  pig  iron,  50  per  cent  of  its 
copper,  80  per  cent,  of  its  cotton,  and  has  40  per  cent,  of  the 
world's  railways  and  the  world's  cheapest  transportation  with 
which  to  assemble  those  products,  and  one-third  of  the  world's 
coal  for  use  in  turning  them  into  manufactured  form.  To  ab- 
sorb these  products  it  has  practically  the  exclusive  control  of  a 
home  market  amounting  to  22  billions  of  dollars  per  annum,  or 


;jk  i  in;  takim'. 

twice  the  amount  of  the  Imports  of  all  nations  of  the  world  aside 
from  the  United  States.  The  total  imports  of  all  nations  of  the 
world,  aside  from  the  United  States,  according  to  the  Bureau 
of  Statistics,  are,  in  round  terms,  11  billion  dollars  per  annum; 
while  the  value  of  the  merchandise  consumed  in  the  home  market 
in  a  single  year  is,  according  to  an  estimate  of  the  chief  of  that 
Bureau,  based  upon  census  figure*,  22  billions'  of  dollars,  or 
exactly  twice  the  total  annual  imports  of  all  nations  other 
than  the  United  States.  It  is/ through  the  production  from  natural 
sources — the  soil,  the  forest,  and  the  mine — and  its  transformation 
by  labor  into  this  22  billion  dollars'  worth  of  merchandise  an- 
nually consumed  in  our  home  markets  that  this  enormous  national 
wealth  of  100  billion  dollars  has  been  created.  In  33  years, 
just  one-third  of  a  century,  there  has  been  added  to  the  wealth 
of  the  United  States  70  billions  of  dollars,  while  during  that  same 
period  free-trade  United  Kingdom  has  added  to  her  wealth  but 
24  billions  of  dollars. 

The  following  table  shows  the  wealth  of  the  United  Kingdom. 
Germany,  and  in  the  United  States  in  1870  and  1903,  as  estimated 
by  leading  statisticians  and  economists  of  the  world,  and  the  per- 
centage of  increase  from  1870  to  1903: 


Countries. 

National  Wealth 
.  (in  billions  of  dollars.) 

Percentage  of 

1870. 

1903. 

United  Kingdom 

36 
21 
30 

60 
41 
100 

66.7 
95.2 

United  States 

233.8 

In  savings  bank  deposits  alone,  which  illustrate  the  pros- 
perity of  the  working  people,  the  increase  in  the  United  Kingdom 
was  from  265  million  dollars  in  1870  to  959  millions  in  1903 ;  an 
increase  of  694  million  dollars ;  in  the  United  States  the  increase 
was  from  550  million  dollars  in  1870  to  2,935  millions  in  1903, 
an  increase  of  2,385  millions.  The  increase  in  savings  bank  de- 
posits from  1870  to  1903  was  more  than  three  times  as  great  in 
the  United  States  as  in  the  United  Kingdom. 

Relative  Growth  of  Manufactures  Under  Protection  and  Free  Trade. 

The  fact  that  prosperity  of  the  manufacturer  insures  prosperity 
of  all  other  classes,  as  indicated  by  the  figures  already  given 
showing  the  great  contributions  of  the  manufacturing  industries 
to  all  other  classes  of  occupations,  justifies  an  inquiry  as  to  the 
relative  growth  of  manufacturing  under  protection  and  free  trade. 
The  two  marked  examples  of  protection  are  the  United  States  and 
Germany,  and  the  one  marked  example  of  free  trade  is  the  United 
Kingdom.  That  distinguished  English  statistician,  the  late  Michael 
G.  Mulhall,  shortly  before  his  death  made  a  careful  analysis  and 
comparison  of  the  manufacturing  industries  of  these  three  coun- 
tries, at  certain  periods  sufficiently  distant  to  determine  the  rela- 
tive growth  of  the  manufacturing  industries  in  those  countries. 
He  found  that  the  value  of  the  manufactures  produced  in  free- 
trade  United  Kingdom  was,  in  1860,  2,808  million  dollars,  and  in 
1894,  4,263  millions,  having  thus  increased  during  that  period  1,455 
million  dollars,  or  but  51  per  cent.  In  Germany,  which  adopted 
protection  in  1879,  and  was  thus  a  protection  country  during  about 
half  of  the  period  covered  by  these  figures,  the  value  of  manufac- 
tures grew  from  1,995  million  dollars  in  1860  to  3,557  millions  in 
1894,  an  increase  of  1,562  millions,  or  78  per  cent.  In  the  United 
States,  which  adopted  protection  in  1861  and  was  a  protection 
country  during  all  of  the  period  covered  by  Mr.  Mulhall's  figures, 
the  value  of  manufactures  grew  from  1,907  million  dollars  in  1860 
to  9,498  millions  in  1894,  an  increase  of  7,591  millions,  or  396  per 
cent.  To  sum  up  in  a  single  sentence,  this  study  of  the  relative 
growth  of  manufactures,  it  may  be  said  that  in  the  period  from 
1860  to  1894  free-trade  England  increased  her  manufactures  1,455 
million  dollars ;  Germany,  which  had  protection  during  about  half 
of  that  period,  increased  her  manufactures  1,562  millions ;  and  the 
United  States,  which  had  protection  during  all  of  that  period,  in- 
creased her  manufactures  7,591  millions;  while  the  percentage  of 


THE   TARIFF.  39 

growth  in  the  period  from  1860  to  1894  was,  for  the  United  King- 
dom, 51  per  cent;  Germany,  ?8  per  cent,  and  the  United  States, 
396  per  cent 

PIG  IBON  AND  COAL. 

Some  details  of  the  growth  of  manufacturing  industries  may 
be  worthy  of  a  moment's  consideration.  Pig  iron  is  generally  con- 
sidered the  best  barometer  of  manufacturing  and  industrial  activ- 
ity and  prosperity.  Taking  again  the  three  countries  already 
named,  free-trade  England,  protection  Germany,  and  the  United 
States,  the  production  of  pig  iron  in  the  United  Kingdom  grew 
from  3,830,000  tons  in  I860  to  8,680,000  tons  in  1902,  an  increase  of 
5,850,000  tons,  or  153  per  cent. ;  Germany's  production  of  pig  iron 
grew  from  530,000  tons  in  1860  to  8,393,000  tons  in  1902,  an  in- 
crease of  1,484  per  cent ;  and  that  of  the  United  States  grew  from 
820,000  tons  in  1860  to  17,821,000  tons  in  1902,  or  2,073  per  cent. 

Coal  production  and  consumption  is  another  evidence  of  manu-  N 
facturing  and  business  activity  and  prosperity.  In  this,  as  well  as 
in  iron  and  manufactures  generally,  the  two  protection  countries — 
Germany  and  the  United  States — show  a  much  more  rapid  in- 
crease than  the  United  Kingdom.  The  coal  consumption  of  the 
United  Kingdom  in  1875  was  114  million  tons,  and  in  1902  166 
million  tons,  an  increase  of  52  million  tons,  or  45.7  per  cent.  The 
coal  consumption  of  Germany  in  1875  was  41%  million  tons,  and 
in  1902  149  million  tons,  am  increase  of  101  million  tons,  or  212 
per  cent.  The  coal  consumption  of  the  United  States  in  1875  was 
47  million  tons,  and  in  1902  266  million  tons,  an  increase  of  219 
million  tons,  or  470  per  cent.  Attention  is  especially  called  to  the 
fact  that  the  figures  here  quoted  are  those  of  consumption,  not  of 
production.  In  the  case  of  the  United  Kingdom  production  shows 
a  much  greater  gain  than  that  of  consumption,  since  that  country 
is  a  large  exporter  of  coal,  but  even  the  figures  of  production  do 
not  compare  in  rapidity  of  growth  with  those  of  protected  Germany 
or  the  United  States.  Coal  production  in  the  United  Kingdom 
grew  from  80  million  tons  in  1860  to  227  .million  tons  in  1902 ;  that 
of  Germany  grew  from  17  million  tons  in  1860  to  151  million  tons 
in  1902 ;  and  that  of  the  United  States  from  15  million  tons  in  1860 
to  269  million  tons  in  1902. 

The  Fight  Against  Free  Trade  in  England. 

One  of  the  most  striking  evidences  of  the  relative  effects  of 
protection  and  free  trade  upon  the  manufacturing  industry  is  found 
in  the  figures  now  being  presented  in  England  as  arguments  in 
favor  of  the  abandonment  of  free  trade  and  the  adoption  of  pro- 
tection. Those  arguments  are  based  upon  the  statement  that  ex^ 
ports  of  manufactures  from  the  protected  countries  have  grown 
more  rapidly  than  those  from  free-trade  England,  while  imports 
of  manufactures  into  free-trade  England  have  increased  much 
more  rapidly  than  those  into  the  protected  countries.  The  figures 
quoted  in  support  of  this  assertion  are  from  an  official  publication 
of  the  British  Government,  a  publication  especially  prepared  for 
serious  consideration  in  the  proposition  now  before  the  English 
people,  of  a  return  to  protection  in  order  to  strengthen  the  home 
manufacturing  industry  and  to  prevent  its  destruction  by  the  in- 
troduction of  manufactures  from  the  protected  countries  of  the 
world.  These  official  statements  issued  by  the  British  Govern- 
ment show  that  exports  of  manufactures  from  free-trade  United 
Kingdom  increased  8*  per  cent,  from  1882  to  1902 ;  those  from  pro- 
tected Germany  64  per  cent.,  and  those  from  protected  United 
States  200  per  cent.  Equally  striking  is  the  fact  that  the  United 
Kingdom,  although  a  great  manufacturing  nation,  finds  her  own 
markets  being  more  and  more  invaded  each  year  by  the  manufac- 
tures from  protection  countries,  the  importations  of  manufactures 
from  the  United  States  into  the  United  Kingdom  having  grown 
from  10  million  pounds  sterling  in  1890  to  21  millions  in  1902; 
those  from  Germany,  from  9  millions  in  1890  to  16  millions  in 
1902 ;  those  from  Belgium,  from  12  millions  in  1890  to  20  millions 
in  1902;  those  from  France,  from  25  million  pounds  sterling  in 
1890  to  31  millions  in  1902.  Meantime  the  exports  of  manufac- 
tures from  the  United  Kingdom  to  the  principal  protected  coun- 
tries—United States,  Germany.  Belgium,  Netherlands,  France. 
Russia,  and  Italy— fell  from  83%  million  pounds  sterling  in  1890 


40 


THE    TARIFF. 


to  70  millions  in  1902,  while  to  other  countries  and  colonies  they 
increased  from  145  million  pounds  sU'Hing  in  1890  to  157  millions 
in  1902.  Thus  to  the  principal  protected  countries  England's  ex- 
ports of  manufacfures  decreased  V.\y2  million  pounds  sterling  from 
1890  to  1902,  and  to  the  nonprotected  countries  they  increased  12 
million  pounds  sterling.  Meantime  her  own  imports  of  manufac- 
tures, unobstructed  by  protective  tariffs,  increased  from  98  million 
pounds  sterling  in  1890  to  148  millions  in  1902.  To  put  it  in  a 
single  sentence,  free-trade  England's  exports  of  manufactures  to 
protected  countries  fell  off  13%  million  pounds  sterling  (65  million 
dollars)  from  1890  to  1902,  and  those  to  other  countries  of  the 
world  increased  12  millions  sterling  (58  {pillion  dollars),  while  in 
th«  absence  of  protection  her  own  imports  of  manufactured  and 
partly  manufactured  goods  increased  50  million  pounds  sterling 
(250  million  dollars).  Thus  the  principal  protected  countries  of 
the  world  are  now  excluding  from  their  markets  65  million  dollars' 
*  worth  of  manufactures  which  they  formerly  took  from  the  United 
Kingdom  and  annually  paying  this  sum  to  the  workmen  and  man- 
ufacturers within  their  own  borders,  while  free-trade  England  has 
during  the  same  time,  through  the  absence  of  a  tariff,  admitted  to 
competition  with  her  workmen  the  labor  of  other  countries  in  the 
form  of  the  250  million  dollars'  worth  of  manufactured  and  partly 
manufactured  goods  which  she  is  now  importing  in  excess  of  that 
imported  in  1890.  It  is  because  of  this  disaster  to  the  labor  and 
manufacturing  interests  of  the  United  Kingdom,  the  loss  of  the 
home  market  as  well  as  of  the  market  in  protected  countries,  that 
leading  statesmen  of  that  country  are  now  openly  and  earnestly 
advocating  a  return  to  the  protective  system  which  all  other  lead- 
ing nations  of  the  world  have  now  adopted. 


IMPORTS   AND   EXPORTS   OF   MANUFACTURES   BY   THE   UNITED   KINGDOM. 

The  following  table  presents  the  imports  and  exports  of  the 
United  Kingdom  by  five-year  periods,  taking  the  annual  average 
for  each  period  from  1864  to  1902,  the  share  which  manufactures 
formed  of  the  imports  and  exports,  respectively,  being  shown.  It 
will  be  seen  that  the  percentage  which  manufactures  form  of  im- 
ports grew  from  14.9  per  cent,  for  the  period  1859-63  to  27.8  per 
cent,  for  the  period  1899-1902,  and  that  the  share  which  manufac- 
tures form  of  exports  fell  from  91  per  cent,  in  1859-63  to  81.6  per 
cent  in  the  four-year  period,  1899-1902. 

Imports  and  Exports  of  the  United  Kingdom  (merchandise  only) 
Compared  with  the  Imports  and  Exports  of  Manufactured  or 
Partly  Manufactured  Goods,  the  Figures  Stated  Being  in  Each 
Case  the  Annual  Average  for  the  Five-Year  Period  Named. 

[From  the  British  Blue  Book.] 


Total  imports  of— 

Proportion 

Total  exports  of— 

Proportion  of 

Annual 

of 

manufactured 
exports  to  to- 
tal exports. 

average 
for— 

Merchan- 

Manu- 

manufactures 
to  total 

Merchan- 

Manu- 

dise. 

factures. 

imports. 

dise. 

factures. 

Million  £. 

Million  £. 

Million  £. 

Million  £. 

1859-63 

216.2 

32.6 

14.9 

132.4 

120.5 

91.0 

1864-68 

282.2 

46.3 

16.4 

175.0 

161.5 

92.3 

1869-73 

331.0 

58,6 

17.7 

224.8 

204.2 

90.8 

1874-78 

376.4 

75.4 

20.0 

211.2 

•     189.3 

89.6 

1879-83 

402.2 

80.3 

20.0 

226.2 

201.1 

88.9 

1884-88 

372.2 

84.6 

22.7 

223.0 

196.9 

88.3 

1889-93 

422.4 

98.7 

23.3 

240.8 

208.8 

86.7 

1894-98 

437.8 

115.1 

26.2 

229.8 

197.0 

85.7 

1899-02 

514.5 

143.1 

27.8 

271.8 

221.8 

81.6    / 

The  falling  off  in  England's  exports  of  manufactures  occurs 
especially  in  her  trade  with  the  protected  countrtes,  as  is  illus- 
trated by  the  following  table  from  the  British  Blue  Boole  showing 
the  exports  of  British  manufactured  or  partly  manufactured  goods 
to  the  principal  protected  foreign  countries.  It  will  be  seen  that 
exports  of  manufactures  to  the  protected  countries  fell  from  an 
annual  average  of  101  million  pounds  sterling  for  the  period 
1870-74  to  an  average  of  75  millions  for  the  period  1900-1902. 


THE  TABIFF.  »  41 

Total  Exports  of  British  Manufactured  or  Partly  Manufactured 
Goods  to  the  Principal  Protected  Foreign  Countries. 

Average  annual  amount. 
Period.  Pounds  sterling. 

1870-74 101,238,000 

1875-79 75,979,000 

1880-84 84,922,000 

1885-89 77,300,000 

1890-94 77,075,000 

1895-99  74,100,000 

1900-02 75,464,000 

EXPOBTS  AND  IMPORTS  OF   MANUFACTURES,   UNITED  STATES  AND 
UNITED    KINGDOM. 

The  table  which  follows,  from  the  British  Blue  Book,  shows 
the  exportation  of  manufactures  from  free-trade  United  Kingdom 
and  protected  United  States,  respectively,  at  quinquennial  periods 
from  1860  to  1900,  and  in  1902,  stated  in  millions  of  pounds  sterling 
for  the  United  Kingdom  and  in  millions  of  dollars  for  the  United 
States.  It  will  be  seen  that  exports  of  manufactures  from  the 
United  Kingdom  increased  from  124.9  million  pounds  sterling  in 
1860  to  227.6  millions  in  1902,  having  thus  less  than  doubled, 
while  those  from  the  United  States  increased  from  40.3  million  dol- 
lars in  1860  to  403.6  millions  in  1902,  being  thus  ten  times  as  great 
in  1902  as  in  1860. 

Exportation  of  manufactures  from  United  Kingdom  and  United 

States,  respectively,  at  quinquennial  years,  1860  to  1902. 

[From  official  statistics  of  the  respective  governments  ] 

From  the  United     From  the  United 
Kingdom.  States. 

Year.  Millions  sterling.     Millions  dollars. 

1860 124.9  40.3 

1865 153.1  59.0 

1870 182.4  68.2 

1875 201.2  92.6 

1880 198.2  102.8 

1885 188.1  147.1 

'    1890 228.4  151.1 

1895 195.0  183.6 

1900 224.7  433.8 

1902 227.6  403.6 

The  table  which  follows,  also  from  the  British  Blue  Book, 
shows  the  importation  of  manufactures  into  free-trade  United 
Kingdom  and  protected  United  States,  respectively,  at  quinquennial 
years  from  1860  to  1900,  and  in  1902,  stated  in  millions  of  pounds 
sterling  for  the  United  Kingdom  and  in  millions  of  dollars  for  the 
United  States.  It  will  be  seen  that  imports  of  manufactures  into 
the  United  Kingdom  grew  from  29.3  million  pounds  sterling  in 
1860  to  148.9  millions  in  1902,  while  the  importation  of  manufac- 
tures into  the  United  States  only  grew  from  212.3  million  dollars 
in  1860  to  344.8  millions  in  1902.  Thus  the  importation  of  manu- 
factures into  free-trade  United  Kingdom  increased  400  per  cent 
during  the  period  in  question,  while  those  into  protected  United 
States  increased  only  64  per  cent 

Importation  of  manufactures  into  United  Kingdom  and  United 

States,  respectively,  at  quinquennial  years,  1860  to  1902. 

[From  official  statistics  of  the  respective  governments.] 

Into  the  United       Tnto  the  United 
Kingdom.  States. 

Tear.  Millions  sterling.     Millions  dollars. 

1860 29.3  212.3 

1865 43.5  111.3 

1870 57.0  217.6 

1875 72.7  245.8 

1880 83.2  263.2 

1885 83.4        *  259.0 

1890 98.2  328.8 

1895 107.7  301.9 

1900 145.2  297.8 

1902  ,, 148.9  344.8 


42  I  III       IAKII  I 

Meantime  the  domestic  manufactures  of  the  United  Kingdom, 
subjected  as  they  tlms  Were  t<>  the  enormous  pressure  from  manu- 
facturers of  other  countries  and  the  rapid  growth  in  imports  of 
foreign  manufactures,  grew,  according  to  Mr.  Mulhall,  from  2,808 
million  dollars'  value  in  1860  to  4,263  millions  in  1894,  while  those 
of  the  United  States,  under  protection,  grew,  according  to  this 
same  authority,  from  1,1)07  millions  in  I860  to  0,408  millions  in 
1804.  I  Yon  i  1860  to  1804,  therefore.  British  manufactures,  sub- 
jected to  fierce  competition  with  all  other  parts  of  the  world,  in- 
creased but  51  per  cent,  while  those  of  protected  United  States 
increased  396  per  cent.  To  sum  up  in  a  single  sentence  the  con- 
trast between  the  prosperity  of  manufactures  in  free-trade  United 
Kingdom  and  protected  United  States,  during  the  period  from  1860 
to  1002  imports  of  manufactures  into  the  United  Kingdom  in- 
creased 400  per  cent.,  into  the  United  States  64  per  cent. ;  exports 
of  manufactures  from  the  United  Kingdom  increased  51  per  cent, 
those  from  the  United  States  000  per  cent,  while  production  of 
manufactures  in  the  United  Kingdom  increased,  from  1860  to  1894, 
51  per  cent,  and  in  the  United  States  306  per  cent. 

Importation  of  Raw  Material  for  Manufacturing;  Under  the  Wilson 
and  Dingley  Lawn,  Respectively. 

One  point  worthy  of  special  attention  in  a  comparison  of  the 
work  of  the  Wilson  low  tariff  and  the  Dingley  protective  tariff 
acts  is  that  the  importation  of  raw  material  for  use  in  manufac- 
turing has  been  very  much  greater  under  the  Dingley  than  it  was 
under  the  Wilson  act.  "Free  raw  materials"  was  the  Democratic 
cry  during  their  campaign  and  during  the  preparation  of  the 
tariff  act;  yet  the  demoralization  of  the  home  market  which  re- 
sulted from  low  tariff  rates  on  manufactured  articles  so  reduced 
the  demand  upon  the  manufacturers  for  finished  goods  that  they 
had  little  occasion  to  use  the  free  raw  materials  which  the  Wilson 
act  gave  them.  The  Dingley  act  also  placed  a  very  large  propor- 
tion of  the  raw  materials  on  the  free  list,  levying,  however,  a  duty 
on  certain  articles  which  come  in  competition' with  those  produced 
at  home,  especially  wool  and  hides ;  but  in  no  case  was  this  suffi- 
cient to  prove  embarrassing  to  the  manufacturers,  while  the  do- 
mestic industry  was  meantime  stimulated.  The  Statistical  Ab- 
stract of  the  United  States  shows  that  the  value  of  articles  in  a 
crude  condition  which  enter  into  the  various  processes  of  domestic 
industry  imported  in  the  years  1805,  1806  and  1807,  in  which  the 
Wilson  low  tariff  was  in  operation,  aggregated  $506,601,306,  or  an 
average  of  100  millions  per  annum ;  while  the  imports  of  this  class 
of  articles  in  the  fiscal  years  1001,  1002,  and  1003  aggregated 
$082,842,401,  or  an  average  of  328  millions  per  annum. 

Thus  the  net  result  of  the  application  of  the  two  principles  of 
free  raw  materials  and  low  duties  on  manufactured  articles  on 
the  part  of  the  Democratic  measure,  and  free  raw  materials  and 
protective  duties  on  manufactured  goods  under  the  Republican 
measure,  is  shown  in  the  fact  that  the  importation  of  raw  material 
for  use  in  manufacturing  during  the  three  years  in  which  the 
Wilson  law  was  in  operation  averaged  100  million  dollars  per 
annum,  while  in  the  last  three  years  under  the  Dingley  law  the 
importation  of  raw  material  for  use  in  manufacturing  averaged 
328  million  dollars  per  annum.  Despite  the  assertion  of  the  Dem- 
ocrats that  they  were  going  to  give  to  the  manufacturers  of  the 
country  free  raw  material,  the  disadvantages  to  the  business  com- 
munity of  their  low  tariff  rates  which  they  coupled  with  it  were 
so  great  that  the  manufacturers  had  little  use  for  the  free  raw 
materials ;  while  under  the  protective  measure  which  gave  the 
manufacturers  free  raw  materials  in  most  of  their  required  arti- 
cles and  an  enormous  demand  in  the  home  market  by  reason  of  the 
protection  to  manufactures,  the  importation  of  raw  material  under 
the  Dingley  law  in  the  last  three  years  has  been  65  per  cent,  in 
excess  of  that  under  the  Wilson  law  in  a  like  number  of  years. 

Under  the  Wilson  law,  with  all  of  its  boasted  "free  raw  ma- 
terials" for  the  manufacturers  of  the  country,  articles  in  a  crude 
condition  for  use  in  manufacturing  averaged  but  26  per  cent,  of  the 
total  imports;  while  under  the  Dingley  law  articles  in  a  crude 
condition  for  use  in  manufacturing  formed  31.8  per  cent,  of  the 


THE    TARIFF.  43 

total  imports  in  1899 ;  in  1901,  33V2  per  cent. ;  in  1902,  36y2  per 
cent,  and  in  1903,  38  per  cent,  of  the  total  imports.  This  justifies 
the  above  assertion  that  the  low  tariff  rates  on  manufactures 
which  accompanied  the  free  raw  material  of  the  Wilson  law  de- 
stroyed the  home  demand  for  those  raw  materials,  while  the  pro- 
tective duty  on'  manufactures  under  the  Dingley  law  so  stimulated 
the  home  demand  for  manufactures  that  our  manufacturing  estab- 
lishments increased  their  share  of  the  total  importations  from  26 
per  cent,  under  the  Wilson  act  to  38  per  cent,  under  the  Dingley 
act. 

A  table  on  page  129  shows  the  total  value  of  "articles  in  a  crude 
condition  which  enter  into  the  various  processes  of  domestic  in- 
dustry" imported  and  the  percentage  which  they  formed  of  the 
total  imports  in  1895,  1896,  and  1897  under  the  Wilson  act,  and  in 
1899,  1900,  1901,  1902,  and  1903  under  the  Dingley  act : 

Does  Protection  Cause  an  Increase  of  Prices  in  the  Home  Market? 

Experiences  in  the  United  States  do  not  justify  the  assertion 
made  by  the  free  traders  that  a  protective  tariff  results  in  an  ad- 
vance of  prices  or  in  high  prices  in  the  country  adopting  it.  Cer- 
tainly this  has  not  been  the  case  in  the  United  States.  With  an 
area  equal  to  that  of  all  Europe,  and  producing  practically  all 
articles  other  than  tropical  which  are  required  for  use  in  manu- 
facturing and  for  food,  with  a  population  of  80  millions,  with 
nearly  a  half  million  separate  and  competing  manufacturing  estab- 
lishments, with  perfect  freedom  of  interchange  between  all 
parts  of  the  community  in-which  these  manufacturing  estab- 
lishments are  located,  and  with  the  cheapest  transportation  facili- 
ties which  the  world  affords,  the  competition  among  our  own 
producers  is  an  absolute  assurance  against  excessive  prices  or 
against  possible  combinations  by  which  artificial  prices  can  be 
maintained.  The  census  of  1900  shows  the  number  of  manufac- 
turing establishments  whose  product  exceeds  in  each  case  $500  per 
annum.  It  gives  the  number  as  296,440,  and  of  those  having  a 
product  of  less  than  $500  each,  127,419,  and  these  figures  do  not 
include  the  hand  trades  in  which  the  number  of  establishments  is 
given  at  215,814.  That  natural  competition '  among  such  a  large 
number  of  producers,  located  with  especial  reference  to  proximity 
to  materials  and  power,  or  markets,  or  both,  should  produce  the 
keenest  competition  and  consequently  the  lowest  possible  prices 
consistent  with  a  fair  rate  of  profit  is  apparent.  That  it  does  so 
happen  is  evidenced  by  the  fact  that  the  price  of  tin  plate,  as 
above  indicated,  has  fallen  from  $5.15  per  box  of  100  pounds  in 
1890,  the  year  of  the  enactment  of  the  McKinley  law  which  placed 
a  high  rate  of  duty  on  that  article,  to  $3.65  in  the  same  market 
April  29,  1904.  True  there  was  a  time  during  that  period  when 
prices  of  tin  plate  returned  to  a  figure  nearly  as  high  as  that  of 
1890,  but  this  was  due  solely  to  a  great  increase  in  the  price  of 
the  material  used  in  its  manufacture  and  in  the  price  of  labor. 
During  that  period  of  high  prices  pig  tin  advanced  174  per  cent, 
above  its  lowest  record  price,  and  steel  slabs,  the  material  from 
which  the  plates  are  made,  advanced  193  per  cent  above  its  low- 
record  prices,  while  tin  plate  and  Bessemer  pig  iron  advanced  174 
per  cent  above  their  low-price  record,  and  steel  tank  plate  ad- 
vanced 161  per  cent,  above  its  low  record.  In  all  of  these  cases 
the  advance  in  prices  of  the  material  was  greater  than  that  of  the 
finished  product,  while  today  with  the  reducing  prices  in  the  raw 
material  tin  plate  has  again  fallen  to  $3.65  per  box,  or  30  per  cent, 
below  the  price  in  1890,  the  year  in  which  the  duty  was  placed 
upon  that  article. 

THE  CASE  OF  STEEL  BAILS. 

Another  and  even  more  striking  illustration  of  the  reduction  in 
home  prices  of  articles  upon  which  a  high  rate  of  duty  is  placed  is 
found  in  the  case  of  steel  rails.  A  duty  of  $28  per  ton  was  levied 
on  steel  rails  in  1870.  In  the  immediately  preceding  year  the 
quantity  of  steel  rails  produced  in  the  United  States  was  only  8,616 
tons.  In  1871,  the  year  following  that  in  which  the  duty  was 
placed  upon  steel  rails,  the  production  was  34,152  tons ;  by  1881  it 
had  reached  1,210,285  tons ;  in  1887  it  was  over  two  million  tons, 
and  in  1902  was  2,947,933  tons.     In  1870,  the  year  in  which  the 


44  THE  TARIFF. 

duty  was  placed  on  steel  rails,  the  currency  price  of  steel  rails  in 
the  United  States,  as  shown  by  the  Statistical  Abstract,  was 
$106.75  per  ton;  by  1880  tin-  price  had  fallen  to  $G7.50  per  ton;  by 
L890  to  $31.75,  and  in  1903  the  average  price  was  .$28  per  ton. 
Meantime  the  duty  hud  been  reduced  to  $17  per  tonkin  1883;  $13.44 
per  ton  hy  the  McKtnley  act  of  1890;  to  $7.84  by  the  Wilsoh-Gor- 
mau  act,  and  this  rate  of  $7.84  per  ton  was  continued  under  the 
pingley  act 

UUTY  ON  HIDES  DID  NOT  INCREASE  PRICES  OF  BOOTS  AND  SHOES. 

Prices  of  boots  and  shoes  following  the  imposition  of  a  tariff 
of  15  per  cent,  ad  valorem  on  hides  of  cattle  imported  did  not  ad- 
vance. Prior  to  the  enactment  of  the  Dingley  law  hides  had  been 
for  many  years  free  of  duty.  By  that  act  a  duty  of  15  per  cent 
was  levied  on  raw  hides  and  still  remains.  That  act  went  into 
effeqt  July,  1897.  On  January  1,  1897,  the  wholesale  price  of 
men's  grain  shoes  was  shown  by  tables  quoted  in  Dun's  Review, 
an  accepted  authority,  at  $1.07%  per  pair.  Instead  of  advancing, 
the  price  fell  from  $1.02%  on  January  1,  1898,  to  97%  cents  on 
January  1,  1899 ;  $1.05%  on  January  1,  1901,  and  $1.05  on  January 
1,  1902.  Men's  calf  shoes,  which  were  $1.75  per  pair  at  wholesale 
iirices  on  January  1,  1897;  by  January  1,  1899,  were  $1.70,  and  on 
January  1,  1902,  were  $1.75.  Men's  kip  boots,  which  were  $1.33  on 
January  1,  1897,  before  the  duty  had  been  placed  on  hides,  were,  on 
January  1,  1899,  $1.30.  Women's  grain  shoes,  which  were  87% 
cents  per  pair  at  wholesale  on  January  1,  1897,  were  on  January 
I,  1899,  the  year  after  the  addition  of  the  rate  of  duty  on  leather, 
85  cents  per  pair.  It  is  true  that  prj^es  of  boots  and  shoes  of  all 
Trades  have  advanced  slightly  since  1902,  due  to  an  increase  in  the 
(  rices  of  raw  material  and  prices  of  labor ;  but  the  fact  that  there 
vas  a  steady  fall  in  the  price  of  practically  all  grades  of  shoes  dur- 
ing the  two  years  following  the  enactment  of  the  Dingley  law 
which  placed  a  duty  on  hides,  shows  that  the  duty  placed  on  hides 
produced  no  advance  in  the  prices  of  boots  and  shoes.  That  the 
recent  advance  in  prices  is  due  to  causes  other  than  the  tariff, 
which  has  not  been  changed  since  1897,  is  evidenced  not  only  from 
the  general  advance  in  prices  of  labor,  but  from  the  fact  that  the 
average  import  price'of  hides  in  1903  was  about  20  per  cent  higher 
than  that  of  1899,  as  shown  by  the  official  statements  of  quantity 
and  valuation  of  hides  imported  in  those  years,  while  in  the  domes- 
tic markets  prices  of  hides  and  leather  also  show  a  corresponding 
advance  as  compared  with  1899. 

Upon  this  subject  of  the  effect  of  a  protective  duty  upon  the 
prices  of  articles  produced  at  home,  attention  is  especially  called 
to  the  fact  that  a  very  large  proportion  of  the  material  required 
by  manufacturers  for  production  of  the  articles  which  enter  into 
the  home  markets  are  imported  free  of  duty.  The  total  value  of 
material  imported  for  manufacturing  in  1903  was  380  million 
dollars.  Of  this  280  millions  came  in  free  of  duty  and  100  mil- 
lions was  dutiable.  Upon  this  the  amount  of  duty  collected  was 
32  million  dollars,  which  amounts  to  less  than  one-fourth  of  one 
per  cent,  of  the  gross  value  of  the  manufactures  of  the  United 
States  as  reported  by  the  census  of  1900.  Even  if  we  take  the 
entire  amount  of  duty  collected  on  finished  manufactures  and  man- 
ufacturers' materials  in  1903,  we  should  get  a  total  of  but  200 
million  dollars,  or  a  fraction  over  one  per  cent,  of  the  gross  value 
of  the  domestic  manufactures  of  that  year,  an  advance  easily  and 
almost  certainly  more  than  offset  by  the  reduction  naturally  result- 
ing from  competition  among  the  large  number  of  manufacturers 
producing  and  seeking  a  market  for  this  enormous  quantity  of 
manufactured  material. 

Trusts  not  Able  to  Fix  Prices. 

The  assertion  that  the  great  combinations  are  able  to  fix  and 
maintain  prices  is  amply  refuted  by  the  experiences  of  the  present 
year.  A  table  recently  published  by  the  Bureau  of  Statistics  and 
printed  on  another  page  of  this  work  (see  index)  shows  a  large 
fall  in  prices  of  nearly  all  classes  of  articles  produced  by  the  great 
manufacturing  combinations  of  the  United  States  during  the  past 
year,  in  which  the  trusts  have  been  supposed  to  be  at  the  very 
height  of  their  power,  while  the  chief  articles  in  which  an  increase 
of  price  is  reported  are  the  products  of  the  farm  or  those  imported 
from  other  countries,  m  neither  of  which  are  the  articles  in  ques- 
ion  produced  by  trusts. 


THE    TABIFF.  45 

Coal  Prices  Advanced  After  the  Coal  Tariff  was  Removed. 

A  recent  illustration  of  the  fact  that  prices  in  the  United 
States  are  not  affected  by  presence  or  absence  of  tariff 
duties  is  found  in  a  study  of  the  results  of  the  removal  of 
the  duty  on  coal,  made  in  the  closing  months  of  1902.  It  will  be 
remembered  that  in  view  of  the  then  existing  coal  strike  and  the 
shortage  of  coal  resulting  from  that  strike,  urgent  demand  was. 
made  for  a  removal  of  the  duty  on  bituminous  coal.  In  response 
to  this  demand  Congress  enacted  a  law  suspending  the  duty  on 
coal  for  one  year  beginning  with  January  1,  1903.  *  The  rate  of 
duty  on  bituminous  coal  under  the  then  existing  law  was  67  cents 
per  ton,  and  if  the  theory  that  this  duty  is  added  to  the  price  in  the 
home  market  were  true,  the  removal  of  this  duty  of  67  cents  per 
ton  should  have  caused  a  corresponding  fall  in  the  selling  price  of 
coal  in  the  United  States.  Instead  of  this,  however,  the  annual 
average  price  per  ton  of.  bituminous  coal,  as  shown  by  the  official 
reports  of  the  Bureau  of  Statistics  of  the  United  States  Govern- 
ment, was  $3.75  in  1903,  against  $2.50  in  1902,  1901,  and  1900,  re- 
spectively ;  $2.00  in  1899,  and  $1.60  per  ton  in  1898.  This  price  of 
$3.75  per  ton  which  existed  in  1903  in  the  absolute  absence  of  any 
tariff  duty  on  coal  was  higher  than  that  quoted  in  these  official  re- 
ports at  any  time  since  1S81. 

Reciprocity. 

Reciprocity  is  another  form  of  tariff  revision  which  has  been 
suggested  at  various  times  by  various  people  and  by  people  be- 
longing to  various  political  parties.  It  was  suggested  by  President 
Arthur,  James  G.  Blaine  and  William  McKinley ;  was  put  into 
operation  in  the  McKinley  tariff  law ;  was  destroyed  by  the  Demo- 
cratic Wilson-Gorman  tariff  law ;  and  now  the  Democratic  party  is 
charging  that  the  Republican,party  is  not  willing  to  give  the  coun- 
try "genuine  reciprocity."  There  are  two  distinct  kinds  of  legis- 
lation which  have  been  designated  as  reciprocity  legislation. 

THE   DEMOCRATIC  PLAN". 

The  first  of  these  was  enacted  by  the  Democratic  party 
in  1854,  taking  effect  in  1855.  It  was  reciprocity  with  Can- 
ada, and  provided  that  certain  articles,  the  growth  or  pro- 
duce of  Canada  or  the  United  States,  should  be  admitted  into 
each  country,  respectively,  free  of  duty.  These  were  articles 
Of  common  production  in  the  two  countries,  and  included 
grain,  flour,  animals  of  all  kinds,  fresh,  smoked,  and  salted  meats, 
cotton,  seeds,  vegetables,  fruits,  fish,  poultry,  eggs,  hides,  furs, 
stone,  slate,  butter,  cheese,  tallow,  lard,  ores,  coal,  pitch,  turpen- 
tine, ashes,  timber,  lumber,  flax,  hemp,  tobacco,  and  rags.  These 
were  all,  with  the  single  exception  of  cotton,  articles  of  mutual 
production,  and  Democratic  reciprocity  simply  provided,  for  free 
trade  in  these  competing  articles.  Under  that  treaty,  which  went 
into  effect  March  16,  1855,  and  terminated  March  17,  1866,  exports 
from  the  United  States  to  Canada  fell  from  $27,741,808  in  the 
fiscal  year  1855  to  $23,439,115  in  the  fiscal  year  1866,  a  reduction 
in  our  exports  to  Canada  of  over  4  million  dollars  during  this 
period  of  Democratic  reciprocity,  while  imports  into  the  United 
States  from  Canada  increased  from  $15,118,289  in  1855  to  $48,- 
133,599  in  1866,  an  increase  of  33  million  dollars.  In  our  trade 
with  all  other  countries  during  that  same  period  our  imports  in- 
creased 60  per  cent,  while  those  from  Canada  were  increasing  220 
per  cent.,  and  our  exports  to  all  other  countries  increased  70  per 
cent  while  those  to  Canada  under  this  reciprocity  were  decreasing 
15  per  cent.  It  was  simply  free  trade  in  articles  of  common 
production  and  with  no  oarrier  to  protect  the  domestic  pro- 
ducer— the  result  being  a  much  greater  increase  in  our  imports 
from  Canada  than  in  those  from  other  countries,  and  a  decrease 
of  exports  to  that  country,  while  to  other  countries  exports  were 
increasing. 

THE   REPUBLICAN  PLAN. 

A  later  form  of  reciprocity  with  which  the  country  has  had  ex- 
perience is  illustrated  by  the  plan  formulated  in  the  McKinley  tariff 
law  and  expressed  by  William  McKinley  in  his  much-quoted  speech 
at  Buffalo,  quoted  in  full  on  page  446,  in  which  he  said :  "By  sensi- 
ble trade  arrangements  which  will  not  interrupt  our  home  produc- 
tion we  shall  extend  the  outlets  for  our  increasing  surplus.    *  *      * 


46  THE    TABIFF. 

We  should  take  from  our  customers  such  of  their  products  as  we 
can  use  without  harm  to  our  industries  and  labor.  *  *  *  If 
perchance  some  of  our  tariffs  are  no  longer  needed  for  revenue 
or  to  encourage  and  protect  our  industries  at  home,  why  should 
they  not  be  employed  to  extend  and  promote  our  markets  abroad?" 
To  purchase  from  our  neighbors  "'such  of  their  products  as 
we  can  use  ivithout  harm  to  our  industries  and  labor;"  in  other 
words  such  of  their  products  as  are  not  produced  by  our  own 
labor  and  obtain  in  exchange  markets  for  the  class  <>l*  merchandise 
which  we  desire  to  sell,  and  which  the  countries  in  question  re- 
quire for  their  own  use,  differs  materially  from  the  reciprocity 
of  1855-56  which  was  merely  free  trade  in  articles  of  mutual 
production,  articles  which  when  imported  compete  with  the  home 
producer.  The  chief  classes  of  products  which  we  do  not  produce 
in.  the  United  States  are  tropical  and  subtropical.  We  import 
about  400  million  dollars'  worth  of  tropical  and  subtropical  prod- 
ucts every  year  more  than  a  million  dollars'  worth  for  every  day 
in  the  year,  including  Sundays  and  holidays.  These  articles  we 
do  not  produce  in  the  United  States  in  sufficient  quantities  for 
home  requirements.  They  include  rubber,  hemp,  sisal,  jute, 
raw  silk,  Egyptian  cotton,  and  other  articles  used  in  manufactur- 
ing, and  coffee,  cocoa,  tea,  spices,  olives,  bananas,  and  sugar,  used 
as  food  and  drink.  These  classes  of  articles  are  of  the  class 
which  "we  can  use  without  harm  to  our  industries  and  labor." 
Sugar  is  the  only  article  in  this  list  produced  in  the  United  States, 
and  at  the  present  tiine^  the  home  production  of  sugar  is  only  suffi- 
cient to  supply  about  one-fifth  of  the  total  home  consumption.  The 
countries  which  produce  these  tropical  and  subtropical  articles  are 
not  manufacturing  countries,  nor  are  they  large  producers  of  those 
great  staples  of  food — flour,  wheat,  corn,  and  meats.  As  a  conse- 
quence, they  require  the  very  classes  of  articles  which  the  people 
of  the  United  States  have  to  sell. 

TREATIES    UNDER   THE    M'KINLEY   LAW. 

Under  the  McKinley  tariff  law  reciprocity  treaties  were 
made  by  President  Harrison  with  the  governments  of 
Brazil,  British  Guiana,  Salvador,  Nicaragua,  Honduras,  Guate- 
mala, Santo  Domingo,  and  the  countries  governing  the  British 
West  Indies  and  Porto  Rico  and  Cuba. .  These  treaties  provided 
for  a  reduction  of  duties  on  foodstuffs  and  manufactures  from  the 
United  States  entering  the  countries  and  islands  in  question,  in 
exchange  for  the  free  importation  of  sugar,  coffee,  tea,  and  hides 
into  the  United  States,  as  provided  under  the  general  terms  of  the 
McKinley  act.  The  result  of  those  treaties  with  this  group  of  trop- 
ical countries,  producing  the  class  of  articles  which  the  United 
States  requires  and  does  not  produce  in  sufficient  quan- 
tities at  home,  was  that  our  exports  to  those  countries 
and  islands  increased  26  per  cent  and  our  imports  from 
them  increased  28  per  cent  between  1890,  the  year 
of  the  enactment  of  the  McKinley  law,  and  1894,  the  year  in  which 
it  was  repealed  by  a  Democratic  Congress  and  a  Democratic  Presi- 
dent, and  reciprocity  thus  destroyed.  During  that  same  period  our 
exports  to  all  other  countries  than  those  above  named  increased 
3  per  cent,  and  our  imports  from  them  decreased  27  per  cent. 

THE  HAWAIIAN  TREATY. 

Another  example  of  reciprocity,  that  with  countries  pro- 
ducing the  class  of  articles  which  we  require  and  importing  the 
class  which  we  produce  and  desire  to  export,  was  the  reciprocity 
treaty  with  the  Hawaiian  Islands,  That  treaty  went  into  effect 
September  9,  1876,  and  terminated  April  30,  1900.  During  that 
period  of  the  existence  of  that  agreement,  our  ex- 
ports to  the  Hawaiian  Islands  grew  from  $779,257  in  the 
fiscal  year  1876  to  $13,509,148  in  the  fiscal  year  1900,  while  im- 
ports f-'oni  the  Hawaiian  Islands  of  noncompeting  articles  de- 
manded! by  our  markets — tropical  products — increased  from  $1,227.- 
191  in  1876  to  $20,707,903  in  1900.  Thus  by  taking  from  this  trop- 
ical country — Hawaii — its  production  of  articles  which  we  must 
import  from  some  part  of  the  world,  we  built  up  in  the  Hawaiian 
Islands  a  market  for  our  merchandise  seventeen  times  as  large  as 
in  1876,  the  year  in  which  the  reciprocity  agreement  was  made; 
while  in  the  brief  period  in  which  reciprocity  with  the  Tropics  ex- 


THE    TAK1KI  .  4-7 

isted  under  the  McKinley  tariff  law,  our  market  in  the  countries 
in  question  was  enlarged  26  per  cent. 

It  will  be  seen  from  these' illustrations,  that  the  policy  of  re- 
ciprocity, as  a  part  of  the  policy  of  protection,  can  be  most  largely 
extended  in  the  direction  of  tropical  countries,  for  their  benefit 
as  well  as  ours,  but  under  the  policy  as  declared  and  understood 
by  the  Republican  party  it  can  be  extended  to  any  country  where 
mutual  exchanges  can  be  made  "without  harm"  to  our  productions 
at  home.  Thus  a  reciprocity  treaty  with  Canada  if  properly 
framed  might  be  as  desirable  as  one  in  different  terms  relating 
to  a  tropical  country.  On  this  question  the  Republican  platform 
of  1904  says,  "We  favor  liberal  trade  arrangements  with  Canada 
and  with  peoples  of  other  countries  where  they  can  be  entered 
into  with  benefit  to  American  agriculture,  manufactures,  mining, 
or  commerce." 

The  question  of  reciprocity  with  Cuba,  already  provided  for, 
and  which  gives  great  promise  of  usefulness  to  this  country  and 
Cuba,  is  treated  under  the  chapter  relating  to  Cuba. 

Democratic  View   of   Reciprocity. 

[From  the  Democratic  platform  of  1892.] 

Section  4.  Trade  interchange  on  the  basis  of  reciprocal  ad- 
vantages to  the  countries  participating  is  a  time-honored  doctrine 
of  the  Democratic  faith,  but  we  denounce  the  sham  reciprocity 
which  juggles  with  the  people's  desire  for  enlarged  foreign  mar- 
kets and  freer  exchanges,  by  pretending  to  establish  closer  trade 
relations  for  a  country  whose  articles  of  export  are  almost  ex- 
clusively agricultural  products,  w ith  other  countries  that  are  also 
agricultural,  while  erecting  a  custom-house  barrier  of  prohibitive 
tariff  taxes  against  the  richest  countries  of  the  world,  that  stand 
ready  to  take  our  entire  surplus  of  products,  and  to  exchange 
therefor  commodities  which  are  necessaries  and  comforts  of  life 
among  our  own  people. 

[From    the    Democratic    Campaign    Book,    Congressional    Election 

1902.] 

Reciprocity  looks  like  free  trade,  but  tastes  like  protection. 
It  is  really  a  new  sugar-coating  prepared  by  the  Republican 
tariff  doctors  for  many  patients  who  are  refusing  to  take  their 
protection  pills  straight. 

In  practice,  reciprocity  is  worse  than  protection. 

Ordinarily  protection  is  not  quite  prohibitory,  and,  incidentally, 
yields  some  revenue  to  the  government.  Reciprocity  cuts  off 
much  of  this  revenue  without  conferring  any  equivalent  benefit 
upon  the  nation.  It  does,  however,  as  will  be  shown,  give  special 
privileges  to  a  somewhat  different  class  from  that  which  pockets 
most  of  the  benefits  of  straight  protection.  .  *    *    * 

In  theory,  reciprocity,  like  protection,  thinks  only  of  the  pro- 
ducer, and  never  of  the  consumer.  It  assumes  that  the  seller  is 
the  only  one  benefited  by  an  exchange  of  products.  It  does  not 
propose  to  lower  our  tariff  .wall  by  the  fraction  of  an  inch.  It 
proposes  to  punch  vent  holes  in  the  walls  to  save  it  from  destruc- 
tion. It  will  permit  certain  quantities  of  certain  articles  to  pass 
through  these  holes,  but  never  enough  to  let  in  all  of  any  one 
product.  To  do  this  would  benefit  consumers  and  spoil  the  game 
of  the  protectionists.  *  *  *  Reciprocity  cares  nothing  for  the 
consumer  and  hunts  foreign  markets  with  a  club.  Its  stock  in 
trade  is  high  tariff,  favoritism,  discrimination,  and  retaliaton. 
It  threatens  to  slam'  our  doors  in  the  face  of  foreign  countries 
which  will  not  open  their  doors  to  our  products. 

Reciprocity  is  based  upon  the  same  false  theories  as  is  pro- 
tection, and,  like  protection,  is  a  sham  and  a  humbug,  and  to 
most  people  has  been,  and  will  ever  continue  to  be,  a  delusion 
and  a  snare. 

Effect  of  Tariff  Agitation. 

Tariff  agitation  and  threats  of  reduction  of  tariff  are  frequently 
as  harmful  as  tariff  reduction,  in  proportion  at  least  to  their  dura- 
tion. The  uncertainty  on  the  part  of  the  purchaser  as  to  the 
prices  at  which  he  can  obtain  his  goods  from  abroad  leads  him  to 
curtail  his  orders  from  the  home  producer,  while  in  turn  the  home 
producer  is  unable  to  fix  prices  because  of  the  uncertainty  as  to 


48  THE   TAlti 

the  cost  of  the  material  which  he  imports  for  use  in  his  manufao 
tures,  and  is  also  unable  to  determine  to  what  extent  foreign  oier 
chandise  will  compete  with  that  which  he  produces.  The  results 
of  these  conditions  are  necessarily  a  check  in  manufacturing  from 
the  moment  that  manufacturers  know  or  hav,e  reason  to  believe 
that  a  change  is  to  be  had  in  the  tariff.  This  check  is  immediately 
felt  not  alone  in  the  reduction  of  employment  hut  in  the  reduction 
in  the  purchases  of  material  used  by  the  manufacturer,  and  in  a 
reduction  of  the  purchases  of  food,  clothing,  and  other  supplies  by 
the  employees  whose  earnings  are  thus  reduced.  This  in  turn  is 
felt  by  the  farmers  and  producers  of  raw  material  and  foodstuffs, 
and  their  purchases  are  in  turn  curtailed  and  the  sales  of  the  mer 
chant  and  manufacturer  thus  reduced.  As  a  result  of  these  come 
reductions  in  the  earnings  of  transporters  whose  expenses  can  not 
be  curtailed  in  proportion  to  the  reduction  of  their  receipts,  since 
their  trains  must  be  kept  running  at  regular  intervals,  and  with 
this  comes  disaster  to  these  great  interests  and  to  those  dependent 
upon  them.  The  immediate  and  disastrous  effects  of  a  threat  of 
tariff  reduction  as  a  result  of  the  uncertainty  in  prices  and  condi-' 
tions  which  followed  the  announcement  that  the  tariff  policy  of 
the  United  States  was  to  be  reversed  are  shown  in  the  disasters 
which  immediately  followed  the  election  of  a  free-trade  President 
and  Congress  in  1892.  This  election  of  President  Cleveland  and  of 
a  Democratic  majority  in  both  branches  of  Congress  occurred  in 
November,  1902,  and  by  the  beginning  of  1903  manufacturers  and 
those  dependent  upon  them  realized  that  a  radical  change  in  the 
tariff  awaited  them.  As  a  result,  the  business  failures,  which 
amounted  in  number  to  10,304  in  1892,  were  15,242  in  1893,  and 
their  liabilities,  which  in  1892  were  114  million  dollars,  were  in 
1893  346  millions.  Money  in  circulation  fell  from  1,601  million 
dollars  in  1892  to  1,596  millions  in  1893,  and  the  per  capita  from 
$24.56  in  1892  to  $24.03  in  1893.  Bank  clearings,  which  were 
60,883  million  dollars  in  1892,  dropped  to  58,880  millions  in  1893 : 
deposits  in  savings  banks  fell  from  1,753  million  dollars  in  1892  to 
1,556  millions  in  1893 ;  and  railroads  placed  under  receiverships 
increased  from  10,508  miles  in  1892  to  29,340  miles  in  1893. 
All  of  this,  b.e  it  remembered,  occurred  in  the  single  year,  1893, 
before  a  line  of  the  free  trade  legislation  had  been  placed  upon 
the  statute  books,;  but  during  a  period  when  the  entire  business 
interests  of  the  community  were  compelled  to  suspend  operations 
largely  by  reason  of  the  uncertainty  as  to  what  the  extent  of  that 
tariff  legislation  would  be. 

Abraham  Lincoln,  on  the  Tariff  Question. 

Abraham  Lincoln  had  clearly  defined  views  on  the  tariff  ques 
tion.  He  was  a  protectionist.  He  believed  that  American  con- 
sumers should  patronize  American  producers  and  thus  build  up 
and  develop  the  great  home  market,  and  in  so  doing  assure  them- 
selves not  only  domestic  prosperity  but  lower  prices  and  a 
smaller  loss  of  labor  applied  in  transportation.  "A  tariff  of 
duties  on  imported  goods  so  adjusted  as  to  protect  American  in- 
dustry is  indispensably  necessary  to*  the  American  people"  was 
the  form  in  which  he  expressed  his  sentiments  in  resolutions 
offered  at  a  Whig  meeting  at  Springfield,  111.,  March  1,  1843. 

In  an  address  to  the  people  of  Illinois  issued  three  days  later 
and  bearing  his  name  he  said: 

"By  the  tariff  system  the  whole  revenue  is  paid  by  the  con- 
sumers of  foreign  goods,  and  those  chiefly  luxuries  and  not  the 
necessaries  of  life.  By  this  system  the  man  who  contents  himself 
to  live  upon  the  products  of  his  own  country  pays  nothing  at  all. 
And  surely  this  country  is  extensive  enough  and  its  products 
abundant  enough  to  answer  all  the  real  wants  of  its  people.  In 
short,  by  this  system  the  burden  of  revenue  falls  almost  entirely 
on  the  wealthy  and  luxurious  few,  while  the  substantial  and  labor- 
ing many  who  live  at  home  and  upon  home  products  go  entirely 
free." 

In  some  tariff  memoranda  written  by  Mr.  Lincoln  after  his 
election  to  Congress  but  before  taking  his  seat  in  that  body  in 
1847  he  said: 

"I  suppose  the  true  effect  of  duties  upon  prices  to  be  as  fol- 
lows: If  a  certain  duty  be  levied  upon  an  article  which  by  nature 
can  not  be  produced  in  this  country — as  3  cents  a  pound  upon  coffee 
— the  effect  will  be  that  the  consumer  will  pay  1  cent  more  per 
pound  than  before,  the  producer  will  take  1  cent  less  and  the 
merchant  1  cent  less  in  his  profits;  but  if  a  duty  amounting  to  full 


THK    T  A  HI  IF.  49 

protection  be  levied  upon  an  article  which  can  be  produced  here 
with  as  little  labor  as  elsewhere — as  iron — that  article  will  ulti- 
mately and  at  no  distant  day,  in  consequence  of  such  duty,  be  sold 
to  our  people  cheaper  than  before,  at  least  by  the  amount  of  the 
cost  of  carrying-  it  from  abroad." 

In  another  memorandum  on  the  tariff  question,  written  just 
before  talcing  his  seat  in  Congress,  Mr.  Lincoln  said: 

"To  secure  to  each  laborer  the  whole  product  of  his  labor,  or 
as  nearly  so  as  possible,  is  a  worthy  object  of  any  good  govern- 
ment. Will  the  protective  principle  advance  or  retard  this  object? 
The  habits  of  our  whole  species  fall  into  three  great  classes — use- 
ful labor,  useless  labor,  and  idleness.  It  appears  to  me  that  the 
labor  done  in  carrying  articles  to  the  place  of  consumption  which 
could  be  produced  in  sufficient  abundance  and  with  as  little  labor 
at  the  place  of  consumption  is  useless  labor.  Iron  and  everything 
.made  of  iron  can  be  produced  in  sufficient  abundance  and  with  as 
"little  labor  in  the  United  States  as  anywhere  else  in  the  world; 
therefore  all  labor  done  in  bringing  iron  and  its  fabrics  from  a 
foreign  country  to  the  United  States  is.  a  useless  labor.  The  same 
precisely  may  be  said  of  cotton,  wool,  and  of  their  fabrics.  The 
raw  cotton  grows  in  our  country,  is  carried  by  land  and  water 
to  England,  is  there  spun,  wove,  dyed,  stamped,  etc.,  and  then 
carried  back  again  and  worn  in  the  very  country  where  it  grows, 
and  partly  by  the  very  persons  who  grew  it.  Why  should  it  not 
be  spun,  wove,  etc.,  in  the  very  neighborhood  where  it  grows  and 
is  consumed  and  the  carrying  thereby  dispensed  with?" 

Mr.  Lincoln's  suggestion  fifty-seven  years  ago  that  the  protec- 
tive principle  should  be  applied  in  the  development  of  our  iron 
and  cotton  industries  has  been  fully  justified  by  subsequent 
events.  In  that  year  (1847)  the  pig  iron  production  of  the  United 
States  amounted  to  800,000  tons.  By  1870,  ten  years  after  the 
election  of  the  first  Republican  President,  pig  iron  production 
had  reached  1,665,000  tons;  by  1880  it  was  over  4,000,000  tons; 
by  1890  over  9,000,000  tons;  in  1900  over  13,000,000,  and  in  1903 
over  18,000,000  tons.  Meantime  the  price  had  fallen  from  $30.25 
per  ton  in  1847,  the  year  in  which  Mr.  Lincoln  expressed  these 
sentiments,  to  $15  per  ton  in  1904;  or  less  than  one-half  the 
price  when  he  predicted  that  home  manufacture  would  reduce 
prices.  In  cotton  manufacturing  his  prediction  has  been  equally 
justified.  The  cotton  mills  of  the  United  States  in  that  year  took 
1,858,000  bales  of  domestic  cotton  for  manufacture.  Under  the 
protective  system  here  advocated  by  Mr.  Lincoln  the  consump- 
tion has  grown  to  over  4,000,000  bales  in  1902,  and  the  price  of 
standard  prints,  -a  staple  article  of  cotton  manufacture,  has 
fallen  from  10  cents  per  yard  in  1847  to  5  cents  per  yard  in  1903, 
as  shown  by  official  figures  of  the  Bureau  of  Statistics. 

President  Lincoln's  views  on  the  tariff  were  often  expressed 
in  his  quaint  but  always  forceful  method.  "The  tariff  question," 
he  said  to  a  Pittsburg  audience  on  February  15,  1861,  "is  as 
durable  as  the  Government  itself.  It  is  a  question  of  national 
housekeeping.  It  is  to  the  Government  what  replenishing  the 
meal  tub  is  to  the  family.  So  far  there  is  little  difference 
among  the  people.  It  is  as  to  whether  and  how  far  duties  on 
imports  shall  be  adjusted  to  favor  home  production  in  the  home 
market  that  controversy  begins.  *  *  *  I  have  long  thought 
that  it  would  be  to  our  advantage  to  produce  any  necessary  arti- 
cle at  home  which  can  be  made  of  as  good  quality  and  with  as 
little  labor  at  home  as  abroad,  at  least  by  the  difference  of  the 
carrying  from  abroad." 

On  another  occasion  Mr.  Lincoln  is  quoted  as  saying: 

"I  am  not  posted  on  the  tariff,  but  I  know  that  if  I'  give  my 
wife  twenty  dollars  to  buy  a  cloak  and  she  buys  one  made  in  free- 
trade  England,  we  have  the  cloak,  but  England  has  the  twenty 
dollars;  while  if  she  buys  a  cloak  made  in  the  protected  United 
States,  we  have  the  cloak  and  the  twenty  dollars." 

British    Views    of    American    Protective    Tariffs. — Growing1    Proba- 
bility of  Protection  in  the  Last   Stronghold  of  Free  Trade. 

That  the  protective  system,  as  exemplified  in  the  United 
States,  is  finding  favor  in  the  last  stronghold  of  free  trade  (Eng- 
land) is  well  known.  Mr.  Chamberlain,  the  former  secretary  of 
state  for  the  colonies,  has  resigned  from  the  cabinet  tx>  lead 
the  fight  in  favor  of  protection,  and  Premier  Balfour  has  written 
a  pamphlet  openly  advising  the  abandonment  of  free  trade.  Lib- 
eral extracts  from  the  expressions  of  these  and  other  English 
statesmen  and  writers  are  published  in  the  document  "Pages 
from  the  Congressional   Record,"   especially   in   the   speeches   of 


H  ^  I  III       I   Mill  K 

Representatives  Dick,  MCOleary,  and  Olmsted.  A  study  of  all  of 
these  speeches  and  of  the  others  published  In  this  document 
will  prove  of  great  value  both  to  speakers  and  editors,  as  they 
contain  much  matter  which  can  not  he  inserted   in  a   textbook. 

Among  the  views  of  representative  ECngUshmen  on  the  Ameri- 
can tariff  and  its  results  attention  is  especially  called  to  those 
of  the  Museley  Tariff  Commission.  This  commission,  composed  of 
officers  of  the  labor  unions  of  the  United  Kingdom,  was  brought 
to  the  United  States  in  1902  by  Mr.  Alfred  Moseley,  a  distin 
guished  British  manufacturer  interested  in  the  prosperity  of 
English  labor  as  well  as  English  industries.  The  commission 
visited  all  of  the  great  manufacturing  centers,  occupying  several 
months  in  its  studies,  and  on  its  return  to  England  issued  an 
elaborate  report.  This  was  made  up  in  part  of  special  reports' 
by  each  member  of  the  commission  upon  conditions  in  Ids  par- 
ticular branch  of  industry,  but  each  member  was  also  required 
to  answer  certain  specific  questions  regarding  xhe  general  con- 
ditions of  labor  in  the  United  States.  These  reports  and  replies 
are  a  striking  testimonial  to  the  protective  system  of  the  United 
States.  A  summarization  of  them  will  be  found  in  the  speech  of 
Representative  Olmsted,  above  alluded  to,  and  should  be  care- 
fully studied. 

The  following  is  a  letter  published  in  the  London  Times 
by  Mr.  Moseley,  the  head  of  the  commission,  shortly  after  his 
return,  and  it  is  followed  by  an  extract  from  his  report  which 
occupied  the  opening  pages  of  the  general  report  of  the  commis- 
sion; also  by  extracts  from  a  report  of  the  British  Iron  and  Steel 
Commission,  which  visited  the  United  States  in  1902. 

Mr.  Alfred  Moseley's  Letter  to  the  British  Public  on  Condition*  in 
the  United  States  and  Their  Relation  to  the  Protective  Tariff. 

To  the  Editor  of  the  London*  Times. 

Sir:  I  find  on  my  return  to  England  that  there  is.  a  vast 
amount  of  curiosity  on  the  part  of  the  public  as  to  how  Mr.  Cham- 
berlain's proposals  are  viewed  by  the  mercantile  community  on 
the  other  side  of  the  Atlantic. 

Of  course,  they  realize  that  a  tariff  imposed  upon  our  imports 
would  not  be  to  their  advantage;  nevertheless  they  do  not  allow 
their  judgment  to  be  warped  by  the  consideration  of  their  own 
personal  interests,  and  I  found  on  all  sides  but  one  comment, 
amounting  practically  to  "Why  has  it  not  been  done  before?  We 
could  never  see  the  utility  of  allowing  other  nations  to  dump  their 
surplus  products  on  the  market  and  put  one's  own  people  out  of 
work."  This  was  the  opinion  of  every  business  man  with  whom  I 
conversed,  with  the  exception  only  of  Mr.  Carnegie. 

The  subject  of  our  tariff  reform  movement  is  as  interesting  to 
the  people  of  the  United  States  as  it  is  to  ourselves,  and  is  continu- 
ally discussed  in  the  newspapers  and  forms  the  topic  of  endless 
debates  in  their  universities  and  societies.  Nowhere  have  I  heard 
it  condemned  as  being  impractical.  Their  authorities  on  political 
economy,  with  many  of  whom  I  discussed  the  subject,  one  and  all 
agreed  that  it  is  the  only  course  open  to  England  in  view  of  the 
conditions  that  have  arisen  since  she  adopted  free  trade;  amongst 
whom  I  may  name  Mr.  John  H.  Gray,  professor  of  economics  at 
Northwestern  University,  Chicago,  who  expressed  wonder  that 
there  should  be  any  opposition  to  Mr.  Chamberlain's  scheme  ex- 
cept from  "cranks"  and  people  incapable  of  moving  with  the  times. 
Professor  Gray,  I  may  state,  is  considered  in  the  United  States  as  a 
high  authority,  and  he  was  chosen  two  years  ago  by  their  Govern- 
ment to  come  to  this  country  to  investigate  labor  conditions  here. 
The  results  of  his  inquiries  are  to  be  published  shortly  by  Com- 
missioner Carroll  D.  Wright  of  the  United  States  Labor  Bureau. 

Whilst  I  was  in  America  I  read  a  report  of  a  speech  by  Lord 
Goschen,  in  which  he  stated  that  whilst  we  were  about  to  adopt 
protection  the  United  States  was  tending  entirely  in  the  opposite 
direction,  towards  the  removal  of  tariffs.  No  one,  of  course,  doubts 
his  sincerity  in  making  this  assertion,  but  it  shows  how  lamentably 
he  is  out  of  touch  with  conditions  as  they  are.  The  tariff  question 
there  is  absolutely  a  closed  book;  all  that  the  people  of  the  States 
ever  propose  to  discuss  is  whether  perhaps  they  are  not  taxing 
themselves  unnecessarily  in  certain  industries  by  the  high  tariff 
that  exists,  and  there  is  a  disposition  in  some  sections  of  the  com- 
munity (although  even  these  are  not  very  large)  to  make  a  re- 
vision of  the  tariff  by  reducing  the  duty  on  certain  articles;  but 
nobody  dreams  for  a  single  instant  that  such  reduction  should  be 
sufficiently  large  to  allow  the  foreigner  to  come  in  and  compete 
with  them,  lowering  the  standard  of  wages  and  injuring  industry. 
The  workingman  of  the  United  States  is  quite  sufficiently  alive  to 
his  own  interests  to  keep  this  matter  always  before  him,  and  no 
presidential  candidate  would  have  the  smallest  chance  of  election 
if  he  proposed  to  attempt  anything  in  the  way  of  tariff  reform 
likely  to  lower  the  standard  of  living  and  affect  the  wage-earning 
power  of  the  American  workman. 

Yours,   faithfully,  A.  MOSELEY. 

London,  E.  C,  December  22,   1802. 


THE    TARIFF.  51 

UP-TO-DATE    METHODS    OF    PROTECTION. 

Mr.  Moseley  himself,  on  tlie  opening  page  of  the  report,  says: 

In  my  travels  round  the  world,  and  more  particularly  in  the 
United  States,  it  became  abundantly  evident  to  me  that  as  a  manu- 
facturing- country  America  is  forging-  ahead  at  a  pace  hardly  real- 
ized by  either  British  employer  or  workman.  I  therefore  came  to 
the  conclusion  that  it  would  be  necessary  for  the  workers  them- 
selves to  have  some  interest  in  these  developments,  and  I  decided 
to  invite  the  secretaries  of  the  trades  unions  representing  the  prin- 
cipal industries  of  the  United  Kingdom  to  accompany  me  on  a  tour 
of  investigation  of  the  industrial  situation  across  the  Atlantc.  *  *  * 

In  my  previous  trips  to  America  I  had  been  favorably  struck 
by  the  up-to-date  methods  of  protection  there,  both  from  a  busi- 
ness standpoint  and  as  regards  the  equipment  of  their  workshops. 
The  manufacturers  there  do  not  hesitate  to  put  in  the  very  latest 
machinery  at  whatever  cost,  and  from  time  to  time  to  sacrifice 
large  sums  by  scrapping  the  old  whenever  improvements  are 
brought  out.  Labor-saving  machinery  is  widely  used  everywhere 
and  is  encouraged  by  the  unions  and  welcomed  by  the  men,  be- 
cause experience  has  shown  them  that  in  reality  machinery  is  their 
best  friend.  It  saves  the  workman  numerous  miseries,  raises  his 
wages,  tends  toward  a  higher  standard  of  living,  and,  further, 
rather  creates  work  than  reduces  the  number  of  hands  employed. 
In  England  it  has  been  the  rule  for  generations  past  that  as  soon 
as  a  man  earns  beyond  a  certain  amount  of  wages  the  price  for  his 
work  is  cut  down,  and  he,  finding  that  working  harder  and  run- 
ning his  machine  quicker  brings  no  larger  reward,  slackens  his 
efforts  accordingly. 

In  the  United  States  the  manufacturers  rather  welcome  large 
earnings  by  the  men  so  long  as  they  themselves  can  make  a  profit, 
arguing  that  each  man  occupies  so  much  space  in  the  factory, 
which  represents  so  much  capital  employed,  and  therefore  that  the 
greater  the  production  of  these  men  the  greater  must  be  the 
manufacturer's  profit.  *  *  *  The  United  States  has  advanced 
by  leaps  and  bounds.  She  is  beginning  to  feel  the  beneficial  ef- 
fects of  the  education  of  her  masses  and  an  enormous  territory 
teeming  with  natural  resources  as  yet  but  meagerly  developed.  At 
the  present  time  the  home  market  of  the  United  States  is  so  fully 
occupied  with  its  own  developments  that  the  export  trade  has  as 
yet  been  comparatively  little  thought  of;  but  as  time  goes  on  and 
the  numerous  factories  that  are  being  erected  all  over  the  country 
come  into  full  bearing,  America  is  bound  to  become  the  keenest  of 
competitors  in  the  markets  of  the  world.      *      *      * 

How  is  it  that  the  American  manufacturer  can  afford  to  pay 
wages  50  per  cent,  100  per  cent,  and  even  more,  in  some  instances 
both  ways,  and  yet  be  able  to  successfully  compete  in  the  markets 
of  the  world?  The  answer  is  to  be  found  in  small  economies  which 
escape  the  ordinary  eye.  That  the  American  workman  earns 
higher  wages  is  beyond  question.  As  a  consequence,  the  average 
married  man  owns  the  house  he  lives  in,  which  not  only  gives  him 
a  stake  in  the  country,  but  saves  payment  of  rent,  enabling  him 
either  to  increase  his  savings  or  to  purchase  further  comforts. 
Food  is  as  cheap  (if  not  cheaper)  in  the  United  States  as  in  England, 
whilst  general  necessaries  may,  I  think,  be  put  on  the  same  level. 

*  *  *  It  is  generally  admitted  that  the  American  workman,  in 
consequence  of  labor-saving  machinery  and  the  excellence  of  the 
factory  organization,  does  not  need  to  put  forth  any  greater  effort 
in  his  work  than  is  the  case  here,  if  as  much.  He  is  infinitely 
better  paid,  therefore  better  housed,  fed,  clothed,  and,  moreover, 
is  much  more  sober. 

Under    such    conditions-    he    must    naturally    be    more    healthy. 

*  *  *  Fuel  and  raw  material  are  much  the  same  price  in  tlip 
United  States  as  in  Europe,  and  it  therefore  can  not  be  claimed 
that  she  has  very  much  advantage  on  this;  but  facilities  for  trans- 
port, both  by  rail  and  water,  are  undoubtedly  better  and  cheaper. 

*  *  *  In  the  United  States  one  hears  a  great  deal  against 
"trusts"  (as  they  are  known,  or  what  we  term  "large  corpora- 
tions"), but  personally  I  am  rather  inclined  to  welcome  these  con- 
cerns, because  large  organizations  that  employ  capital  are  best 
able  to  compete  in  manufactures  on  the  most  economical  lines,  can 
fearlessly  raise  wages  within  given  limits,  are  in  position  to  com- 
bat unhealthy  competition,  can  provide  up-to-date  machinery  ad 
libitum,  call  erect  sanitary  and  well-ventilated  workshops,  and 
generally  study  better  the  comfort  and  well-being  of  the  workmen 
than  small  individual  manufacturers  struggling  against  insuffi- 
cient capital  and  old  machinery.  It  is  in  the  organization  of  cap- 
tal  on  the  one  hand  and  a  thorough  organization  of  labor  on  the 
other  that  I  believe  the  solution  of  industrial  problems  will  be 
found. 

GREAT  PROGRESS  IN   MANUFACTURING  IN  THE   UNITED   STATES. 

The  report  of  the  Moseley  Industrial  Commission  closes  with 
a  general  statement,  entitled  "Progress  in  Manufacture  in  the 
United  States  at  the  End  of  the  Nineteenth  Century."  It  begins 
by  calling  attention  to  the  fact  that  manufactures,  which  formed 
in  1875  but  I6Y2  per  cent  of  the  exports  of  domestic  merchandise, 
formed  in  the  period  1899-1901  29x/2  per  cent  of  the  exports  of 
domestic  merchandise.  It  also  calls  attention  to  the  fact  that 
the  growth  of  exports  of  manufactures  from  the  United  States 
from  1889  to  19C1  has  been  much  more  rapid  than  the  growth 
of  manufactures  exported  from  the  United  Kingdom,  and  says: 


52  I'm:    lAUHK. 

Comparison  between  detailed  headings  in  the  trade  accounts 
of  the  two  count  lies  is  probably  somewhat  unsafe,  but  some  idea 
of  the  prospect  of  the  United  States  becoming  a  greater  exporter 
than  this  country — the  United  Kingdom — may  be  gathered  by 
noticing  that  the  values  of  machinery  exported  as  well  as  that  of 
the  total  exports  of  iron  and  steel  manufactures,  which  were 
both,  five  years  ago,  less  than  a  quarter  of  the  corresponding 
values  in  this  country,  amounted  at  the  end  of  the  century  to  more 
than  half  those  values. 

*  It  also  calls  attention  to  the  fact  that  the  production  of  pig 
iron  grew  from  4,000,000  tons,  average,  in  1884  and  1885,  in  the 
United  States  to  13,70&,000  ions  in  1889-1900,  while  that  of  the 
United  Kingdom  only  .grew  from  7,614,000  tons  to  9,191,000,  and 
that  the  growth  in  production  of  steel  in  the  United  States  was 
even  more  rapid. 

It  also  calls  attention  to  the  growth  of  the  tin-plate  industry 
in  the  United  States,  saying: 

Previous  to  1890  the  United  States  produced  practically  no  tin 
plates  and  sheets,  and  the  industry  owes  its  existence  almost 
wholly  to  the  protective  tariff  placed  upon  these  goods  in  1890, 
which  became  operative  on  July  1,  1891.  The  growth  of  the  in- 
dustry since  that  date  has  been  very  remarkable  and  has  resulted 
in  this  country  (the  United  Kingdom)  to  a  large  extent  losing  its 
best  customer.  *  *  *  Much  of  our  loss,  due  to  the  closing  of 
the  American  markets  against  us,  has  been  made  good  by  markets 
having  been  found  elsewhere;  but,  in  spite  of  this,  the  blow  to  the 
trade  has  been  very  severe. 

In  closing  the  general  discussion,  the  report  says : 

Before  concluding,  it  may  be  as  well  to  suggest,  briefly,  the 
causes  that  have  contributed  to  the  enormous  expansion  of  manu- 
facturing industries  in  the  United  States.  This  is  not  the  place  to 
discuss  in  detail  the  causes  which  may  be  credited  as  political. 
That  a  certain  proportion  of  the  growth  of  the  manufacturing  in- 
dustries of  the  United  States  is  attributable  to  the  direct  action 
of  government,  and  especially  to  the  operation  of  the  tariff,  is  ob- 
vious, and,  indeed,  has  been  referred  to  incidentally  in  discussing 
the  growth  of  tin-plate  manufacture  in  the  United  States. 

A  word,  however,  may  be  said  as  to  the  causes  of  growth 
which  depend  on  the  natural  advantages  possessed  by  the  United 
States  and  the  personal  characteristics  of  her  citizens.  Under  the 
first  head  come  the  enormous  coal  resources  of  the  United  States, 
coupled  with  the  rich  deposits  of  iron  ore.  Under  the  second 
comes  a  whole  group  of  characteristics,  which  to  a  large  extent 
evade  statistical  analysis.  There  is,  first,  the  readiness  of  the 
manufacturer  to  adopt,  and  of  the  workman  to  accede  to,  the  use 
of  labor-saving  devices.  Allied  to  this  is  the  largeness  of  scale, 
with  its  resultant  economies,  with  which  manufactures  are  con- 
ceived and  carried  on.  For  further  details  of  this  report  see  speech 
of  Representative  Olmsted  in  document  "Pages  from  Congressional 
Record." 

Report  of  the  Commission  of  the  British  Iron  Trade  Association. 

Another  tribute  to  protection  is  paid  by  another  representa- 
tive commission  from  England  which  visited  the  United  States 
in  1902,  namely,  the  commissioners  appointed  by  the  British  Iron 
Trade  Association  to  inquire  into  the  iron,  steel,  and  allied  in- 
dustries of  the  United  States.  This  commission,  which  visited 
the  great  iron  manufacturing  centers  of  the  United  States,  pre- 
sented an  elaborate  report,  forming  a  volume  of  nearly  600  pages. 
It  contains  reports  on  all  features  of  the  iron  and  steel  production, 
including  the  supplies  of  ore  and  coal,  freights,  labor  condi- 
tions, hours  of  work,  strenuousness  of  labor,  cost  of  production, 
organization  and  administration  in  industrial  affairs,  transporta- 
tion systems,  the  great  corporations,  and  other  work  in  iron  and 
steel  production,  and  many  other  kindred  subjects.  Throughout 
this  elaborate  report  the  writers  point  to  the  advantageous  condi- 
tions existing  in  the  United  States,  the  higher  prices  paid  for 
labor,  the  better  conditions  of  the  laboring  men  than  those  of 
their  own  country  (England),  and  the  wonderful  prosperity 
which  has  come  to  the  iron  and  steel  industry  in  the  United 
States,  where,  in  the  words  of  the  secretary  of  the  commission, 
Mr.  J.  Stephen  Jeans,  "In  no  country  has  protection  been  adopted 
in  such  a  whole-souled  manner.  In  no  other  country  have  the 
shibboleths  of  free  trade  been  more  emphatically  held  at  arm's 
length." 

Commenting  upon  the  remarkable  development  in  the  United 
States  in  this  industry,  Mr.  Jeans  says: 

The  cost  of  production  of  iron  and  steel  is  made  up  of  three 
main  elements — raw  materials,  labor,  and  transportation.  No  one 
of  these  matters  can  properly  be  dealt  with  unless  in  relation  to 
the  others.     Raw  materials,  however  cheap  and  abundant,   are  of 


THE   TAEIFF.  53 

little  value  as  a  basis  of  industrial  prosperity  without  cheap  trans- 
port and  labor  at  a  reasonable  cost.  Similarly,  cheap  labor  is  of 
little  value  without  adequate  supplies  of  raw  materials  of  the  right 
kind  plus  a  reasonable  rate  of  charge  for  transport.  The  inter- 
relation of  these  three  subjects  has  made  it  necessary  to  devote 
much  space  to  all  three  of  them  in  this  report.  Labor  is  perhaps 
the  most  fundamental  of  the  trio,  because  in  one  form  or  another 
the  ultimate  cost  of  all  commodities  is  mainly  that  of  labor.  In 
the  United  States,  paradoxical  as  it  may  appear,  we  have  to  face 
conditions  that  make  at  once  the  dearest  and  the  cheapest  labor 
that  is  probably  to  be  found  in  any  part  of  the  world — dearest  with 
respect  to  nominal  remuneration,  the  cheapest  with  respect  to  in- 
dustrial and  economic  results. 

It  is  the  purpose  of  the  following  pages  to  demonstrate  how 
American  ironmasters  and  engineers  have  been  able  to  so  disci- 
pline and  apply  the  labor  at  their  command  as  to  reconcile  high 
wages  with  cheap  production  in  a  degree  not  hitherto  attained 
elsewhere.  *  *  *  The  influence  of  trades-unionism  is  not  near- 
ly so  strong  nor  so  aggressive  in  the  United  States  as  in  Great 
Britain.  *  *  *  The  almost  absolute  freedom  of  labor  has  been 
the  chief  instrument  whereby  it  has  won  such  conquests  in  the 
field  of  industrial  economy  during  the  last  quarter  of  a  century. 
In  all  countries  industrial  processes  have  been  greatly  cheapened 
during  that  period,  but  in  America  the  cheapening  appears  to  have 
been  carried  farther  than  anywhere  else.  Within  that  time  a 
wire-rod  roller  has  seen  his  earnings  per  ton  reduced  from  $2.12 
to  12  cents,  and  yet  he  earns  larger  wages  at  the  lower  figure, 
while  5  cents  are  paid  to-day  for  heating  billets  to  make  wire  rods 
against  80  cents  during  the  period  referred  to.  *  *  *  Wages, 
in  short,  are  generally  so  good  and  the  men  have  their  futures  so 
much  in  their  own  hands  that  they  have  every  encouragement  to 
do  the  best  they  can  both  for  their  employers  and  for  themselves. 
The  human  factor  and  the  personal  equation  appear  to  count  in 
the  United  States  for  more  than  they  generally  do  in  Eruope. 
Workmen  appear  to  enjoy  a  larger  measure  of  independence,  based 
on  a  knowledge  of  the  fact  that  work  is  more  easy  to  obtain  than 
in  older  countries,  and  they  are  able  as  a  rule  to  save  money  and 
are  therefore  less  dependent  than  when  living,  as  is  not  unusual  in 
Europe,  from  hand  to  mouth,  and  that  they  are  living  under  a 
political  regime  which  is  founded  on  democratic  principles. 

RELATIONS  BETWEEN  EMPLOYERS  AND  EMPLOYED. 

Two  features  of  the  relations  of  employers  and  employed  may 
be  named  as  exercising  a  powerful  influence  on  the  amity  of  their 
connections:  First,  the  encouragement  and  reward  of  workmen's 
inventions,  and  second,  the  readiness  with  which  workmen  of  ex- 
ceptional capacity  can  themselves  become  employers  and  capital- 
ists.    *     *     * 

The  vast  scale  of  operations  is  a  feature  of  American  works 
that  can  not  be  paralleled  elsewhere.  The  total  number  of  hands 
employed  at  Homestead  is  over  7,000,  and  the  capacity  of  output  of 
steel  something  like  2,000,000  tons  a  year.  One  individual  customer 
takes  1,000  tons  a  day  of  this  output,  and  all  the  other  operations 
are  on  a  similarly  colossal  scale.  This  fact  enables  the  manage- 
ment to  spread  the  standing  charges  over  a  large  output  in  such 
a  manner  as  to  bring  them  down  to  a  percentage  of  total  cost  of 
which  probably  no  European  works  has  any  experience.     *      *      * 

The  commissioners  naturally  found  that  the  influence  of  the 
corporation  was  almost  all-pervading  in  certain  districts,  and  that 
its  future  policy  and  its  financial  issues  were  regarded  from  very 
different  aspects  and  with  very  different  ideas  by  different  observ- 
ers. The  United  States  Steel  Corporation,  in  the  opinion  of  the 
majority,  has  come  to  stay.  As  it  controlled  nearly  two-thirds  of 
the  total  iron  ore,  coke,  pig  iron,  and  steel  capacities  of  the  United 
States  at  the  time  of  its  organization,  it  is  natural  that  it  should 
be  looked  to  as  the  leader  of  all  movements  of  prices  and  wages, 
and  the  prominent  part  which  it  took  in  the  settlement  of  the  im- 
portant labor  dispute  of  1901  supplied  an  evidence,  if  any  were 
needed,  that  it  means  to  use  its  power  and  influence  when  occasion 
demands  that  it  should  do  so.  At  the  same  time,  there  is  reason 
to  believe  that  its  power  is  not  relatively  increasing — in  other 
words,  that  the  production  of  iron  and  steel  controlled  by  inde- 
pendent concerns,  or/  likely  to  be  so  in  the  near  future,  is  or  will 
be  greater  than  that  at  the  time  of  the  consolidation. 

THE    STEEL   TRUST. 

It  is  natural  that  both  here  and  on  the  other  side  of  the  At- 
lantic the  vast  influence  and  the  commanding  position  secured  by 
the  United  States  Steel  Corporation  should  have  induced  a  degree 
of  apprehension  lest  smaller  plants  may  be  swamped,  and  both  pro- 
duction and  price  become  largely  a  matter  of  monopoly.  This  is 
not.  however,  the  opinion  of  the  best-informed  and  most  far-seeing 
men  with  whom  I  have  had  the  opportunity  of  discussing  the  situ- 
ation in  the  United  States.  That  private  enterprise  in  that  country 
is  not  afraid  of  the  steel  corporation  is  made  evident  by  the  un- 
precedented activity  that  is  being  displayed  in  the  establishment 
of  new  independent  plants  while  I  write.  In  every  part  of  the 
United  States  plants  are  entering  the  lists  to  compete  against  the 
steel  corporation,  and  the  capacity  of  the  private  plants  opposed 
to  it  to-day  is  probably  considerably  greater  than  it  was  at  the 
time  it  was  founded,  although  that  was  only  February,  1901.  A 
recent  writer  has  accurately  noted  that  small  plants  well  located 
and  economically  managed  are  remarkably  tenacious  of  life.  It 
has  also  been  observed  that  the  best  returns  on  American  capital 
during  the  period  known  as  the  "lean  years"  were  not  generally 
those  of  the  largest  enterprises,  but  those  of  a  few  smaller  firms, 
and  those  in  some  cases  outside  the  range  of  what  are  known  as 
"the  cheap  centers," 


54 


I  III      lAKIP'K. 


THE  TIN  PLATE  INDUSTRY  AND  ITS  DEVELOPMENT. 

The  British  Iron  and  Steel  Commission  after  its  visit  to  the 
United  States  in  1902  devotes  a  chapter  of  its  report  to  a  discus- 
sion of  the  tin-plate  industry  in  the  United  States,  and  hegins  hy 
saying: 

The  tin-plate  industry  Is  one  of  the  most  recent  in  the  United 
States  and  has  been  built  up  on  the  McKinley  tariff  of  1890,  which 
levied  a  duty  of  2%  cents  per  pound  on  all  tin  plate  imported  into 
the  country  and  practically  caused  the  customs  to  claim  as  much 
on  imports  into  the  United  States  as  the  price  of  the  product  at 
works  in  the  principality. 

At    the    time   the   McKinley   tariff   came   into    force   there    was 

f (radically  no  tin  plate  manufactured  in  the  United  States,  and  the 
mports  of  that  commodity  ranged  from  300,000  to  400,000  tons  a 
year.  In  the  following  year  the*  home  production  was  only  552 
tons,  and  the  imports  of  British  tin  plates  were' 327,882  tons.  Since"* 
then  the  American  production  has  increased  year  by  year,  while 
the  American  imports  have  as  rapidly  declined.  In  1900  the  total 
American  output  of  tin  plates  exceeded  400,000  tons,  and  the  im- 
ports had  fallen  to  only  58,000  tons,  or  about  a  sixth  part  of  what 
they  were  in  1890. 

The  following  table  shows  the  British  exports,  American  im- 
ports, and  American  output  of  tin  plate  for  the  last  thirteen  years: 


Year. 

Exports 

from  Great 

Britain  to  all 

countries. 

Imports  into 

United  States 

of  America. 

American 
production. 

1889 

Tons 

430,623     i 

421,797 

448.738 

395,580 

379,233 

354.081 

365,088 

266,955 

271,230 

250,953 

256,629 

273,954 

171,657 

Tons. 
331,311 
329,435 
327,882 
268,472 
253,155 
215.068 
219,545 
119,171 
83.851 
67,222 
58.915 
60,386 

Tons. 

1890 

1891 

552 

1892 

18,803 

1893 

1894 

55.182 
74,260 

1895 

113,666 

1896 

160  362 

1897 

256  598 

1898 

326  915 

1899 

397,767 

1900 

302  665 

1901 

The  imports  of  the  past  three  or  four  years  have  been  confined 
almost  entirely  to  tin  plates,  which  are  reexported  in  the  shape  of 
cans  containing  oil,  fruit,  fish,  etc.  By  the  terms  of  the  Dingley 
law  99  per  cent,  of  the  duty  originally  placed  on  such  tin  plate  is 
refunded  by  the  Government  on  its  reexport.     *      *     * 

It  seems  to  be  pretty  certain  from  the  available  records  that 
whatever  "virtual  monopoly"  of  the  tin-plate  trade  the  steel  cor- 
poration may  have  possessed  when  it  was  founded,  or  whatever  the 
amount  of  control  exercised  over  the  trade  at  an  earlier  date  by 
the  American  Tin  Plate  Company,  competitive  concerns  have  in- 
creased largely  and  rapidly,  until  the  twenty-six  tin-plate  works 
under  the  control  of  the  steel  corporation  are  leas  than  one-half  of 
the  whole  number.  While,  therefore,  the  action  of  that  consolida- 
tion can  not  be  regarded  as  uninfluential  in  the  affairs  of  the  tin- 
plate  trade,  it  is  not  likely  to  be  all  important,  as  it  would  have 
been  while  independent  concerns  were  less  numerous. 

The  number  of  completed  tin-plate  works  in  the  United  States 
at  the  end  of  1901  was  fifty-five,  compared  with  sixty-nine  in  April 
of  1898,  and  the  same  number  at  the  end  of  1895.  Hence  the  num- 
ber of  existing  works  at  the  end  of  1901  was  less  than  that  of 
either  of  the  two  previous  periods.  But  the  amount  of  enterprise 
being  shown  at  the  end  of  1901  in  adding  to  the  productive  capacity 
of  American  tin-plate  plants  was  greater  than  at  either  of  those 
previous  dates.  Mr.  Swank's  figures  show  that  at  the  end  of  1901 
no  fewer  than  seven  new  tin-plate  works  were  in  course  of  con- 
struction, against  one  in  April,  1898,  and  four  at  the  end  of  1895. 
Of  the  new  works  being  built  at  the  end  of  1901,  three  were  in 
Pennsylvania,  two  in  West  Virginia,  one  in  Ohio,  and  one  in  Wis- 
consin, while  one  other  was  at  that  time  projected  in  Illinois.  The 
aggregate  capacity  of  the  whole  of  the  tin-plate  works  of  the 
United  States  is  not  quite  known,  but  it  is  computed  at  over  700,000 
tons,  which  is  a  good  deal  in  excess  of  any  actual  output  hitherto 
reached  in  the  United  Kingdom.     *     *     * 

In  considering  the  tariff  of  the  United  States  from  the  point  of 
the  influence  on  British  industry,  we  can  not  ignore  the  possible 
example  that  it  has  set  to  -other  nations  and  which  in  the  future 
it  may  conceivably  offer  to  our  own.  We  need  not  discuss  this 
point  at  any  length.  It  would  be  unsatisfactory  to  attempt  to  dis- 
cuss it  from  a  purely  controversial  standpoint.  But  it  is  at  least 
permissible  to  point  out  that  not  a  few  leading  manufacturers  have 
expressed  dissatisfaction  with  a  condition  of  things  that  enables 
other  countries  to  enter  British  markets  without  let  or  hindrance 
while  excluding  us  from  their  own,  and  under  which  Britain  is 
steadily  increasing  her  imports  of  foreign  manufactured  goods, 
while  leading  statesmen  have  pointed  out  that  this  country,  having 
by  its  economic  policy  given  a  practical  sanction  to  this  system  of 
unrestricted  Imports,  has  no  equivalent  to  offer  in  commercial  ne- 
gotiations with  other  nations. 


THE    TARIFF.  55 


THE  BRITISH  POINT  OF  VIEW. 

From  the  British  point  of  view  the  main  interest  in  and  the 
chief  effect  of  the  United  States  tariff  takes  two  forms — that  of  ex- 
cluding our  products  from  the  markets  of  that  country  and  that  of 
underselling'  us  in  our  own.  As  regards  the  former,  the  fact  is  so 
well  known  that  I  need  not  pile  up  figures  to  prove  it.  Suffice  it 
to  say  that  our  total  iron  and  steel  exports  to  the  United  States 
are  now  only  about  one-fifth  of  what  they  were  ten  years  ago,  al- 
though even  now  the  tariff  does  not  entirely  shut  out  European 
iron  and  steel,  seeing  that  pig  iron  and  billets  are  being  imported 
from  Europe  while  I  write.     *      *      * 

I  may  here  point  out  that  while  Great  Britain,  according  to 
the  official  records  of  the  United  States,  took  from  that  country 
an  average  of  more  than  $500,000,000  worth  of  merchandise  during 
the  last  four  years,  the  average  imports  of  British  produce  into  the 
United  States  have  not  exceeded  one-third  of  that  figure,  while  of 
that  one-third  from  one-half  to  two-thirds  are  subject  to  more  or 
less  prohibitory  duties.  This  is  not  a  trade  relationship  which  the 
people  of  this  country  can  regard  with  perfect  equanimity.  Ameri- 
cans can  hardly  be  surprised  if  in  Great  Britain  there  is  an  increas- 
ingly strong  impression  that  in  matters  of  commerce  our  American 
friends,  like  the  Dutch  described  by  Hudibras,  have  a  habit  of  "giv- 
ing too  little,  and  asking  too  much." 

EFFECT  OF  THE  TARIFF  ON  PRICES. 

The  Americans  generally  dispute  the  argument  that  a  tariff 
for  protection  tends  to  keep  up  prices  to  the  home  consumer,  and 
in  support  of  their  attitude  on  this  subject  they  point  to  the  fact 
that  the  prices  of  coal,  iron,  steel,  and  other  commodities  are  and 
have  been  materially  lower  in  the  United  States  than  in  Great 
Britain.  This  view  opens  up  questions  of  vast  range,  which  it 
would  take  much  space  to  handle.  The  other  side  of  the  argument 
obviously  is  that  prices  of  commodities  in  the  United  States  have 
declined,  not  because  but  in  spite  of  the  tariff.     *      *      * 

At  the  same  time  it  is  by  no  means  clear  that  a  high  tariff  does 
necessarily  involve  a  high  range  of  prices  in  the  protected  country 
and  in  the  United  States  within  the  last  few  years  prices  have 
touched  a  very  low  level  in  spite  of  the  tariff.  Take  as  a  case  In 
point  the  statistics  of  steel  rails.  When  the  steel-rail  industry 
was  begun  in  the  United  States,  in  1867,  the  rate  of  duty  on  Im- 
ports was  45  per  cent,  ad  valorem.  This  rate  was  continued  until 
1871,  when  it  was  made  a  specific  duty  of  $28  per  ton,  which  was 
reduced  to  $17  per  ton  in  1883,  to  $13.44  in  1.890,  and  to  $7.84  in 
1894,  at  which  figure  it  has  since  been  maintained.  In  spite  of 
these  duties,  however,  the  average  price  of  steel  rails  in  the  United 
States  fell  from  $28  in  1897  to  $17.62  in  1898,  and  in  the  latter 
year  the  average  American  price  was  probably  under  the  average 
of  any  other  country. 

EFFECT  OF  THE  TARIFF  ON  INDIVIDUAL  CONCERNS. 

Many  hold  that  the  tariff  has  mainly  been  responsible  for  the 
great  fortunes  made  by  the  typical  millionaire,  and  the  case  of  Mr. 
Andrew  Carnegie  is  often  quoted  as  a  conclusive  proof  of  this 
theory.  I  should  not  have  dealt  with  an  individual  example  in  this 
connection  but  for  the  fact  that  it  stands  out  so  prominently  in 
the  recent  history  of  the  American  iron  trade  as  to  make  it  almost 
impossible  to  ignore  it  in  the  consideration  of  this  phase  of  the 
question.  Moreover,  I  have  had  the  privilege  on  more  than  one 
occasion  of  comparing  notes  with  Mr.  Carnegie  and  of  knowing 
something  more  of  the  facts  than  "the  man  in  the  street";  and 
while  I  would  not,  of  course,  make  use  of  any  of  the  facts  and 
figures  brought  to  my  knowledge  in  this  way,  I  am  quite  at  liberty 
to  deal  with  facts  that  are  common  property  in  the  light  of  the 
aspects  thus  presented. 

Everyone  who  makes  any  pretensions  to  a  knowledge  of  the 
recent  history  of  the  American  iron  and  steel  industries  must  be 
fully  aware  that  during  one  of  the  most  critical  periods  in  its 
career  the  operations  of  manufacturing  firms,  and  not  the  least  so 
those  engaged  in  the  steel-rail  industry,  were  not  uniformly  suc- 
cessful. In  the  years  1896-1898  the  principal  firms  connected  In 
the  American  rail  industry  were  the  Carnegie  Steel  Company  and 
the  Illinois  Steel  Company,  afterwards  merged  in  the  Federal  Steel 
Company.  But  it  is  a  well-known  fact  that  over  a  large  part  of 
this  period  the  Illinois  Company  failed  to  make  profits,  while  the 
Carnegie  Steel  Company  did  remarkably  well.  The  difference  of 
results  is  mainly,  if  not  wholly,  due  to  differences  in  location,  re- 
sources, and  administration,  and  it  is  hardly  likely  to  be  claimed 
that  the  tariff  was  the  cause  of  those  differences,  since  its  influence 
equally  affected  both.  No  doubt  in  the  earlier  history  of  the  rail 
trade  profits  were  large,  but  on  a  relatively  small  product,  for  In 
1875,  when  the  Carnegie  Company  started,  the  total  American  pro- 
duction of  steel  rails  was  only  259,000  tons. 

TRUSTS  AND  THE  TARIFF. 

In  America  the  question  has  been  many  times  raised  of  late 
whether  there  is  not  a  large  degree  of  interdependence  between  in- 
dustrial combinations  and  tariff  duties,  on  this  subject  the  United 
States  Industrial  Commission  recently  reported: 

"Protective  tariffs  do  not  seem  to  have  been  of  special  signifi- 
cance in  the  formation  of  industrial  combinations  in  Europe,  al- 
though in  many  cases  the  combination  has  been  enabled  to  take 
advantage  of  the  protective  tariff  in  the  way  of  securing  higher 
prices.     In  free-trade   England  the   combination   movement   seems 


50  Till'.     1AK111. 

to  have  developed  considerably  further  than  in  protectionist 
Prance;  but.  <"»  the  other  hand,  the  movement  toward  combination 
lias  gone  much  further  in  extent  in  Austria,  and  (Jermany,  both 
protectionist  countries,  than  in  England,  although  in  England  the 
form  of  combination  is  generally  more  complete.  Doctor  Lief- 
iiuiMii,  in  an  article  on  combinations  in  England,  expresses  the 
opinion  that  the  chief  reason  for  the  lesser  development  of  mo- 
nopolistic combinations  in  England  and  the  continuation  of  severe 
competition  in  branches  of  industry  in  which  in  Germany  there 
have  existed  for  a  long  time  very  rigid  combinations* — for  example, 
the  coal  industry — aeeaftbea  the  emine  rather  to  the  principle  of 
extreme  individualism  in  England,  which  has  a  much  firmer  hold 
on  business  men,  in  his  judgment,  than  in  Germany,  and  this  ap- 
pears, on  the  whole,  to  be  the  right  conception." 

AMERICAN  TARIFFS  FROfl  1789  TO  1897. 

[From    "Protection    and    Prosperity,"    by    Geo.    B.    Curtiss,    Bing- 
hamton,   N.   Y.] 

Dates  of  Passage  and  Operation  with  Salient  Features  and 
Consequences. 

Act  of  July  4,  1789. — Went  into  effect  August  10,  1789.  Duties 
imposed  upon  75  articles,  40  specific;  35  ad  valorem;  15  free.  Aver- 
age rate  on  total  imports  7%  Per  cent. 

August  10,  1790. — Went  into  effect  January  1,  1791.  Imposed 
50  new  duties  and  increased  many  of  previous  year.  Average  rate 
on  total  imports  8  per  cent. 

March  3,  1791. — Slight  increase — unimportant — rates  increased 
on  spirits.     Average  rate  on  total  imports  8.43  per  cent. 

May  2,«1792. — Went  into  effect  July  1,  1792.  Over  150  articles 
were  enumerated  in  this  bill.  General  increase  of  2%  per  cent. 
Average  rate  on  total  imports  10.93  per  cent. 

June  5-7,  1794. — Went  into  effect  July  1,  1794.  Imposed  ad- 
ditional duties  and  made  slight  increase  in  many  existing.  In- 
creased rates  on  tobacco,  snuff  and  refined  sugar.  Average  rate 
on  total  imports  13.88  per  cent. 

January  29,  1795. — Rates  changed  on  types,  sugar  and  wines. 
Many  changes,  some  reductions.  Twenty-five  articles  on  free  list. 
Average  rate  on  total  imports  8.04  per  cent. 

March  3,  July  8,  1797. — Increased  rates  on  sugar,  tea,  molasses, 
velvets,  cotton  goods,  candy.  Average  rate  on  total  imports  9.25 
per  cent. 

March  13,  1800. — Went  into  effect  July  1,  1800.  Increased  rates 
on  sugar  and  wines.  Average  rate  on  total  imports  13.11  per  cent. 
March  26,  1804. — Went  into  effect  July  1,  1804.  Increased  all  ad 
valorem  rates  2%  per  cent.  Increased  rates  on  goods  in  foreign 
vessels  10  per  cent.  Additional  rates  on  many  specific  articles. 
Mediterranean  Fund.  Average  rate  on  total  imports  13.06  per  cent. 
March  3,  1807;  March  4,  1808. — Salt  and  copper,  saltpetre  and 
sulphur  made  free.  Increased  duties  on  brass,  hats,  iron,  linen, 
wines  and  many  other  articles.  Average  rate  on  total  imports 
28.71  per  cent. 

Embargo  Act  passed  in  December,  1807,  prohibiting  all  imports 
from  England  and  France,  repealed  May  15,  1809. — This  was  not  a 
tariff  measure,  but  at  the  same  time  had  the  effect  of  stimulating 
many  industries.  The  people  of  the  United  States  were  thrown 
entirely  upon  their  own  resources  and  the  result  was  new  indus- 
tries established,  and  increased  production  in  existing  manufac- 
tures. 

Act  of  July  1,  1812. — Went  into  effect  same  day.  Known  as 
the  war  tariff.  All  duties  were  doubled.  Supplementary  Acts,' 
February  25,  1813;  July  29,  1813;  March  3,  1815;  February  5,  1816. 
Great  activity  in  manufacturing  due  both  to  high  duties  and  the 
war.     Average  rate  on  all  imports  32.73  per  cent. 

Act  of  April   27,   1816. — Went  into  effect  July  1,   1811.     Known 
as   the   Lowndes-Calhoun    bill.     War   rates    were   considerably   re- 
.  duced.     Ad   valorem   duties   ranged   from   iy2    to   33   per   cent.     Un- 
enumerated  goods  paid  15  per  cent.     Iron  and  other  metals  15  per 
cent.     Woolen    goods    25    per    cent.     Minimum    principle    adopted. 
Intended  as  a  protective  measure  but  failed  because  of  duties   be- 
ing  too   low    to   prevent   vast   importations   from    England    at    less 
than  cost  prices.     Average  rate  on  all  imports  26.52  per  cent. 
April  12,  1818. — Rates  changed  on  Iron  and  Alum. 
March    3,     1819. — Rates    on    certain    wines    reduced.     Average 
rate  on  all  imports  35.02  per  cent. 

Act  of  May  22,  1824.— Went  into  effect  July  1,  1824.  Decided 
increase  in  duties  with  most  significant  and  gratifying  results. 
Average  rate  on  all  imports   37  per  cent. 

Act  of  May  19,  1828. — Went  into  effect  September  2,  1828,  and 
July  1,  1829.  Known  as  the  "Tariff  of  Abominations."  Minimum 
extended.  Rates  increased.  Average  rate  on  all  imports  47.80  per 
cent. 

May  20,  1830. — Rates  reduced  on  teas,  coffees  and  cocoa  and 
molasses. 

July  14,  1832. — Went  into  effect  March  4,  1833.  Known  as  the 
"Modifying  tarift."  Duties  on  iron  reduced,  on  woolens  increased. 
Act  of  March  2,  1833. — Went  into  effect  January  1,  1834. 
Known  as  the  "Compromise  Tariff."  Rates  reduced  10  per  cent 
of  all  duties  in  excess  of  20  per  cent,  etc.,  each  alternate  year  till 
January  1,  1842,  one-half  the  remaining  excess  of  20  per  cent  to  be 
taken  off  on  that  date  and  the  other  half  July  1,  1842.  Linens, 
worsted  goods,  shawls  and  manufactures  of  silk  made  free.  Aver- 
age rate  on  all  imports  about  17  per  cent. 

July  4,  1836. — Rates  reduced  one-'aalf  an  wines. 


THE   TARIFF.  57 

September  11,  1841.— Articles  free  and  those  paying  less  than 
20  per  cent  to  pay  20  per  cent.     Railroad  iron  reduced  to  20  per 

Act  of  August  30,  1843. — Took  effect  immediately.  General  re- 
vision and  increase  of  rates  50  to  75  per  cent.  A  thoroughly  pro- 
tective measure.  The  result  was  a  revival  of  industry  and  trade, 
followed  by  general  prosperity. 

Act  of  July  30,  1846. — Went  into  effect  December  1,  1846. 
Known  as  the  "Walker  Tariff."  General  reduction  of  duties. 
Changes  from  specific  to  ad  valorem  rates,  duties  for  revenue  only. 
Effects  of  this  tariff  were  most  disastrous  in  spite  of  foreign  war, 
famine  and  the  discovery  of  gold. 

Act  of  March  3,  1857. — Went  into  effect  July  1,  1857.  General 
revision  and  further  reduction  of  duties.  A  culminating  free-trade 
act,  resulting  in  panic  and  commercial  ruin.  The  worst  period 
in  the  nation's  hstory. 

Act  of  March  2,  1861. — Went  into  effect  April  2,  1861.  In- 
tended to  raise  the  necessary  revenue  for  government  expendi- 
tures. '   . 

August  5,  1861. — First  of  the  war  tariffs,  large  increase  in 
duties. 

December  24,  1861. — Duties  increased  on  sugar,  tea  and  coffee. 

July  14,  1862. — Went  into  effect  August  2,  1862.  Further  in- 
crease of  rates. 

March  3,  1863;  April  20,  1864;  June  30,  1864;  March  5,  1865; 
March  15,  1866,  and  July  28,  1866. — Bills  changing  and  generally 
increasing  duties. 

Act  of  March  2,  1867. — Took  effect  immediately.  Rates  in- 
creased on  wool  and  woolens  giving  great  benefit  to  those  indus- 
tries. 

February  24,  1869. — Rates  increased  on  copper. 

July  14,  December  20,  1870. — General  changes.  Free  list  large- 
ly reduced.     Duty  of  $28  per  ton  on  steel  rails. 

May  1,   1872. — Tea  and  coffee  made  free. 

June  6,  1872. — Went  into  effect  August  1,  1872.  Reduction  of 
10  per  cent.     Increased  free  list. 

June   22,    1874. — Revised   statute,    with   slight   and   unimportant 

February  8,  1875. — Known  as  the  "Little  Tariff  Bill."-    General 

March  3,  1875. — Took  effect  immediately.  Rates  increased  on 
sugar.     Repeal  of  10  per  cent  reduction  of  act  of  June  6,  1872. 

July  1,  1879. — Quinine  made  free. 

July  14,  1880. — A  few  unimportant  changes. 

May  6,  and  December  3,  1882. — Repeals  discriminating  duty. 

Act  of  March  3,  1883. — Went  into  effect  July  1,  1883.  Known 
as  the  Tariff  Commission  Bill.  General  revision,  reductions  and 
increased  free  list.     Severe  blow  to  wool  industry. 

Act  of  October  1,  1890. — Went  into  effect  October  6,  1890. 
Known  as  the  McKinley  Bill,  the  most  perfect  tariff  measure  ever 
framed.  Changes  from  ad  valorem  to  specific  rates.  Enlarged 
free  list.  Sugar  made  free,  a  bounty  being  substituted.  Recipro- 
city law.  Unusual  prosperity  in  all  lines  of  industry.  More  men 
employed  and  at  higher  wages  than  ever  before  in  the  history  of 
the  nation. 

Act  of  1894. — Went  into  effect  August  27,  1894.  Known  as  the 
Gorman-Wilson  Bill.  Became  a  law  without  the  President's  signa- 
ture. General  reduction  of  duties.  Wool  put  on  free  list.  Great 
falling  off  in  number  of  sheep.  Increased  importations  of  com- 
peting commodities  to  the  detriment  of  American  manufacturers. 
Great  increase  in  national  debt.  Deficiency  of  revenue.  Impair- 
ment of  gold  reserve,  necessitating  repeated  bond  issues.  Decline 
in  foreign  trade.  General  depresson  in  business  throughout  the 
entire  countrty. 

Act  of  1897. — Went  into  effect  July  24,  1897.  Known  as  the 
"Dingley  Act" — thoroughly  protective  and  stated  in  its  title  that 
its  purpose  was  to  provide  revenue  for  the  Government  and  "to 
encourage  the  industries  of  the  United  States."  It  was  followed 
by  a  revival  of  manufacturing,  mining,  agricultural  and  trans- 
portation industries,  by  a  great  increase  in  the  general  business 
of  the  country  and  increase  in  the  exports  of  manufactures,  large 
additions  to  the  deposits  in  savings  banks  and  an-  era  of  general 
prosperity. 

Anti-Free  Trade    Data    in   England. 

[From   New  York   Tribune.] 

A  correspondent  asks  upon  what  data  Mr.  Chamberlain  bases 
his  demand  for  the  abandonment  of  that  free-trade  system  which 
was  introduced  to  Great  Britain  as  the  consummate  flower  of 
business  shrewdness,  political  wisdom  and  humane  benevolence, 
and  which  has  been  maintained  during  half  a  century  of  marvel- 
lous growth  and  prosperity.  Mr.  Chamberlain  points,  then,  to 
facts  such  as  these: 

That  sixty  years  ago  the  United  Kingdom  was  practically  self 
feeding,  while  to-day  more  than  half  its  meats  and  more  than 
two-thirds  of  'its  grains  are  of  foreign  origin. 

That  in  1840  it  purchased  from  abroad  only  23,000,000  hun- 
dredweight of  food  of  all  kinds  while  now  it  purchases  304,000,000 
hundred  weight. 

That  this  change  is  by  no  means  altogether  because  of  the 


58  I'HB    TAKll   I  . 

iiinv.isr  pf  population,  but  also  because  of  the  decrease  of  homo 
production,  it  sixty  years  the  population  has  Increased  by  58 
per  cent  while  the  foreign  food  bill  lias  increased  by  1,180  per 
cent.  Also  in  thirty  years  the  area  planted  in  wheat  has  de- 
creased by  26  per  cent,  and  that  in  vegetables  has  decreased  by 
14   per   cent. 

That  the  farm  profits  of  the  kingdom,  which  were  nearly 
£47,000,000  a  year  before  free  trade,  have  been  reduced  under 
free   trade    to    less    than    £15,(KK).(HM>. 

That  of  Great  Britain's  enormous  Import  trade,  so  greatly 
boasted  by  free  traders,  one  half  consists  of  food,  drink  and 
tobacco. 

That  the  industrial  imports  of  the  kingdom  are  declining*, 
baying  been  £7  5s.  a  head  in  1871-'75,  and  being  now  only  £0  13s. 

That  during  the  last  century,  while  exports  have  increased 
only  from  £2  9s.  to  £6  14s.  a  head,  imports  have  at  the  same  time 
increased  from  £1  19s.  to  £12  lis.  a  head. 

That  while  the  decennial  increase  of  population  was  15  per 
cent  in  1821-'31  and  11  *4  per  cent  in  1831-'41,  before  free  trade, 
it  was  only  8  per  cent  in  1881-'91  and  less  than  10  per  cent  in 
1891-1901.  under  free  trade. 

That  these  and  other  similar  facts  and  figures  indicate  an 
unhealthy  state  of  affairs,  which  must  be  remedied  if  hopeless 
decline  of  British  greatness  is  to  be  avoided. 

This  last  named  is  not  a  fact  of  statistics.  It  is  a  deduction 
made  by  Mr.  Chamberlain  and  by  those  who  take  his  view  of 
the  case.    It  is,  however,  scarcely  denied  by  the  free  traders. 

DEMOCRACY  AND  PANIC  PERIODS. 

[From  Philadelphia  Press,  July  13,  1904.] 

All  our  worst  panic  periods  have  come,  not  after  a  free  trade 
tariff  actually  adopted,  but  after  Democratic  success  and  free  trade 
agitation.  What  has  been  worse  in  the  memory  of  men. now  liv- 
ing; than  the  terrible  grinding  years  from  1875  to  1878,  with  the 
strike  summer  of  1877  between?  These  years  followed  a  Demo- 
cratic House,  elected  by  a  tidal  wave  in  1874.  No  turn  of  the  tide 
came  until  the  political  tide  turned. — The  Press,  June  28. 

A  wide  range  of  our  Democratic  friends  in  various  news- 
papers are  worried  over  this  paragraph.  The  panic  of  1873, 
they  aver,  assert  and  reiterate,  came  out  of  a  Republican  sky. 
So  it  did.  The  Republican  party  was  in  full  control  when  Jay 
Cooke  &  Co.  put  up  its  shutters  in  September,  1873. 

This  was  a  financial  smash.  A  speculative  craze  brought  a 
speculative  crash.  A  gold  crash  had  come  in  September,  1869, 
and  recovery  followed.  A  stock  crash  came  in  September,  1873. 
A  crash  in  stocks  may  come  without  affecting  general  business. 
In  1901  there  was  a  headlong  fall  in  stocks,  failures  and  liquida- 
tion, but  the  general  trade  of  the  country  was  not  affected.  In 
1873,  the  mere  failure  of  one  great  railroad  system,  not  yet  com 
pleted,  need  not  have  brought  a  long  period  of  depression. 
Recovery  should  have  followed. 

It  did  not.  In  1874  a  Democratic  tidal  wave  swept  the  country. 
Free  trade  was  talked  everywhere.  The  currency  was  attacked. 
The  Democratic  party  allied  itself  in  all  the  Western  States 
with  the  greenback  craze.  Resumption  was  assailed.  When  the 
resumption  act  was  passed  by  the  Republican  party  it  was  attacked 
by  the  entire  Democratic  party.  East  and  West  it  was  denounced 
as  "Sherman  sham." 

The  Democratic  party  challenged  confidence  in  the  gold  value 
of  the  greenback.  It  straddled.  It  nominated  for  President  a 
free  trader,  though  a  hard  money  man,  Tilden.  It  nominated 
for  Vice-President  a  free  trader  and  a  soft-money  man,  Hendricks. 
Eastern  Democrats  favored  a  gold  value  for  all  v  currency,  but 
attacked  paper  money.  Western  Democrats  demanded  more  paper 
money.  The  party  was  divided  as  it  is  now  and,  as  now,  its  new 
leaders  in  1876  and  in  1880,  anxiously  sought  to  persuade  the 
public  to  forget  the  recent  financial  errors  of  the  party. 

From  1874  to  1878  this  Democratic  policy  depressed  all  busi- 
ness and  destroyed  trade.  The  panic  of  1873  had  come  and  gone. 
The  price  of  stocks  recovered  in  the  Winter  of  1874.  Trade 
picked  up.  Failures  fell  in  amount  to  a  normal  year.  After  the 
election  of  a  Democratic  House  in  1874  stocks  fell  and  failures 
increased.  As  Democratic  greenback  agitation  went  on,  opposed 
by  Eastern  Democratis,  but  urged  West  and  South,  as  with  free 


THE  TARIFF. 


59 


silver,  worse  came.  In  1877  shares  went  to  their  lowest  point. 
In  1878  aggregate  failures  exceeded  those  of  1873.  The  total  of 
liabilities  has  never  been  exceeded  but  once,  in  1893,  after  the 
hist  election  of  Grover  Cleveland. 

Worse  years  than  1877  and  1878  the  country  has  never  known. 
They  were  years,  as  every  one  remembers,  of  the  end  of  the 
greenback  and  the  beginning  of  free  silver,  of  agitation  for  Dem- 
ocratic free  trade  and  its  outspoken  support  by  the  Democratic 
party. 

The  Republican  party  in  1879  resumed  gold  payments  and 
prosperity  came  when  Bland  and  every  other  Democrat  was  pre- 
dicting disaster.  Democratic  free  trade  was  met  by  the  assertion 
of  Republican  protection.  In  1880  this  was  the  chief  issue,  and 
when  it  was  won  prosperity  came  like  a  flood. 

"No  turn  of  the  tide  came  until  the  political  tide  turned." 

Tariffs  and  Revenues,  1790  to  1904. 

Years  in  which  low  tariffs  and  protective  tariffs,  respectively,  have 
been  in  operation  in  the  United  States,  shotving  the  excess  of 
expenditures  or  receipts  of  the  Government  in  each  year. 
[Compiled  from  official  statements  of  the  Treasury  Department.] 


Low  tariffs. 

Protective  tariffs. 

Fiscal  year— 

Deficit. 

Surplus. 

Fiscal  year— 

Deficit. 

Surplus. 

$1,312,499 

1813 

$17,341,442 
23,539,300 
17.246,744 

$4,599,909 

1814 

(  War  pe- 

1793           

805,993 

1815 

1816 

f     riod. 

1794 

865,917 
1,195,066 

$16,480,630 

1825 

5,983,640 

1796 

2,586.879 

2,680.154 

292.909 

1826 

8,222,575 

1797 

1827 

6,827,198 

1798 

1828 

6,369,087 

1799 

1,749,004 

1829 

9,643.574 

34,778 
3,541,831 
7.019,542 
3,111.811 
3.188.399 
4.546.344 
6.110,753 
8,043,868 
7,999,249 

1830 

9,702.008 

1801 

1831 

13,289.004 

1802 

1832 

14,578,500 

1803 

1833 

10,930,874 

1804  .. 

1843 

3,549,791 

1805 

1844 

6,837,148 

1806 

1845 

7,034,278 

1807 

1846  (half  year).. 

f.214,392 

1808 

1862 

417,650,981 
606,639.331 
621,556,130 
973.068.131 

1 

1809 

2.507,273 

1863 

1810 

909,461 
6,244,594 

1864 

1811 

1865 

1812..  . 

10,479,638 

1866 

927,208 

1817 

13,108.157 
1,566.543 
3,091,370 

1867 

116,317,354 

1818 

):::: 

1868 

6  095  320 

1819..   .   . 

1869 

35,997,658 

1820. 

444,685 
1.276,173 

1870 

102.302,829 

1821.     . 

1871 

91,270,711 

1822 

5,231.996 
5,834,036 

1872 

94.137,534 

1823 

1873 

36,938,348 

1824 

892,489 

1874 

1.297,709 

1834 

3,164,365 

17,857.274 
19,958,632 

1875     . 

9  397  379 

1835 . . . 

1876 

24.965,500 

1836 

"l2.289,'06i' 
7.562,152 

1877 

39,666,167 

1837 .... 

1878 

20,482,449 

1838 

1879 

5,374,253 

1839 

4,585.967 

1880 

68.678.864 

1840 

4.834.402 
9,621.657 
5,158.689 

1881 

101.130  658 

1841 

1882.    .. 

145.543,811 

1842 

1883 

132,879,444 

1846  (half  year).. 

1,219.392 

(.Warpe- 
j"    riod. 

2.644.506 
4.803.561 
5.456.563 
13.843,043 
18.761,886 
6,714,912 
5.330.434 
1.330.904 

1884 

104,393,626 

1847 

28,453,381 
12,778,001 

1885 

63,463  775 

1886... 

93,956,589 

1849 

1887 

103  471,098 

1850 

1888 

119.612,116 

1851 

1889 

105.053  443 

1890 

105,344,446 

1853 

1891 

37.239,763 

1854 

1892 

9,914  454 

1855 

1893 

2  341,674 

1894 

69,803,261 
38,047.247 
89.111,560 

1857 

1898 

1  War  pe- 

27,327.126 
16,216.492 
7.821,276 
25,173.914 
42,805,223 
25,203,246 
"  18,052,455 

1899 

1859 

1900 

79,527,060 

1901 

77,717,984 

1861 

1902 

91.287.376 

1903 . . . 

54,297,667 

1896 

1897 

GO 


THE    i  \ Kill-. 


THE  PANIC  OF  1893-94  WAS  NOT  DUE  TO  CROP  FAILURES. 
The  assertion  has  been  persistently  made  by  the  apologists  for 

the  Wilseii-(ienn;Mi  tariff  t  ii.it  the  general  depressed  financial  and 
Industrial  conditions  and  shortage  of  money  then  existing  were 
dne  to  short  Crops  in  1892,  1803,  and   1894  and  were  not  Chargeable 

lo  the  tariff  law.  This  assertion,  while  absolutely  untrue,  is 
worthy  Of  earofnl  attention  boeanse  of  its  misleading  character 
and  because  of  the  fact  that  without  investigation  the  statement 
appears  plausible.  It  is  possible  to  show,  for  example,  that  the 
corn  crop  of  1892  was  l<><>  million  bushels  less  than  that  of  1891; 
that  the  wheat  crop  of  18M2  was  !><;  million  bushels  less  than  that 
of  181)1.  ami  that  the  oat  crop  of  1892  was  77  million  bushels  below 
lhai  of  IN'.tl  ;  and  this  statement  unaccompanied  by  any  other 
facts  or  figures  niight  give  some  color  to  the  claim  that  the  de- 
pression of  1N!»3  was  dne  to  some  extent  at  least  to  the  short 
crops  in  1892.  But  a  further  examination  of  the  figures  of  pro- 
duction lor  a  term  of  years  shows  the  absolute  falsity  of  this 
assertion.  The  table  given  below  shows  the  production,  farm 
value,  and  value  per  bushel  of  corn,  wheat,  and  oats  in  the  United 
States  from  1885  to  1903.  It  will  be  seen  from  an  examination  of 
the  table  that  while  it  is  true  that  the  corn,  wheat,  and  oat  crops 
were  less  in  1892  than  in  1891,  they  were  in  each  case  more  than 
those  crops  in  1890.  The  corn  crop  of  1892  was  1,628,464,000 
bushels,  as  against  2,000,154,000  bushels  in  1891,  and  this  is  urged 
as  one  of  the  causes  of  the  financial  depression  of  1893 ;  but  an 
examination  of  the  table  will  show  that  the  corn  crop  of  1890  was 
only  1,489,790,000  bushels,  as  against  2,112.892,000  bushels  in  1889. 
As  a  drop  of  623  million  bushels  in  the  corn  crop  of  1890  as  com- 
pared with  the  preceding  year  caused  no  panic  or  financial  depres- 
sion in  1891,  how  can  it  be  possible  that  a  drop  of  432  million 
bushels  in  1892  was  the  cause  of  the  panic  in  1893?  The  same 
general  line  of  facts  holds  good  with  reference  to  wheat  and  oats. 
While  it  is  true  that  the  wheat  crop  of  1892  was  96  million  bushels 
below  that  of  1891,  it  is  also  true  that  the  wheat  crop  of  1890  was 
91  millions  below  that  of  1889  and  no  panic  ensued ;  and  similar 
conditions  are  apparent  with  reference  to  the  oat  crop  of  1890. 

An  examination  of  the  column  showing  the  average  farm  value 
per  bushel  of  these  crops,  which  accompanies  the  statement  of 
quantity  produced,  is  suggestive.  This  shows  that  the  farm  value 
per  bushel  of  corn,  which  was  50.6  cents  in  1890,  practically  40 
cents  in  1891  and  1892,  moved  steadily  downward  until  it  reached 
21.5  cents  in  1896  under  low  tariff ;  that  the  farm  value  per  bushel 
of  wheat,  which  in  1890  and  1891  was  above  83  cents,  had  fallen 
to  49  cents  in  1894 ;  and  the  farm  value  of  oata,  which  in  1891  and 
1892  was  31.5  cents  per  bushel,  was  18.7  cents  per  bushel  in  1896. 

Production,  farm  value,  and  value  per  bushel  of  corn,  wheat,  and 
oats,  1S85  to  1903. 


Corn. 

Wheat. 

Oats. 

Total. 

Total* 

Total. 

Year. 

Production. 

Farm 
value 
per 
bushel 
Dec.  1. 

Produc- 
tion. 

Farm 
value 
per 
bushel 
Dec.  1. 

Produc- 
tion. 

Farm 
value 
per 
bushel 
Dec.  1. 

1885 

1886 

•  Bushels. 

1,936.176,000 

1,665,441,000 

1,456,161,000 

1,987,790.000 

2.112,892,000 

1,489.970,000 

2.060,154,000 

1.628,464,000 

1,619,496,131 

1,212,770,052 

2.151,138,580 

2,283,875,165 

1,902,967,933 

1,924,184,660 

2.078,143,933 

2.105,102,516 

1,522,519.891 

2.523,648,312 

2,244,176,925 

Cents. 
32.8 
36.6 
44.4 
34.1 
28.3 
50.6 
40.6 
39.4 
36.5 
45.7 
25.3 
21.5 
26.3 
28.7 
30.3 
35.7 
60.5 
40.3 
42.5 

Bushels. 
357,112,000 
457,218,000 
456,329,000 
415,868,000 
490,560,000 
399,262,000 
611,780,000 
515,949.000 
396.131.725 
460,267,416 
467,102,947 
427,684,346 
530,149.168 
675,148,705 
547,303,846 
522,229.505 
748.460,218 
670.063,008 
637,821,835 

Cents. 
77.1 
68.7 
68.1 
92.6 
69.8 
83.8 
83.9 
62.4 
53.8 
49.1 
50.9 
72.6 
80.8 
58.2 
58.4 
61.9 
62.4 
63.0 
69.5 

Bushels. 
629,409,000 
624,134,000 
659,618,000 
701,735,000 
751.515,000 
523,621,000 
738.394,000 
661,035.000 
638,854,850 
662,036,928 
824.443,537 
707,346.404 
698,767,809 
730,906,643 
796,177,713 
809,125,989 
736,808,724 
987,842,712 
784,094,199 

Cents. 

28.5 
29.8 

1887 

1888 

1889 

1890 

30.4 
27.8 
22.9 
42.4 

1891 

1892 

1893 

1894 

31.5 
31.7 
29.4 
32.4 

1895 

19.9 

1896 

18.7 

1897 

1898 

1899 

1900 

21.2 
25.5 
24.9 
25.8 

1901 

1902 

1903 

39.9 
30.7 
34.1 

THE    TARIFF. 


61 


Coal  Production  and  Consumption  in  Protective  United  States  and 
Germany  and  Free-Trade  United  Kingdom  from  1860  to  1902 — 
Evidence  of  Much  Greater  Business  Activity  in  the  Protective 
Tariff  Countries. 

This  table  shows  the  production  and  consumption  in  the  two 
protective-tariff  countries,  the  United  States  and  Germany,  com- 
pared with  that  in  the  one  low-tariff  country,  the  United  King- 
dom. Coal  consumption  is  an  important  measure  of  manufacturing 
activity  and  growth,  since  it  is  the  chief  supply  of  power  for  man- 
ufacturing and  transportation.  It  will  be  seen  that  the  consump- 
tion of  coal  in  the  United  Kingdom  only  increased  about  44  per 
cent,  from  1875  to  1902,  while  that  of  Germany  increased  about 
200  per  cent,  and  that  of  the'  United  States  nearly  500  per  cent. 
The  importance  of  these  figures  of  coal  consumption  is  very  great 
as  a  measure  of  manufacturing  activity.  This  statement  of  rela- 
tive increase  in  consumption  in  the  three  countries  is  especially 
important  because  in  most  cases  the  figures  of  production  only  are 
shown,  while  the  fact  that  the  United  Kingdom  exports  a  large 
share  of  her  coal  production  makes  a  comparison  based  upon 
figures  of  production  misleading.  It  is  the  consumption  which 
measures  the  activity  in  manufacturing,  and  these  figures  of  con- 
sumption in  the  protective  and  free-trade  countries,  respectively, 
are  worthy  of  careful  attention. 

Coal  production  and  consumption  in   the   United  Kingdom,   Ger- 
many and  the   United  States   for  the   years  named. 


United  Kingdom. 

Germany. 

United  States. 

Years. 

Product'n 

Consump'n 

Product'n 

Consump'n 

Product'n 

Consump'n 

gross  tons 

gross  tons 

metr.  tons 

metr.  tons 

gross  tons 

gross  tons 

@  2240  lbs. 

@  2240  lbs. 

@  2204.6  lbs. 

(&  2204.6  lbs. 

©  2240  lbs. 

@  2240  lbs. 

1860 

80,043,000 

*  16,731.000 

1 

14.440,000 

14.494,000 

1865 

98.151,000 

*  28,553,000 

>No  data. 

20,310,000 

20.861,000 

1870 

110,431.000 

*  34,003,000 

s 

32.863,000 

33,051.000 

1875 

131.867,000 

114.044,000 

47,804,000 

47.562.000 

46,686.000 

46.604.000 

1880 

146,819,000 

123.190,000 

59,118,000 

57,002.000 

67,998.000 

67.855,000 

1885 

159.351,000 

128,585,000 

73,676.000 

70.729.000 

99.250,000 

98.752,000 

1890 

181,614.000 

142.955,000 

89,291,000 

90.798.000 

140.867,000 

139,627.000 

1895 

189,661.000 

146.768,000 

103,958,000 

105.876.000 

172,426.000 

170,097,000 

1900 

225.181.000 

166,786.000 

149,788.000 

149.804.000 

240.789,000 

234.781.000 

1901 

219,047.000 

161,271,000 

153,019,000 

152,138.000 

261,875,000 

256.412,000 

1902 

227,095,000 

166,365,000 

150,600,000 

148,785,000 

269,277,000 

265.791,000 

♦Figures   for  the   German   Customs  Union. 
(The  amount  of  British  bunker  coal  not  found  prior  to  1875.) 

Groicth  in  coal  production  in  free-trade  Great  Britain,  compared 
with  that  of  the  protection  countries,  United  States,  Germany, 
and  France;  also  the  total  coal  production  of  the  world  and 
the  per  cent  supplied  by  the  United  States  at  quinquennial 
periods  from  1868  to  1895,  and  annually  from  1896  to  1902,  in 
tons  of  2,000  pounds. 

[From  reports  of  the  United  States  Geological  Survey.] 


Year. 

United 
States. 

Great 

Britain. 

Germany 

France. 

Total  pro- 
duction 
of  the 
world. 

Per 
cent 

of 
U.  S. 

•1868 

Short  tons. 
31,648.960 
36,806,560 
52,288,320 
76,157,944 
111,159,795 
157.770,963 
193,217,530 
191,986,357 
200,229,199 
219,976,267 
253,741,192 
269.684,027 
293,299,816 
301,590.439 

Short  tons. 
115,518,096 
123.682.935 
149,303,263 
164,605.738 
178,473.588 
203,408,003 
212,320,725 
218,804,611 
226,385,523 
226,301,058 
246,506,155 
252,203,056 
245,332,578 
254,346,447 

Short  tons. 
36,249,233 
37,488,312 
52.703,970 
65,177,634 
81,227,255 
98,398.500 
114,561,318 
123,943,159 
132,762,882 
144,283,196 
149,719,766 
164.805,202 
168.217,082 
165,826.496 

Short  tons. 
14.697,236 
14.530,716 
18.694,916 
21,346,124 
21,510,359 
28,756,638 
30,877.922 
32.167.270 
33.938.987 
35,656,426 
36,215,026 
36,811,536 
35,596,536 
33,286,146 

Short  tons. 
221.035,430 
238,621.068 
308,419.177 
369.413,780 
447,783,802 
563,693,232 
644,177,076 
664,001,718 
697.213,515 
738,129.608 
801,976,021 
846.041,848 
869,037,199 

14.32 
15.42 
16.95 
20.62 
24.82 
27.99 
29.98 
28.92 
28.72 
29.80 
31.63 
31.88 
33.76 

1870 

1875 

1880 

1885 

1890 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

62 


I  III      i  \uu  i  . 


TARIFFS    AND    TRADE    BALANCES,    1790-1903. 

Years  in  which  low  tariffs  and  protective  tariffs,  respectively, 
have  been  in  operation  in  the  United  states,  shouting  the  excess 
<>f  imports  or  em  ports  in  each  year  and  the  total  excess  of  im- 
ports or  exports  under  each  system. 

[Compiled  from  official  statements  of  the  Bureau  of  Statistics.] 


L»w 

tariffs 

Fiscal  Year 

Protective  tariffs 

Fiscal  Year 

Excess  of 
imports 

Excess  of 
exports 

Excess  of 
imports 

Excess  of 
exports 

1790 

$2,794,844 

10,187.959 

10.746,902 

4,990,428 

1,556,276 

21,766.396 

22.861.539 

24  084,696 

7,224,289 

403,626 

20.280,998 

18,342,998 

4,376,189 

8,866,638 

7,300,926 

25.033,979 

27.873.037 

30.156.860 

34.659,040 

7,196,767 

18,642,080 

1813 

$5,861,017 

1791 

1814 

$6,037,559 
60,483,621 
65,182,948 

1792 

1815 

1798 

1816 

1794 

1826 

549,023 

1795 

1826 

5,202,722 

1796 

1827.... 

2,977.009 

1797 

1828 

16,998,873  " 

1798 

1829 

846,736 
8,949.779 

1799 

1880 

1800 

1831.... 

23,589,527 
13,601,159 
13,619,211 

1801 

1832 

1802 

1833 

1803 

1843... 

40,392.225 
3.141,226 

1804 

1844 

1805  .... 

1845 

71,44,211 

41,65,409 

1806     .. 

1846* 

1807 

1862 

1,313,824 

1808 

1863 

39,371,368 

167,609,295 

72,716,277 

86,952,544 

101,254,955 

75,483,541 

131,388,682 

43,186,640 

77,403,506 

182,417,461 

119,656,288 

1809 

1864...  . 

1810 

1865    . 

1811 

$7,916,832 

1866 

1812     .. 

38,502.764 
11,578,431 
28,468,867 
16,982  479 
4,758,331 

1867 

_    1817 

1868 

1818 

1869 

1819 

1870 

1820 

1871 

1821 

75,489 

1872 

1822 

18,521,694 
4,155  328 
3,197,067 
6.349,485 
21.548,493 
52,240  450 
19,029,676 

1873 

1823  .... 

1874 

18.876,698 

1824   . 

1875 

19,562,725 

1834 

1876 

79,643,481 
151,152,094 
257,814,284 
264,661,666 
167,683,912 
259,712,718 

25,902,683 
100,658,488 

72,815,916 
164,662,426 

44,08s,694 

23,863,443 

1835 

1877 

1836 

1878  . 

1837 

1879 

1838  ... 

9,008.282 

1880 

1839. 

44,245,283 

1881 

1840 

25,410,226 

1882 

1841 

11,140,073 

1883 

1842 

3,802,924 

1884 

1846.   ... 

4,165,408 

1885 

1847 

34,817,249 

1886 

1848 

10,448,129 
855,027 
29,133,800 
21,856,170 
40,456, 1«7 
60,287,983 
60,760,030 
88,899,206 
29,212,«87 
54,604,582 

1887 

1849 

1888 

28,002,607 
2,730,297 

1850 

1889 

1851 

1890 

68,618,275 
39,564,614 

202,875,686 

1862 

1891 

1863 

1892 

1854 

1893., 

18,735,728 

1855 

1894 

237,145,950 
615,432,676 
529,874,813 
644,541,898 
664,592,826 
478,398.453 
394  422  442 

1856  .... 

1898   

1857 

1899 

1868 

8,672,620 

1900 

1859 

38,431,290 
20,040,062 
69,756,709 

1901 

1860 

1902 

1861 

1903 

1895 

75,568,200 
102.882,264 
286,263,144 

1896 

1897 

Total... 

1,068,872,161 

553,917,230 

Total... 

1,371,397,064 

5,470.423,925 

*Half   year. 

Net  excess  of  IMPORTS  under  low  tariffs $514,954,8®! 

Net  excess  of  EXPORTS  under  protective  tariffs 4,099,026,861 


Net  excess  of  exports  over  imports  from  1789  to  March 

1,    1897     380,028,497 

Net  excess  of  exports  over  imports  from  March  1,  1897, 

to    March    1,    1904 3,594,829,82« 


TIlK  TARIFF.  88 

Killed  by  Lack  of  Protection. 

[From  St.  Thomas  (Ontario,  Canada)  Daily  Times  of  April  14,  1904.] 

The  directors  of  the  Canada  Woolen  Mills  Company  have  de- 
cided to  close  their  business  and  sell  out  their  plants  at  Hespeler, 
Carleton  Place,  Waterloo,  and  Lambton  Mills,  throwing  700  people 
out  of  employment  and  destroying  an  industry  representing  a 
million  dollars  capital.  The  directors  have  been  losing  money 
because  of  the  preference  given  to  British  goods.  Those  700  em- 
ployees must  live  somewhere,  and  will  probably  be  forced  to  leave 
the  country.  Loss  of  population  of  this  class  means  loss  to  every 
kind  of  business;  hence  a  loss  in  wealth  to  the  province.  The 
question  for  our  lawmakers  and  people  to  consider  is :  Would  it 
not  be  better  to  protect  this  industry  sufficiently  to  keep  these 
people  in  employment  here,  rather  than  allow  them  to  be  forced 
out?  The  strength  of  a  nation  is  its  people;  the  more  industrious 
the  people,  the  more  strength  and  wealth. 

The   Tariff   and   Wages. 

Foreign  workmen  flock  to  the  United  States  because  of  the 
high  wages  paid  here,  but  the  large  number  that  come  help  to 
reduce  wages.  At  Turin,  in  Italy,  according  to  the  consular 
reports,  the  rate  of  wages  paid  by  the  city  for  day  laborers  is 
from  40  to  60  cents  a  day.  Bricklayers  receive  from  80  cents 
to  $1,  carpenters  from  60  to  70  cents,  and  painters  from  40  to  50 
cents,  not  one-third  of,  the  average  rate  paid  in  this  country.  The 
Italian  workman  can  earn  enough  in  the  United  States  during 
the  summer  to  go  home  and  live  without  work  during  the  winter, 
as  comparatively  little  is  required  for  his  sustenance  in  a  warm 
climate.     But  low  wages  are  not  confined  to  Italy. 

In  London,  for  instance,  the  pay  of  a  policeman  at  the  start 
is  $0.25  a  week,  and  that  is  increased  yearly  by  25  cents  until 
the  amount  reaches  $8.14  a  week,  and  that  is  the  limit.  In  this 
country,  in  New  York,  a  patrolman  receives  $25  a  week,  or  three 
times  as  much  as  the  experienced  member  of  the  British  force. 
The  pay  is  less  on  the  Continent  of  Europe  than  in  Great  Britain. 
With  such  low  wages  and  all  the  advantages  in  machinery  that 
the  workmen  in  the  United  States  have,  nothing  could  prevent 
a  similar  reduction  of  wages  in  this  country  excepting  the  tariff. 
That  is  why  the  Republican  party  will  stand  steadfastly  for  the 
protective  tariff,  and  will  only  make  changes  after  careful 
investigation  and  certain  knowledge  that  the  changes  would  be 
justified. 

Wages  are  much  lower  in  Canada  than  in  the  United  States, 
and  that  has  to  be  taken  into  consideration  in  any  negotiations 
for  a  reciprocity  treaty.  s 

The  wage  question  is  of  the  greatest  importance  in  this 
country.  There  will  be  no  legislation  to  cause  any  reduction, 
such  as  took  place  under  the  last  Cleveland  Administration,  unless 
the  Democrats  are  again  returned  to  power,  which  is  improbable. 

Protection    and    Wages    in    Germany. 

The  Spanish  Economist  and  Financier  has  the  following  in  a 
recent  issue : — 

The  Chamber  of  Commerce  of  Essen,  Germany,  has'  just  pub- 
lished an  interesting-  memorial  on  the  influence  of  protective  tariffs 
on  wages  and  on  the  conditions  of  the  working-  classes.  Referring 
to  the  district  of  Essen,  the  Chamber  establishes  the  fact  that  the 
average  wages,  which  were  3.30  marks  in  1871,  were  3.89  marks  in 
1875,  but  went  backward  till  they  descended  to  3.30  marks  again. 
In  1879  a  system  truly  Protectionist  was  inaugurated.  From  that 
time  on  wages  went  up  from  3.57  marks'  in  1882  to  3.71  marks  in 
1888,  4.06  marks  in  1892,  4.10  marks  in  1895,  and  4.78  marks  in 
1900.  The  conclusion  drawn  by  the  Chamber  of  Commerce  experts 
from  the  facts  cited  is  that  wages  remained  practically  at  a  stand- 
still during  the  years  1875-1879,  just  preceding  the  Protectionist 
era,  while  the  advance  during  the  later,  or  protection,  period  was' 
fully  58  per  cent.  To  meet  the  objection  that  foods  have  gone  up 
faster  than  wages,  thus  neutralizing  the  increased  purchasing 
power  of  the  laborer,  the  Chamber  shows  that  the  foods  consumed 
by  the  laboring  classes  dropped  as  follows':  Bread,  20  per  cent; 
potatoes,  29  per  cent;  while  beef  increased  only  5  per  cent;  veal, 
21  per  cent,  and  pork,  27  per  cent. 


64 


IM'IMKTAL   GROW 'I  H     IN     l\oi.\\l>     \Mi    UNITED    STATES. 


INDUSTRIAL  GROWTH  IN  ENGLAND  AND  UNITED 
STATES  COMPARED. 

In  ;in  article  on  occupation  :is  a  test  of  prosperity,  the  Fort- 
nightly Review  presents  statistics  to  show  that  during  the  twenty 
years.  1NN1  and  l!iol,  the  increase  in  the  Dumber  of  persons  en- 
gaged in  the  leading  industries  of  Great  Britain  lias  not  in- 
creased in  proportion  to  the  population,  and  on  this  showing  it 
bases  an  argument  in  favor  of  tariff  reform.  Without  entering 
into  the  economic  discussion  which  is  the  occasion  of  the  Fort- 
nightly Keview's  article,  it  is  of  value  to  compare  the  statistics 
of  Great  Britain  with  those  of  the  United  States  in  this  matter 
of  the  number  of  persons  engaged  in  the  leading  industries. 

Such  a  comparison  is  in  every  way  gratifying  to  this  country. 
It  shows  conclusively  that  the  industrial  growth  in  the  United 
States  has  been  much  more  rapid  than  in  England  in  the  past 
twenty  years.  In#that  time  the  percentage  of  increase  in  popula- 
tion in  the  United  States  has  been  52  and  in  England  about  25, 
and  yet  in  eight  selected  industries  the  increase  in  the  number 
of  persons  engaged  in  them  has  been  in  the  United  States  56 
per  cent  and  in  England  only  6.7  per  cent.  In  other  words,  in 
these  industries  the  number  of  persons  engaged  has  increased 
more  rapidly  than  the  population  in  the  United  States,  while  in 
England  the  increase  is  very  much  less  than  that  in  the  popula- 
tion. In  order  to  show  this  more  clearly  the  following  tables 
are  given  to  exhibit  the  number  of  persons  engaged  in  eight  in- 
dustries in  1880  and  1900  in  the  United  States  and  in  1881  and 
1901  in  England  and  Wales,  with  the  percentages  of  increases 
in  both  instances : 

Number  of  persons  engaged  in  eight  industries  in  England. 


1881. 

1901. 

In- 
crease. 

Perct. 
of  inc. 

552.000 

224.000 
68.000 
84,000 

201,000 
13,000 
65.000 

240,000 

582,000 
251,000 

93,000 

122,000 

216.000 

5,000 

39.000 
236,000 

30,000 
27,000 
25.000 
38,000 
15.000 
*8.000 
*26,000 
*4,000 

5.4 

12.0 

36.8 

45.2 

7.4 

*61.0 

Silk 

*40.0 

♦1.6 

Total. . .                        

1,447,000 

1.544.000 

97,000 

6.7 

25.0 

♦Decrease. 
Number  of  persons  engaged  in  eight  industries  in  the  United  States. 


1880. 

1900. 

In- 
crease. 

Perct. 
of  inc. 

185.000 

111,000 
24,000 
63.000 

159.000 

484 

31,000 

105,000 

303.000 
143.000 

53.000 

100,000 

266,000 

3,283 

65,000 
126.000 

118,000 
32,000 
29,000 
37,000 

107,000 
2,799 
34,000 
21,000 

62 

28 

120 

59 

67 

578 

109 

20 

\ 

678,484 

1.059,283 

380.797 

56 

52 

THE   TARIFF, 


65 


SHARE  OF  THE  IRON  AND  STEEL   MANUFACTURES  PRO- 
DUCED BY  THE  UNITED  STATES  STEEL  CORPORATION. 

The  table  which  follows  shows  the  share  of  iron  ore  and  iron 
and  steel  produced  in  the  United  States  in  the  calendar  year  of 
1002,  by  the  United  States  Steel  corporation  and  by  independent 
companies.  This  table  has  been  prepared  with  great  care  by  the 
Secretary  of  American  Iron  and  Steel  Association,  Mr.  James  M. 
Swank,  and  its  accuracy  cannot  be  called  in  question.  Mr.  Swank 
is  and  has  been  for  many  years  an  accepted  authority  in  the  United 
States  on  all  matters  pertaining  to  iron  and  steel  production  and 
this  statement  prepared  by  him  is  Vherefore  of  special  value  in  in- 
dicating the  share  of  iron  and  steel  product  of  the  United  States 
produced  by  the  United  States  Steel  corporation  and  by  independ- 
ent companies,  respectively.  It  will  be  seen  that  of  the  finished 
rolled  products  of  iron  and  steel  produced  in  the  United  States 
in  1002.  50.8  per  cent  was  produced  by  the  United  States  Steel 
Corporation  and  40.2  per  cent  by  independent  companies.  The 
table  is  especially  important  in  its  relation  to  the  question  of 
control  of  prices  by  this  greatest  of  industrial  corporations.  The 
fact  that  practically  one-half  of  the  iron  and  steel  products  of  the 
United  States  are  produced  by  independent  companies  in  com- 
petition with  this  single  organization,  suggests  the  impracticabil- 
ity of  control  of  prices  by  even  this  greatest  of  the  manufacturing 
combinations  of  the  United  States.  A  similar  table  prepared  by 
Mr.  Swank  for  the  year  1001  shows  similar  results.  The  table 
for  the  year  1003  is  not  yet  available  and  the  table  covering  con- 
conditions  in  1002  is  presented  as  the  latest  available  data.' 
Statistics  of  the  United  States  Steel  Corporation  for  1902. 
[From  Bulletin  of  American  Iron  and  Steel  Association,  Jan.  25,  1904,] 
With  the  single  exception  of  iron  ore  the  statistics  presented 
below  have  been  carefully  compiled  from  the  returns  of  production 
made  to  the  American  Iron  and  Steel  Association  for  the  whole  of 
the  calendar  year  1902  by  all  the  constituent  companies  of  the 
United  States  Steel  Corporation  and  by  all  other  iron  and  steel 
manufacturing-  companies.  The  statistics  of  iron  ore  shipments 
and  production  by  the  Corporation  in  1902  have  been  obtained  from 
the  Corporation  itself.  Other  statistics  of  iron  ore  production  have 
been  obtained  from  the  Census  Bureau,  and  other  statistics  of  iron 
ore  shipments  have  been  obtained  from  the  Iron  Trade  Review,  of 
Cleveland,  Ohio. 


Iron  ore  shipments  and 

production  in  the  calendar 

year  1902.    Gross  tons. 

By  U.  S. 

Steel 

Corporation. 

By  inde- 
pendent 
companies. 

Total  ship- 
ments and 
production. 

Percentage 
of  U.S.  Steel 
Corporation. 

Shipments  of  iron  ore  from 
the    Lake    Superior  re- 
gion in  1902.. 

15,836,806 
16,063.179 

11.734,315 

19,288.256 

27,571,121 
35,351,435 

57.4 

Total  production  of   iron 
ore  in  1902 

45  4 

Iron  and  steel  actually 

produced  in  the  calendar 

year  1902.    Gross  tons. 

Production 
•i.vU.S.  Steel 
Corporation. 

Production 
by  indepen- 
dent comp's. 

Total 
production. 

Percentage 
of  U.S.  Steel 
Corporation. 

Bessemer,  basic,  and  low- 
phosphorus  pig  iron 

Spiegeleisen  and  ferro- 
manganese 

7,733.724 
172,718 

69,088 

4,698,034 
40,263 

5,107,480 

12,431,758 
212,981 

5.176.568 

62.2 
81  1 

Forge,  foundry,  malleable 
Bessemer,  and  all  other 
kinds  of  pig-  iron 

1.3 

Total   pig-   iron,  including 

9.845.777 

17,821,307 

manganese 

7,975.530 

44.8 

Bessemer  steel  ingots  and 

6,759,210 

2,984.708 

2,379,153 

2,703,021 

9,138,363 

5,687,729 

74.0 
52.5 

Open-hearth    steel  ingots 
and  castings 

Total  Bessemer  and  open- 
hearth  steel  ingots  and 
castings 

9.743.918 

5,082,174 

14,826,092 

65.7 

Bessemer  steel  rails 

Structural  shapes 

1,920,786 
753.481 

1,583,865 
1,126,826 

1.701.700 

1,014,606 
546,845 

1,081,544 
447,467 

3.766,996 

2,935,392 
1,300,326 

2.665.409 
1,574,293 

5,468,696 

65.4 
57  9 

Plates  and  sheets,  includ- 
ing black  plates  for  tinn- 
ing  

59.4 

Wire  rods 

All   other  finished   rolled 
products,  including  bars, 
skelp.    cut   nails,    open- 
hearth   steel    rails,   iron 
rails,  etc 

31.1 

Total  of  all  finished  rolled 
products 

7,086,658 
7,122,354 

6,857,458 
3,859.892 

13.944,116 
10.982,246 

50.8 
64.9 

Wire  nails,  kegs  of  100  lbs.. 

i 


66 


I  III       I  \  Kl  1  1  . 


rrioon  of  BotKM  ami  Shoes  Under  the  Wilson  and  Dlngley  Tariffs— 
The  Duty  on  Hides  Did  Not  Affeet  Prices. 

This  table  shows  the  wholesale  prices  of  boots  and  shoes  ol 
various  grades,  in  each  quarter  of  each  year  from  th<>  be 
ginning  of  1897  to  1004.  The  Dingley  ijct  placed  a  duty  of  l: 
per  cent  on  hi<lt»s  of  cattle,  and  it  was,  of  course,  predicted  by  tin 
Democrats  that  this  would  advance  the  price  of  boots  and  shoes 
It  will  be  seen,  however,  from  a  study  of  this  table,  that  there  was 
no  advance  during  the  first  four  years  of  the  operation  of  thai 
a«t.  thus  showing  thai  the  ta/iff  did  not  cause  any  increase  hi 
prices  to  the  consumer.  While  it  is  a  fact  that  there  has  been  a 
slight  advance  in  the  past  three  years,  this  has  been  due  to  the 
increase  in  wages  and  general  activity  of  business,  and  could'nol 
have  been  caused  by  the  tariff  since  no  advance  occurred  in  the 
years  immediately  following  its  application. 


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Total  vain*  of  imports  and  exports  into  and  from  the  United  States  from  October  I,  1180.  to  Junt  SO,  1909. 
(Compiled  from  publications  of  the  Bureau  of  Statistics.] 


Klaeal 
Taar 

March 

ndu*. 

fiscal 
Year. 

Administration. 

Import*. 

Kiporta. 

Rxaas*  of  Im- 
port*. 

K»ce**of*x- 

liorta 

f  1T»0  

1T91  

m* 

1T9S  

1794  

1T*6  

17*8  

'  17*7  

1TS8  

1T»*  

'  1801  '.'.'.'.'.'.". 

19*3  

18*3  

18*4  

1X06  

1800  

18*7  

1808 

'  180*  

1810 

1811  

1812 

181.1  

1814  

1815  

,  1816  

1817  '.'.'.'.'.'.'.'. 

1818  

181*  

1x30 

1831  

1832  

1823  

1824  

"  1X25  

1828  

S33.000.0O0 

iiiooo'.oec 

31.IW.000 
34.M0.000 
S9..M.3IM 
81.4.1S.I64 
76.S79.406 
ux.001.7U0 
7V.0W.14x 
(lt.SS3.7es 
11I.S63.61I 

■MMM 

85.0O*.0O0 

iro.oeo.ooo 

1S9.410.000 
188.600.000 
56.990.000 
0.1,400.000 
85.400.000 
03.400.000 

22.005,000 
•13,966,00* 
11S.04I.374 

147.103,000 

99,260.00* 
12t.760.00fl 
87,116.000 
74.460.000 
64.620.834 
7».871.»6 
72.481.371 
TS.1S9.TS2 
•v.189.31* 
79.093.511 
71,383.938 
81.02O.oxs 
67.088.916 
62.720.906 
96,885,17* 
95,121.763 
101.047.94S 

108.609,700 
1S6.764.296 
17J.5T9.154 
130.472.80S 

96.970,288 
166.496.96S 

98.268.706 
122.967,644 

98.076.071 

42.43S.4C4 
102.tSO4.6O0 
118,184.822 

117,914,000 

122.424.S49 
148.6S8.I144 
141.208.199 
173.501l..-.2<; 
210.771.429 
207.440.39X 
2SS.777.2K0 
297.803.794 
2S7.80x.708 
StO.  482.310 
S48.42X.342 
203.S3X.664 
S51.SM.S41 
S63.S16.119 
889.310.542 
189.356.677 
243.335.815 
316.447.283 
238.745.5X0 
434.812.066 
395.761.098 
357.436.440 
417.508.379 
435.968.408 
520,223.684 
826.595.077 
642.136.210 
567.406.342 
533.005.436 
460.741.190 
451,323.126 
4377061.533 
445.767.777 
667.954.746 
642.664.628 
724.639.574 
723.180.914 
667.697.693 
JS77.527.329 
635.436.1.16 
692.319.768 
"23.957.114 
745.131.652 
7X9.310.409 
844.916.196 
827.402.462 
866.400.922 
654.994.622 

731.989.965 
779.724.674 
764.730.412 

616.049.654 
697.148.489 
849.941.184 
823.172.165 
903.320.948 
1.035.719.337 

134.379.363.510 

♦20.2O6.15ll 
19.012.041 
2O.703.O9X 
2*.10».S72 
1.I.04S.720 
47.»*».872 
&8.374.S36 
81.2*4.71* 
al.S37.4tl 
78.U85.023 
7*.  971 .78* 
ilS.02t.61S 
71.957.144 
66.800.0S3 
T7.«»».0T4 
95.6S8.021 
101.650.988 
108,343.1511 

„  SmmS 

06.767,970 
61.31S.S12 
38.627.230 

27.856.017 
6,927.  Ml 
52.61.7.763 
81.S20.062 

87,671. 569 
9S.381.1S3 
70,142,521 
S9.eal.669 
64.696.873 
Ml.. 150. 101 
U8.S26.04S 
HX.972.106 
•0,788  SSS 
73.890.789 
74.80*4147 
64.021.210 
67.4S4.66t 
71.670.736 
73.396.662 
81.630.608 
87.638,732 

102.260.216 
110.215.X02 
134.838.704 
111.448.137 
104.978.570 
112.251.873 
123.668  832 
111.817.471 
*9.877,»96 

X2.S20.CS* 
106.745.X32 

ioe.OM.iii 

109,583,348 

156.741.598 
138.190.516 
140.361.172 
144.376.720 
1x8.916.269 
166,984.231 
203.489.282 
2S7.04S.764 
2lb.900.50S 
281,819.428 
298.823.7*0 
273.011,274 
292.902.061 
.133,676.067 
219.553.833 
190.670.501 
203.964.447 
158.837.088 
166.029.303 
.148.859.523 
294.506.141 
281,902.899 
286.117.697 
392.771.768 
442.830.178 
444.177.586 
522.479.922 
586.283.040 
513.442.711 
540.384.671 
602.475.220 
694.865.766 
710.439.441 
835.638.658 
902.377.346 
750.642.257 
83.1.839.402 
740.513.609 
743.189.755 
679.524.830 
716.183.311 
695.954.507 
742.401.375 
857.828.684 
884.480.810 
1.030.278.148 
847.665.194 
892,140.572 

807.538.16", 
XX2.606.938 
1.050.993.556 

1.231.483.330 
1.287.033.302 
1.394.483.082 
1.487.704.991 
1.381,719.401 
1.480.141.679 

S37.863.335.440 

♦3.794.S44 
10.1X7,969 
I0.7M.M2 
4.W0.42S 
1.6*6.276 
31.7M.SM 
22.HS1.6S9 

'7M*',tm 
403.S2U 
J0.380X" 
18.343.9** 
4.S7..18* 
8.SM.6SS 

26;0S.1>79 
27.873.*37 
SO.lOO.Xill 
S4.660.V40 
7.1M.TS7 
18.042.0.10 

M.oiri'w 

*,0ST.5*i> 

66.483.521 
60,1X3.948 

11.078.4.11 
28.4UX.KU7 
16.1W3.479 
4.758.SS1 



1790  

17*1  

17*2  

IT**  .., 

17*4  

IT**  ._ 

17**  

17*7  

17*8  

17»*  

ixtt 

1M1  

18*2 .... 

1803  

18*4 

1X*6  

18*7  '.'"".'.'.'. 

1808 

180* 

181*  .„ 

1811  

1812  

IXIS    

1814  „ 

1816 

1816  

1817  

1818  

Wuhlnjton  (Apr.  SO. 
1T89,  to  Mar.  4, 1T*T). 

John  Adams  (Mar.  4. 
1797.  to  Mar.  4. 1801). 

Jaffonon  (Mar.  4. 1801. 
to  Mar.  4. 180S) .'. 

.  Foruiatlvopwlod. 

MadUon  (Mar.  4. 1809, 
lo  Mar.  4. 1817; 

•7.MU.8S2 
6,801,017 

1  Protective  tariff 

V    (Joljr  1. 1813.  to  Job* 

J     SO.  181*). 



n,«H 

to  Mar.  4, 1820 

1X20  

1*21  

1X22  

Low  tariff  (June  so. 

18,031.6*4 
.4.l6a,.128 
3.197.097 

J.  Q.  A. lam«  (Mar.  4. 
1826.  to  Mar.  4,  1x29) 

V64V.023 

umjm 

1825  

1X2S  

6,303,723 

182X  

16.9*8.873 

1828  

1X29  

18S*  - 

Trotcetlr.  tariff  (Jna* 
so.  1824.  to  Mar.  8. 
1XSS). 

346.736 
8,949.77* 

1831  

1882  

1855  

1834  

1830  

1856  

'18J7  

1888  

188*  

18*0  

'  1841  

1843  

184S  

1844  

28.689.627 
13.001.15il 
18,619,211 

lt.:H!l.4R6 
21,648,49:1 
02.240.400 
19.029.07B 

JiirkaoB  (Mar.  4.  )--"■>. 

%$£&& 

lx:;2  

18SS 

18S4  

1836  

1880  

18.17. 

1S3X  

1839  

1840 

1X41  

1X42  

1843  

Van  Rnren  (Mar. 4. 

1837,  to  Mar.4, 1841).. 

. Low  tariff  (Mar.i.lMS. 

44.245.88S 

26.410.22il 

"iss;»M 

40.392.220 
3.141.220 

84.S17.249 

W.  H.  Harri«on-Tyl« 

11.140.071 

4.1846) ., 

7.144.811 
8,3*0,817 

1845  

18«  

1847 

1K4X  

1M9  

I860  .'. 

f    (A  OK.  .10.  li«s,toD*c. 

I'olk  (M»r.  1.  1846.  to 

1846  

Low  tariff*  (Dai.  1. 
1     184*.  to  Apr.  J.  1S«I). 

Tajlor-Filloio™  (Mar. 

10.448.129 
XOT..027 
291S3.800 
21.X5tS.l70 
40.466,107 
60.387.91*! 
60.760.030 
38.890,306 
39.313.887 
64.604.582 

38,43'i!29t 

20.040,063 
69.756.709 

1X.VI   

1864  

1850  

1X56 

1867 

1868  

186*  

1860  

1861   

18S3  

1363 

1864   ...... 

18*5 

1866  

1867 

I8S8  

1869 

1870  

1871    

1873  

1873  ....... 

1874  

1875  

1X86 

1877  .... 

1878     

I8T9  

1880    

1881    

I8B2' 

1X83  

1X84   

18K5 

18X6   ...... 

1887  

mas  ;;;"' 

1890  

1891     

1892  

1893  

1894  

1895  

1896  

1897  

1899  ..:::. 

1900  

1901   

1908 

1903 

Mar  4.1857) 

1864  

Low  tarlffa  (Dm.  1. 
184U.  to  Apr.  1.  18*1). 

*mSm 

Buchanan  (Mar.  4. 
1867.  to  Mar.  4.  Ixtsl). 

'  1867  

1868 

1859 

18*0  

"1861   

1862  

1863 

1864  

1865     

1866  

1867  

.  1868  

1870  '.'..'.'.. 

1871    

187*  ....... 

1873  

1874  

1875  

,  1876  

1877     

1878 

1879  ..   . 

1880  .       .. 

1881  ...     . 

1882  ...     . 

1883  

,   1884  

1885  

1887  ;:;;:: 

.  1888  

1889 

1890  

1891   

.  1891  

1893  

1894  

1895  ...  . 

.  1896  

1897  

1898  

1899 

'  1901   .'.'.'.'.'. 

1908 

1903     ..     . 

Uncoln-Johnson 
(Mar.  4. 1861.  to  Mar. 
4.1899)    

♦  l.SIS.834 

39.371 .36X 
I57.609.29.-. 
72.716.877 
80.952.544 
101.254.955 
75.483.S41 
131.3X8,683 
43.186.640 
77.4011.506 
1X2.417.191 
119.656.28X 

""    19.562.725 

Urant  (Mar.  4.  1869.  to 
Mar.  4.  1877) 

i8.876'.0»8' 

Haves  (Mar.  4. 1877.  to 
Mar.  4. 1881) 

Oartleld-Arthur 
(Mar.  4.  18X1.  to  Mar. 

79.643.481 
151.153.094 
257.814.834 
364.661.666 
167.683.912 
259.712.718 

85.902.683 
100.658.488 

72.815.916 
'   164.662.426 

44.088.694 

83.863.413 

Protective  tariff* 
U,,M.,„,.WA«* 

Cleveland  (Mar.  4. 
1885.  to  Mar.  4.  18x9) 

Benjamin  Harrison 
(Mar.  4.  1889.  to  Mar. 

jw.tmow 

2.780.877 

68.518.375 
39.564.614 
803.875.686 

837.i45.950 

76.568.300 
102.882.264 
386.363,144 

615.433.676 
539.874,813 
544.541.898 
664.593.886 
478.398.453 
394.488.443 

•3.584.071.930 

Cleveland  (Mar.  4. 
1893.  to  Mar.  4.1x97). 

18'.735.728' 

I  Low  tariff  (Aug-.  88. 
J-     1894.  to  July  84. 1897). 

1897.  to  Sept.  14.1901) 

i  Protective  tariff 

Roo«evelt  (Sept.  14, 

Total 

THE  TARIFF. 


69 


!  expenditures  of  the  United  Stake  Government  from  1791  tol90S. 

(From  official  reports  at  U»  Unite!  SUM  rtovert 


70  THE    BRITISH     I  \UIIK. 

THE   BRITISH   TARIFF. 

[Hon.  J.  T.  McCleary,  of  Minnesota,  in  Congressional   Record.] 

Since  "LS40  Great  Britain  lias  collected  her  duties  on  imports 
under  the  policy  advocated  by  the' Democratic  party.  Let  us  see 
how  the  policy  is  operated  there  and  what  the  results  are. 

For  the  information  at  those  who  may  not  have  convenient 
access  to  the  Statesman's  Year  Book,  I  submit  the  following  table 
Showing  the  sources  of  revenue  of  the  government  of  Great 
Britain  for  national  purposes  for  the  fiscal  year  ending  March  31, 
1908,  the  latest  for  which  data  can  be  had.  (In  the  Year  Book 
the  amounts  are  expressed  in  pounds  sterling.  A  pound  sterling 
is  worth  a  few  cents  less  than  $5.  For  convenience  of  compu- 
tation I  have  called  it  exactly  $5  in  translating  the  English  money 
into  American  money  for  the  purposes  of  this  table.) 

Customs  duties: 

Duties  on  exports— coal $9,958,835 

Duties  on  imports: 

Tobacco 62.257,365 

Tea 29,877,410 

Sugar,  glucose,  etc 22,393,535 

Grain,  etc 1 1,733,980 

Rum ■ 11,149,365 

Wine 7,619,280 

Brandy 6,405,57r> 

Other  spirits 6,143,965 

Raisins 1,024.555 

Coffee 893,140 

Cocoa 774,605 

Currants 577,620 

Other  articles 1,495,120 

Total  revenue  from  customs  duties 172,304,350 

Excises: 

Spirits 90,821,795 

Beer 66,319,450 

Other  sources 3.598.115 

Total  revenue  from  excises 160,739,360 

Estate,  etc.,  duties: 

Estate  duties 48,501,810 

Legacy  duty 15,008.965 

Succession  duty 4.828.365 

Corporation  duty 219,235 

Total  revenue  from  estate  duties,  etc 68558.375 


Stamps  (excluding  fee  stamps,  etc.): 

Deeds 19499,915 

Receipts 7,642,3 1 5 

Bills  of  exchange 3.498.545 

Companies'  capital  duty 3123,795 

Patent  medicines 1,666,855 

Insurances 1437,745 

Bonds  to  bearer 1,051 ,  145 

Licenses,  etc 858,685 

Other  sources 21319,015 


Total  revenue  from  stamp  taxes 41*093,015 

= 

Land  tax 3803,770 

House  duty $168,855 

Property  and  income  tax 193^29,230 

Total  revenue  from  taxes 648J966.455 

The  above  does  not  include  the  revenue  received  from  the  nost- 
office  and  the  telegraph,  from  the  crown  lands,  from  interest  on 
Suez  Canal  shares  owned  by  the  British  government,  from  fee 
stamps,  from  the  mint,  from  the  Bank  of  England,  and  from 
various  other  sources,  amounting  in  all  to  $108,103,490,  nonejof 
which  can  properly  be  regarded  as  taxes. 

Thus  the  grand  total  of  national  revenue  in  the  British  Isles  rpr 
the  fiscal  year  ending  March  31,  1903,  from  all  sources  except 
money  borrowed,  was  $757,067,945.  * 

It  is  to  be  remembered  that  these  are  the  revenues  of  the 
national  government  for  meeting  national  expenses,  such  as  in- 
trest  on  the  public  debt,  the  support  of  the  army  and  the  navy, 


THE  BR]  MM  l    I  ABIFF.  7| 

and  for  civil  administration,  including  the  post-office  and  the  tele- 
graph, It  does  not  include  the  sums  raised  for  local  purposes, 
except  a  few  small  sums,  mainly  those  in  the  way  of  government 
aid  to  schools.  Nor  does  it  include  sums  raised  for  the  support 
of  colonies,  most  of  the  colonies  being  self-supporting,  and  many 
of  them  being  practically  self-governing. 

I  have  given  these  figures  simply  because  in  Great  Britain  is 
found  the  best  exemplification  in  the  world  of  "a  tariff  for  reve- 
nue only,"  the  goal  toward  which  our  Democratic  brethren  pro- 
fess to  be  headed. 

Several  things  are  noteworthy.  / 

In  the  first  place,  considering  only  national  taxation  proper 
(omitting  direct  payments  to  the  government  for  direct  services, 
like  the  postal  revenues  and  such  things),  the  total  national  reve- 
nues of  Great  Britain  amounted  last  year  in  round  numbers  to 
$048,000,000,  or  about  $10  per  capita,  while  in  the  United  States 
they  amounted  to  $284,479,582  from  customs,  $230,810,124  from 
excises,  and  about  $3,000,000  from  other  sources — in  all  to  about 
$518,000,000,  or  less  than  $6.50  per  capita.  That  is,  with  twice 
as  maay  people  we  collected  for  national  purposes  $130,000,000 
less  tlan  did  Great  Britain.  In  other  words,  our  taxation  for 
national  purposes  is  considerably  less  than  half  as  heavy  in'  pro- 
portion to  population  as  that  of  "free  trade"  England. 

By  the  way,  in  these  indisputable  facts  there  is  very  little  com- 
fort for  those  who  have  a  sort  of  vague  notion  that  free  trade  as 
illustrated  in  Grjeat  Britain  would  in  some  way  mean  freedom 
from  taiation  for  national  purposes.  As  a  matter  of  fact,  investi- 
gation shows  that  the  cost  per  capita  for  the  support  of  our  na- 
tional government  is  smaller  than  that  of  any  other  civilized 
country  in  the  world. 

In  tie  second  place,  it  will  be  noted  that  the  customs  duties  in 
Great  Britain,  including  the  export  duty  collected  on  coal,  amount 
to  about  $4.30  per  capita,  while  in  this  country  the  total  amount 
of  custons  duties  amounts  to  only  about  $8.50  per  capita. 

In  tie  third  place,  the  table  above  reveals  how  few  are  the 
articles  going  into  Great  Britain  upon  which  the  tariff  duties  are 
collected ;  that  is,  how  few  are  the  articles  the  like  of  which 
they  dc  not  produce  in  Great  Britain,  and  consequently  the  enor- 
mous amount  that  must  be  produced  on  each  of  those  few  items. 
As  a  result,  the  rates  of  duty  in  Great  Britain  are  very  greatly 
higher  than  those  in  the  United  States. 

In  the  fourth  place,  it  will  be  noted  that  many  of  these  articles 
on  which  these  enormously  high  rates  of  duty  are  laid  are  what 
may  je  regarded  as  necessaries  of  the  poor  man's  table — tea,  sugar, 
raisiis,  coffee,  cocoa,  currants,  etc.  So  that  it  is  evident  that  the 
poor  man  feels  every  day  as  a  great  burden  the  British  policy  of 
"a  tariff  for  revenue  only." 

At  a  matter  of  fact,  our  people  simply  would  not  tolerate  in 
timet  of  peace  such  burdensome  taxation  on  the  necessaries  of 
life. 

Customs  Tariff  of  the  United  Kingdom. 

[Retirn  showing-  the  several  articles  subject  to  import  and  export 
dities  in  the  United  Kingdom,  and  the  duty  levied  upon  each 
aricle,  according-  to  the  tariff  in  operation  upon  the  1st  of  Au- 
gist,  1903,  together  with  an  account  of  customs  drawbacks  and 
cistoms  charges. — Official,] 

Import  Duties.  Rates  of  duty. 

Articles.  £   s-    d- 

B<er  of  the  descriptions  called  Mum,  Spruce, 
or  Slack  Beer  and  Berlin  White  Beer,  and 
otler  preparations,  whether  fermented  or 
no  fermented,  of  a  character  similar  to  Mum. 
Sjruee,  or  Bl*ck  Beer,  where  the  worts 
ttureof  were,  before  fermentation,  of  aspeci- 
fk  gravity- 
Tot  exceeding  1215° ]   £°JS2K    f  '    1S     ° 

Exceeding  1215° : 1M7     6 

Ber  of    any    other    description  where  the 

worts  thereof  were,  before  fermentation, 

of  a  specific  gravity  of  1055° 0     8     0 

And  so  on  in  proportion  for  any  dif erence 
h  gravity. 
Jards,  playing the  doz. packs  0     a     9 


THE    BRITISH     TAUIKK. 


Articles. 
Chicory:— 

Raw  or  kiln-dried 

Roasted  or  ground 

Chicory  (or  other   vegetable    substances) 
and  Coffee,  roasted  and  ground;  mixed.... 

Chloroform 

Chloral  hydrate 

Cocoa 

Husks  and  shells 

Cocoa    or  chocolate,   ground,   prepared,   or 

in  any  way  manufactured 

Cocoa  butter 

Coffee 

Kiln-dried,  roasted,  or  ground 

Collodion 

Ether  acetic 

butyric 

sulphuric 

Ethyl  bromide 

'     chloride 

"     iodide 

Fruit,  dried,  or  otherwise  preserved  without 
sugar: — 

Currants 

Pigs  and  fig  cake,  French  plums  and  prunel- 
loes.  dried  plums  not  otherwise  described, 

prunes  and  raisins 

Note.— Tinned  and  bottled  apricots  in 
syrup  or  water,  and  apricot  pulp,  are  not 
liable  to  duty  as  preserved  plums. 

Apricots,  crystalized  or  glace,  are  not 
embraced  in  this  exception,  and  must 
therefore  be  assessed  to  duty  at  the  rate 
of  7  s.  the  cwt. 

See  fruit  liable  to  duty  as  such  pre- 
served with  sugar. 

Green  figs  preserved  in  water  to  which 
no  sugar  has  been  added,  are  assessed 
to  duty  at  7  s.  the  cwt.  on  the  weight  of 
figs  without  squeezing  out  the  contained 
water. 

Plums  include   apricots,    greengages, 
and  mirabellas. 
Fruit  liable  to  duty  such  as  preserved  with 
sugar^see  sugar. 

Glucose,  solid 

liquid 

Molasses  and  invert  sugar  and  all  other  sugar 
and  extracts  from  sugar  which  cannot  be 
completely  tested  by  the  polariscope  and  on 
which  duty  is  not  otherwise  charged  :— 
If  containing  70  per  cent  or  more  of  sweet- 
ening matter 

If  containing  less  than  70 per  cent  and  more 

than  50  per  cent  of  sweetening  matter. . 

If  containing  not  more  than  50  per  cent  of 

sweetening  matter 

Saccharin  and  mixtures  containing  saccharin, 

or  other  substances  of  like  nature  or  use 

Note.— Saccharin  and  mixtures  containing 
saccharin  or  other  substances  of  like  na- 
ture or  use  must  not  be  imported  into 
the  United  Kingdom  in  packages  con- 
taining less  than  11  lbs.,  and  must  not  be 
packed  with  goods  of  any  other  descrip- 
tion, and  must  be  specially  reported  and 
imported  and  entered  for  warehousing 
at  the  following  ports  only:— 

Dover,  Folkstone,  Goole,  Grangemouth, 

Grimsby,  Harwich,  Hull,  Leith,  London, 

Newhaven,     Southampton,     and    West 

Hartlepool. 

Soap,    transparent,   in   the    manufacture   of 

which  spirit  has  been  used 


Spirits  and  strong  waters:— 
For  every  gallon  computed  at  hydrometer 
proof  of  spirits  of  any  description  (except 
perfumed  spirits)  including  naphtha  or 
methylic  alcohol,  purified  so  as  to  be  pot- 
able; and  mixtures  and  preparations  con- 
taining spirits:— 
Enumerated  spirits: 

Brandy the  proof  gallon 

Rum^. 

Imitation  rum 

Geneva 

Additional  in  respect  of  sugar  used  in 
sweetening  any  of  the  above  tested  for 
strength,  if  sweetened  to  such  an  ex- 
tent that  the  spirit  thereby  ceases  to 
be  enumerated  spirit. ..the  proof  gallon 
Unenumerated  spirits: 

Sweetened the  proof  gallon 

(Including  liqueurs,  cordials,  mixtures. 
and  other  preparations  containing  spirits, 
if  tested.) 


the  cwt. 
the  lb. 


the  cwt. 
the  lb. 

the  cwt. 

the  lb. 
the  gallon. 

the  lb. 
the  gallon. 

the  lb. 
the  gallon. 


the  oz. 


the  lb. 


Imported  in 

casks. 


Kates  ol 

duty. 

£ 

s. 

(1. 

0 

13 

:< 

0 

0 

2 

b 

0 

2 

o 

1 

8 

0 

1 

4 

0 

0 

1 

0 

2 

0 

0 

0 

2 

0 

0 

1 

0 

II 

0 

0 

0 

2 

1 

8 

8 

II 

1 

11 

0 

It! 

5 

1 

1 

5 

0 

i 

1 

0 

10 

5 

0 

1 

8 

0     2 
0     2 


0     2      9 
0     l     0 

0      10 


1    3 


Importedn 
bottles 
£    s. 


0 

11 

4 

0 

11 

i 

0 

11 

5 

0 

11 

5 

0 
0 
0 
0 

IS 
12 
12 
it 

1 

0 

0 

2 

0 

12 

7 

THE    BRITISH    TARIFF. 


73 


Articles. 

Not  sweetened the  proof  gallon 

(Including  liqueurs,  cordials,  mixtures, 
and  other  preparations  containing  spirits, 
provided  such  spirits  can  be  shown  to  be 
both  unenumerated  and  and  not  sweet- 
ened; if  tested.) 
Liqueurs,  cordials,  mixtures,  and  other  pre- 
parations containing1  spirits  in  bottle,  en- 
tered in  such  a  manner  as  to  indicate  that 

the  strength  is  not  to  be  tested 

the  liquid  gallon 

Perfumed  spirits 

Any  importations  of  naphtha  or  methylic  al- 
cohol purified  so  as  to  be  potable  are  taken 
under  the  heading  of  unenumerated  spir- 
its. 
The  minimum  legal   sizes   of   packages   of 
spirits  (other  than  spirits  imported  in  cases) 
is  in  casks  or  other  vessels  of  a  size  or  content 
of  not  less  than  nine  gallons.    . 

Upon  payment  of  the  difference  between 
the  customs  duty  and  charges  on  foreign  spir- 
its, and  the  excise  duty  on  British  spirits,  for- 
eign spirits  may  be  delivered  under  certain 
conditions  for  methylation  or  for  use  in  art  or 
manufacture. 

Sugar:— 

Not  exceeding  76  degrees  of  polarization. . . 

Exceeding  76  and  not  exceeding  77 

77  "  "     78 

78  "  "     79 

79  "  "     80 

80  "  "     81 

81  "  "     82 

82  "  "     83 

83  "  "     84 

84  "  "     85 .-. 

85  "  "     86 

86  "  "     87 

87  "  "  88 

88  "  "  89 

89  "  "     90 

90  "  "     91 

91  "  "     92 


97 


Blacking,  liquid,    containing   sugar  or  any 

other  sweetening  matter ~    . . . 

(Together    with  the  duty  on  any   proof 
spirit  contained  therein.) 
Note.— An  additional  %d.  a  lb.  is  chargeable 
in  respect  of  any  of  the  undermen- 
tioned sugar  articles  in  the  manu- 
facture of  which  spirit  has  been 
used.    Confectionery  in  the  manu- 
facture  of   which   a   greater  per- 
centage of  spirit  has  been  used  than 
that  covered  by  the  spirit  charge  of 
Md.  the  lb.  shall  be  chargeable  with 
a  spirit  duty  rate  of  Id.  the  lb.,  or 
such  spirit   duty   rate  as   analysis 
may  show  to  be  necessary. 
Blacking,  solid,  containing  sugar  or  any  other 

sweetening  matter 

Candied  or  drained  peel 

Caramel,  solid 

liquid 

Cattle  foods,  on  the  entry  for  which  the  im- 

'     porter  declares  that  duty  on  the  quantity 

of  sweetening  matter  used  in  the  manuf  ac- 

ture  of  goods  did  not  exceed  the  rate  of 

•"  6d.  the  cwt 

Cattle  foods,  other  cattle  foods  containing 

molasses  or  other  sweetening  matter 

Cherries,  drained,  imported  in  bulk 

Chutney 

Cocoanut  sugared ...... 

Confectionery  containing  chocolate,  viz.  :— 
When  the  chocolate  exceeds  50  per  cent  of 

the  total  net  weight 

"When  the  chocolate  does  not  exceed  50  per 

cent  of  the  total  net  weight 

Confectionery,  hard,  such  as : — 
Caraway  seeds,  &c 


Imported  in 

casks. 
£    s.    d. 
0    12     5 


the  cwt. 


Imported  in 

bottles. 
£  s.  d. 
0    11     5 


0    16     4 
0    19      1 


Rates  of  duty. 
£  s.  d. 
2 
9 
2 
9 
2 
9 
2 


0 

0.8 

1.6 

2.4 

3.2 

4.0 

4.8 

5.6 

6.5 


0     "2     7.4 


8.3 
9.2 
10.2 
11.2 
0.4 
1.6 
2.8 
4.0 
5.2 
6.4 
7.6 
8.8 
10.0 
2 


0      1      0 


0  1  0 

0  3  0 

0  4  2 

0  3  0 


0 

0 

6 

0 

0 
0 
0 

1 

2 
2 
2 

0 
3 
0 
0 

the  lb. 

0 

0 

2 

" 

0 

0 

VA 

he  cwt. 

0 

4 

2 

74-  I  in      BR]  I  [SB     i  Mill  I  . 


Articles. 

Confectionery,  soft,  viz.  :— 

A.  B.  Cuius  imported  in  bulk,  in  barrels  or 
cnses.  on  the  entry  for  which  the  import- 
er has  declared  that  duty  on  the  com- 
bined quantity  of  sugar  and  glucose  used 
in  the  manufacture  of  the  goods  did  noi 

exceed  the  rate  of  2s.  the  cwt the  cwt  o     5    0 

Confectionery,  other  A.  B.  gums,  caramels, 

ehewing  gums,  jelly  beans,  Turkish  delight. 

&c I)      3     0 

Confectionery  made  from  sugar  and  contain- 
ing no  other  ingredients  except  flavoring. ..  0     4     2 
Confectionery,  Licorice— if  declared  by  the 

importer  not  to  contain  more  than  30  per 

cent  of  added  sugar  or  other  sweetening 

matter,  subject  to  occasional  sampling  and 

testing 0     l     3 

Flowers,  as  violets  and   rose  petals,   &c,  in 

crystallized  sugar,  as  crystallized  fruit 0     4     2 

Fruit*  canned  and  bottled,  other  than  fruit 

liable  to  duty  as  such,  preserved   in   thin 

syrup 0      1     u 

Fruit  canned  and  bottled,  other  than  fruit 

liable  to  duty  as  such,  preserved  in  thick 

syrup 0      2C 

Fruits,*  crystallized,  glace  and  metz.  except 

fruit  liable  to  duty  as  such 0     4     2 

Fruits,   imitation    crystallized    (orange     and 

lemon  slices,  &c.) 0     4     2 

Fruit,  liable  to  duty  as  such,  except  currants. 

preserved  in  sugar,  or  otherwise,  whether 

mixed  with  other  fruit  or  not 0      7     0 

Fruit*  pulp,  excepting  fruit  pulp  liable  to  duty 

as  such,  preserved  in  thin  syrup 0    1     0 

Fruit*   pulp,  excepting   fruit    pulp  liable  to 

duty  as  such,  preserved  in  thick  syrup,  as 

jam the  cwt.  0      3     0 

♦Note. — Tinned  and  bottled  apricots  in 
syrup  or  water,  and  apricot  pulp,  are 
exempt  from  duty  as  preserved  plums, 
and  when  containing  added  sugar,  are 
charged  with  the  proper  sugar  rate  of 
duty  as  fruit  canned  or  bottled,  or  fruit 
pulp  in  thick  or  thin  syrup,  as  the  case 
may  be.  Apricot  jam  is  chargeable  with 
duty  at  the  rate  of  3s.  the  cwt. 

Apricots,  crystallized  and  glace,  are  not 
exempt  from  duty  as  preserved  plums. 

Green  figs  preserved  in  syrup,  are  as- 
sessed to  duty  at  7s.  the  cwt.  of  figs  with- 
out squeezing  out  the  contained  syrup, 
and  in  respect  of  the  syrup  according  to 
its  rating  of  Is.  the  cwt.  if  thin,  and  2s.  6d. 
the  cwt.  if  thick. 

Boxes  of  mixed  fruits,  such  as  "Metz 
fruits,  assorted."  and  bottles  "assorted 
fruits  in  syrup,"  containing  articles  liable 
to  two  or  more  distinct  rates  of  duty  are 
assessed  to  duty  on  the  highest  rate  for 
the  whole  weight,  but  if  the  various  kinds 
of  goods  are  packed  separately,  or  in  such 
a  manner  that  an  account  can  be  taken  of 
each  kind,  the  goods  are  assessed  to  duty 
accordingly. 

Ginger,  preserved  in  syrup  or  sugar 0     3     0 

Marmalade,   jams,  and   fruit  jellies,  if   not  <#  * 

made  from  fruit  liable  to  duty  as  such 0     3     0 

Marzipan 0     2     6 

Milk  condensed,  sweetened,  whole 0      1     8 

Milk  condensed,  sweetened,  separated  or 
skimmed 0     2     0 

Milk  condensed  slightly  sweetened,  whether 
whole,  separated  or  skimmed,  if  declared 
by  the  importer  not  to  contain  more  than 
18  per  cent,  of  added  sugar,  subject  to  oc- 
casional sampling  and  testing .0     0     9 

Milk  Powder:— 

If  declared  by  the  importer  not  to  contain 
any  added  sugar Free 

If  declared  by  the  importer  not  to  contain 
more  than  36  per  cent,  of  added  sugar the  cwt.  0      1     6 

In  all  other  instances,  and  in  cases  in  whioh 
the  importer  wishes  to  dispense  with  sam- 
pling and  testing °     3     4 

Note.— Importations  entered  as  free  will  be 
delivered  on  deposit  of  duty  at  the  Is.  6d. 
rate,  pending  analysis.  Importations  en- 
tered at  the  Is.  6d.  rate  are  liable  to  sampl- 
ing and  testing. 

Nestle's  Milk  Food 0      1     3 

Soy,    when   containing   molasses   or  other 

sweetening  matter 0      1     ° 

Sugared  Almonds:— 

On  the  entry  for  which  the  importer  had 
declared  that  the  sugarcoating  does  not 
exceed  72  per  cent,  of  the  total  net  weight  0     3     0 


THE    BRITISH    TARIFF. 


Rates  of  dut.v 
Articles.  £     s.    d. 

In  all  other  instances the  cwt.  0     4      2 

Importations  entered  at  3s.  rate  are  liable  to 
sampling-,    and    are   to    be   occasionally 
sampled  and  tested. 
Tamarinds,  preserved  in  syrup 0      10 

Other  preparations  made  with  added  sugar  )  )  Charged  under 

or  sweetening  matter  (other  than  sac-  >  >Sec.  7,  Finance 

charin) )  )       Act,   1901. 

Tea the  ft.  0     0     6 

Tobacco,  manufactured,  viz.  :— 

Cigars the  ft.  0      5     6 

Cavendish  or  Negrohead -.---. 0     4     4 

Cavendish  or  Negrohead,  manufactured  in 
bond 0     3    10 

Other  manufactured  tobacco,  viz.:— 

Cigarettes 0     3    10 

Other  sorts 0      3    10 

Snuff  containing  more  than  131bs.  of  moisture 
in  every  100  lbs.  weight  thereof 0      3     7 

Snuff  not  containing  more  than  13  fts.  of 
moisture  in  every  lOOfts.  weight  thereof..  0     4     4 

Tobacco  unmanufactured,  viz.  :— 

Containing  10  fts.  or  more  of  moisture  in 
every  100  fts.  weight  thereof . . '. 0     3     o 

Containing  less  than  10  fts.   of   moisture  in 

every  100  fts.  weight  thereof 0      3     1 

Note.— The  minimum  weight  of  packages 

of  tobacco  allowed  to  be  imported  into  the 

United  Kingdom  is  not  less  than  80  fts.  gross 

weight.    Packages  of  tobacco  must  contain 

tobacco  only,  and  under  tobacco  are  in- 
cluded  cigars,    cigarillos,    cigarettes,    and 

snuff. 
Wine  :— 

Not  exceeding  30°  of  proof  spirit the  gallon  0      1     3 

Exceeding  30°  but  not  exceeding  42°  of  proof 
spirit 0      3     i» 

And  for  every  degree  or  part  of  a  degree 
beyond  the  highest  above  charged,  an  ad- 
ditional duty  0     (i     8 

The  word  "degree"  does  not  include  frac- 
tions of  the  next  higher  degree, 

Wine  includes  lees  of  wine. 
Additional  :— 

On  still  wine  imported  in  bottles 0      1     o 

On  sparkling  wine  imported  in  bottles 0     2     6 

Export  Duty. 

Coal,  cinders,  etc.,  exported,  viz:— 

Coal  and  culm the  ton  0      1     0 

Coke  and  cinders 0      1     0 

Fuel,  manufactured 90  per  cent 

A  rebate  of  the  duty  is  allowed  on  coal,  of  export  duty 

the  value  of  which,  free  on  board,  exclusive  on  coal, 

of  duty,  is  proved  not  to  exceed  6s.  per  ton; 
and  on  fuel,  the  coal  ingredient  of  which  is 
proved  not  to  be  of  a  higher  value  than  6s. 
per  ton. 

I. — General  Customs  Order  No.  18,  of  18th  of  February,  1904,   Con- 
taining a  List  of   Customs  Duties  and   Drawbacks. 

The  list  published  in  this  Order,  embracing  all  the  changes  in 
the  Customs  Tariff  of  the  United  Kingdom,  up  to  18th  February, 
1904,  is  a  reproduction  of  the  seventh  edition  of  said  Tariff  (No.  2). 
and  first  Supplement,  as  issued  by  the  International  Customs 
Bureau,  save  the  following  exception: 

The  following  item  has  been  inserted: 

£  s.  d. 
Sugar  candy the  cwt.       0    4    2 

II. — New   Rate   of  Duty   on   Tea   and   Additional   Rates   of  Duty  on 
Certain  Descriptions  of  Tobacco. 

[General  Customs  Order  No.  40,  of  18th  of  April,  1904.] 

In  pursuance  of  a  resolution  to  be  proposed  in  the  House  of 
Commons  on  the  19th  instant,  in  lieu  of  the  customs  duty  now 
payable  on  tea  the  following  duty  is  to  be  charged  on  and  after 
Wednesday,  the  20th  instant,  and  until  the  1st  of  August,  1905,  viz.: 

£  s.  d. 
Tea ..the  lb.       0   0   8 

Under  a  further  resolution  to  be  proposed  on  the  same  date, 
in  addition  to  the  duties  now  payable  on  tobacco  of  the  following 
descriptions  under  Section  1  of  the  Finance  Act,  1898,  and  Section 
2  of  the  Finance  Act,  1900.  the  following  duties  are  to  be  levied 
on  and  after  the  20th  instant,  viz.: 

£  s.  d. 

Cigars the  lb.       00    6 

Cigarettes do.  010 

Tobacco,  unmanufactured— 

If  stemmed  or  stripped the  lb.       0    0    3 


7G  'ill!.    BRITISH     i  \i:n  i 

The  actual  duties  payable  on  these  descriptions  of  tobacco  on 
and  after  the  20th  instant  will,  therefore,  be  as  follows: 

Xs.    (I. 

Cigars the  lb.       <>    6    o 

Cigarettes tu>.        0    i  m 

Tobacco,  unmanufactured: 
If  stemmed  or  stripped— 

Containing  lOlbs.  or  more  of  moisture  in  ererj  100 lbs. 

weight  thereof .the  lb.       o   3    3 

Containing  less  than  io  u>s.  of  moist  ore  in  e\  ery  iui  n>s. 
weight  thereof .'the  lb.      0  3  7 

These  increased  duties  will  be  leviable  on  all  tea  and  tobacco 
of  the  specified  descriptions  entered  on  or  after  Wednesday  the 
20th  instant,  in  accordance  with  Section  7  (2)  of  the  Finance  Act, 
1901,  and  on  tea  and  tobacco,  previously  entered,  which  are  lying 
in  bonded  warehouses  on  that  date. 

It  should  also  be  noted,  with  reference  to  the  Customs  Code, 
paragraphs  3  and  486,  that  all  tea  and  tobacco  in  respect  of  which 
duty  has  been  paid  at  the  present  rates,  but  which  have  not  been 
delivered  from  bonded  warehouses  on  the  morning  or  the  20th  in- 
stant, will  be  liable  to  the  difference  of  duty  hereby  involved. 


The  hum  of  industry  has  drowsed  the  voice  of  calamity  and 
the  voiee  of  despair  is  no  longer  heard  in  the  United  States,  and 
the  orators  wthout  occupation  here  are  now  looking  to  the  Philip- 
pines for  comfort.  As  we  opposed  them  when  they  were  standing 
against  industrial  progress  at  home,  we  oppose  them  now  as  they 
are  standing  against  national  duty  in  our  island  possession  in  the 
Pacific President   McKInley. 

I  am  a  protectionist  because  facts  confront  us,  not  theories. 
I  have  seen  the  wage-earners  of  Great  Britain  and  continental 
Europe;  know  how  they  live;  that  they  are  homeless  and  landless 
as  far  as  ownership  is  concerned;  that  they  are  helpless  and  hope- 
less as  to  any  brighter  future  for  themselves  or  their  children; 
that  in  their  scant  wages  there  is  no  margin  for  misfortune  and 
sickness,  pauperism  being  the  .only  refuge. — Hon.  William  P.  Frye. 

Luxuries  to  the  European  laborer  are  necessities  to  the  Ameri- 
can.— Senator  Frye,  In  the  American  Economist. 

The  farmer  of  the  West  has  learned  a»d  the  farmer  of  the 
South  ought  to  learn  that  when  the  factory  is  closed  he  not  only 
loses  customers  for  his  products,  but  also  meets  additional  com- 
petitors in  his  production.  The  workman,  losing  his  employment 
in  the  factory,  settles  upon  a  truck  farm  and  becomes  a  producer 
of  the  products  he  formerly  bought  from  the  farmer.  The  pros- 
perity of  the  farmer  depends  upon  the  prosperity  of  those  who  buy 
his  products. — Hon.  P.  P.  Campbell,  in  Congress,  April  1,  1904. 

The  job  hunts  the  man,  not  the  man  the  job.  When  that  con- 
dition exists  labor  Is  always  better  rewarded. — President  McKinley. 

The  depression  and  ruin  that  was  inaugurated  with  that  tariff 
revision  by  the  Democratic  party  is  vivid  in  the  minds  of  all. — Hon. 
P.  P.  Campbell,  in  Congress,  April  1,  1904. 

A  tariff  for  revenue  only  resulted  in  cheaper  wool,  cheaper 
bread,  cheaper  everything;  there  was  no  doubt  about  that;  but  did 
cheapness  produce  happiness,  as  they  said  it  would?  No;  it  pro- 
duced misery,  just  as  we  said  it  would. — Hon.  M.  N.  Johnson,  in 
Congress,  March  24,  1897. 

L.et  us  keep  steady  heads  and  steady  hearts.  The  country  is 
not  going  backward,  but  forward.  American  energy  has  not  been 
destroyed  by  the  storms  of  the  past. — President  McKinley  before 
Manufacturers'  Club,  Philadelphia,  June  2,  1897. 

Experience  of  more  than  forty  years  in  business  has  taught 
me  that  under  a  low  or  revenue  tariff  business  depression  and 
financial  distress  has  been  the  rule,  while  under  protection  gc  Jd 
business  and  general  prosperity  has  been  the  result. — Hon.  N.  D. 
Sperry,  31.  C,  of  New  Haven,  Conn.,  in  the  American  Economist. 

A  condition  of  prosperity  came  with  the  policy  of  protection 
and  a  condition  of  adversity  came  when  the  theory  of  free  trade 
was  yielded  to  and  this  has  been  without  an  exception. — Hon.  P. 
P.  Campbell,  in  Congress,  April  1,  1904. 

We  have  lower  interest  and  higher  wages,  more  money  and 
fewer  mortgages.— President  McKinley. 


IBON   AND    STEEL    INDUSTRY.  f  7 


THE,IRON  AND  STEEL  INDUSTRY  IN  THE 
UNITED  STATES. 


The  development  of  the  iron  and  steel  industries  furnishes  am- 
ple proof  of  the  great  benefit  of  a  protective  tariff.  Before  the 
Revolutionary  War  Great  Britain  would  not  permit  these  indus- 
tries to  become  established  in  her  American  colonies.  Everything 
was  done  to  develop  manufacturing  in  the  British  Islands,  but  the 
object  was  to  prevent  the  colonists  from  manufacturing  for  them- 
selves in  order  to  compel  them  to  take  what  was  produced  in 
England  at  whatever  prices  the  home  producers  might  charge.  In 
1750  a  hatter  shop  in  Massachusetts  was  declared  a  nuisance  by 
the  British  Parliament.  In  the  same  year  an  act  was  passed  per- 
mitting the  importation  of  pig  iron  from  the  colonies  because 
charcoal,  then  exclusively  employed  in  smelting  the  ore,  was  well 
nigh  exhausted  in  England.  But  the  erection  of  tilt-hammers, 
slitting  or  rolling  mills,  or  any  establishment  for  the  manufacture 
of  steel  was  prohibited.  A  law  of  Virginia  to  encourage  textile 
manufactures  in  that  province  was  annul  led  in  England.  Lord 
Chatham  declared  that  "the  British  colonists  of  North  America 
had  no  right  to  manufacture  even  a  nail  for  a  horseshoe." 

The  act  passed  in  regard  to  manufacturing  iron  and  steel  read 
in  part  as  follows :  "No  mill  or  other  engine  for  slitting  or  rolling 
of  iron,  or  any  plating  forge  to  work  with  a  tilt-hammer,  or  any 
furnace  for  making  steel,  shall  be  erected  or,  after  such  erection, 
continued  in  any  of  His  Majesty's  colonies  in  America."  A  heavy 
fine  was  provided  for  any  person  using  any  such  "mill,  engine, 
forge  or  furnace,"  as  mentioned  in  the  act.  That  act  was  enforced 
down  to  the  beginning  of  the  Revolution.  The  export  of  wool  and 
woolens  from  the  colonies  was  forbidden  and  the  transportation 
of  iron  wares,  linens,  woolens,  paper,  hats,  and  leather  from  one 
colony  to  another  was  forbidden,  and  even  the  exportation  of  hats 
was  stopped.  The  importation  of  foreign  iron  into  England  was 
stopped  by  excessive  duties,  and  the  colonists  were  compelled  to 
buy  such  articles  as  they  might  need,  not  produced  at  home,  en- 
tirely from  the  merchants  and  manufacturers  of  England,  and, 
besides,  were  compelled  to  sell  their  produce  exclusively  in  Eng- 
lish markets.  Those  were  the  conditions  that  led  to  the  Revolu- 
tion, and  which  left  the  colonies  without  any  manufactures. 

Early  Beginnings  of  the  Industry. 

One  of  the  first  acts  of  the  American  Congress  provided  for  a 
protective  tariff,  though  it  was  a  mere  beginning  in  that  direction. 
British  legislation  from  that  time  forward  was  designed  as  before 
to  prevent  as  much  as  possible  the  growth  of  manufacturing  in 
the  United  States.  In  1816  Lord  Brougham,  in  a  speech  in  Parlia- 
ment advocating  the  increased  exportation  of  British  goods  to  the 
United  States,  declared  that  "it  was  well  worth  while  to  incur  a 
loss  upon  the  first  exportation  in  order  by  the  glut  to  stifle  in  the 
cradle  those  rising  manufactures  in  the  United  States  which  the 
war  had  forced  into  existence  contrary  to  the  natural  course  of 
things."  By  means  of  differential  duties  in  favor  of  imports  in 
English  vessels  the  British  shipping  was  favored.  In  1819  iron 
imported  into  England  in  British  ships  paid  a  duty  equivalent  to 
$32.50  a  ton  and  if  it  came  in  a  foreign  ship  it  had  to  pay  $39.62 
a  ton.  A  large  number  of  articles  were  absolutely  prohibited  from 
entering  British  ports,  or  were  subjected  to  duties  one-half  their 
value.  In  all  this  legislation  special  efforts  were  made  to  protect 
the  British  iron  and  steel  industry. 

Rapid  Development  Under  Protection. 

After  the  Revolution  the  iron  and  steel  industries  of  the  United 
States  slowly  and  spasmodically  developed,  though  foreign  com- 
petition was  severe.  A  great  deal  of  the  time  down  to  the  begin- 
ning of  the  Civil  War  the  duties  on  iron  and  steel  were  not  suf- 
ficient to  afford  adequate  protection.  With  the  enactment  of  the 
Morrill  protective  tariff  in  1861,  and  with  the  added  stimulus  of 
the  Civil  War,  the  iron  and  steel  industries  entered  upon  a  period 


78  IKo.S      \M»     SI  I  I  I       I  Mil   SI  KV. 

of  extraordinary  development  which  with  some  Interruptions  has 
continued  to  fhe  present  time,  greatly  surpassing  the  development 
of  like  Industries  in  any  other  country.  In  1860  the  United  States 
produced  821,223  tons  of  pig  iron  and  in  1890  the  production 
reached  9,902,708  tons,  and  in  1903  was  over  18,000,000  tons. 

Operation   of   Democratic  and  Republican   Tariff*. 

During  the  time  of  the  Democratic  tariff  act,  owing  to  the 
depression  in  business,  the  production  was  much  less  than  it  was 
under  the  McKlnley  tariff  law.  In  the  year  1894  only  6,657,388 
tons  of  pig  iron  were  produced,  which  was  nearly  3,000,000  tons 
less  than  were  produced  in  1890,  and  in  1896  the  production  was 
600,000  tons  loss  than  it  was  in  1890.  But  under  the  Dingley  law 
the  production  rapidly  increased  until  it  reached  the  total  of 
18,000,252  tons  in  1903.  Great  Britain  last  year  produced  only 
9,000,000  tons,  or  less  than  one-half  the  product  of  the  United 
States,  while  Germany  produced  10,000,000  tons.  In  five  years  tfaJ 
production  of  pig  iron  in  the  United  States  Increase^  seventy-five 
per  cent ;  in  the  United  Kingdom  eleven  per  cent,  and  in  Germany 
forty-three  per  cent.  Germany  and  the  United  States  each  have  a 
protective  tariff,  while  England  is  practically  on  a  free-trade  basis. 

Conditions  in  United  States  Compared  with  Other  Countries. 

The  world  consumed  in  1902  of  pig  iron  44,557,901  tons,  of 
which  forty  per  cent  was,  made  in  the  United  States.  The  same 
great  development  is  shown  in  the  production  of  steel,  of  which 
the  United  States  produced  15,000,000  tons  in  1902;  Geramny 
7,700,000  tons  and  Great  Britain  5,000,000  tons.  The  United 
States  produced  2,300,000  tons  more  than  Germany  and  Great 
Britain  combined.  In  1889  the  United  States  produced  7,603,642 
tons  of  pig  iron,  which  at  that  time  was  the  largest  production 
ever  made  in  this  country  in  one  year.  Great  Britain  produced 
in  that  year  8,322,824  tons,  and  she  had  exceeded  the  production 
in  the  United  States  in  each  preceding  year.  But  under  the  Mc- 
Kinley  tariff  the  production  of  pig  iron  increased  to  9,202,703 
tons  in  1890,  in  which  year  the  product  in  Great  Britain  fell  off 
to  7,904,214  tons.  Since  that  time  the  United  States  has  doubled 
its  production  while  Great  Britain  has  just  about  held  its  own. 
Germany,  which  went  under  a  protective  tariff  in  1879,  pro- 
duced only  4,524,558  metric  tons  (2,204  pounds)  of  pig  iron  in 
1889;  but  in  1900  Germany  had  increased  the  production  so  that 
her  pig  iron  product  was  almost  the  equal  of  that  of  Great  Brit- 
tain,  and  in  steel  she  exceeded  Great  Britain.  In  1902  Germany 
produced  of  Bessemer  and  open-hearth  steel  7,664,158  tons,  while 
Great  Britain  produced  only  4,909,067  tons.  The  United  States 
produced  14,826,092. 

Effect  of  Protective  Tariffs  Upon  the  Steel  Rail  Industry. 

The  development  of  the  steel  rail  industry  in  the  United 
States  has  been  of  enormous  benefit  to  the  country,  and  has 
demonstrated  beyond  question  the  great  value  of  the  protective 
tariff.  When  it  was  proposed  in  1870  to  place  a  duty  of  $28  a 
ton  on  steel  rails  the  Hon.  S.  S.  Marshall,  a  prominent  member 
of  the  House  of  Representatives,  earnestly  protested  against  the 
proposed  duty  because,  as  he  alleged,  it  would  so  increase  the  cost 
of  foreign  steel  rails  that  our  railroad  companies  could  not  afford 
to  import  them.  The  average  price  of  Bessemer  steel  rails  in 
this  country  at  that  time  was  $106.75  a  ton  in  currency.  The 
duty  of  $28.00  a  ton  was  imposed  in  that  year,  and  the  price 
of  steel  rails  fell  in  five  years  to.  an  average  of  $68.75  a  ton,  and 
they  never  rose  above  those  figures,  but  steadily  fell  in  most  of 
the  succeeding  years.  The  reduction  in  price,  owing  to  the  de- 
velopment of  this  industry,  has  led  to  the  substitution  of  steel 
for  iron  rails,  which  are  no  longer  manufactured  to  any  extent. 
The  durability  of  steel  rails  is  many  times  greater  than  that  of 
iron  rails,  and  this  has  enabled  the  railroads  to  increase  the  size 
and  power  of  their  engines  and  cars,  so  that  the  cost  of  transpor- 
tation has  been  enormously  reduced.  The  United  States  long 
since  became  the  largest  producer  of  steel  rails  in  the  world. 
Great  Britain  long  ago  having  fallen  behind^  Formerly  a  large 
percentage  of  the  rails  in  use  were  iron.  Now  they  are  practical- 
ly all  steel.    The  tariff  on  steel  rails  in  1870  was  45  per  cent  ad 


IRON   AND    STEEL    INDUSTRY.  79 

valorem.  That  has  been  gradually  i educed  until  now  it  is  $7.84 
a  ton.  In  1902  the  production  of  steel  rails  in  the  United  States 
amounted  to  2,935,392  tons. 

Results  of  British  Investigations — Profits  of  Labor  Under  Protection. 

British  investigations  into  a  large  number  of  British  and 
American  industries,  details  of  which  were  published  in  Cham- 
bers' Journal  and  in  the  London  "Times,"  gave  this  result:  put- 
ting the  joint  product  of  labor  and  capital  at  100  parts,  in  Eng- 
land, fifty-six  parts  go  to  labor,  and  in  the  United  States  seven- 
ty-two parts.  The  Illinois  Steel  Company,  in  which  an  investiga- 
tion was  made  as  to  the  labor  cost  of  producing  various  articles, 
established  the  fact  that  of  the  entire  cost  of  pig  iron  seventy- 
seven  per  cent  went  to  labor  and  twenty-three  per  cent  for  ma- 
terials; of  ingots,  labor  got  seventy-nine  per  cent  and  the  ma- 
terials cost  twenty-one  per  cent;  and  of  steel  rails  labor  received 
eighty  per  cent  and  the  materials  cost  twenty  per  cent;  and  part 
of  the  cost  of  materials  was  due  to  labor.  Labor  secures  a  larger 
proportion  now  than  ever  before.  Common  labor  gets  on  the 
average  $1.50  a  day  in  iron  and  steel  mills  in  this  country;  in 
Great  Britain  it  is  paid  from  seventy-five  to  ninety-five  cents  a 
day,  while  on  the  continent  of  Europe  it  is  paid  fifty  cents  or  less 
a  day. 

Findings  of  the  Moseley  Labor  Commission. 

The  Moseley  Labor  Commission,  which  was  composed  of  lead- 
ing Workmen  in  various  British  industries,  made  a  thorough  in- 
vestigation of  similar  industries  in  the  United  States.  The  re- 
port of  the  Commission  on  its  return  to  England  stated  that  the 
pay  of  blast  furnacemen  in  the  United  States  was  forty  per 
cent  higher  than  in  England,  while  iron  founders  received  more 
than  twice  as  much  in  the  United  States  as  in  England ;  iron 
and  steel  workers  received  pay  vastly  greater  than  in  England, 
some  rollers  in  this  country  receiving  as  high  as  $5,000  per  an- 
num, while  heaters  received  from  $7.00  to  ?13.00  a  day.  The  pay 
of  Engineers  in  the  United  States  was  given  as  seventy  per  cent 
higher  than  in  Great  Britain,  while  cutters  received  100  per  cent 
more  in  this  country.  It  was  stated  that  the  wages  of  other  work- 
men compared  as  follows:  Cotton  spinners,  $16.66  per  week  in  the 
United  States  and  $9.50  in  England ;  tailors,  100  per  cent  higher 
in  the  United  States;  bootmakers,  thirty  to  seventy  per  cent 
higher;  leather  workers,  ninety-five  per  cent  higher;  bricklayers, 
three  and  one-half  times  more  in  the  United  States  than  in  Eng- 
land; plasterers,  100  per  cent  more;  carpenters,  $18.50  in  New 
York  and  $6.87  in  London;  lithographers,  $30.00  in  New  York 
and  $11.25  in  London;  bookbinders,  $20.00  in  New  York  and 
$9.00  in  London.  Those  are  the  figures  given  after  investigation 
by  British  workmen,  and  were  published  in  Great  Britain. 

Cost    of   Living. 

The  vastly  higher  wages  in  the  United  States  are  not  ac- 
companied by  any  increase  in  the  cost  of  living.  Mulhall,  the 
well-known  English  statistician,  says  that  the  cost  of  living  on 
the  same  quantity  of  food  for  each  man  is  as  follows:  In  Great 
Britain,  eleven  shillings  ($2.75)  per  week;  United  States,  ten  shil- 
lings; Germany,  nine  shillings;  France,  eight  shillings.  If  an 
American  workman  lived  on  the  same  quantity  of  food  as  an 
Englishman,  it  would  cost  him  less,  according  to  so  good  an 
authority  as  Mulhall,  than  it  costs  the  British  worker. 

Labor- Saving  Machinery. 

Great  improvements  have  been  made  in  labor-saving  ma- 
chinery in  this  country,  but  that  machinery  is  not  confined  to  the 
United  States.  In  some  of  the  modern  steel  mills  less  than  one 
cent  per  ton  is  paid  to  a  roller  for  rolling  steel  rails,  whereas 
he  formerly  received  fifteen  cents  a  ton,  but  he  makes  as  much 
money  now  at  this  low  price  as  he  did  before  at  the  high  price. 
Edwin  S.  Cramp,  Vice-President  of  the  Cramp  Shipbuilding  Com 
pany,  in  his  testimony  before  the  Congressional  Commission  in- 


80  1KO.S     AMI    B7  mi.     imm  SI  ky. 

vestigating  the  shipping  question,  told  how  the  exportation  of 
Labor-saying  machinery  has  long  been  a  marked  feature  of  the 
exports  of  this  country.     Mr.  Cramp  said: 

"The  argument  which  you  have  hoard  urged  so  often,  that  the 
American  mechanic  can  <1<>  nana  than  the  English  mechanic,  and 
that  the  introduction  and  application  of  labor-saving  deviaes  en- 
ables the  American  to  increase  his  output  very  largely  over  that 
of  England,  does  not  hold  good.  The  same  labor-saving  devices 
that  we  have  introduced  and  applied  in  America  are  being  intro- 
duced and  applied  in  every  shipyard  in  Great  Britain,  so  that  the 
amount  of  work  a  man  can  do  there  is  increasing,  and  will  con- 
tinue to  increase.  At  the  same  time  we  are  paying  double  the 
wages — from  50  to  100  per  cent  more — than  is  being  paid  in  Eng- 
land for  the  same  labor." 

Thus  any  advantages  which  Americans  have  in  the  way  of 
labor-saving  machinery  are  to  be  found  in  mills  in  nearly  all 
foreign  countries.  Mr.  J.  Stephen  Jeans,  Secretary  of  the  Brit- 
ish Iron  Trade  Association,  presented  to  the  tariff  commission 
appointed  by  Mr.  Chamberlain,  and  now  investigating  that  ques- 
tion in  England,  an  exhaustive  review  of  the  iron  trade  in  that 
country.  He  declared  that  Great  Britain  furnished  all  the  ad- 
vantages of  the  general  proximity  of  ores  and  fuel,  but  that  the 
British  iron  and  steel  industries  suffered  severely  from  a  want 
of  confidence  in  their  future.     He  said: 

High  Tariff,  High  Wages,  and  High  Efficiency  go  Together. 

"The  higher  wages  paid  in  the  United  States  is  coincident  with 
the  higher  efficiency  of  labor,  which,  however,  is  not  necessarily 
unapproachable  in  this  country  (Britain)." 

Mr.  Jeans  stated  that 
"a  tariff  does  not  in  the  iron  and  steel  trade  prevent  a  nation  from 
attaining  and  maintaining  the  highest  industrial  efficiency."  "The 
tariff  policy  of  our  competitors  by  guaranteeing  within  large  limits 
the  monopoly  of  the  whole  market,  and  what  is  perhaps  of  greater 
importance,  keeping  the  home  market  from  sudden  and  violent 
breaks,  must  promote  continuity  in  running." 

Mr.  Jeans  stated  that  in  the  last  ten  years  under  free  trade 
the  British  iron  production  had  little  more  than  held  its  own, 
while  the  American  output  trebled  in  the  same  time  under  a  pro- 
tective tariff.  Britain,  he  said,  was  also  beaten  in  steel,  the  form 
in  which  iron  now  finds  its  most  important  use.  England  has 
a  33  1-3  per  cent  preference  in  Canada  in  the  way  of  lower  duties, 
and  yet  the  United  States  sells  to  Canada  four  times  as  much 
iron  and  steel  in  various  forms.  The  British  output  of  manufac- 
tured iron  in  1903  was  the  lowest  since  1850.  The  Bessemer  steel 
output  in  that  year  was  154,000  tons  less  than  in  1882. 

Purport  Prices — Why  Lower  Thnn   Home  Prices? 

Much  has  been  said  about  United  States  manufacturers  sell- 
ing iron  and  steel  and  other  products  abroad  lower  than  at  home. 
Iron  and  steel  at  home  are  sold  at  prices  fixed  by  competition, 
and  the  law  of  supply  and  demand.  No  corporation  has  a  mon- 
opoly of  their  manufacture.  The  United  States  Steel  Corporation 
does  not  control  one-half  of  the  iron  and  steel  capacity  of  the 
United  States,  and  the  number  of  independent  companies  is  con- 
stantly increasing.  The  price  of  steel  rails  was  maintained  at 
$28.00  a  ton  as  a  result  of  the  work  of  the  steel  corporation  when 
much  higher  prices  could  have  been  obtained.  The  policy  of 
the  corporation,  as  stated  by  its  officers,  was  to  try  to  make 
money  by  reducing  the  cost  of  production,  not  by  advancing  the 
price  to  the  consumer. 

In  1893,  under  the  Cleveland  administration,  there  was  a  great 
depression  in  the  iron  and  steel  industry,  and  prices  were  ab- 
normally low  and  unremunerative;  wages  in  the  iron  trade  were 
also  greatly  reduced.  Soon  afterwards  there  was  developed  a 
boom  in  the  iron  and  steel  industries  of  Great  Britain  and  Ger- 
many and  their  prices  went  up.  That  was  an  opportunity  for  the 
American  manufacturers  of  which  they  took  advantage.  A  seri- 
ous and  prolonged  strike  in  Great  Britain  subsequently  broad- 
ened this  opportunity,  Foreign  orders  for  iron  and  steel  became 
so  numerous  that  exports  of  those  articles  exceeded  the  imports 
for  the  first  time  in  1893.  When  the  prices  of  iron  and  steel  re- 
covered in  the  United  States  under  the  Dingley  tariff  law  there 
was  a  shrinkage  in  the  foreign  demand,  ana  prices  abroad,  and 
the  exports  of  iron  and  steel  necessarily  declined.     In  fact,  the 


IRON    AND    STEKL    LNOUSTKY.  8l 

home  demand  brought  large  importations.  At  the  present  time 
a  shrinkage  in  the  home  demand  has  led  to  increased  exportation. 
The  large  importations  in  1902,  $41 ,408,820,  show  that  the  man- 
ufacturers in  the  United  States  do  not  control  their  home  market. 
Foreigners  sell  their  products  here  much  below  the  prices  they 
receive  at  home.  German  syndicates  pay  an  export  bounty  to  the 
members  of  their  organizations,  and  their  returns  as  published 
show  large  losses  on  their  foreign  trade.  This,  they  explain,  is 
necessary  to  keep  their  mills  going  and  maintain  prices  at  home. 
English  newspapers  complain  that  German  iron  and  steel  are 
sold  in  large  quantities  at  lower  prices  in  British  markets  than  in 
Germany.  The  importation  of  such  a  large  quantity  of  iron  and 
steel  in  1902  shows  that  the  Dingley  rates  of  tariff  duties  in  this 
country  are  not  too  high,  since  if  they  were  lowered  these  imports 
would  be-enormously  increased. 

The  foreigners  have  a  great  advantage  in  shipping  their  pro- 
ducts to  the  United  States.  What  are  termed  tramp  vessels 
call  at  our  ports  in  large  numbers  for  grain,  petroleum,  and  coal 
as  return  cargoes.  That  these  vessels  may  be  properly  ballasted 
on  the  inward  voyage  they  gladly  accept  all  such  heavy  products 
as  iron  and  steel  at  merely  nominal  freight  rates,  frequently  as 
low  as  $1.00  a  ton,  and  sometimes  as  low  as  twenty-five  cents  a 
ton,  the  American  manufacturers  having  to  pay  much  higher 
rates  on  the  railroads  to/  reach  important  points  of  consumption 
on  the  coast  are  at  a  disadvantage.  German  iron  and  steel  man- 
ufacturers make  a  regular  practice  of  selling  abroad  much  lower 
than  at  home,  and  Englishmen  do  the  same  to  a  smaller  extent. 

Canada  pays  a  bounty  of  $3.00  a  ton  on  pig  iron  produced 
in  that  country,  and  a  bounty  of  $3.00  a  ton  on  steel  ingots. 

What  the  Industrial   Commission   Found  as  to   Low  Export   Prices. 

The  United  States  Industrial  Commission,  after  an  investiga- 
tion, found  that  a  very  small  percentage  of  the  goods  exported 
from  the  United  States  are  sold  cheaper  abroad  than  at  home. 
But  this  only  happens  in  years  of  depression.  When  lower  prices 
have  been  charged  abroad  than  at  home  the  inducement  to  do 
this  has  been  to  dispose  of  a  surplus,  or  to  secure  entrance  into 
a  desirable  foreign  market,  or  to  retain  a  foothold  in  a  foreign 
market  that' had  already  yielded  profitable  returns.  These  rea- 
sons for  the  occasional  cutting  of  prices  require  no  defense. 
Even  in  years  of  prosperity  it  sometimes  happens  that  a  rolling 
mill  or  steel  works,  when  running  to  its  full  capacity,  produces 
a  surplus  of  its  products  beyond  the  immediate  wants  of  its 
production  by  stopping  the  mill  or  discharging  a  part  of  the 
employees.  It  is  cheaper  to  keep  the  men  employed  and  sell 
this  surplus  at  cost  if  necessary  than  it  would  be  to  stop  the 
works  temporarily.  The  manufacturer  can  produee  cheaper 
when  his  plant  is  running  full  than  when  it  is  partly  stopped. 
Our  tariff  legislation  has  encouraged  manufacturers  to  seek  for- 
eign markets  by  remitting  nearly  all  of  the  duties  levied  on  im- 
ported raw  materials  when  these  raw  materials  enter  into  the 
manufacture  of  exported  finished  product.  Under  the  operation 
of  this  drawback  system  some  products  can  be  fhanufactured  for 
sale  abroad  at  a  lower  cost  than  they  could  be  supplied  to  home 
customers.  If  this  surplus  can  be  sold  abroad,  even  at  prices 
below  current  quotations,  it  is  better  than  to  reduce  customers. 
Great  Britain  a  Competitor  in   Low  Export  Prices. 

Great  Britain  early  pursued  this  course  of  selling  abroad 
cheaper  than  at  home.  In  T81G  Lord  Brougham,  in  a  speech  in 
Parliament  advocating  the  increased  exportation  of  British  goods 
to  the  United  States,  declared  that  "it  was  well  worth  while  to 
incur  a  loss  upon  the  first  exportation,  in  order  by  the  glut  to 
stifle  in  the  cradle  those  rising  manufactures  in  the  United  States 
which  the  war  had  forced  into  existence."  In  1854  a  British 
parliamentary  commission  reported  as  follows:  "The  laboring 
classes  generally  in  the  manufacturing  districts  of  this  country 
and  especially  in  the  iron  and  coal  districts,  are  very  little  aware 
of  the  extent  to  which  they  are  often  indebted  for  their  being 
employed  at  all  to  the  immense  losses  which  their  employers  vol- 
untarily incur  in  bad  times  in  order  to  destroy  foreign  competi- 
tion and  to  gain  and  keep  possession  of  foreign  markets."  That 
is  the  kind  of  competition  our  manufacturers  have  to  meet. 


^'J  IICO.N      \M>     Sllll.     I.NDl   SI'UY. 

Prominent    I'.nu I ImIi men    \'«»!<>c    ltepublioiiu    Sentiments. 

Premier  Balfour,  of  the  Knglish  Cnhinet,  deehiivd  in  B  speeeh 

last  October  that  the  developments  of  the  Last  half  century  "had 
made  rrea  trade  an  empty  mime  and  a  vain  farce."     Eie  said: 

"I  eonfess  thai  when  1  heat  eritieism  upon  the  American  and  Ger- 
man policies  which  caused  these  great  industrinl  nations  to  a<- 
company  their  marvelous  commercial  expansion  with  protective 
dUtkfa  which  must  have  thrown  a  most  heavy  burden  upon  the 
consumer.  1  feel  that  they  have  a  retort  to  which  I  at  least  have 
no  reply.  Free  trade  is  Indeed  an  empty  name  and  a  vain  farce." 
The  London  "Statist*"  in  an  article  referred  to  the  fact  that 
under  protection  the  united  states  "has  made  more  remarkahle 
progress  than  perhaps  any  other  country  in  the  world."  It  then 
refers  to  England  and  India,  under  free  trade  and  states  that 
"India  has  remained  poor  and  famine  stricken."  In  England 
more  than  2,000,000  acres  of  wheat  land  have  gone  out  of  cultiva- 
tion in  half  a  century  and  1,000,000  fewer  men  are  employed 
on  the  land.  In  the  production  of  manufactured  products,  taking 
in  the  producing  nations  of  the  world,  Great  Britain  has  fallen 
from  forty-five  per  cent  to  less  than  thirty  per  cent  in  the  last 
quarter  of  a  century,  while  the  United  States  has  enormously  in 
creased  in  the  same  time.  General  Booth,  head  of  the  Salvation 
Army  in  London,  stated  after  an  examination  in  1890  that  there 
were  2,000,000  paupers  in  Great  Britain  and  1.000,000  more  persons 
who  were  nearly  paupers.  Former  Secretary  Chamberlain  of  the 
British  Cabinet  has  olaced  the  number  of  paupers  in  Great  Brit- 
ain at  4,000,000. 

Production  and  Prices  of  Bessmer  Steel  Ralls  In  the  United  States. 

The  following  table  gives  the  annual  production  in  gross  tons 
of  Bessemer  steel  rails  in  the  United  States  from  1867  to  1903. 
together  with  their  average  annual  price  at  the  works  in  Penn- 
sylvania and  the  rates  of  duty  imposed  by  our  Government  at 
various  periods  on  foreign  steel  rails.  Prices  are  given  in  cur- 
rency. 


[Note  the  pyramid  of  production,  the  inverted  pyramid   of  prices, 
and  the  reduction  in  the  duty.] 


•    Years. 

Gross  tons. 

Price. 

Duty. 

1867 

2,277 

6.451 

8.616" 

30,357 

34.152 

83.991 

115.192 

129.414 

259.699 

368,269 

385.865 

491,427 

610,682 

852,196 

1,187,770 

1,284,067 

1,148.709 

996,983 

959,471 

1,574,703 

2.101.904 

1.386,277 

1.510.057 

1,867.837 

1,293.053 

1.537.588 

1.129,400 

1,016,013 

1.299,628 

1,116,958 

1,644,520 

1,976,702 

2,270,585 

2,383,654 

2,870,816 

2.935,392 

2,873,228 

$166.00 
158.50 
132.25 
106.75 
102.50 
112.00 
120.50 
94.25 
68.75 
59.25 
45.50 
42.25 
48.25 
67.50 
61.13 
48.50 
37.75 
30.75 
28.50 
34.50 
37.08 
29.83 
29.25 
31.75 
29.92 
30.00 
28.12 
24.00 
24.33 
28.00 
18.75 
17.62 
28.12 
32*29 
27.33 
28.00 
28.00 

1868 

,45  per  cent  ad  valorem  to  January  1, 

1869 

'      1871. 

1870 

1871                 

1872 

1873 

1874 

1875   

$28.00  per  ton  from  January  !,  1871, 

1876        

to  August  l.  1872;  $25.20  from  Au- 

1877  

gust  1.  1872.  to  March  3.  1875;  $28.00 

1878 

from  March  3, 1875,  to  July  1,  1883. 

1879 

1880 

1881 

1882  

1883        

1 

1884 

1885 

.$17.00  per  ton  from  July  1,  1883,  to 
October  6,  1890. 

1886  

1887  

1888 

1889 

1890     

1891 

.$13.44  per  ton  from  October  6.  1890, 

1892.  ...-. 

to  August  28,  1894. 

1893 

1894 

1895  

1896  

1897 

1898  

l  $7.84  per  ton  from  August  28.  1894.  to 

1899 

date. 

1900     

1901    

1902 

1903     

B'-.. 

1K0JN    AiNU   STEEL  INDUSTRY. 


83 


Advance  in  Prices  of  Iron  Ore. 

The  following  table,  furnished  by  the  editor  of  the  Iron  Trade 
Review,  an  accepted  authority,  shows  the  prices  of  iron  ore  from 
1898  to  1903.  It  will  be  seen  that  the  advances  in  the  raw  ma- 
terial have  been  very  great  and  account  in  part  at  least  for  the 
advance  in  price  of  the  finished  article,  which  is  also  affected  in 
price  by  the  advance  in  wages  during  the  same  period. 

[Furnished  by  Mr.  A.  I.  Findley,  editor  of  the  Iron  Trade  Review.] 


Grades. 


Mesabi  Bessemer 

Mesabi  non-Bessemer.. 

Marquette  specular: 

No.  1  Bessemer 

No.  1  non-Bessemer.. 

Chapin 

Soft  hematites,  No.  1 
non-Bessemer 

Gogebic, Marquette  and 
Menominee  No.  1  Bes- 
semer hematites 

Vermilion  No.  1  hard 
non-Bessemer 

Chandler  No.  1  Besse- 
mer  

Marquette  extra  low- 
phosphorus  Bessemer 


$2.15  to  $2.25 
1.70  to    1.85 

3.10  to    3.35 

2.35  to    2.45 

2.56 

1.80  to    2.00 


2.75  to  2.95 
2.50 
3.13 
3.65 


1900. 


$4.40  to  $4.90 
4.00  to    4.25 

5.93  to  6.48 
5.00 
4.96 

4.15  to    4.25 


5.50  to  5.75 
5.10 
6.00 

6.80  to    6.90 


$3.00  ®  $3.25 
2.60©    2.85 

4.65®   5.00 

3.80®    4.00 

3.91 

3.00®    3.25 


4.65 
4.07 
4.50 
5.40 


$4.00 


$4.85®  $5.15 
4.00®    4.25 


The  base  price  for  1900  of  "old  range"  Bessemer  ores,  those 
from  the  Marquette,  Menominee,  Gogebic,  and  Vermilion  ranges, 
have  been  fixed  at  $5.50,   against  $2.95  in  1899. 


Even  supposing  that  a  high  tariff  is  all  wrong,  it  would  work 
infinitely  better  for  the  country  than  would  a  series  of  changes 
between  high  and  low  duties. — President  Roosevelt*  in  his  Life  of 
Benton,  p.  224. 

The  Republican  party  Stands  now,  as  it  has  always  stood  and 
always  will  stand*  for  sound  money  with  which  to  measure  the 
exchanges  of  the  people?  for  a  dollar  that  is  not  only  good  at 
home,  but  good  in  every  market  place  of  the  world.— Major  Mc- 
Kinley  to  Young  Men's  Republican  Club,  June  26,  1896. 

The  real  evils  connected  with  the  trusts  can  not  be  remedied 
by  any  change  in  the  tariff  laws.  The  trusts  can  be  damaged  by 
depriving  them  of  the  benefits  of  a  protective  tariff  only  on  con- 
dition of  damaging  all  their  smaller  competitors  and  all  the  wage- 
workers  employed  in  the  industry. — President  Roosevelt  at  Cincin- 
nati,   September  20,   1902. 

I  yield  to  no  Senator,  I  yield  to  no  Republican  in  my  attach- 
ment to  the  doctrines  of  the  Republican  party.  I  believe  that  -when 
the  platform  was  adopted  at  St.  Louis  it  was  a  warrant  to  be  ex- 
ecuted honestly,  fearlessly,  faithfully,  and  I  am  here,  Mr.  Presi- 
dent, to  execute  it  to  the  best  of  my  humble  ability.— -Hon.  C.  W. 
Fairbanks,   in   U.   S.   Senate,   May  20,   1897. 

If  there  is  any  one  quality  that  is  not  admirable,  whether  in  a 
nation  or  in  an  individual,  it  is  hysterics,  either  in  religon  or  in  any- 
thing else.  The  man  or  woman  who  makes  up  for  ten  days'  indif- 
ference to  duty  by  an  eleventh-day  morbid  repentance  about  that 
duty  is  of  scant  use  in  the  world. — President  Roosevelt  at  Boston, 
Mass.,  August  25,  1902. 

All  the  prosperity  enjoyed  by  the  American  people— absolutely 
all  the  prosperity,  without  any  reservation  whatever — from  the 
foundation  of  the  United  States  Government  down  to  the  present 
time,  has  been  under  the  reign  of  protective  principles;  and  all  the 
hard  times  suffered  by  the  American  people  in  the  same  period 
have  been  preceded  either  by  a  heavy  reduction  of  duties  on  im- 
ports or  by  insufficient  protection,  thus  refuting  all  free-trade 
theories  on  the  subject.  As  I  desire  my  native  land  to  be  on  the 
apex  of  prosperity,  rather  than  under  the  heel  of  hard  times,  I  am 
a  protectionist. — David  H.  Mason,  in  the  American  Economist. 


84  i  in    i  i\   Pi  \  n:  ixnrsTBT. 


A  tariff  which  protects  American  labor  and  industry  and-pro- 
vides  ample  revenues  has  been  written  in  public  law. 

•  —william  Mckinley. 

THE  TIN-PLATE  INDUSTRY. 


Established  Under  McKinley  Protection.  Checked  by  Democratic 
Free  Trade,  It  has  Effected  a  Saving:  of  $35,000,000  to  the  Conn- 
try  and  Now  Gives  Employment  to  17,000  People*  Who  Earn 
$10,000,000  a  Year  in  Wages. 

By  B.  E.   V.  LUTY,  Pittsburg-. 

The  American  tin-plate  industry  is  the  best  illustration  of  the 
benefit  of  a  protective  tariff.  It  is  for  this  reason  that  it  is  singled 
out  by  the  Democrats  for  especially  vicious  attack.   _ 

The  McKinley  protective  duty  of  2.2  cents  a  pound  went  into 
effect  on  July  1,  1891.  For  years  prior  to  that  time  there  was  a 
revenue  tariff  on  tin  plate  of  one  cent  a  pound.  Under  it  no  tin 
plate  could  be  made  in  the  United  States,  our  supply  being  all 
imported  from  Wales,  which  had  a  monopoly.  The  Welsh  manu- 
facturers had  an  understanding  among  themselves  which  amounted 
to  a  trust,  and  charged  exorbitant  prices.  The  duty,  being  a  reve- 
nue one,  was  paid  by  the  American  consumer.  The  reduced  duty 
of  1.2  cents  in  the  Wilson-Gorman  law  went  into  effect  on  October 
1,  1894,  and  caused  a  wage  dispute  which  kept  all  the  American 
tin-plate  works  closed  from  that  date  until  the  latter  part  of  Jan- 
uary, 1895,  when  they  were  put  in  operation  at  greatly  reduced 
wages.  The  American  tin-plate  works  were  then  enabled  to  operate 
under  the  existence  of  the  Wilson-Gorman  tariff  law  because : 

Growth  of  the  Industry. 

1.  The  industry  had  acquired  great  momentum  under  the  Mc- 
Kinley law. 

2.  Economies  and  new  processes  were  introduced  during  that 
period,  after  great  expenditures  of  time  and  money. 

3.  There  were  heavy  wage  reductions. 

4.  The  Wilson-Gorman  duty  of  1.2  cents  a  pound  was  0.2  cent 
higher  than  the  old  revenue  duty. 

5.  The  general  depression  in  the  iron  and  steel  and  other 
industries,  caused  by  the  Wilson-Gorman  law,  brought  the  raw 
materials  of  tin-plate  manufacture  in  the  United  States  down  to 
lower  points  than  had  ever  been  seen  before. 

Five  Hundred  Mills  Busy  There. 

Up  to  July  1,  1891,  when  the  McKinley  tin-plate  duty  became 
effective,  over  500  tin  mills  were  kept  in  practically  steady  opera- 
tion in  WTales.  Since  then  there  has  been  a  continuous  succession 
of  strikes  and  lockouts.  The  number  of  mills  in  operation  has 
fallen  below  300  at  times,  and  prices  of  tin  plate  in  Wales  were 
brought  down  to  a  level  formerly  unknown.  The  Welsh  tin-plate 
trust  was  completely  broken  up.  The  following  table  shows  the 
decline  in  the  Welsh  tin-plate  trade  due  wholly  to  the  establish- 
ment of  the  American  industry,  while  the  partial  revival  since 
1898,  due  to  the  opening  up  of  markets  in  other  countries  not  pro- 
tected by  a  tariff,  will  also  be  noted: 

British   Exports  Decrease. 

Exports  of  tin  plate  from  Great  Britain  to  all  countries  since 
1887,  in  long  tons: 

Year.  Long-  tons. 

1887  354,773 

1888 391,291 

1889   430,623 

1890 421,797 

1891   448,732 

1892  - 395,580 

1893  379,233 


TIfE   TIN   PLATE    INDPSIKV.  85 

1804 354,081 

1805  365,082 

1806  266,055 

1807 271,230 

1808 250.053 

1800 256,620 

1000 272,877 

1001   271,320 

1002  312,206 

1003 -. 203,147 

The  following  table  gives  the  imports  of  tin  plate  into  the 
United  States  since  1880  in  long  tons: 

Year.  Long  tons. 

1880 331,311 

1800  320,435 

1801   327,8S2 

1802 268,472 

1803  2,13,155 

1804 215,068 

1805  210,545 

1806   1 10,171 

1807  83,851 

1808  67,222 

1800 58,015 

1000  \ 60,386 

1001  77,305 

1002   60,115 

1003  47,360 

Our  Imports  are  Ndw  Inconsequential. 

The  great  bulk  of  the  imports  in  these  later  years  was  neither 
for  domestic  consumption  nor  subject  to  the  duty,  being  known  as 
"rebate"  plates,  on  which  the  duty  is  refunded  by  the  Government 
on  the  export  of  articles  made  from  them,  as  will  be  explained 
more  fully  later.  Deducting  such  rebate  plates,  the  imports  of 
tin  plate  for  domestic  consumption  and  subject  to  the  duty  have 
averaged,  from  July  1,  1807,  to  March  31,  1004,  only  6,320  tons  per 
annum,  a  wholly  inconsequential  quantity,  and  made  up  wholly 
of  fancy  plates  sold  under  special  brands. 

The  following  table  gives  the  production  of  tin  plate  in  the 
United  States  in  each  calendar  year  since  1801 : 

Year.  Long-  Tons. 

1801   552 

1802   18,803 

1803 55,182 

1804 74,260 

1805  113,666 

1806 160,362 

1807  256,508 

1808  326,015 

1800 , 307,767 

1000 302,665 

1001   300,201 

1002  306,000 

High   and    Low   Prices. 

The  following  table  shows  the  highest  and  lowest  prices  in 
Wales  of  full  weight  coke  tin  plate  since  18S0.  The  great  decline 
caused  by  the  American  industry  will  be  noted.  The  much  higher 
prices  in  1800  and  1000  were  caused  by  the  great  advances  in  raw 
materials,  especially  steel  and  pig  tin,  which  have  occurred  all 
over  the  world : 

Year.  Lowest. 

1880    12s     0d 

1800  .  •. 13       3 

1801    12       0 

1802    11       0 

1803    10     10  V» 


Highest. 

ISs 

Od 

17 

3 

12 

0 

12 

3 

12 

6 

Hi,  i  in     i  i  \    ri  \  i  1     i  m.i  BTB1  . 

L89d    K)  3  11  0 

1895    !>  9  LO  9 

L896 6  LO%  K»  6 

1S97    9  9  10  3 

1898   9  9  10  6 

1899    11       ii  15      0 

L800    L8      :i  if.      9 

1901    12      3  15      3 

1902 11       9  14      0 

1903    • 11       0  12       6 

1904  (first  half) 11       G  12      0 

The  following  table  gives  the  average  price  paid  for  full  weight 
coke  tin  plate  at  New  York  -each  year  since  1890 ;  prices  are  Cor 
imported  plates  up  to  and  including  1894  and  for  domestic  plates 
since  then : 

v  1890 $5.15 

1891 5.30 

1892 .vu 

1893 &I5 

1894 . 4.57 

1895 3.0(1 

1896 3.63 

1897 3.26 

1898 2.99 

1899 4.50 

11)00 4.82 

1901 4.34 

1902 4.27 

1903 * 4.07 

1904  (first  half) 3.82 

On  Juno  13,  1904,  the  current  market  price  of  tin  plate  was 
$3.45,  f.  o.  b.  mill,  Pittsburg  district,  for  100-pound  coke  plates. 
This,  with  15  cents  extra  for  "full  weight"  (108  pounds)  and 
freight  to  New  York  made  the  price  of  full  weight  plates  in  New 
York  $3.79. 

A   Saving;  of  $35,000,000, 

By  making  a  careful  estimate  of  what  tin  plate  would  have 
cost  the  consumer  from  the  beginning  of  1892  to  the  middle  of 
1900  had  there  been  no  American  industry  and  no  protective  tariff, 
and  closely  calculating  what  it  actually  has  cost  in  these  years 
with  the  protective  tariff  and  the  American  industry,  it  has  been 
found  that  the  country  has  saved  to  date  fully  $35,000,000  through 
the  McKinley  tin-plate  industry.  Most  of  this  saving  was  due  to 
the  American  product  selling  at  so  much  below  the  imported,  but 
part  was  due  to  the  lower  prices  at  which  the  foreign  was  sold, 
on  account  of  the  competition,  before  the  country  made  all  the  tin 
plate  it  needed. 

Earnings  Much  Higher  Than  in  Wales. 

The  average  weekly  earnings  of  all  employes  in  American  tin 
mills  are  from  two  and  a  half  to  three  times  as  much  as  in  Wales. 
This  is  due  mainly  to  wages  being  much  higher  per  unit  of  output, 
but  it  is  also  in  part  due  to  the  fact  that  there  is  a  very  much 
greater  capital  investment  per  unit  of  output  in  America  than  in 
Wales.  The  American  manufacturer  spends  perhaps  three  times 
as  much  money  in  building  his  plant  and  this  greater  investment 
enables  the  men  to  turn  out  a  greater  product  per  week  without 
greater  exertion. 

Even  per  ton,  however,  American  wages  are  much  higher  than 
the  Welsh  wages.  Taking  the  wages  being  paid  in  American  mills 
in  June,  1904,  the  comparison  stands  as  follows,  for  the  single 
branch  known  as  the  hot-mill  labor,  this  being  only  one  step  in 
'the  process  of  tin  plate  manufacture : 

Wales.        United  States. 

Roller   and   catcher $1.90  $4.60 

Doubler   1.16  2.26 

Heater 1.09  2.20 

Total $4.21  $9.06 


THE  TIN  PLATE   INDUSTRY.  87 

Which  shows  that  on  these  jobs  American  wages  per  ton  are 
115  per  cent,  higher  than  in  Wales.  On  account  of  the  greater 
output,  the  actual  weekly  earnings  are  nearly  three  times  as  great 
as  in  Wales. 

Tin-Plate    Is    Cheap. 

Tin  plate  is  cheaper  in  the  United  States  now  than  it  was  at 
any  time  prior  to  the  passage  of  the  McKinley  protective  duty,  and 
the  present  price  at  New  York  is  only  27  per  cent,  higher  than  the 
lowest  price  on  record  at  any  time. 

The  followinig  is  the  cost,  delivered  New  York,  of  the  quanti- 
ties of  tin  plate  required  \o  make  the  articles  named,  based  on  the 
open  market  in  May  and  June,  1904 : 

Cents. 

Ordinary  2-lb.  or  No.  2  can 0.94 

Ordinary  3-lb.  or  No.  3  can 1.34 

Half-pint  tin  cup 0.79 

Quart  tin  cup 1.34 

3-qt.  dinner  pail 4.34 

3-qt.  dinner  pail,  plus  1-pt.  cup 5.26 

The  famous  dinner  pail  made  of  American  tin,  therefore,  now 
costs  only  what  the  workman  pays  for  an  ordinary  street  car  fare. 

Workmen  Recognize  Tariff's  Responsibility  for  High  Wages. 

In  October,  1902,  the  Amalgamated  Association  of  Iron,  Steel 
and  Tin  Workers  gave  the  clearest  recognition  that  has  ever  been 
given  of  the  fact  that  the  tariff  is  responsible  for  the  wages  they 
receive.  The  condition  was  that  while  the  American  tin  mills  had 
captured  practically  all  the  demand  for  tin  plate  for  domestic  con- 
sumption, the  Welsh  manufacturers  were  still  shipping  in  from  a 
million  and  a  quarter  to  a  million  and  a  half  boxes  (50,000  to 
65,000  tons)  of  tin  plate,  which  was  made  into  cans  for  exports 
of  petroleum,  fruit,  fish,  etc.,  and  for  some  minor  purposes. 
Through  the  operation  of  the  general  drawback  law  the  Govern- 
ment, on  the  export  of  these  commodities,  paid  to  the  exporters 
99  per  cent,  of  the  duty  which  had  originally  been  paid  on  the  tin 
plate  so  used.  Thus  the  tin  plate  used  in  this  "rebate  trade"  was 
practically  duty  free.  The  Amalgamated  Association  therefore 
made,  in  October,  1902,  an  arrangement  with  the  American  Tin 
Plate  Company  whereby  they  would  work  up  plates  intended  for 
the  rebate  trade,  at  wages  25  per  cent,  less  than  the  regular  scale 
rate.  It  was  recognized  that  this  percentage  did  not  represent  the 
full  concession  needed  to  capture  this  remaining  trade  from  the 
Welsh  makers,  but  the  company  was  willing  to  make  up  the  bal- 
ance itself. 

The  plan  was  put  into  practical  operation  by  3  per  cent,  of  the 
men's  total  wages  being  set  aside  in  a  special  fund,  from  which 
withdrawals  are  made  as  cans,  etc.,  are  exported,  equal  to  25  per 
cent,  of  the  wages  originally  involved.  This  apparently  compli- 
cated system  was  adopted  partly  because  it  would  have  been  incon- 
venient to  identify  each  lot  of  tin  plate  as  it  went  through  the  mill 
as  being  intended  for  export  purposes,  and  the  safer  plan  was 
adopted  of  the  wage  rebate  being  payable  just  as  the  actual  ex- 
ports were  made. 

By  this  action  the  men  recognized  that  the  tariff  was  directly 
responsible  for  the  wages  they  were  receiving,  and  showed  that 
they  were  willing,  in  competing  with  Welsh  manufacturers  operat- 
ing under  no  tariff,  to  make  a  concession  in  wages. 

To  the  middle  of  this  year  the  amount  of  business  done  under 
this  arrangement  was  not  very  large,  as  the  mills  were  quite  busy 
on  strictly  domestic  business.  In  the  past  few  months  the  rebate 
ousiness  has  assumed  quite  important  proportions. 

f>»-i ,. 

I  am  a  protectionist  because  our  country  has  prospered  with 
protection  and  languished  without  it. — Hon.  B.  F.  Jones,  in  the 
American  Economist. 

I  believe  in  the  doctrine  of  protection  because  the  facts  of  our 
national  experience  thoroughly  exemplify  its  truth.  No  great 
American  statesman,  except  the  half-forgotten  leaders  of  the  slave 
p«.»ver,  have  disowned  the  protective  system.— Hon.  J,  P.  DolUver, 
in  the  American  Economist, 


88  l  Hi:    l  i:\Tll.i-;    INDUSTRY. 


THE  TEXTILE  INDUSTRIES  OF  THE 
UNITED  STATES. 


How  Labor  and  Agriculture  Have  Been  Mutually  Aided  and  Price* 
to  the  Consumer  Reduced  Under  the  Protective  System. 


[By    Edward    Stanwood,    author    of    "A    History    of    the 

Presidency,"     "American     Tariff-  Controversies    of 

the  Nineteenth  Century,"  Etc.] 

If  one  were  asked  to  aesignate  the  American  industries  whicb 
may  be  regarded  as  the  most  conspicuous  trophies  of  the  pro 
tective  policy  the  answer  would  undoubtedly  be:  textiles,  iron 
and  glass.  The  most  dramatic  conquest  the  policy  can  boast  is 
in  one  branch  of  the  iron  and  steel  industry,  namely,  that  of 
tin  plates.  Nonexistent  in  1890,  it  gave  employment  in  1900  to 
nearly  15,000  workmen,  and  provided  practically  the  whole  sup- 
ply of  tin  plates  for  the  immense  canning  industry  of  the  coun- 
try at  prices  far  below  those  which  prevailed  when  the  market 
was  controlled ,  by  foreigners. 

Nevertheless,  the  most  important  achievement  of  protection  is 
the  establishment  and  development  of  the  mills  in  which  is  spun 
and  woven  the  material  of  the  clothing  of  the  people — cotton,  wool, 
and  silk. 

The  Father  of  his  Country  in  his  first  annual  address  to 
Congress  used  the  following  language: 

"A  free  people  ought  not  only  to  be  armed  but  disciplined;  to 
which  end  a  uniform  and  well-digested  plan  is  requisite;  and  their 
safety  and  interest  require  that  they  should  promote  such  manu- 
factories as  tend  to  render  them  independent  of  others  for  essen- 
tial, particularly  military,  supplies." 

Although  clothing  w  s  one  of  the  articles  indispensable  in 
time  of  war,  the  manufacture  of  which  it  was  obviously  the  duty 
of  Congress  to  promote,  it  was  not  until  after  the  war  of  1812 
that  a  serious  thought  was  given  by  Congress  to  the  protection 
of  the  manufacture  of  cloth  of  any  material.  During  the  period 
of  nonintercourse  that  preceded  the  last  war  with  England 
it  was  found  impossible  to  buy  in  the  country  $6,000  worth  of 
blankets  to  supply  the  Indians.  During  the  war  the  only  way 
in  which  clothing  could  be  procured  for  the  soldiers  of  our  Army 
was  by  importation  secretly  from  the  British  provinces  in  viola- 
tion of  law — a  violation  at  which  the  Government  was  compelled, 
by  the  necessity  of  the  case,  to  connive. 

After  the  war  the  country  was  flooded  with  foreign  textiles, 
and  the  cotton  manufacture  which  had  been  established  under 
the  protection  of  nonintercourse  was  brought  almost  to  the  verge 
of  ruin.  Then  began  the  attempts  to  foster  the  cotton  and  woolen 
industries  by  means  of  a  protective  tariff,  which,  often  inter- 
rupted, have  continued  to  the  present  time. 

The  Cotton  Industry. 

Cotton  manufacture  has  enjoyed  fairly  adequate  protec- 
tion for  three-quarters  of  a  century.  Even  under  the  Walker 
tariff  of  1846  the  rate  of  duty  was  sufficient  to  give  the  home 
manufacturer  fairly  complete  control  of  the  market  for  the 
coarse  and  medium  goods,  which  constitute  by  far  the  largest 
amount  of  goods  consumed  by  the  average  family.  Beginning 
with  the  Morrill  tariff  of  1861  adequate  protection  has  at  all 
times  been  given  to  almost  all  classes  of  cotton  manufactures, 
and  the  results  have  been  a  great  growth  of  the  industry,  a 
large  employment  of  labor,  and  an  increasing  market  for  the  raw 
product  of  southern  plantations.  Keen  domestic  competition  and 
improved  machinery  have  reduced  the  prices  of  goods  enor- 
mously. Thus  every  interest  connected  with  this  industry,  di- 
rectly or  indirectly,  has  been  benefited— the  manufacturer  and 
his  employees,  the  southern  planter,  and  the  whole  population 
of  the  country,  because  all  are  consumers  of  the  products  of 
cotton  mills.     In  recent  years  the  United  States  has  begun  the 


THE  TEXTILE   INDUSTRY. 


89 


conquest  of  foreign  markets.  An  export  trade  established  before 
the  civil  war  reached  in  1860  almost  $11,000,000.  It  did  not 
touch  those  figures  again  until  1878,  nor  did  it  greatly  exceed 
them  until  1896,  when  the  value  of  cotton  goods  exported  was 
almost  $17,000,000.  Since  then  the  increase  of  the  trade  has 
been  rapid.  In  1903  the  value  of  cotton  goods  exported  exceeded 
$32,000,000.  It  was  smaller  in  1904,  owing  to  the  abnormal  price 
of  raw  cotton,  which  caused  a  demoralization  in  this  branch  of 
the  textile  industry  throughout  the  world. 

The  accompanying  table  shows  the  progress  made  by  this 
industry  during  the  last  thirty  years  under  a  policy  of  unin- 
terrupted protection,  for  the  Wilson  tariff  of  1894,  harmful  to 
other  manufactures,  did  not  materially  reduce  the  protective  duties 
on  cotton  fabrics. 


1890. 


Number  of  establishments.. 

Capital 

Wage-earners,  average  num 

ber 

Total  wages 

Cost  of  materials  used 

Value  of  products 

Active  spindles,  number 

Looms,  number  

Cotton  consumed,  bales 

Cotton  consumed,  pounds.. 


973 

$460,842,772 

297,929 

$85,126,310 

$173,441,390 

$332,806,156 

19,008,352 

450,682 

3,639,495 

1,814,002,512 


905 
$354,020,843 

218,876 

$66,024,538 

$154,912,979 

$267,981,724 

14,188,103 

324,866 

2,261,600 

1,117,945,776 


756 
$208,280,346 

174,659 

$42,040,510 

$102,206,347 

$192,090,110 

10.653,435 

225,759 

1,570,344 

753,343,981 


956 
$140,706,291 

135,369 

$39,044,132 

$111,736,936 

$177,489,739 

7,132.415 

157,310 

398,308,257 


The  Woolen  Industry. 

The  voyage  of  the  woolen  industry  has  been  through  seas 
much  more  stormy  than  those  over  which  the  cotton  manufac- 
turers have  passed.  The  difficulties  which  have  beset  it  have 
arisen  largely  by  reason  of  the  complication  of  protection  of  wool 
with  protection  of  wool  manufactures.  The  growers  of  wool 
have  rightfully  contended  that  they  were  as  deserving  of  the 
fostering  care  of  government  as  were  the  users  of  their  product. 
The  concession  of  their  contention  has  resulted,  naturally  and  in- 
evitably, in  the  requirement  of  a  duty  on  finished  goods  which 
seems  excessive  to  those  wTho  are  not  aware  of  the  peculiar 
circumstances  of  the  case,  and  which  has  made  the  wool  and 
woolen  schedule  of  the  tariff  the  vulnerable  point  always  chosen 
by  the  opponents  of  protection  as  the  best  for  an  attack  and 
the  easiest  to  carry  by  assault.  There  have  consequently  been 
many  interruptions  and  variations  in  the  policy  of  protection, 
which  have  prevented  the  full  and  healthy  development  of  the 
industry.  At  one  time,  in  1846,  a  blow  was  given  to  the  manu- 
facturers by  a  tariff  law  which  levied  no  higher  duty  on  .finished 
goods  than  on  raw  wool.  At  another  time,  under  the  Wilson  - 
Gorman  act  of  1894,  the  woolgrower  was  struck  by  a  provision 
making  wool  duty  free. 

Yet  in  spite  of  opposition  and  of  a  vacillating  policy  the 
woolen  industry  has  grown  to  large  proportions,  taking  ad- 
vantage of  favoring  laws  to  increase  and  gain  strength,  endur- 
ing adverse  legislation  as  best  it  might,  and  holding  itself 
ready  to  make  a  forward  step  again  when  conditions  should 
permit.  Although  the  inherent  difficulties  and  the  artificial 
difficulties  resulting  from  the  lack  of  a  continuous  and  consistent 
policy  have  prevented  the  full  development  of  the  industry,  and, 
in  consequence,  that  unimpeded  home  competition  which  would 
bring  prices  down  strictly  to  the  level  of  the  foreign  article, 
yet  the  difference  in  price  is  not  great.  Upon  many  varieties 
of  goods  the  price  of  American  fabrics  is  as  low  as  that  of 
European  fabrics  of  the  same  quality  plus  a  rate  of  duty  not 
higher  than  the  average  of  a  "revenue  tariff."  Protection  has  not 
placed  the  manufacturers  of  wool  in  a  position  so  favorable  as 
that  of  the  manufacturers  of  cotton,  but  under  the  present  tariff 
they  are  making  good  progress,  and  if  the  policy  be  continued 
they  will  be  able  to  intrench  themselves  strongly  in  the  home 
market,  to  the  great  advantage  of  American  woolgrowers  in  a 
steady  demand  for  their  product  at  reasonable  prices,  and  of 
200,000  wage-earners  in  continuous  and  remunerative  employment, 


90 


i  III.    i  I  \  i  ii  i     INDUS'!  m  . 


as    well    as   of    the    whole    American    people    in    an    abundant   sup- 
ply of  honest  goods  at  fair  prices. 

The  main  facts  relating  to  the  woolen  and  worsted  indus- 
try and  to  the  allied  manufacture  of  hosiery  and  knit  goods. 
covering  the  ascertainment  at  the  last  three  censuses,  are  pre- 
sented in  the  following  table: 


Number  of  establishments , 

Capital 

Wane-earners,  average  number. 

Total  wages 

Cost  of  materials  used 

Value  of  products 


2,835 

$392,040,3<13 

242,495 

$82,292,444 

$232,230.98(5 

$392,473,050 


1890. 


2.489 
$290,494,481 
213,859 
$70,917,894 
$203,095,572 
$337,768,524 


2.089 
$159, 09 1.. sc.il 
161,557 
$47,389,087 
$164,371,551 
$267,252,913 


The  Silk  Industry. 

It  is-  not  generally  realized  that  under  the  operation  of  a 
protective  tariff  the  United  States  has  risen  almost  if  not 
quite  to  the  first  rank  among  the  silk  manufneturing  countries 
of  the  world.  The  census  returns  in  1900  showed  that  in  that 
year  the  value  of  the  silk  manufacture  of  France  was  $122,- 
000,000  and  that  of  the  United  States  $92,000,000,  and  the  rate 
of  progress  in  this  country  was  and  is  such  that  in  all  probability 
the  relative  positions  of  the  two  countries  have  been  reversed 
and  that  this  country  now  leads  in  this  important  manufacture. 

In  1870  exactly  two-thirds,  in  value,  of  the  American  con- 
sumption of  silk  manufactures  was  of  foreign  importation.  In 
that  year  the  total  value  of  silk  goods  imported  and  produced 
at  home  was  $36,418,995,  of  which  only  $12,210,662  was  domestic. 
In  1900  the  valne  of  such  goods  consumed  in  the  United  Slates 
had  increased  almost  fourfold  and  amounted  to  $133,807,184,  of 
which  four-fifths  ($107,003,650)  was  of  home  manufacture.  The 
value  of  imported  silk  manufactures  increased  less  than 
$2,500,000  in  the  intervening  thirty  years;  the  value  of  the  do- 
mestic manufactures  increased  from  $12,200,000  to  $107,000,000. 

The  protective  tariff  created  this  industry  in  the  United 
States  at  the  same  time  that  free  trade  killed  the  same  in- 
dustry in  Great  Britain.  Fifty  years  ago  the  silk  manufacturer 
of  England  was  great  and  prosperous.  The  British  census  of 
1851  showed  that  there  were  117,000  hands  employed  in  the  King- 
dom in  the  silk  mills.  Even  in  1879  it  employed  more  than 
40,000  hands.  The  system  of  free  imports  has  rendered  it  almost 
extinct.  The  value  of  goods  produced  in  1900  was  but  $15,000,- 
000 — less  than  one-sixth  that  of  this  country.  The  destruction  of 
this  industry  by  invited  foreign  competition  is  one  "Of  the  chief 
points  in  Mr.  Chamberlain's  indictment  of  the  free-trade  policy. 

The  beginning  of  a  protective  system  for  the  silk  manufac- 
ture was  made  in  the  tariff  of  1864,  but  the  excessive  internal 
taxation  during  and  subsequent  to  the  war,  the  disorganization 
of  labor,  and  the  diversion  of  capital  to  more  pressing  needs 
prevented  the  introduction  of  the  manufacture  on  a  large  scale. 
Indeed,  although  the  percentage  of  growth  of  the  industry  be- 
tween 1870  and  1880  was  large,  it  was  not  until  the  tariff  act  of 
1883  adjusted  the  rates  in  a  satisfactory  manner,  making  raw 
silk  free  and  allowing  an  adequate  protection  on  manufactured 
goods,  that  the  industry  began  to  assume  large  proportions.  It 
will  be  seen  from  the  following  table  that  it  gave  employment 
in  1900  to  more  than  65,000  employees  who  earned  wages  of 
nearly  $21,000,000.  The  table  corresponds  to  those  already  given 
for  the  other  industries. 


1900. 


1890. 


1880. 


1870. 


Number  of  establishments 

Capital 

Wage-earners,  average  number. 

Total  wnges 

Cost  of  materials  used 

Value  of  products 

Raw  silk  used,  pounds 


483 

$81,082,201 
P5.416 
$20,982,194 
$62,406,665 
$107  256,258 
9,760,770 


472 
$51,007,537 
49,382 
$17,762,441 
$51 .004,425 
$87,298  454 
6,376,881 


$19,125,300 

31,337 

$9,146,705 

$22,467,701 

$41,033,045 

2.690,482 


$6,231,130 

6,649 

$1,942  286 

$7,817,559 

$12,210,662 

684,488 


THE   TEXTILE  INDUSTRY.  91 

The  protective  system  is  establishing  the  flax,  hemp,  aud  jute 
industries.  As  compared  with  cotton,  wool,  and  silk  they  are 
still  of  secondary  importance,  but  are  destined,  if  the  policy  be 
continued,  to  a  large  growth. 

What  it  Means  to  Labor. 

Iii  the  aggregate  these  several  branches  of  the  textile  indus- 
try employed,  in  1900,  no  less  than  661,451  hands,  who  earned  in 
wages  the  sum  of  $209,022,447,  and  the  4,312  establishments  re- 
ported produced  goods  of  the  value  of  $931,494,566.  The  number 
of  hands  employed  exceeded  by  more  than  100,000  the  total  popu- 
lation in  1900  of  St.  Louis,  of  Boston,  or  of  Baltimore.  But  it  is 
always  to  be  borne  in  mind,  first,  that  on  the  average  each  wage- 
earner  provides  bread  and  meat,  clothing,  and  lodging  for  not 
less  than  two  persons  besides  himself;  and,  secondly,  that  their 
wages  reach  an  ever-widening  circle  of  persons  engaged  in  other 
occupations — grocers,  dry  goods  merchants,  carpenters,  and  the 
like  in  the  first  instance,-  railroads  and  their  employees,  farmers 
and  planters,  and  an  infinite  numbe/  of  others  all  the  way  be- 
tween the  first  and  the  last. 

What  It  Means  to  the  Parmer. 

It  is  a  most  serious  mistake  to  suppose  that  the  effect  of 
prosperity  or  of  depression  in  the  manufacturing,  particularly  in 
the  textile,  industry  is  limited  to  those  employed  in  the  mills 
and  to  their  employers,  or  even  to  the  communities  and  States 
in  which  the  mills  are  located.  The  manufacturing  communities 
in  this  country  are  wholly  dependent  upon  the  agricultural 
regions  for  their  food.  New  England,  for  example,  does  not 
raise  enough  of  any  single  article  of  food  to  supply  its  own 
people.  Of  the  two  staples,  breadstuffs  and  meat,  it  does  not 
raise  the  one-hundredth  part  of  its  need.  It  is  therefore  vitally 
important  to  the  farmers  of  the  West  that  the  mill  hands  shall 
be  steadily  employed  and  that  their  wages  shall  be  sufficient  to 
enable  them  to  purchase  freely.  Reduce  the  tariff,  introduce 
foreign  goods  instead  of  domestic,  diminish  the  demand  for  the 
products  of  our  own  mills,  cut  wages,  close  the  mills  or  put  them 
on  short  time,  and  you  deal  a  blow  directly  at  the  great  agri- 
cultural regions  of  the  country.  You  restrict  the  consuming  power 
of  a  community — including  the  wives  and  children  of  the  opera- 
tives— almost  equal  in  numbers  to  the  population  of  Chicago,  and 
you  gain  nothing  in  the  form  of  a  foreign  outlet  for  your  grain 
and  your  meat. 

The  history  of  the  textile  manufacture  in  brief  is  this:  A 
great  industry  has  been  built  up  by  means  of  a  protective  tariff ; 
two-thirds  of  a  million  of  hands  have  employment  in  the  factories ; 
the  country  has  become  almost  independent  of  a  foreign  supply  of 
textile  goods ;  the  growth  of  the  industry  has  been  accompanied 
by  a  steady  and  in  the  aggregate  a  great  decline  in  prices,  so 
that  to-day  the  clothing  of  the  people  is  not  only  cheap  but  nearly 
or  quite  as  cheap,  quality  considered,  as  that  of  any  other  na- 
tion ;  and  in  no  branch  of  the  industry  is  there  a  monopoly  "trust" 
or  the  suspicion  of  a  monopoly.  No  great  fortunes  have  been  built 
up  in  the  textile  manufacture.  The  conquest  of  the  home  mar- 
ket will  be  followed,  if  the  wise  policy  be  continued,  by  an  en- 
trance into  foreign  markets,  and  by  the  leadership  of  the  Unked 
States  in  all  departments  of  this  industry. 


Class  appeals  are  dishonest;  *  *  *  they  calculate  to  sepa- 
rate those  who  should  be  united,  for  our  economic  interests  are 
common  and  indivisible. — Maj.  McKinley  to  Commercial  Traveling 
Men's  Republican  Club,  September  26,  1896. 

Arraying  labor  against  capital  is  a  public  calamity  and  an 
irreparable  injury  to  both.— Maj.  McKinley  to  Commercial  Travel- 
ing Men's  Republican  Club,  September  26,  1896. 

The  only  antitrust  law  on  the  Federal  Statute  books  bears  the 
name  of  a  Republican  Senator.  The  law  creating  an  Interstate 
Commerce  Commission  bears  the  name  of  another  Republican  Sen- 
ator and  all  the  law  is  being  enforced  by  a  Republican  President. 
— Hon.  E.  L.  Hamilton,  in  Congress,  April  14,  1904. 


92 


THE  TEXTILE  INDUSTRY. 


The  textile  industries  of  the  United  States  at  decennial  periods  1850  to  /goo. 
[Compiled  from  census  reports.] 


1 

u 

Number 

u 

Capital. 

of 
wage 

Wages. 

Cost  of 
materials. 

Value  of 
product. 

5 

a- 

0 

earners. 

H 

fc 

Wool     manu- 

facture^)  

1850 

1,760 

$32,516,366 
42,849,982 

47,763 

$29,246,696 
46,649,365 

$49,636,881 
80.734,606 

i860 

i.ora 

59.522 

$13,361,602 

1870 

3,456 

132,382.319 

119,859 

40.357,235 

134.154,61 5 

217,668,826 

1880 

2,689 

159,091,869 

161.557 

47,389.087 

164,371,551 

267  252  913 

1890 

2,489 

296,494.481 

213.859 

70,917,894 

203.095,572 

837.768.524 

1900 

2.335 

392,040,353 

242,495 

82,292,444 

232,230,986 

392,473,050 

Cotton    manu- 

1850 

1.094 

74,500,931 
98,585,269 

92.286 
122,028 

34,835,056 
57.285,534 

61,869,184 
115,681.774 

I860 

1,091 

23,940,108 

1870 

956 

140,706.291 

135.369 

39,044.132 

111.786.986 

177.489.739 

1880 

756 

208.280,346 

174.659 

42,040,510 

182,206,347 

192.090,110 

1890 

905 

354,020,843 

218.876 

66,024,538 

154,912,979 

267,981,724 

1900 

1,055 

467,240,157 

302,861 

86,689,752 

176,551,527 

339.200,320 

Silk     manufac- 

ture  

1850 

67 

678,300 
2,926,980 

1,743 
5,435 

1.093,860 

1,809,476 

1860 

139 

1,050.224 

3,901,777 

6,607,771 

1870 

86 

6,231,130 

6,649 

1.942,286 

7,817,559 

12,210,662 

1880 

382 

19,125,300 

31,337 

9,146,705 

22,467,701 

41,033,045 

1890 

472 

51,007,537 

49,382 

17.762.441 

51,004,425 

87.298,454 

1900 

483 

81,082,201 

65,416 

20,982,194 

62.406,665 

107.256,258 

Dyeing     and 

finishing  tex- 

tiles  

1850 

104 

4.818,350 
5,718,671 

5,105 
7,097 

11,540,347 

15,454.430 
11,716,463 

1860 

124 

2,001,528 

5,005,435 

1870 

292 

18.374,503 

13,066 

5,221,588 

99,539.992 

113,017,537 

1880 

191 

26,223,981 

16,698 

6,474,364 

13,664,295 

32,297,420 

1890 

248 

38,450,800 

19,601 

8,911,720 

12,385,220 

28,900,560 

1900 

298 

60,643,104 

29,776 

12,726,316 

17,958,137 

44,963,331 

Flax,  hemp  and 

jute 

18% 

162 

27,731,649 
41,991,762 

15,519 

4,872,389 

26,148  344 

37,313,021 

1900 

141 

20,903 

6,331,741 

32,197,885 

47,601,607 

Combined  tex- 

tiles  

1850 

3  025 

112,513,947 
150,080,852 

146  877 

76,715,959 

128  769,971 

1860 

3.027 

194,082 

40,353.462 

112,842.111 

214  740,614 

1870 

4,790 

297,694,243 

274.943 

86,565,191 

353.249.102 

520,386,764 

1880 

4,018 

412,721,496 

384,251 

105.050,666 

302,709,894 

532.673,488 

1890 

4,276 

767,705,810 

517,237 

168,488,982 

447,546,540 

759,262,283 

1900 

4,312 

1,042,997,577 

661.451 

209,022,447 

541,345,200 

931,494,566 

a.  Includes  hosiery  and  knit  goods. 

Cotton  production  and  manufacturing  in  the  United  States,  also 
imports  and  exports  of  cotton  manufactures. 

[From  the  Statistical  Abstract  of  the  United  States.] 


Taken  for  home  con- 

Total 
com- 

sumption. 

Raw 

Exports 

Imports 
of  manu- 

mer- 
cial 

By 

North- 

By 

South- 

Total. 

cotton 
imported. 

factures 
of  cotton. 

factures 
of  cotton. 

crop. 

ern 
mills. 

ern 
mills. 

Int 

housanc 

s  of  ba 

les. 

Pounds. 

0 

1884 

5,713 

1,537 

340 

1,877 

7,019.492 

$11,885,211 

$29,074,626 

p 

'1885 

5,706 

1,437 

316 

1.753 

5.115,680 

11,836.591 

27.197,241 

1886 

6,575 

1,781 

381 

2.162 

5,072,334 

13.959,934 

29.709,266 

1887 

6,499 

1,687 

401 

2,088 

3,924,531 

14,929,342 

28,940,353 

H* 

.1888 

7,047 

1.805 

456 

2,261 

5,497,592 

13,013,189 

28,917,799 

3 

P 

1889 

6,939 

1,790 

480 

2,270 

7,973,039 

10,212,644 

20,805.942 

1890 

7,297 

1,780 

545 

2.325 

8,606,049 

9,999,277 

29,918,055 

1891 

8,674 

2,027 

613 

2,640 

20.908,817 

13,604,857 

29,712,624 

0 

1892 

9,018 

2,172 

684 

2,856 

28,663,769 

13,226,277 

28,323.841 

O  <D 

'1893 

6,664 

1.652 

723 

2,375 

43,367,952 

11,809,355 

33.560.293 

1894 

7,532 

1.580 

711 

2.291 

27.705.949 

14,340,886 

22,346,547 

1895 

9.837 

2,019 

852 

2,871 

49,332,022 

13,789.810 

33.196.625 

a* 

.1896 

7.147 

1,605 

900 

2,505 

55,350,520 

16,837.396 

32,437,504 

Q 

1897 

8,706 

1.793 

999 

2,792 

51.898,926 

21,037,678 

34,429,363 

1898 

11.216 

2,211 

1,254 

3,465 

52,660,363 

17.024,092 

27.2G7.300 

1899 

11,256 

2,217 

1,415 

3,632 

50,158,158 

23.566,914 

32,054.434 

1900 

9.422 

2,047 

1,597 

3,644 

•7,898,521 

24,003,087 

41,296.239 

1901 

10,339 

1.964 

1,583 

3,547 

46,631,283 

20.272,418 

40,246,935 

1902 

10,768 

2,066 

2,017 

4,083 

98,715,680 

32.108.362 

44,460,126 

1903 

10,674 

1,966 

1.958 

3.924 

74.874,426 

32,216.304 

52,462.755 

THE  TEXTILE  INDUSTRY. 


93 


Relative  Price  of  Cotton  and  Cotton  Goods,  1880  to  1903 — A  Greater 
Fall  in  the  Finished  Goods  than  in  the  Material  from  Which 
They   Were   Manufactured. 

This  table  gives  the  production  and  average  annual  price  of 
raw  cotton  and  the  wholesale  price  of  various  grades  of  cotton 
goods  in  the  New  York  market  in  each  year  since  1880.  It  will 
be  seen  that  while  the  price  of  raw  cotton  in  1903  was  practically 
the  same  as  that  of  the  earlier  part  of  the  period,  the  price  of 
manufactures  "is  in  every  instance  materially  lower  than  at  that 
time,  the  reduction  in  price  of  the  goods  being  in  most  cases 
about  25  per  cent,  showing  that  the  competition  among  the  home 
producers  has  steadily  reduced  prices. 

Production  and  average  prices  of  middling  cotton,  and  the  staple 
manufactures  of  cotton,  in  the  New  York  market  each  year, 
from  1866  to  1903.         .  -   . 

[From  the  Statistical  Abstract.] 


Calendar  years. 


.-3 

a 
o 

b 

u 
u 

a 

u 
S 

a 

u 

CD 

a 

V 

c3  f- 

u 

V 

a 

9 

'5 
u 

B 
B 

d 
o  o 

a 

CO 

a 

CD  03 

co  m 
.73  a 

8 

d 

h 

*1 

bra 

co  ;>> 
p 

Sc» 

03 

o 
o 

% 

o3 

■d 

c3 

•a 

Hi 

fl 

o3 

a 

c3 

£  CO 

cd 

OQ 

P 

83 

2 

Bales. 

Cents. 

Cents. 

Cents. 

Cents. 

Cents. 

5,761,000 

11.51 

8.51 

8.51 

12.73 

7.41 

6,605,000 

12.03 

8.51 

8.06 

12.74 

7.00 

6,456,000 

11.56 

8.45 

8.25 

12.95 

6.50 

6,950,000 

11.88 

8.32 

7.11 

12.93 

6.00 

5,713,000 

10.88 

7.28 

6.86 

10.46 

6.00 

5,706,000 

10.45 

6.75 

6.36 

10.37 

6.00 

6,576,000 

9.28 

6.75 

6.25 

10.65 

6.00 

6,499,000 

10.21 

7.15 

6.58 

10.88 

6.00 

7,047,000 

10.03 

7.25 

6.75 

10.94 

6.50 

6,939,000 

10.65 

7.00 

6.75 

10.50 

6.50 

7,297,000 

11.07 

7.00 

6.75 

10.90 

6.00 

8,674.000 

8.60 

6.83 

6.41 

10.64 

6.00 

9,018,000 

7.71 

6.50 

5.60 

10.25 

6.25 

6,664,000 

8.56 

5.90 

5.72 

9.75 

5.25 

7,532,000 

6.94 

5.11 

5.07 

9.50 

4.90 

9,837,000 

7.44 

5.74 

5.69 

9.85 

5.25 

7,147,000 

7.93 

5.45 

5.48 

9.50 

4.66 

8,706,000 

7.00 

4.73 

4.75 

9.25 

4.70 

11,216,000 

5.94 

4.20 

4.10 

8.00 

3.96 

11,256,000 

6.88 

5.28 

5.13 

9.50 

4.25 

9,436,000 

9.25 

6.05 

5.95 

10.75 

5.00 

10,383,000 

8.75 

5.54 

5.48 

10.25 

4.62 

10,681,000 

9.00 

5.48 

5.52 

10.50 

5.00 

10,728,000 

11.18 

6.25 

6.37 

10.75 

5.00 

6j 

.22 


.a  >> 
a£ 


1881 
1882 
1883 
1884 
1885 
1886 
1887 
1888 
1889 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 

4900 
901 
1902 


Cents. 
4.51 
3.95 
3.76 
3.60 
3.36 
3.12 
3.31 
3.33 
3.81 
3.81 
3.34 
2.95 
3.39 
3.30 
2.75 
2.86 
2.60 
2.48 
2.06 
2.69 
3.21 
2.84 
3.11 
3.25 


a     Years  ending  August  31. 

b     Including  1881  and  since,  the  price  of  standard  drillings  are  net;  raw  cotton 
prices  are  also  net  for  the  entire  period. 


Protection  has  already  made  us  the  richest  and  strongest  nation 
on  earth,  and  under  a  properly  restricted  immigration  will  bring 
to  us  much  that  is  most  valuable  in  the  population  of  other  lands. 
— Senator  Hoar,  in  the  American  Economist. 

By  the  policy  of  fostering  American  industries  the  development 
of  our  manufacturing  interests  have  been  secured;  the  inventive 
genius  of  our  people  has  found  a  field;  American  labor  has  become 
the  best  paid,  and  consequently  our  laborers  the  best  housed, 
clothed,  and  fed;  and  the  wonderful  development  and  progress  in 
this  country  in  all  that  makes  a  people  great,  have  elicited  the 
admiration  of  the  civilized  world. — Senator  Cullom,  in  the  American 
Economist. 

As  a  result  in  a  large  degree  of  our  protective  tariff  system 
the  United  States  has  become  one  of  the  foremost  nations  of  the 
world. — Hon.  S.  M.  Cullom. 


•i  I  I'ROSPl  R1TY. 


PROSPERITY. 

Prosperity  among  all  classes  of  the  population  of  the  United 
States  is  so  evident  at  the  present  time  that  no  argument  in  sup- 
port of  that  fact  is  necessary.  The  fact  is  apparent.  Yet  the 
constant  assertion  of  the  opponents  of  the  Republican  party  that 
the  prosperity  is  not  general  and  dors  not  roach  to  the  masses 
of  the  people  justifies  the  presentation  of  some  facts  and  figures 
by  which  these  false  assertions  may  be  readily  answered  and 
the  real  prosperity  of  the  country  and  its  people  accurately 
measured. 

Prosperity  Abroad  Under  Protection. 

Before  taking  up  the  question  of  prosperity  at  home,  it  may 
be  well  to  consider  what  protection  and  free  trade  have  done 
in  producing  prosperity  or  the  reverse  in  the  principal  countries 
of  the  world. 

The  great  general  rule  that  protection  fosters  domestic  activ- 
ity and  therefore  domestic  prosperity  applies  just  as  strongly 
to-day  as  it  has  all  through  the  history  of  the  various  great  com- 
mercial nations  of  the  world.  That  protective  Germany  and 
the  United  States  have  developed  a  much  greater  prosperity  dur- 
ing the  past  twenty  years  than  free-trade  England  is  now  con- 
ceded even  by  the  British  themselves,  and  upon  the  prosperity  of 
Germany  and  the  United  States  are  based  the  arguments  now  be- 
ing placed  before  the  people  of  the  United  Kingdom  in  favor  of 
the  adoption  of  a  protective  system. 

GREAT    BRITAIN    ALONE    UNPROSPEROUS. 

Right  Hon.  Joseph  Chamberlain,  a  member  of  the  British 
cabinet,  secretary  of  state  for  the  colonies,  who  in  1903  with- 
drew from  his  position  to  lead  the  fight  in  favor  of  a  return 
to  protection,  says  in  a  signed  article  prepared  for  the  London 
Daily  Telegraph:  "It  is  not  well  with  British  trade.  After  a 
long  period  of  success  the  policy  of  unrestricted  free  imports  has 
now  shown  evident  signs  of  failure.  Our  exports  are  stationary 
in  amount  and  declining  in  character.  We  receive  from  our  com- 
petitors a  larger  proportion  of  manufactured  goods,  and  we  send 
them  a  larger  proportion  of  raw  materials  than  we  used  to  do. 
Our  supremacy  in  what  have  always  been  considered  our  stand- 
ard industries  has  been  wrested  from  us,  or  is  seriously  men- 
aced. One  by  one  markets  once  profitable  and  expanding  are 
closed  to  us  by  hostile  tariff's.  We  have  lost  all  power  of  bar 
gaining  successfully  for  the  removal  or  reduction  of  these  bar- 
riers to  our  trade."  « 

Sir  Arthur  Balfour,  the  premier  of  the  British  cabinet,  prime 
ininister  and  first  lord  of  the  treasury,  in  a  letter  entitled  "Eco- 
nomic Notes  on  Insular  Free  Trade,"  which  he  says  "were 
circulated  to  my  colleagues  in  the  first  days  of  August,  1903," 
and  which  were  afterwards  made  public,  says:  "The  most  ad- 
vanced of  our  commercial  rivals  are  not  only  protectionists  now 
but  in  varying  measure  are  going  to  remain  so.  Other  nations 
have  in  the  past  accepted  the  principle  of  free  trade;  none  have 
consistently  adhered  to  it.  Irrespective  of  race,  polity,  and 
material  circumstances,  every  other  physically  independent  com- 
munity whose  civilization  is  of  the  western  type  has  deliberately 
embraced,  in  theory  if  not  m  practice,  the  protectionist  system." 

LOSS  OF  BOTH   HOME  AND  FOREIGN  MARKETS. 

Commenting  upon  these  remarkable  utterances  froin  leading 
officials  of  the  British  Government  and  upon  the  official  figures 
regarding  conditions  in  the  United  Kingdom  compared  with 
those  of  other  countries,  the  London  Telegraph  says :  "Internal 
trade,  which  the  free-import  system  has  enabled  protected  (for- 
eign) capital  to  capture,  is  better  worth  lighting  for  than  all  the 
foreign  markets  of  the  world.  Our  fiscal  system  has  thrown 
this  vast  business  at  home  into  the  hands  of  competitors  who 
shut  us  out  from  their  sphere  abroad,      *      *     -*'     Why  is  our 


PROSPERITY.  <),") 

trade  stagnant?  Because  our  products  can  no  longer  find  in  the 
whole  world  a.  single  market  that  is  free;  and  not  content  with 
being  repulsed  in  every  other  country,  we  surrender  our  own. 
*  *  *  In  spite  of  alarmist  predictions  of  the  Cobden  Club, 
the  United  States  adopted  the  McKinley  tariff.  They  knew 
exactly  what  they  wanted;  they  believed  that  the  more  com- 
pletely they  secured  the  home  market  for  home  enterprise  the 
higher  would  be  the  development  of  their  internal  industry  and 
the  greater,  therefore,  its  success  in  foreign  trade.  No  estimate 
was  ever  more  brilliantly  verified.  *  *  *  Germany  under 
Bismarck  abandoned  the  system  of  approximate  free  trade  in 
1879;  she  has  since  achieved  the  marvelous  expansion  in  manu- 
facture and  commerce  with  which  we  have  had  cogent  reason 
to  be  well  acquainted.  She  has  stopped  the  stream  of  emigration 
from  her  shores;  that  is  the  test.  The  Kaiser's  subjects  would 
have  continued  as  before  to  flow  abroad  by  millions  if  pros- 
pects of  prosperity  previously  unknown  had  not  been  opened  up 
at  home  after  the  free-import  system  was  abandoned.  No  com- 
petent witness  can  deny  the  immense  subsequent  increase  of 
employment  and  the  remarkable  advance  in  the  general  well- 
being  of  the  German  people.  *  *  *  If  you  want  to  judge 
the  progress  of  home  production  in  any  country  by  the  index 
fact,  inquire  what  are  the  make  and  consumption  of  iron  and 
steel.  In  the  twenty  (protection)  years  before  Cobdenism,  say 
1825  to  1845,  we  tripled  our  output  of  iron.  The  United  States 
and  Germany  did  exactly  the  same  thing  in  the  two  decades  of 
protection,  1880-1900,  while  we  increase  our  consuming  power  for 
iron  by  24  per  cent.  That  is  the  master  fact  bearing  upon  the 
relative  progress  of  home  trade.  *  *  *  Capital  can  move 
from  trade  to  trade  and  from  country  to  country.  The  tariffs  of 
the  United  States  and  the  Continent  have  compelled  many  well- 
known  British  employers  to  transfer  their  undertakings  to  foreign 
soil  and  find  employment  for  foreign  workmen.  But  to  a  work- 
ing man  the  trade  he  has  been  taught  is  his  very  life.  If  the 
ordinary  skilled  artisan  cannot  find  employment  after  he  attains 
full  manhood  in  the  trade  in  which  he  has  been  brought  up  he 
is  ruined,  unless  he  emigrates  to  a  country  like  America,  a 
country  with  tariff,  not  only  willing  to  give  him  employment 
but  give  him  an  absolute  guaranty  against  the  displacement 
of  his  labor  by  foreign  competition.  *  *  *  The  working 
classes  in  the  United  States  and  Germany  have  been  increasing 
their  savings  faster  than  the  working  classes  here.  *  *  * 
English  workmen  receive  high  wages  under  free  trade,  but 
American  workmen  receive  wages  'from  50  to  100  per  eent 
higher  under  the  tariff." 

UNPARALLELED  SUCCESS  OF  THE  UNITED  STATES. 

Representative  men  of  other  nations  have  also  noted  that 
the  prosperity  in  the  United  States  has  come  under  and  by 
reason  of  protection.  Mr.  Mulhall,  of  the  Royal  Society  of  Lon- 
don, in  his  "Balance  Sheet  of  the  World,"  says:  "It  would  be 
impossible  to  find  in  history  a  parallel  to  the  progress  of  the 
United  States  in  the  last  ten  years.  Every  day  that  the  sun 
rises  upon  the  American  people  it  sees  an  addition  of  two  and 
one-half  million  dollars  to  the  accumulation  of  wealth  of  the 
Republic,  which  is  equal  to  one-third  of  the  daily  accumulation  of 
all  mankind  outside  of  the  United  States." 

That  great  statesman  of  Germany,  Prince  Bismarck,  in  a  speech 
before  the  Reichstag,  said :  "The  success  of  the  United  States  in 
material  development  is  the  most  illustrious  of  modern  time.  The 
American  nation  has  not  only  succesfully  borne  and  suppressed  the 
most  gigantic  war  of  all  history,  but  immediately  afterwards  dis- 
banded its  army,  found  work  for  all  its  soldiers  and  marines,  paid 
off  most  of  its  debt,  given  labor  and  homes  to  all  the  unemployed 
of  Europe  as  fast  as  they  could  arrive  within  the  territory,  and 
still  by  a  system  of  taxation  so  indirect  as  not  to  be  perceived, 
much  less  felt.  Because  of  its  deliberate  judgment  that  the 
prosperity  of  America  is  mainly  due  to  its  system  of  protective 
laws,  I  urge  that  Germany  has  now  reached  that  point  where 
$t  is  necessary  to  imitate  the  tariff  system  of  the  United  States." 


96  raoflra&rTT. 

Relation  of  the   Turin'*  of  the    United   Stutett   to   Prosperity  or 
Adversity  of  the  People. 

Before  taking  up  the  question  of  the  general  prosperity  at 
the  present  time,  it  is  proper  to  review  briefly  the  conditions  of 
prosperity  and  adversity  under  the  various  tariffs  of  the  I  aited 

States    from    the    earliest    date,    and    to    note    the    elt'eet    of    low 

and  protective  tariffs,  respectively,  upon  the  conditions  among  our 
own  people,  a  brief  outline  will  be  given  of  conditions  during  the 
long  period  prior  to  l$6i,  a  period  in  which  the  protective  tariffs 
were  of  such  short  duration  as  to  give  only  a  suggestion  of  the 
real  benefit  of  protection  when  continuously  operating  upon  the 
great  industries  of  the  country.  The  first  really  protective!  tariff 
period  in  the  United  States  was  from  1S12  to  1810,  the  period  in 
which  duties  were  high  through  the  great,  increase  made  in  the 
rates  at.  the  beginning  of  the  war  of  1812,  and  so  evident  was 
the  advantage  of  protection  to  our  domestic  manufactures  that 
President  Madison,  in  a  special  message,  urged  upon  Congress 
"deliberate  consideration  of  the  means  to  preserve  and  promote 
the  manufactures  which  have  sprung  into  existence  aud  attained 
unparalleled  maturity  throughout  the  United  States  during  the 
period  of  European  wars,"  Notwithstanding  this  urgency  a  re- 
turn to  low  tariff  followed,  and  the  British  followed  the  advice 
of  Lord  Brougham,  who  in  1810  said  in  the  House  of  Commons.: 
"It  is  well  worth  while  to  incur  a  loss  upon  the  first  exportation 
in  order  by  the  glut  to  stifle  in  the  cradle  those  infant  manufac- 
tures in  the  United  States  which  the  war  has  forced  into  ex- 
istence.' Following  this  programme,  outlined  by  Lord  Brougham, 
British  manufactures  were  poured  into  the  United  States,  and 
according  to  Niles,  in  his  history,  "great  sums  of  money  were 
expended  by  the  British  to  destroy  our  flocks  of  sheep,  that 
they  might  thereby  ruin  our  manufactories.  They  bought  up 
and  immediately  slaughtered  great  numbers  of  sheep;  they 
bought  our  best  machinery  and  sent  it  off  to  England,  and  hired 
our  best  mechanics  and  most  skillful  workmen  to  go  to  England, 
simply  to  get  them  out  of  this  country,  and  so  hinder  and  destroy 
our  existing  and  prospective  manufactures."  As  to  the  result  of 
This,  Senator  Benton,  a  distinguished  Democrat,  gives  this  picture 
of  the  condition  of  the  times :  "No  price  for  property ;  no  sales, 
except  those  of  the  sheriff  and  the  marshal;  no  purchasers  at 
execution  sales,  except  the  creditor,  or  some  hoarder  of  money; 
no  employment  for  industry;  no  demand  for  labor;  no  sale  for 
the  products  of  the  farm ;  no  sound  of  the  hammer,  except  that 
of  the  auctioneer  knocking  down  property.  Distress  was  the 
universal  cry  of  the  people;  relief,  the  universal  demand." 

RESULTS   OF  VARIOUS   TARIFFS. 

The  response  to  this  universal  demand  was  the  protective 
tariff  of  1824-33,  of  which  Henry  Clay  said:  "If  the  term  of 
seven  years  were  to  be  selected  of  the  greatest  prosperity  which 
this  people  has  enjoyed  since  the  establishment  of  their  present 
Constitution,  it  would  be  exactly  that  period  of  seven  years 
which  immediately  followed  the  passage  of  the  tariff  of  1824," 
and  in  regard  to  the  low-tariff  period  which  intervened  between 
the  two  protective  tariff  periods,  already  described,  he  added: 
"If  I  were  to  select  any  term  of  seven  years  since  the  adoption 
of  the  present  Constitution  which  exhibited  a  scene  of  the  most 
widespread  dismay  and  desolation,  it  would  be  exactly  that 
term  of  seven  years  which  immediately  preceded  the  establish- 
ment of  the  tariff  of  1824."  / 

In  the  low-tariff  period.  1833-42,  which  followed  the  repeal  of 
the  protective  tariff  acts  of  1824-28  occurred  the  great  financial 
crash  of  1837,  of  which  Senator  Gallinger  says :  "The  whole  coun- 
try went  into  liquidation,  bank  loans  and  discounts  fell  off  more 
than  one-half;  the  money  lost  to  the  country  was  not  less  than 
one  billion  dollars;  all  prices  fell  off  ruinously;  production  was 
greatly  diminished,  and  in  many  departments  practically  ceased ; 
thousands  of  workmen  were  idle,  with  no  hope  of  employment; 
cur  farmers  were  without  markets ;  their  farms,  teeming  with 
rich  harvests,  were  sold  by  the  sheriff  for  debts  and  taxes ;  the  low 
tariff  which  robbed  the  industries  of  protection  also  failed  to  sup- 
ply Government  revenues;  the  treasury  was  bankrupt;  the  reve- 


PROSPERITY.  97 

nne  fell  off  25  per  cent,  and  the  Government  was  obliged  to  borrow 
money  at  high  rates  of  interest  to  pay  current  expenses." 

Under  the  third  protection  period  which  followed,  from 
1842  to  184G,  prosperity  returned,  and  President  Polk,  although 
a  Democrat  and  free  trader,  was  constrained  to  say  in  his  annual 
message  of  December,  184G:  "Labor  in  all  its  branches  is  re- 
ceiving an  ample  reward,  while  education,  science  and  the  arts 
are  rapidly  enlarging  the  means  of  social  happiness.  The  prog- 
ress of  our  country  in  her  career  of  greatness,  in  resources  and 
wealth,  and  the  happy  condition  of  her  people,  is  without  an 
example  in  the  history  of  nations." 

The  next  free-trade  period,  from  1846  to  1801,  while  favored 
with  special  conditions  of  great  demand  abroad  for  our  farm 
products  and  the  enormous  gold  production  in  California  begin- 
ning with  1849,  was  characterized  by  the  greatest  business  de- 
pression. In  January,  1855,  the  New  York  Tribune  said:  "The 
cry  of  hard  times  reaches  us  from  every  part  of  the  country. 
The  making  of  roads  is  stopped;  factories  are  closing;  houses 
and  ships  are  no  longer  being  built.  Factory  hands,  roadmakers. 
carpenters,  bricklayers  and  laborers  are  idle  and  paralysis  is 
rapidly  embracing  every  pursuit  in  the  country.  The  cause  of 
all  this  stoppage  of  circulation  is  to  be  found  in  the  steady  out- 
flow of  gold  to  pay  foreign  laborers  for  the  clothing  and  shoes 
and  the  iron  and  other  things  that  could  be  produced  by  Ameri- 
can labor,  but  which  cannot  be  so  produced  under  our  present 
revenue  system."  And  the  New  York  Herald  of  January  0, 
1855,  said:  "Elsewhere  will  be  found  some  mention  of  large 
failures  at  Boston  and  New  Orleans.  The  epidemic  has  traveled 
over  the  whole  country.  No  city  of  any  note  can  hope  to  escape." 
By  1801  the  condition  had  grown  so  serious  that "  President 
Buchanan,  the  last  Democratic  President  before  the  advent  of 
the  Republican  party  to  control  of  the  Government,  said  in  his 
annual  message :  "With  unsurpassed  plenty  in  all  the  productions 
and  of  all  the  elements  of  natural  wealth,  our  manufacturers 
have  suspended,  our  public  works  are  retarded,  our  private  en- 
terprises of  different  kinds  are  abandoned,  and  thousands  of  use- 
ful laborers  are  thrown  out  of  employment  and  reduced  to  want. 
We  have  possessed  all  the  elements  of  material  wealth  in  rich 
abundance,  and  yet,  notwithstanding  all  these  advantages,  out- 
country  in  its  manufacturing  interests  is  in  a  deplorable  con- 
dition." 

Permanent  Prosperity  Under  Permanent  Protection. 

With  the  permanent  return  of  protection  which  followed  the 
advent  of  the  Republican  party  in  1801,  prosperity  and  wonderful 
development  of  the  industries  of  the  United  States  continued 
uninterruptedly,  save  in  those  great  periods  of  adversity  which 
swept  over  all  countries  and  by  which  the  purchasing  power  of 
our  foreign  customers  was  greatly  reduced. 

An  indication  of  the  relative  development  of  prosperity  under 
continuous  protection  following  1801,  as  compared  with  that 
under  almost  continuous  free  trade  prior  to  that  date,  may  be 
had  by  contrasting  conditions  in  manufacture,  in  'agriculture,  in 
wealth,  in  bank  deposits,  and  other  measures  of  prosperity  in 
1890  with  those  of  1800,  the  termination  of  the  long  low-tariff 
period.  In  1800  the  country  had  had  seventy  years  under  the 
Constitution,  and  of  those  seventy  years  only  sixteen  were  under 
protection,  and  they  covered  such  brief  and  widely  separated 
intervals  as  to  reduce  materially  their  general  effect  upon  the 
development  of  the  great  industries  of  the  country.  Following 
those  seventy  years  of  almost  continuous  low  tariff"  which  ended 
with  1800  came  continuous  protection  down  to  1892,  when  a  free- 
trade  President  and  Congress  were  elected.'  It  is  thus  practicable 
to  compare  the  relative  development  of  the  country  and  the 
growth  of  prosperity  during  two  great  periods — practically  con- 
tinuous low  tariff  down  to  1800,  and  continuous  protection  from 
1800  to  1892.  While  it  is  true  that  the  actual  enactment  of  a 
low  tariff  did  not  occur  until  1894,  the  effect  of  the  prospective 
change  was  felt  .the  very  day  following  the  announcement  that 
a  low-tariff  President  and  Congress  had  been  elected,  since 
merchants  and  manufacturers  were  from  that  moment  unable 
to  safely  proceed  with  their  business  undertakings  in  view  of 
c 


$8 

the  certainty  thai  Changes  in  the  tariff  would  occur,  and  the 
uncertainty  as  to  what  those  changes  would  be,  A  study  of  the 
protective  tariff  period  must  therefore  contrast  the  figured  of 
1802,  wherever  possible,  with  those  of  I860,  the  termination  of 
the  long  period  of  practically  continuous  low  tariff,  and  in  cases 
where  figures  for  1892  are  not  available  those  of  the  census 
year  1800  are  utilized. 

GROWTH   OF   WEALTH   UNDER  LOW  TARIFF  AND  PROTECTION. 

The  total  wealth  accumulated  in  the  United  States  during  the 
seventy  years  of  almost  continuous  low  tariff— from  1700  to  I860 
—was,  as  shown  by  census  figures,  16  billions  of  dollars;  by  1800 
it.  had  increased  to  05  billions,  the  accumulation  during  the 
thirty  years  of  protection  being  40  billions,  or  three  times  as 
much  as  in  the  seventy  years  preceding  18G0.  In  the  closing 
decade  of  the  low-tariff  period,  1850-00,  the  wealth  of  the  country 
increased  from  7  to  10  billions,  an  increase  of  0  billion  dollars; 
in  the  very  next  decade,  despite  the  war  conditions  which  pre= 
vailed,  the  increase  was  14  billions,  or  50  per  cent  more  in  this 
decade  of  protection  than  in  the  last  decade  of  low  tariff;  while 
iu  the  decade  from  1880  to  1800  the  increase  was  23  billions,  or 
two  and  one-half  times  as  much  as  in  the  last  decade  of  low 
tariff.  The  per  capita  wealth  which  in  1800,  according  to  the 
census,  was  $514,  in  1800  was  $1,038,  having  a  little  more  than 
doubled  in  the  thirty  years  of  protection.  Money  in  circulation 
in  1800  amounted  to  435  million  dollars,  though  much  of  it  Vvas 
of  a  very  unsatisfactory  character,  being  uncertain  as  to  value 
at  points  distant  from  the  place  of  issue.  In  1802  the  total 
was  1,001  millions,  or  practically  four  times  as  much  as  in  1800, 
and  every  dollar  of  it  good  not  only  in  every  part  of  the  country, 
but  in  every  part  of  the  world.  Meantime  the  per  capita  money 
in  circulation  had  grown  from  $13.85  in  1800  to  $24.50  in  1802, 
having  thus  nearly  doubled  in  the  period  of  thirty-two  years 
under  protection— 

BANK    DEPOSITS. 

Figures  of  bank  deposits  of  the  various  classes  which  form 
the  grand  total  are  not  available  for  so  early  a  date  as  1800,  but 
the  statistics  of  savings-bank  deposits  are  available  for  that 
year.  They  show  a  total  of  140  million  dollars  for  1800;  in  1802 
they  were  1,713  millions,  or  more  than  ten  times  as  much  as  in 
1860.  Thus  in  seventy  years  of  almost  continuous  low  tariff 
the  workingmen  of  the  country,  the  class  whose  funds  are  depos- 
ited in  savings  banks,  had  only  reached  a  condition  in  which 
they  were  able  to  have  on  deposit  140  millions;  while  after 
thirty-two  years  of  protection  they  had  1,713  millions,  or  more 
than  ten  times  as  much  as  at  the  end  of  the  seventy  years 
of  low  tariff.  The  number  of  depositors  in  savings  banks  was, 
in  1800,  003,870,  and  in  1802,  4,781,005.  Contrast  the  growth  in 
the  last  decade  of  free  trade  with  that  of  the  first  decade  of 
protection.  During  the  decade  prior  to  1800,  while  the  popula- 
tion grew  from  23  millions  to  31  millions,  the  number  of 
depositors  in  savings  banks  increased  from  251,354  to 
693,870,  an  increase  of  only  442,510.  In  the  next  decade, 
despite  war  conditions  and  with  no  increase  in  territory,  and 
less  than  the  normal  increase  in  population  by  reason  of  war 
and  the  resulting  reduction  in  immigration,  the  number  of  de- 
positors grew  from  G93,870  to  1,030,840,  an  increase  of  030,976, 
or  more  than  twice  the  increase  of  the  former  decade.  In 
the  ten  years  prior  to  18G0  under  low  tariff  the  deposits  in- 
creased $105,840,374,  while  in  the  decade  following  1800,  under 
protection,  the  increase  was  $400,596,854;  and  it  must  be  re- 
membered that  during  a  considerable  portion  of  the  second  period 
a  large  number  of  the  wealth  producers  of  the  country  were  | 
engaged  in  war. 

FARM    VALUES. 

Farm  values  are  another  measure  of  prosperity,  and  the  rela- 
tion of  farm  values  under  a  period  of  protection  to  that  under 
a  period  of  low  tariff  is  a  fair  indication  of  the  effect  of  a 
manufacturing  industry  upon  the  values  of  farm  property.  In 
1860  the  value  of  farms  and  farm  property  in  the  United  States 


PROSPERITY.  99 

was  7,980^inillion  dollars,  and  in  1890  16  billions  of  dollars, 
having  thus  more  than  doubled  in  the  thirty  years  of  protection, 
as  compared  with  the  accumulations  in  value  during  the  long 
period  under  low  tariff.  The  value  of  animals  on  farms  in 
1800  was  1,089  million  dollars;  in  1890  it  was  2,419  millions, 
having  increased  1,330  millions,  or  122  per  cent  in  the  thirty 
years  of  protection. 

IRON    AND    COAL. 

Business  activity,  and  especially  activity  in  the  manufactur- 
ing industries,  may  be  measured  with  a  fair  degree  of  accuracy 
by  the  production  of  pig  iron  and  coal.  Up  to  1860  the  production 
of  coal  in  the  entire  country  had  only  grown  to  8,51d,123  tons; 
by  1870,  under  a  single  decade  of  protection,  the  production  had 
grown  to  32,863,000  tons,  or  nearly  four  times  as  much  as 
in  1860;  and  in  1890  it  had  reached  the  enormous  aggregate 
of  110,866,931  tons,  or  sixteen  times  as  much  as  in  1860.  Pig 
iron  production  up  to  1860  had  only  reached  a  total  of  821,223 
tons,  the  figures  of  that  year  being  larger  than  those  of  any 
preceding  year.  In  a  single  decade,  from  1860  to  1870,  the 
production  doubled,  the  figures  for  1870  being  1,665,179  tons, 
while  in  1890  the  total  was  9,302,703  tons.  In  the  manufacturing 
industries  the  total  number  of  persons  employed  in  1860  was  only 
1,311,246,  and  in  1890  was  4,712,622,  or  more  than  three  and  one- 
half  times  as  many  as  in  1860;  while  the  wages  and  salaries 
paid,  which  amounted  to  $378,878,906  in  1860,  were  in  1890 
$2,283,216,529,  or  six  times  as  much  as  in  1860.  Thus  in  1890, 
after  thirty  years  of  protection,  the  number  of  persons  employed 
in  manufacturing  was  nearly  four  times  as  many  as  in  1860  at 
the  end  of  the  low-tariff  period,  and  the  sum  paid  in  wages 
and  salaries  in  the  manufacturing  industries  was  six  times  as 
great  as  in  1860.  Meantime,  it  should  be  remembered,  popu- 
lation had  barely  doubled,  the  population  in  1860  being  31,443,321 
and  in  1890  62,622,250. 

The  effect  of  this  increase  in  production  upon  the  facilities  for 
transportation  and  the  cost  of  transporting  material  is  shown  in 
the  fact  that  the  railways  of  the  country  grew  from  30,626 
miles  in  1860  to  166,654  miles  in  1890,  and  the  cost  of  transport- 
ing a  bushel  of  wheat  from  Chicago  to  New  York  fell  from 
24.83  cents-  in  1860  to  5.85  cents  in  1890,  as  shown  by  the 
Statistical  Abstract  of  the  United  States. 

Still  another  evidence  of  the  relative  growth  of  business  activ- 
ity in  the  two  periods  is  that  of  postal  receipts  of  the  Post-Office 
Department.  In  1860  they  were  but  $8,518,067,  and  had  never 
exceeded  that  sum  in  any  preceding  year.  In  1892  they  were 
$70,930,476,  or  eight  times  as  much  as  in  1860,  while  population 
meantime  had  but  little  more  than  doubled. 

Prices  Reduced  by  Domestic  Competition. 

>  Meantime  the  domestic  competition  brought  about  by  the 
great  home  industries  built  up  by  the  tariff,  and  despite  the 
existence  of  a  tariff  which  excluded  foreign  products,  had  re- 
sulted in  a  reduction  in  the  price  of  pig  iron  from  $22.75  per  ton 
in  1860  to  $15.75  per  ton  in  1892;  of  steel  rails  from  $166  per 
ton  in  1867,  the  earliest  available  data,  to  $30  per  ton  in  1892. 
In  the  cotton  industry  alone  the  wages  and  salaries  paid  had 
grown  from  24  million  dollars  in  1860  to  69  millions  in  1890,  and 
the  value  of  the  product  turned  out,  from  116  million  dollars 
to  268  millions.  Meantime  the  competition  in  manufacturing  in 
the  domestic  market  had  reduced  the  price  of  standard  prints 
from  9.50  cents  per  yard  in  1860  to  6  cents  per  yard  in  1890. 

Thus  the  number  of  people  employed  in  manufacturing  in 
thirty  years  of  protection  practically  quadrupled,  and  the  sum 
paid  them  in  wages  and  salaries  was  six  times  as  great  as  that 
paid  in  1860.  Under  the  increased  home  market  thus  Offered 
to  the  farmers  of  the  country  the  value  of  farm  property 
doubled;  yet  under  the  competition  which  grew  up  within  the 
country  among  the  protected  industries  meantime,  prices  of 
practically  all  products  fell  from  25  to  60  per  cent,  and  the  cost 
of  transportation  was  reduced  more  than  75  per  cent.  All  of  the 
figures  above  quoted  are  from  the  Statistical  Abstract  of  the 
United  States,  an  official  publication  and  an  accepted  authority. 


100  PROSPERITY. 


The  Cleveland  Low  Taritt'  I'erlod. 


Following  this  long  period  of  thirty-two  years  of  protection 
came  four  years  of  low  tariff,  either  actual  or  threatened.  The 
morning  following  the  election  of  Cleveland  and  a  Democratic 
Congress  the  people  of  the  United  States  know  that  a  Democratic 
low  tariff  would  be  enacted.  From  that,  moment  every  importer 
was  expecting  to  obtain  his  merchandise  from  abroad  at  a  less 
rate  through  a  reduction  of  the  tariff,  but  was  uncertain  as  to 
what  that  reduction  would  he.  Tin*  manufacturer  was  also 
uncertain  as  to  what  the  tin  ill  conditions  would  be  with  refer- 
ence to  the  raw  material  which  he  must  import  for  use  in  his 
manufacturing.  As  a  consequence  merchants  who  were  accus- 
tomed to  purchase  from  the  home  manufacturer  were  unwilling 
to  give  orders  because  they  felt  that  they  might  find  it  profitable 
to  buy  from  abroad  under  the  reduced  tariff.  Manufacturers 
were  unahle  to  make  contracts  hoth  hy  reason  of  this  fact  and 
the  uncertainty  regarding  the  cost  of  imported  materials  which 
they  must  import. 

The  effect  of  this  was  an  immediate  check  in  the  manufactur- 
ing industries,  and  this  in  turn  resulted  in  a  reduction  in  the 
number  of  employees  and  in  the  wages  paid.  This  condition, 
in  its  turn,  decreased  the  market  offered  by  these  millions  of 
employees  to  the  farmer,  the  purchasing  power  of  these  millions 
of  employees  and  of  the  farmers  whp  were  thus  affected  was  re- 
duced, and  the  retail  merchant  thus  suffered  a  loss  in  business; 
tlie  quantity  of  material  to  be  carried  by  the  railroads  for  the 
'manufacturing  establishments  fell  off,  and  the  railroads  in 
turn  were  compelled  to  reduce  the  number  and  wages  of  their 
employees,  and  this  again  reduced  the  purchasing  power  of  that 
class  of  citizens.  The  general  result  was  a  great  falling  off 
in  sales  by  the  merchants  and  dealers  of  the  country,  and  a 
great  reduction  in  their  purchases  from  the  manufacturers,  who 
thus  found  their  home  market  still  further  reduced  by  this  loss 
of  the  earning  power  of  the  various  classes  of  consumers'  and 
this  in  turn  reacted  upon  the  financial  institutions  of  the  coun- 
try. Disaster  followed  disaster  and  failure  followed  failure, 
and  in  the  single  year  1893,  under  the  mere  shadow  of  free 
trade,  the  certainty  of  tariff  reductions  and  the  uncertainty  as  to 
what  they  would  be,  the  number  of  failures  grew  from  10,344  in 
1S92  to  15.242  in  1893,  and  the  liabilities  of  the  failing  firms 
from  $114,044,167  in  1892  to  $346,779,889  in  1893.  The  effect 
upon  the  great  railroad  interests  of  the  country  was  shown 
in  the  fact  that  seventy-four  railroads  with  a  mileage  of  29,930 
miles  were  placed  in  the  hands  of  receivers  in  the  single  year 
1893,  while  In  the  years  1895-96,  the  closing  period  of  low  tariff, 
26,571  miles  of  railway,  or  one-seventh  of  the  entire  number 
of  miles  in  the  United  States,  were  sold  under  foreclosure. 
Meantime  the  freight  carried,  which  was  730,605,011  tons  in  1892, 
fell  to  674,714,747  tons  in  1894.  and  the  number  of  passengers 
carried  from  575,769,678  in  1892  to  529,756,259  in  1895.  Bank  « 
clearings  of  the  country,  another  measure  of  business  activity, 
fell  from  $60,883,572,438  in  1892  to  $45,028,496,746  in  1894,  while 
those  of  New  York  alone  fell  from  36  billion  dollars  in  1892  to  24 
billions  in  1894,  and  did  not  again  reach  their  normal  height 
until  1898,  one  year  after  the  restoration  of  the  Republican 
party  and  the  protective  tariff.  Large  numbers  of  workmen  in 
the  factories  lost  their  employment,  and  the  remainder  suffered 
a  reduction  in  wages.  These  conditions  may  be  expected  to  return 
in  case  of  another  low-tariff  experiment. 

ENORMOUS   LOSSES    UNDER   LOW    TARIFF. 

The  effect  of  this  upon  other  industries,  especially  that  of 
agriculture  and  those  employed  in  supplying  the  food,  clothing, 
and  household  requirements  of  the  persons  thus  affected,  was 
greatly  felt,  and  in  turn  caused  a  reduction  in  the  earnings 
of  those  engaged  in  the  various  occupations  so  much  dependent 
upon  manufacturing  and  the  prosperity  of  those  engaged  therein. 
Plow  great  the  loss  of  earnings  and  wages  can  not  be  told  in 
precise  terms.  Certain  facts,  however,  which  indicate  in  some 
degree  wrhat  the  loss  was  are  available.  The  Massachusetts 
labor  reports,  which  were  showing  a  steady  increase  in  wages 


PROSPERITY.  101 

paid  in  that  State  year  after  year  during  -rrosiuent  Harrison's 
Administration,  showed  a  decrease  in  1893  of  over  10  million 
dollars  and  in  1894  of  over  11  "million  dollars  }n  fcW  jMtges  of 
persons  employed  in  the  4,400  manufactur-nig'  establishments 
to  which  its  inquiries  were  extended.  Another  inquiry  as  to 
wages  paid  in  200  great  manufacturing  establishments  in  the 
United  States  from  1890  to  1899  showed  that  the  wages  paid 
in  these  200  establishments  fell  from  53  million  dollars  in  1892 
to  48  millions  in  1893  and  40  millions  in  1894.  Railway  em- 
ployees fell  off  nearly  100,000  in  number,  and  wages  were  reduced 
among  those  who  were  so  fortunate  as  to  be  able  to  retain 
their  positions.  It  has  been  estimated  that  the  loss  in  earnings 
by  the  employees  of  the  manufacturing  establishments  of  the 
country  alone  averaged  380  million  dollars  a  year,  or  over  a 
million  dollars  a  day,  during  the  entire  period  from  the  election 
of  Cleveland  and  a  free-trade  Congress  to  the  election  of  McKin- 
ley  and  a  protection  Congress,  while  the  effect  of  this  loss  of 
earnings  upon  the  other  branches  of  industry  and  commerce 
closely  allied  thereto  cannot  be  measured  in  figures. 

Tnese  conditions  of  adversity  in  manufacturing,  transporta- 
tion and  in. other  commercial  and  industrial  lines  were  reflected 
directly  upon  the 'farmers  of  the  country.  The  manufacturing 
industries,  which  draw,  according  to  the  census  reports,  80  per 
cent  of  their  materials  from:  the  products  of  agriculture,  re- 
duced very  greatly  their  purchases.  The  millions  of  men  thrown 
out  of  employment  in  the  manufacturing  establishments  and 
the  other  industries  dependent  upon  them  for  their  activity 
reduced  their  purchases  of  farm  products,  and  the  general  de- 
pression which  came  to  all  classes  of  citizens  was  felt  finally, 
and  perhaps  most  heavily,  by  the  farmers,  who  furnish  not  only 
the  food  supply,  but  a  large  part  of  the  material  for  clothing 
and  other  manufactures  consumed  by  the  people  of  the  country. 
The  farm  value  of  the  wheat  produced  in  the  United  States, 
which  in  1891  was  513  million  dollars,  by  1893  was  only  213 
millions,  a  fall  of  more  than  one-half;  in  1894  it  was  226  millions, 
and  in  1895,  238  millions.  The  farm  value  of  the  corn  crop 
of  the  country,  which  in  1891  was  836  million  dollars,  was  in 
1896  491  millions.  The  value  of  farm  animals,  which  in  1892 
was  2,461  millions,  fell  gradually,  and  showed  in  1896  a  total 
of  only  1,727  million  dollars,  a  reduction  of  about  one-third  in 
value  of  the  animals  on  the  farms,  while  the  percentage  of  re- 
duction in  value  of  the  crops  was  even  greater  than  this.  All 
of  these  figures  are  from  the  official  reports  of  the  Department 
of  Agriculture. 

Return  of  Prosperity  Under  <  Protection. 

The  very  day  following  the  election  of  McKinley,  however, 
presented  a  marked  change  in  the  industrial  condition  of  the  en- 
tire country.  Mr.  McKinley  had  expressed  the  opinion  that  "it 
is  better  to  open  the  mills  than  the  mints,"  and  the  mills  re- 
sponded the  moment  his  election  was  assured.  The  newspapers 
of  the  very  day  following  his  election  teemed  with  telegrams 
from  all  parts  of  the  country  announcing  that  mills  and  factories 
which  had  long  been  closed  were  preparing  to  start  up.  No 
one  can  examine  the  files  of  newspapers  of  that  day  without 
being  impressed  by  the  promptness  with  which  business  re- 
sponded to  an  assurance  of  the  restoration  of  a  protective  tariff. 
True,  the"  merchants  could  not  determine  accurately  the  precise 
increase  which  would  be  made  in  the  rates  of  duty  on  that  which 
they  had  to  buy ;  the  manufacturers  could  not  determine  accu- 
rately the  increased  amount  of  protection  which  they  would  re- 
ceive; but  the  name  of  McKinley,  the  newly  elected  President, 
was  so  closely  identified  with  the  tariff  act  under  which  pros- 
perity had  existed  from  1890  to  1892,  and  the  promise  had  been 
so  clearly  made  that  a  special  session  of  Congress  would  be 
called  to  repeal  the  existing  tariff  and  restore  protection,  that 
the  announcement  of  the  election  of  McKinley  and  a  Republican 
Congress  assured  a  prompt  return  to  effective  protection  and 
therefore  employment  for  the  people  and  earnings  with  which 
to  purchase  the  products  of  the  farm  and  factory. 

Money  which  had  been  withdrawn  from  circulation  immedi- 
ately made  its  appearance.    The  money  in  circulation  on  July  1, 


102  PROSPERITY. 

1896,  wr.s  1,506  million  dollars,  on  July  1,  1897,  1,640  millions,  an 
increase  of  134  million  dollars  in  m  single  year.  From  that  time  on 
the  money  .in  circulation  increased  steadily,  reaching  2,055  million 
ctotlars  in  i960,  2.2-19  millions  in  1902,  and  over  2,500  millions  in 
1904.  The  per  capita  of  money  in  circulation,  which  under  Cleve- 
land and  low  tariff  fell  from  .$24.50  in  1892  to  $21.41  in  189G, 
„  passed  the  $30  line  in  the  closing  months  of  1903,  and  is  now 
uearly  $31.  The  bank  clearings  of  the  country  which  had  fallen 
from  60  billions  of  dollars  in)  1892  to  45  billions  in  1894  were  65 
billions  by  1898,  84  billions  by  1900,  and  114  billions  in  1903. 
Bank  deposits,  which  stood  at  4,916  million  dollars  in  1896,  as 
against  4,619  in  1892,  increased  to  5,725  millions  in  1898,  7,298 
millions  in  1900,  and  9,673  millions  in  1903,  being  almost  twice 
as  great  in  1903  as  in  1896  at  the  close  of  the  low-tariff  period. 
The  total  increase  in  bank  deposits  in  the  four  years  ending 
with  1896  was  but  300  million  dollars,  while  in  the  next  four 
years,  under  protection,  the  increase  was  2,382  millions,  or  prac- 
tically eight  times  as  much  in  the  four  years  of  protection 
as  in  the  four  years  of  threatened  and  actual  low  tariff.  Savings 
bank  deposits,  which  in  1892  stood  at  1,712  million  dollars, 
were  in  1896  but  1,907  millions,  an  increase  of  only  195  million 
dollars  during  the  four  years  of  low  tariff  influence;  but  in  1900 
the  total  stood  at  2,449  millions,  an  increase  of  542  millions,  and 
by  1903  had  reached  2,935  millions,  the  total  for  1903  being 
1,223  millions,  or  70  per  cent,  greater  than  in  1896.  The  number 
of  depositors  in  savings  banks  was  in  1896  6,065,494  and  in  1903 
7,305,228,  an  increase  of  44  per  cent. 

MINERAL    PRODUCTION. 

Another  means  of  measuring  the  effect  of  the  low-tariff  period 
upon  manufacturing  industries  is  found  in  the  official  figures 
showing  the  value  of  minerals  produced  in  the  United  States. 
Minerals  are  so  important  a  factor  in  the  manufacturing  indus- 
tries, supplying  as  they  do  not  only  a,  considerable  part  of  that 
which  enters  into  manufactures  but  the  coal  with  \vhich  the  raw 
material  is  transformed  into  the  finished  product,  that  the  record 
of  their  production,  whether  stated  in  quantity  or  value,  furnishes 
an  important  measure  of  general  business  activity  and  pros- 
perity. In  1892,  according  to.  the  report  of  the  Geological  Sur- 
vey, the  value  of  minerals  produced  was  $648,895,031,  and  by 
1894  had  fallen  to  $527,079,225,  a  decrease  of  nearly  20  per  cent. 
In  1896  the  total  mineral  production  stood  at  622  million  dollars, 
and  by  1900  had  reached  1,063  millions  and  in  1902  was  1,260 
millions,  or  more  than  double  the  value  of  the  product  of 
1896.  This  contrast  between  the  two  periods— that  of  low  tariff 
threatened  or  actual,  and  that  of  protection— upon  the  value 
of  the  minerals  produced  in  the  United  States  is  extremely  im- 
portant in  view  of  the  relation  of  the  mineral  industry  to  the 
manufacturing  industry  of  the  country.  During  the  entire 
four-year  period  under  low  tariffs,  threatened  or  actual,  the  an- 
nual value  of  minerals  produced  was  less  than  that  of  the  last 
year  under  President  Harrison  and  a  protective  tariff,  while 
in  the  six  years  since  the  close  of  the  low-tariff  period  the 
value  of  the  minerals  produced  actually  doubled. 

COTTON   CONSUMPTION. 

Still  another  measure  of  manufacturing  activity  is  found  in 
the  quantity  of  cotton  consumed  by  the  cotton  mills  of  the  United 
States.  The  Bureau  of  Statistics  in  its  official  reports  shows  that 
the  number  of  bales  of  domestic  cotton  taken  by  the  cotton  manu- 
facturing establishments  of  the  United  States  for  their  own  use 
was,  in  1892,  2,856,000  bales,  and  by  1896  had  fallen  to  2,505,000 
bales.  By  1898  the  number  had  reached  3,465,000;  in  1900  was 
3,644,000 ;  in  1902,  4,083,000 ;  but  was  reduced  slightly  in  1903  by 
reason  of  the  excessively  high  price  of  cotton,  the  total  for  that 
year  being  3,924,000  bales,  Thus  during  the  four  years  of  low 
tariff,  threatened  or  actual,  the  domestic  cotton  used  in  the  mills 
Of  the  United  States  actually  fell  off  350,000  bales,  while  in  the 
pext  four  years,  under  protection,  the  increase  was  more  than 
one  million  bales,  and  in  the  entire  period  since  1896  the  increase 
lias  been  Vk  fftillion  bales, 


PROSPERITY.  103 

RAILROAD  TRANSPORTATION  AND  EARNINGS  OF  EMPLOYEES. 

Railroad  transportation,  another  index  of  business  condi- 
tions, shows  greatly  increased  activity  under  the  return  to  pro- 
tection. The  number  of  tons  of  freight  carried  one  mile,  which 
had  fallen  from  90  billions  in  1893  to  82  billions  in  1894,  was  97 
billions  in  1897,  114  billions  in  1898,  141  billions  in  1900,  and 
150  billions  in  1902,  or  nearly  double  that  of  the  lowest  point 
under  Cleveland  and  the  low  tariff.  The  number  of  passengers 
carried,  which  fell  from  575  millions  in  1892  to  529  millions  in 
1895,  was  in  1902  655  millions.  The  number  of  men  employed 
by  the  railroads  of  the  country,  which  had  fallen  from  821,415 
in  1892  to  779,608  in  1894,  rapidly  increased  and  by  1898  was 
874,558,  in  1900  was  1,017,653,  and  in  1902,  312,537.  The  com- 
petisation  paid  to  all  railroad  employees  in  1895  was,  according  to 
the  report  of  the  Interstate  Commerce  Commission,  $445,508,261 ; 
by  1899  it  was  $522,577,896,  and  in  1903,  $757,321,415,  an  increase 
of  311  million  dollars,  or  10  per  cent,  in  the  annual  earnings  of 
railroad  employees  of  the  country  compared  with  1895,  under  the 
low  tariff. 

WAGES    AND    SALARIES. 

The  increase  in  earnings  of  persons  employed  in  the  manufac- 
turing establishments  of  the  country  can  only  be  estimated,  owing 
to    the    fact    that    reports    on    this    subject    are    made    by    the 
United  States  Census,   and  therefore  figures  are  only   available 
for  decennial  years.     The  fact,  however,'  that  the  production  of 
pig  iron— that  barometer  of  business  conditions  in  manufacturing 
interests* — fell   from   9   million   tons   in  1892   to  6%    millions   in 
1894;  that  the  value  of  minerals  produced  fell  from  648  million 
j    dollars  in  1892  to  527  millions  in  1894;  that  the  importation  of 
raw  material  for  use  in  manufacturing  fell  from  197  million 
\   dollars  in  1892  to  126  millions  in  1894;  coupled  with  the  well- 
!   known  fact  of  general  depression  among  manufacturers  and  the 
i    armies  of  unemployed  who  marched  upon  Washington  demanding 
\    legislation   which   would   give   them   occupation — shows   that   the 
actual  loss  in  earnings  during  the  low-tariff  period  must  have  been 
very  great ;  while  the  fact  that  the  census  figures  of  1900  showed 
wages    and    salaries    paid    in    manufacturing    establishments    at 
$2,735,430,848,  against  $2,283,216,529  in  1890  indicates  that  the  re- 
covery from  the  depression  of  1893-96  must  have  been  very  rapid, 
and  that  the  annual  earnings  of  the  employees  of  the  manufactur- 
[    ing  establishments  of  the  country  are  now  many  hundreds  of  mil- 
lions in  excess  of  those  of  the  low-tariff  years.  *• 

GREAT    BENEFIT    TO    THE    FARMERS. 

All  of  these  important  conditions  in  the  earnings  of  the  manu- 
tnring  industries  and  the  earnings  of  their  workmen— the  in- 
crease of  50  per  cent  in  sums  paid  to  railway  employees,  the 
increase  of  66  per  cent  in  the  amount  of  money  in  circulation, 
the  increase  of  60  per  cent  in  the  value  of  agricultural  products 
exported — have  had  a  marked  effect  upon  the  prosperity  of  the 
farmer.  Just  as  the  closing  of  factories,  the  suspension  of  rail- 
way activities,  and  the  general  business  depression  caused  an 
enormous  decrease  in  the  value  of  farm  products  of  all  classes, 
so  the  increased  activity  in  manufacturing,  the  increased  wages 
paid  to  workmen  in  the  factories,  the  increase  in  earnings  of 
railway  employees,  the  improvement  in  general  business  activities, 
and  the  increase  in  exportations  have  increased  the  value  of  the 
products  of  the  farm.  The  farm  value  of  the  wheat  crop  of 
the  United  States  in  1893,  as  shown  by  the  official  figures  of  the 
Department  of  Agriculture,  was  213  million  dollars ;  in  1894,  220 
millions;  in  1895,  238  millions;  and  in  1903,  443  millions,  or 
more  than  double  the  annual  average  during  the  years  1893-95. 
The  farm  value  of  the  corn  crop  was  591  million  dollars  in  1893, 
554  millions  in  1894,  545  millions  in  1895,  and  491  millions  in 
1896,  an  annual  average  of  536  millions;  while  in  1902  the  farm 
value  of  the  corn  crop  was  1,071  millions,  or  practically  double 
the  annual  average  value  during  the  Cleveland  low-tariff  period. 
\The  farm  value  of  the  cotton  crop  of  the  United  States  was 
in  1893  268  million  dollars;  in  1894,  264  millions;  in  1895,  262 
millions,  and  in  1896,  269  millions— an  annual  average  of  266 
millions;  while  for  the  year  1901  the  value  was  469  millions,  or 


104  PROSI'KKITY. 

7.~»  per  cent,  greater  than  the  annual  average  during;  the  Cleve- 
land low  tariff  administration,  and  in  L903  was  about  equal  to 
that  of  1901.  TIh-  wool  production  of  the  country,  which  fell 
from  80?  million  pounds  in  1893  to  209  millions  in  IS!)."),  was  in 
Phil1  :•.]•;  million  pounds,  and  with  prices  tift.v  per  cent  Higher  than 
those  of  the  low-tariff  period  when  wool  from  abroad  was  being 
imported  free  of  duty.  The  value  of  animals  on  farms,  which  fell 
from  2,483  million  dollars  in  1893  to  1.707  millions  in  1866,  in 
1901  for  the  first  time  passed  the  three  billion  dollar  line,  being 
3,011  millions,  and  in  1903  was  3,102  millions,  having  doubled  in 
value. 

Prosperity  Under  President  Roosevelt. 

The  prosperity  which  has  been  a  feature  of  business  con- 
ditions since  the  return  of  the  Republican  party  to  control  a*nd 
the  enactment  of  a  protectee  tariff  has  been  quite  as  strongly 
marked  under  the  administration  of  President  Roosevelt  as  at 
any  time  in  the  history  of  the  country.  This  fact  should  be  of 
itself  a  sufficient  reply  to  the  cry  of  the  opposition  that  "Roose- 
velt is  an  unsafe  man  for  President."  No  factor  in  our  national 
life  is  more  sensitive  to  adverse  or  even  doubtful  conditions 
than  business  and  finance.  In  order  to  test  thoroughly  the  con- 
dition of  business  during  President  Roosevelt's  Administration 
with  that  of  former  years  a  table  has  been  prepared  and  pre- 
sented herewith  (p.  11G),  compiled  in  all  cases  from  official  figures, 
showing  conditions  in  the  various  lines  of  business  and  industry  in 
the  last  year  of  President  Roosevelt's  term,  1903,  compared  with 
the  last  full  year  of  President  McKinley's  Administration,  1900, 
the  last  full  year  under  President  Cleveland,  1896,  and  the  last 
year  under  President  Harrison,  1892.  This  table  shows,  for  ex- 
ample, that  the  money  in  circulation  in  1892,  the  last  year  under 
President  Harrison,  was  1,601  million  dollars;  in,  1896,  the  last 
year  under  President  Cleveland,  1,506  millions;  in  1900,  the  last 
year  under  President  McKinley,  2,055  millions,  and  in  1903,  the 
last  year  under  President  Roosevelt,  2,367  millions,  and  it  may 
be  added  that  at  the  present  time  the  tptal  exceeds  2,500  mil- 
lions. The  per  capita  of  money  in  circulation  in  1892  was  $24.56 ; 
in  1896,  $21.41;  in  1900,  $26.94,  and  in  1903,  $30.38.  This  does 
not  look  as  though  capital  or  money,  the  most  conservative  of 
business  factors  and  the  most  prompt  in  responding  to  adverse 
conditions,  find  cause  for  alarm  in  the  administration  of  Presi- 
dent Roosevelt.  Savings-bank  deposits,  which  were  4,781  million 
dollars  in  1892,  5,065  millions  in  1896,  and  6,107  millions  in  1900, 
were  7,305  in  1903.  Total  bank  deposits,  which  were  C619  mil- 
lions in  1892,  4,916  millions  in  1896,  and  7,208  millions  in  1900, 
were  9,673  millions  in  1903.  Bank  clearings  for  the  entire  coun- 
try, which  were  61  billion  dollars  in  1892,  51  billions  in  1896,  and 
84  billions  in  1900,  were  114  billions  in  1903.  Tons  of  freight 
carried  on  the  railroads  of  the  country,  which  amounted  to  730 
millions  in  1892,  773  millions  in  1896,  and  1,071  millions  in  1900, 
were  in  1902,  the  latest  available  year,  1,192  millions.  These 
are  a  few  of  the  more  important  items,  any  one  of  which  may  be 
considered  a  fair  index  of  business  activity  and  prosperity.  But 
each  of  the  forty-odd  items  composing  the  table  tells  its  own 
story  of  the  prosperity  of  the  particular  industry  to  which  it  is 
related. 

Single-year  statements  are,  however,  sometimes  misleading, 
and  in  order  that  there  may  be  no  doubt  as  to  the  perfect  fair- 
ness of  this  comparison  another  table  is  presented  showing  the 
annual  average  of  each  of  the  forty-odd  articles  included  in  the 
above-mentioned  table  during  the  four  years  of  1893,  1894,  1895, 
and  1896  of   President  Cleveland's  term;   1897,   1898,    1899,   and 

1900,  the  four  full  years  of  McKinley's  first  term,  and  the  years 

1901,  1902,  and  1903,  under  President  Roosevelt.  Attention  is  es- 
pecially called  to  this  table  showing  the  annual  average  in 
business  conditions  during  the  three  presidential  periods,  which 
while  it  fully  confirms  the  table  above  referred  to,  strengthens 
the  general  statement  by  its  indication  of  the  steady  upward 
movement  of  business  conditions  which  has  characterized  the 
entire  seven  years  since  the  close  of  President  Cleveland's  term 
and  maintained  its  upward  movement  down  to  the  latest  date 
for  which  figures  are  available. 


PROSPERITY. 


105 


These  tables  have  been  prepared  with  great  care  from  official 
records  in  every  instance,  and  their  accuracy  and  fairness  cannot 
be  called  in  question.  Attention  is  especially  called  to  their 
value  not  only  as  an  evidence  of  continued  prosperity  in  every 
branch  of  our  industries  and  business  but  as  a  complete  refuta- 
tion of  the  attacks  made  upon  the  administration  of  President 
Roosevelt  in  its  effect  upon  the  business  and  industrial  conditions 
f  the  country. 

Prosperity  vs.  Adversity. 


Table  of  Annual  Averages  of  National  Financial  and  Industrial 
Conditions  During  the  Administrations  of  Presidents  Cleve- 
land, McKinley  and  Roosevelt. 

[Annual  average  for  periods   named.] 


[Compiled  from  the  Statistical  Abstract  of  the  United  States.] 


Interest-bearing  debt 

Annual  interest  charge 

Annual  interest  per  capita 

Treasury  receipts,  net  ordinary 

Government  expenditures,  ordinary 

Money  in  circulation 

Money  in  circulation,  per  capita 

Bank  clearings,  total ... 

Bank  clearings,  New  York > 

Bank  deposits,  total 

Bank  deposits,  savings 

Depositors  in  savings  banks 

Industrial  life  insurance  in  force 

Life  insurance,  total,  in  force 

Imports,  total 

Exports,  total 

Excess  of  exports  over  Imports 

Exports  of  manufactures 

Imports  of  raw  material  for  manufacturing 

Gold:    Excess  imports  over  exports 

Exports  to  Asia  and  Oceania 

Crude  rubber  imports pounds.. 

Pig  tin  imports do 

Tin  plate  imports do 

PBODTJCTION. 

Coal tons.. 

Pig  iron do... 

Steel  rails do... 

Steel,  total do... 

Tin  plate pounds.. 

Minerals,  total  value 

Cotton,  total  value , 

Beet  sugar,  1,000  tons 

Wool pounds.. 

Raw  silk,  imports do 

Cotton  used  in  manufacture  >r tons.. 

Animals  on  farms,  total  value 

Hordes  on  farms,  total  value 

Cattle  on  farms,  total  value 

Sheep  on  farms,  total  value 

Net  earnings  of  railways 

Dividends  paid  by  railways \. 

Passengers  carried  1  mile ;. 

Freight  carried  1  mile tons.. 

Miles  placed  under  receivership 

Miles  sold  under  foreclosure 

Miles  built 

Average  receipts  per  ton  mile 

Tonnage  of  vessels  passing  through  Sault  8te 

Marie  Canal 

Failures,  liabilities  of 

Post  office  receipts 

Wheat,- average  price  of 

Corn 

Oats 

Homestead  entries 


1893-1896 

1897-1900 

1901-1903 

Millions 

Millions 

Millions 

696 

941 

944 

27.9 

37.5 

27.6 

$0.41 

$0.48 

$0.35 

331 

459     • 

570 

335 

436 

465 

1,592 

1,859 

2.264 

$23.29 

$25.13 

$28.61 

51,700 

73,300  ' 

114  900 

29,066 

45,131 

74.202 

4,757 

6.223 

9.139 

1,813 

2,169 

2,760 

4.9 

56 

6.8 

793 

1.217 

1  723 

5,635 

7,394 

10,051 

758 

732 

917      ' 

856 

1,251 

1,430 

98 

519 

513 

188 

335 

407 

183 

253 

327 

•  50 

50 

4.5 

20 

49 

57 

38 

45 

63 

42 

63 

80 

494 

164 

142 

165 

210 

270 

7.96 

12  21 

17  27 

1.27 

1.75 

2.73 

4  96 

9.23 

14.21 

226 

698 

857 

575 

731 

1,136 

266 

300 

334 

26 

54 

170 

271 

272 

302 

8  02 

11.09 

13  30 

251 

3.38 

8.85 

2.050 

1,942 

3,034 

7' 9 

512 

1.005 

879 

1,060 

1,325 

87 

97 

161 

333 

416 

640 

83 

107 

168 

566 

529 

640 

89 

100 

155 

11,474 

1.697 

193 

7,9iil 

5,125 

795 

1 .900 

2.891 

4.439 

$0.85 

$0.76 

$0.75 

14 

20 

28 

230 

128 

128 

77 

92 

122 

$0  70 

87  6 

83.1 

44.4 

39.0 

45  5 

31.3 

27.5 

40.8 

6,174 

0  328 

14,241 

•(Excess  exports.) 


It  Is  foolish  to  pride  ourselves  upon  our  progress  and  pros- 
perity, upon  our  commanding  position  in  the  international  indus- 
trial world,  and  at  the  same  time  have  nothing  hut  denunciation 
for  the  men  to  whose  commanding  position  we  in  part  owe  this 
very  progress  and  prosperity,  this  commanding  position. — Presi- 
dent Roosevelt  at  Cincinnati,  Ohio,  September  20,  1902, 


106  PROSPERITY—  SAVINGS  BANK  DEPOSITS. 

SAVINGS  BANK  DEPOSITS. 

The  1  nltlcs  which  follow  relate  to  savings  banks  and  savings- 
bank  deposits  in  tbe  United  States  and  show  conditions  from  1820 
down  to  the  present  time.  They  are  prepared  by  the  Comptroller 
of  the  Currency  and  may  be  accepted  as  an  official  and  reliable 
statement  of  the  condition  of  the  savings  banks  of  the  United 
States  during  that  period.  A  careful  study  of  these  tables  will 
develop  some  startling  facts  with  reference  to  the  growth  of  sav- 
ings banks  under  protection.  During  the  long  period  of  almost 
continuous  low  tariff  prior  to  1801  deposits  in  the  savings  banks 
of  the  country  had  never  reached  so  much  as  150  million  dollars, 
the  highest  point  being  149  millions  in  1800.  By  1870  the  deposits 
in  savings  banks  had  trebled,  being  in  that  year  549  million  dol- 
lars, the  increase  during  the  decade  ending  with  1870  being  400 
million  dollars,  or  nearly  three  times  as  much  as  the  growth  dur- 
ing the  40  years  from  1820  to  1800.  In  the  next  decade,  ending 
with  1880,  the  increase  was  270  million  dollars ;  in  the  next  decade, 
ending  with  1890,  over  700  millions,  and  in  the  decade  ending  with 
1900  more  than  800  million  dollars.  Attention  is  especially  called 
to  the  contrast  between  conditions  during  the  recent  low-tariff 
period  and  those  under  protection.  In  1893  the  deposits  in  the 
savings  banks  of  the  United  States  were  1,785  millions,  and  in  the 
following  year  dropped  to  1,747  millions,  an  actual  decrease  of  38 
million  dollars.  The  average  per  capita  savings  bank  deposits  in 
the  United  States,  which  in  1893  stood  at  $26.63,  fell  to  $25.53  in 
1894,  $25.88  in  1895,  $20.56  in  1896,  and  $26.68  in  1897,  the  per 
capita  being  thus  less  on  July  1,  1897,  at  the  close  of  the  Cleveland 
low-tariff  period  than  it  was  on  July  1,  1893,  practically  the  be- 
ginning of  that  period.  Immediately  following  the  return  to  pro- 
tection, however,  the  total  savings-bank  deposits  and  the  per  capita 
of  such  deposits  began  to  increase,  and  the  per  capit  of  savings- 
bank  deposits  has  grown  from  $26.56  in  1897  to  $36.52  in  1903, 
an  increase  of  37  per  cent. 

Attention  is  also  called  to  the  table  which  follows  that  above 
alluded  to,  which  shows  the  deposits  by  States,  and  to  another 
table  which  shows  the  deposits  and  number  of  depositors,  etc.,  in 
each  of  the  principal  countries  of  the  world.  It  will  be  seen  that 
the  total  deposits  in  savings  banks  in  the  United  States  exceed 
those  in  any  other  country  of  the  world,  and  that  the  average  for 
each  depositor  is  also  greater  in  the  United  States  than  in  any 
other  country.  A  comparison  of  the  figures  of  this  last-mentioned 
table  with  those  of  the  table  showing  deposits  by  States  shows  that 
the  total  amount  of  deposits  in  the  single  State  of  New  York,  with 
its  7y2  millions  of  population,  is  greater  than  that  in  all  the 
United  Kingdom  with  its  42  millions  of  people ;  while  a  comparison 
of  other  States  with  the  less  important  countries  is  also  inter- 
esting. 

The  table  which  shows  the  total  bank  deposits  in  each  State 
may  prove  convenient  for  reference,  especially  in  considering  the 
effect  of  manufacturing  industries  upon  the  business  activity  and 
prosperity  of  the  States  in  which  they  are  located. 

The  table  on  pages  107-108  are  especially  interesting  in  their 
showing  the  conditions  relative  to  prosperity  during  recent  years. 
It  will  be  noted  that  although  the  number  of  savings  banks 
depositors  and  the  amount  of  their  deposits  was  rapidly  in- 
creasing prior  to  1892,  there  was  but  little  increase  in  1893  and, 
an  actual  decrease  in  1894  in  the  number  of  banks,  the  number 
of  depositors,  the  amount  of  money  deposited,  the  average  amount 
due  each  depositor  and  the  average  per  capita  of  deposits  in  the 
United  States.  The  falling  off  in  amount  of  deposits  in  1894  com- 
pared with  1893  was  nearly  $40,000,000.  This  is  a  marked  con- 
trast with  conditions  in  more  recent  years  in  which  the  increase 
in  deposits  in  the  savings  banks  has  averaged  more  than  $100,- 
000,000  a  year  since  1897.  The  total  amount  of  deposits  in  the 
savings  banks  of  the  United  States  has  increased  50  per  cent 
since  1897. 

Attention  is  also  especially  called  to  the  table  on  page  108 
which  shows  the  number  of  depositors  and  deposits  in  the  savings 
banks  of  the  principal  countries  of  the  world  and  shows  a  larger 
sum  deposited  in  savings  banks  of  the  United  States  than  those 
of  any  other  country  and  a  larger  average  deposited  per  indi- 
vidual in  the  United  States  than  in  any  other  country. 


PROSPERITY — SAVINGS    BANK    DEPOSITS. 


Number  of  savings  banks  in  the  United  States,  number  of  de- 
positors, amount  of  savings  deposits,  average  amount  due  each 
depositor  in  the  years  1820,  1825,  1835,  1840,  and  18J5  to 
1899,  and  average  per  capita  in  the  United  States  in  the  years 
given. 

[Compiled  in  the  office  of  the  Comptroller  of  the  Currency.] 


Year. 


N  limber 
of  banks 


Number  of 
depositors 


Deposits. 


Average 
due  each 
depos- 
itor. 


1820.. 
1825.. 
1830.. 
1835.. 
1840.. 
1845.. 
1846.. 
1847., 
1948 
1849. 
1850. 
1851. 
1852., 
1853. 
1854. 
1855. 
1838. 
1857. 


1861.. 
1862.. 
1863. 
1864. 
1865. 
1866. 
1867. 


1870.. 
1871.. 
1872.. 
1873. 

1874., 
1875., 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 


1887. 


1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 


10 
15 
S6 

52 
61 
70 
74 
70 
83 
90 
108 
128 
141 
159 
190 
215 
222 
231 
245 
259 
278 


305 
817 
336 
371 

406 

476 

517 

577 

647 

669 

693 

771 

781 

675 

663 

639 

629 

629 

629 

630 

636 

646 

638 

684 

801 

849 

921 

1,011 

1.059 

1  030 

1,024 

1,017 

988 

980 

979 

987 

1,002 

1,007 

1,036 

1,078 


8,635 

16,931 

38,085 

60.058 

78,801 

145,206 

168,709 

187.739 

199.764 

217,318 

251,354 

277.148 

308,863 

365,538 

396,173 

431,602 

487,986 

490,428 

538,840 

622,556 

693,870 

694,487 

787,943 

887.096 

976,025 

980,844 

1,067,061 

1,188,202 

1.310  144 

1,466.684 

1.630,846 

1.902.047 

1,992,925 

2,185,832 

2,293,401 

2.359,864 

2,368,630 

2,395.314 

2,400,785 

2,268,707 

2,335,582 

2,528.749 

2,710,354 

2,876,438 

8,015,151 

8.071,495 

3,158.950 

3,418,013 

3.838,291 

4.021,523 

4,258,893 

4,533,217 

4  781,605 

4,830,599 

4.777,687 

4,875,519 

5,065,494 

5,201,132 

5,885,746 

5,687,818 

6,107.083 

6,858.723 

6,666,672 

7,305,228 


$1,138,576 

2,537,082 

6,973,304 

10,613,726 

14,051,520 

24.506.677 

27,374.325 

31,627,497 

33,087,488 

36,073.924* 

43,431,130 

50,457,913 

69,467,453 

72  313,696 

77,823,906 

84,290,076 

95.598,230 

98,512,968 

108,438.287 

128,657,901 

149.277,504 

146,729,882 

196,434.540 

206,235,202 

236,280,401 

242,619,382 

282,455,794 

337,009,452 

392,781,813 

457,675,050 

549,874,358 

660.745,442 

785,046,805 

802,363,609 

864,556,902 

924,037,304 

942,350,255 

866,218.306 

879,897,306 

802,490.425 

819,106,973 

891,961,142 

966,797.081 

1,024,856,787 

1,073,294.955 

1,095,172,247 

1,141,530,578 

1.235,247.371 

1,364,196,550 

1,425,230.349 

1,524,844  506 

1,623,079,749 

1,712.769,026 

1,785.150,957 

1,747,961,280 

1,810.597,023 

1,907,156.277 

1.939.376,035 

2,065,631.298 

2.230,366.954 

2.449.547,885 

2  597.094.5S0 

2.750.177,290 

2,935,204,845 


$131.86 
149.84 
183.09 
176.72 
178.54 
168.77 
172.48 
168.46 
165.63 
165.99 
172.78 
182.06 
192.54 
197.82 
196.44 
195.29 
195.90 
200.87 
201.24 
206.66 
215.13 
211.27 
215  03 
232.48 
242.08 
247.35 
264.70 
283  63 
299.80 
312.04 
337.17 
34213 
368.82 
367.07 
876.98 
391.56 
397  42 
36163 
366.50 
353  72 
350.71 
352  73 
356.70 
356  29 
355.96 
356  56 
361.36 
361.39 
355.41 
354.40 
858.03 
858.04 
358  20 
369  55 
365.86 
371.36 
376  50 
372.88 
383.54 
392.13 
401.10 
408.30 
412.53 
417.21 


108 


PROSPERITY— 8AVIN.G8    RANK     DKH  tSlTS. 


\  urn  her  of  savings  depositors,  aggregate  savings  deposits,  and 
<t rcni<jc  amount  due  to  depositors  in  savini/s  bunks  in  emh 
State  in  1901-2  and  1902-3. 

[From  report  of  the  Comptroller  of  the  Currency.] 


1901-2  (1,036  banlw). 

1902-3(1,078  banks). 

States,  etc. 

Number 
of  de- 
posit- 
ors. 

Amount  of 
deposits. 

Aver- 
age to 
each 
depos- 
itor. 

Number 
of  de- 
posit- 
ors 

Amount  of 
deposits 

Aver- 
age to 
each 
depos- 
itor. 

193,005 
147.928 
128.529 
1.593,640 
13S.366 
425,588 

$72,082,694 
60,249.862 
41.987,497 
f.00,705,752 
71,900,541 
N  193,248,909 

$373.47 
407.29 
326.68 
351.84 
519.64 
454.07 

208,141 
155,309 
184,323 
1.660.814 
150,342 
444,407 

$74,781,073 
63.919,183 
44,628,150 

589497,084 
74,584,628 

203,522,226 

$3-9.28 

8A8  '0 

457.96 

Total  New  England  States. 

2,627,056 

1,000,175.255 

380.72 

471  68 
307.60 
303.47 
302.26 
345.52 
120.75 

2,75S,33« 

1,048,322,344 

380  74 

New  York 

New  Jersey t... 

2,229.661 

227.130 

396.877 

4.187 

1S6.293 

10  845 

1,051,689.186 

69,866,709 

120,441  275 

1.265.5S6 

64  367.767 

1,309,555 

2,327,812 
238,210 
407.652 
-921,792 
155,299 
11,758 

1,112.418,552 

73,722,729 
128514.295 

6.586.851 
62,253,508 

1,654,715 

477.88 
309  48 

315  25 

302  26 

Maryland 

400  86 

District  of  Columbia 

140  73 

Total  Eastern  States 

3,054,993 

1,308,940,078 

428.46 

3.162,523 

1,385,150,650 

437.99 

West  Virginia * 

4  687 
12,201 

'680.372 
2,451 ,838 

145.16 
200.95 

4.853 
617,721 

836,358 
3,282,164 

172  33 

North  Carolina 

185  21 

Total  Southern  States 

16,888 

3,132,21 

185  47 

22,574 

4,118,522 

182  44 

Ohio...... 

103,405 

21,362 

6277,879 

3,908 

(53.293 

a238,421 

48.180  438 

7,288  606 

C100.G72.804 

719.009 

15  526,701 

85,703,614 

465.94 
299.17 
360.13 
183.98 
245  31 
359.4« 

108,854 

24,733 

6360.991 

4,290 

69.763 

3240.063 

52,306,123 

8,072,500 

cll9. 72 1,739 

810  533 

18,624,665 

86,602,757 

480  51 
826.88 

Illinois 

331  64 

188.93 

266  97 

360.75 

Total  Middle  States 

711,268 

257,491,072 

362  02 

808,694 

286,138317 

353.83 

California,  total  Paciflcstate* 

a256,467 

180,438,675 

703.55 

a288,101 

211.475,012 

734.08 

Total  United  States 

6,666,672 

2,750,177,290 

412.53 

7,035,228 

2,935,204  846 

417.21 

a  Estimated. 
6  Partially  estimated. 

c  savings  deposits  in  State  institutions  having  savings  departments;  abstract  of 
reports  included  with'State  banks. 


Depositors,  amount  of  deposits,  and  average  deposit  in  all  sav- 
ings hanks,  and  average  deposit  per  inhabitant,  according  to 
latest  available  information. 


[From    1903    report   of   the   Comptroller   of   the   Currency,    and    the 
Statesman's   Yearbook   for   1904.] 


Countries. 

Number  of 
depositors. 

Deposits. 

Average 
deposit. 

Austria 

4,946.307 

1,908,463 

1,176,853 

11,051,979 

14,863,956 

1,202.889 

6,021,662 

1,256,451 

695.524 

4.517,342 

181.269 

1.865,596 

10,803.555 

1.287,966 

211,762 

101.017 

866,693 

19,331,000 

6.506,717 

7,035,228 

$876,941,933 

150,191,761 

176,244,144 

854,879,328 

2,103  582,754 

283,995,000 

431.764,353 

69,831.688 

86,292,423 

491,317,622 

15,700,000 

143,418,740 

959,236.637 

202,494,802 

58  868,347 

14,805,849 

34,656.342 

18,356.827 

35,852.467 

2,935,204,845 

$177  29 
78.69 

150.00 

77.35 

141.52 

Hungary 

Italy    

236.09 
71  70 

55  58 

124.06 

108.76 

Finland 

86  61 

76.  *7 

88.80 

157.22 

277.99 

146.57 

British  India 

39.98 

72  51 

5.51 

417.21 

Total 

88,502,229 

9,943,635,860   • 

112.36 

PROSPERITY — SAVINGS    BANK    DEPOSITS. 


109 


Deposits  in  banks  of  all  classes  in  the  United  States,  1875  to  1908. 
[From  reports  of  Comptroller  of  Currency.] 

Deposits  in — 


Tear. 

National 
banks 

Savings 

State 

Loan  and 

trupt 
companies. 

Private 

Total 

(individual 
deposits). 

banks. 

banks. 

banks. 

deposits. 

1875 

$686,478,630 

$924,037,304 

$165,871,439 

$85,025,371 

$321,100,000 

$2,182,512,744 

1876 

641.432,886 

941,350,255 

157,928,658 

87,817,992 

322,100,000 

2,150,629,791 

1877 

636,267,529 

866,218,306 

226.654,538 

84,215,849 

243,840,000 

2,057,196,222 

1878 

621,632.160 

879  897,425 

142,764.491 

73  136,578 

183.830,000 

1,901,260.654 

1879 

648.934,141 

802,490,298 

166,958,229 

75,873,219 

139.920.000 

1,834,175,887 

1880 

833,791,034 

819.106,973 

208,751.611 

90,008,008 

182.667,235 

2.134,234,861 

1881 

1,031,731,043 

891,961,142 

261,362,303 

111,670,329 

241.845,554 

2,538,570,371 

1882 

1,066,707,249 

966,797,081 

281,775,496 

144,841.596 

295,622,160 

2,755,743,682 

1883 

1,043,137,763 
979,020,350 

1,024,856,787 

334,995,702 

165,378,515 

!      Not       I 

1884 

1,073,294,955 

325,365,669 

188  745.922 

1885 

1,106,376,517 

1,095.172,147 

344.307,916 

188,417  293 

j   stated.  J 
96,580.457 

1886 

1,146,246,911 

1,141,680,578 

342,882,767 

214,063,415 

1887 

1,285,076,979 

1,235,247,371 

447.995,653 

240,190.711 

3,305,091,171 

1888 

1,292,842,471 

1,364,196,550 

410,047,842 

257,878,114 

94,878,842 

3.419,343,819 

1889 

1.442,137,979 

1,425,230,349 

507,084.481 

299.612,899 

83,183,718 

3,757,249,426 

1890 

1,521,745,665 

1,524,844,506 

553,054,584 

336,456,492 

99,521,667 

4,035,622,914 

1891 

1.535,058,569 

1,623,079,749 

556,637,012 

355,330,080 

94,959,727 

4,165,065,137 

1892 

1,753,339,680 

1,712,769,026 

648.513.8o9 

411,659,996 

93,091,148 

4,619,373,659 

1893 

1,566,761,230 

1,785,150,957 

706,865.643 

486,244,079 

68  652,696 

4  603,574,605 

1894 

1,677,801.201 

1,747,961,280 

658,107,494 

471,298.816 

66,074,549 

4,621, 243,340 

1895 

1,736,022,007 

1  810,597,023 

712,410,423 

546,652,657 

81,824.932 

4,887,507.042 

1896 

1,668,413,508 

1,907.156,277 

695,659,914 

586,468,156 

59,116,878 

4  916  814  233 

1897 

1,770,480.663 

1.939,376,035 

723,640,795 

566,922,205 

50,278,243 

5.050,697,841 

1898 

2,023,357,160 

2.065,631,298 

912,365,406 

662.138,397 

62,085.084 

5.725,577  345 

1899 

2,522,157,609 

2,230,366,954 

1,164,020,972 

835.499  064 

64,974,392 

6,817,018.891 

1900 

2.458,092,758 

2.449,547.885 

1,266,735,282 

1.028,232,407 

96.206.-049 

7.298.814,381 

1901 

2,941,837,429 

2,597,094,580 

1,610,502,246 

1,271,081,174 

118,621,903 

8,539.137,332 

1902 

3  098,875,772 

2,750,177,290 

1,698,185,287 

1,525,887,493 

131,669,948 

9.204.795  790 

1903 

3,200,993,509 

2,935,204,845 

t, 814,570,163 

1 ,589,398,796 

133,217,990 

9.673,385,308 

WEALTH  AND  PUBLIC  DEBTS. 

[Wall  Street  Journal.] 

A  public  debt  has  been  considered  by  many  writers  as  an 
element  of  strength  to  a  government,  especially  if  that  debt  is 
held  by  the  citizens  of  the  country  creating  it.  It  serves  to 
promote  patriotism,  and  to  safeguard  the  government  against 
revolution.  But  there  is  undoubtedly  a  point  at  which  a  Govern- 
ment debt,  instead  of  being  an  element  of  strength  to  the  country, 
becomes  an  element  of  weakness.  That  point  represents  an  aggre- 
gate of  debt  which  becomes  burdensome  to  the  people  by  being 
out  of  proportion  to  the  wealth  of  the  nation  and  to  its  reasonable 
capacity  for  raising  Government  revenue. 

It  becomes  therefore  of  interest  to  compare  the  debt  of  the 
leading  nations  with  their  estimated  wealth,  and  their  popula- 
tion and  revenue,  with  the  view  of  ascertaining  whether  any  of 
them  have  reached  the  point  of  weakness.  The  following  tables 
show  the  population,  the  aggregate  of  funded  and  floating  in- 
debtedness, the  yearly  revenue,  and  the  estimated  wealth  of  seven 
leading  countries  of  the  world : 


Population. 

Revenue. 

Debt. 

Wealth. 

United  States 

United  Kingdom  . 

France 

80.372.000 
41.961,000 
38.962,000 
141,000,000 
45,405,000 
32,457,000 
18,618,000 

$694,621,000 
737,526,000 
695,276,000 

1,101,107,000 
75,896,000 
375,000,000 
197,077.000 

$925,011,637 
3,885,000.000 
5,856,706,400 
3,414,000.000 
1,107,464,025 
2.560,605,000 
2,061,389,970 

$94,300,000,000 
59.000.000,000 
48,000,000,000 
32,000.000,000 
22,000,000,000 
15,000,000,000 
12,000,000,000 

Austria-Hungary 

Italy.... 

The  statistics  of  population,  debt  and  revenue  as  given  in  the 
foregoing  tables,  are  taken  from  the  figures  published  by  the 
^Bureau  of  Statistics  at  Washington:  The  statements  of  wealth 
are  estimates  of  recent  years,  but  must  of  course  be  regarded  as 
.merely  estimates,  for  any  accurate  figures  bearing  upon  that 
point  are  practically  impossible.  It  is  quite  likely  that  these 
statements,  while  in  the  main  fair,  really  underestimate  in  some 
degree  the  actual  wealth  of  the  different  countries. 

It  appears,  therefore,  that  the  debt  of  the  United  States  is  less 
than  1  per  cent  of  its  estimated  wealth ;  that  of  England  is  about 
6%  per  cent;  that  of  Russia  10  per  cent;  that  of  France  12  per 
cent ;  while  that  of  Italy  is  17  per  cent. 


110 


PROSPERITY. 


NATIONAL  BANKS  FROM  1863  TO  1903. 

This  table  presents  a  statement  of  the  number  of  national 
banks  organized  in  the  United  States  in  each  year  from  1863  to 
1903,  the  number  in  voluntary  liquidation,  and  their  capital,  the 
number  of  insolvent  banks  and  their  capital,  the  net  yearly  in- 
crease and  the  net  yearly  decrease  in  capital.  This  table  is  espec- 
ially suggestive  as  illustrating  conditions  during  the  period  from 
1893  to  1897.  The  number  of  banks  established  fell  off  more  than 
one-half  immediately  following  the  year  1893;  the  number  of 
insolvent  banks,  which  had  never  been  more  than  25  in  any  year 
prior  to  1893,  was  in  that  year  65,  and  the  capital  involved  10 
million  dollars;  and  while  in  years  prior  to  Democratic  control 
there  had  been  a  net  increase  from  6  millions  to  30  millions  of 
dollars  per  annum,  there  was  during  the  entire  Democratic  period 
a  yearly  decrease  ranging  from  5  to  11  million  dollars  per  annum. 
A  study  of  conditions  since  the  return  of  Republican  control  and 
the  protective  tariff,  and  especially  those  since  1900,  is  also  sug- 
gestive and  will  prove  of  value  in  meeting  the  assertion  that  pros- 
perity is  "fictitious,"  since  the  capital  of  newly  organized  banks 
now  averages  six  times  as  much  annually  as  during  the  Demo- 
cratic period.  The  very  large  increase  in  the  number  organized 
since  1900  is,  of  course,  due  in  part  to  the  enactment  in  1899  of 
the  law  permitting  national  banks  to  organize  with  a  capital  of 
$25,000,  and  under  this  law  the  number  of  national  banks  now 
being  organized  annually  is  ten  times  as  great  as  the  annual  aver- 
age during  the  second  administration  of  President  Cleveland,  and 
the  total  capital  about  eight. 

National  banks  organized  since  the  establishment  of  the  national 

banking  system. 

[From  the  report  of  the  Comptroller  of  the  Currency.] 


Closed. 

Net  yearly 
increase. 

Year. 

Organized. 

In  voluntary 
liquidation. 

Insolvent. 

decrease. 

No. 

Capital. 

No. 

Capital. 

No 

Capital. 

No. 

Capital. 

No. 

Capital. 

1863 

134 

453 

1,014 

62 

10 

12 

9 

22 

170 

175 

68 

71 

107 

36 

29 

28 

38 

57 

86 

227 

262 

191 

145 

174 

225 

132 

211 

307 

193 

163 

119 

50 

43 

28 

44 

56 

78 

383 

394 

470 

553 

$16,378,700 

79.366.950 

242,542,982 

8,515.150 

4.260,300 

1,210,000 

1.500.000 

2.736,000 

19.519,000 

18,988,000 

7,602,700 

6,745,500 

12,104,000 

3,189,800 

2,589,000 

2,775,000 

3.595.000 

6.374.170 

9.651.050 

30.038.300 

28.654,350 

16.042,230 

16,938.000 

21,358,000 

30,546,000 

12,053.000 

21,240.000 

36.250,000 

20.700.000 

15.285.000 

11.230,000 

5,285,000 

4,890,000 

3,245.000 

4,420.000 

9,665,000 

16.470,000 

19,960,000 

21,554.500 

31,130.000 

34.333.500 

134 

450 

1,007 

56 

$16,378,700 

79,366.950 

242,162.982 

7,365.150 

930.300 

1864 

3 
6 

4 
12 
18 
17 
14 
11 
11 
21 
20 
38 
32 
26 
41 
33 

9 
26 
78 
40 
30 
85 
25 
25 
84 
41 
50 
41 
53 
46 
79 
49 
37 
70 
69 
64 
43 
39 
71 
72 

1865 

$330,000 

650.000 

2,160.000 

2,445,500 

3,372.710 

2,550.000 

1.450.000 

2,180.500 

3.524,700 

2,795.000 

3.820.200 

2.565,000 

2.539,500 

4.237,600 

3,750.000 

570,000 

1,920.000 

16.120.000 

7.736,000 

3.647.250 

17,856.590 

1,661.100 

2,537.450 

4,171.000 

4.316.000 

5.050,000 

4.485.000 

6.157.500 

6,035.000 

10,475.000 

6,093.100 

3.745.000 

9,659,000 

12,509,000 

24,385,000 

12.474.950 

7,415.000 

22.190.000 

30.720.000 

1 
2 
6 
4 
1 
1 

$50,000 
500,000 
1,170.000 
410.000 
50.000 
250.000 

1866 

1867..  .... 

8 
10 
9 

1868 

$1,645,500 

1869 

1,922,710 

1870 

7 
159 
158 
36 
48 
64 

64,000 

1871 

18.069.000 
15.001.400 
263.000 
3.700.500 
7.283.800 

1872 

6 
11 
3 
5 
9 
10 
14 
8 
1 

1,806,100 
8,825,000 

250,000 
1,000.000 

965,000 
3.844,000 
2.612,500 
1,230.000 

700,000 

1873 

1874 

1875 

1876 

5 

7 
27 
8 

340,200 

1877 

8.294.500 

1878 

4,075.000 

1879 

1,385,000 

1880 

45 

60 
146 
220 
150 

56 
141 
192 

90 
168 
248 
127 

93 
8 

5.104,170 

7.731.050 

12.357.000 

20,668.350 

11.109,980 

1881 

1882 

3 

2 

11 

4 

8 

8 

8 

2 

9 

25 

17 

65 

91 

1,561.800 
250.000 

1,285.000 
600.000 
650,000 

1,550.000 

1,900.000 
250.000 
750.000 

3.622,000 

2.450.000 
10.935.000 

2.770.000 

1883 

1884 

1885 

1,518,590 

1886 

19.056.900 
26.458.550 

5.982,000 
16.674.000 
30.450,000 
12.593,000 

6.677.500 

1887 

1888 

1889..  . 

1890. 

1891 

1892. 

1893 

1894 

"50 
42 
36 
65 
19 

5,740,000 
7,960.000 

1895 

36 
27 
38 

7 
12 

6 
11 

2 
12 

5.235.020 
3^05.000 
5.851.500 
1,200,000 

6,438.120 

1896 

4.305.000 

1897 

11.090,500' 

1898 

4,044.000 

1899 

850.000 

9 

8,715,000 

1900. 

1.800.000   334 

1,760.000   344 

450.000   397 

3.480.000   469 

5.685.050 

12.379,500 

8,490,000 

133,500 

1901.. 

1902.. 

1903 

Aggre- 
gate.. 

7,029 

860.931.182 

1.483 

260,239.560 

418 

71,167,4205,409 

592.062.332 

281 

62,538.120 

PROSPERITY. 


Ill 


Money  In  Circulation  In  the  United  States,  1800  to  1004. 

This  table  shows  the  various  kinds  of  money  in  circulation  in 
the  United  States  from  1800  to  1904.  In  the  period  prior  to  1860 
the  figures  are  given  for  decennial  years  only ;  from  1860  to  1880 
by  quinquennial  years,  and  since  1880  are  given  for  each  year.  It 
will  be  noted  that  the  growth  in  total  and  per  capita  was  very 
slow  prior  to  the  protective  period  and  that  there  was  a  great 
reduction  in  total  and  per  capita  during  the  recent  low  tariff 
period.  Attention  is  also  called  to  the  fact  that  the  total  money 
in  circulation  has  increased  about  66  per  cent,  since  the  Demo- 
cratic party  insisted  in  1896  that  only  the  free  and  unlimited 
coinage  of  silver  would  give  a  proper  increase  in  the  circulating 
medium.  It  will  be  seen,  also,  that  a  large  share  of  the  increase 
in  circulation  is  in  gold  or  in  gold  certificates  which  are  the 
equivalent  of  gold. 


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112 


PR06PER1  I  Y. 


Clearing-house  returns  of   the   United  States,  showing  depression  in 

low-turiff  (Did  Democratic  years. 

[From  the  Statistical  Abstract  of  the  United  States.] 


Year. 

— r- TT— -— 

New  York  clear- 
ing house. 

Clearinghouses 

of  the 
United  States. 

1880 

$37,182,128,621 
48,565,818,212 
46,552.846,161 
40,298,165,258 
:U. 002, 037, 338 
25.250,71)1,110 
33.37 1.682,216 
31.S72.HiS.7St; 
30.863.CH6.C01.) 
34,796,405,529 
37.660.686,572 
34,053,698,770 
36,279,905,230 
34,421,380.870 
24,230,145.368 
28.264,379.126 
29,350,894.884 
31,337,760,948 
39.853,413,948 
57.368,230.771 
51,904  ..588.564 
77.020,672,494 
74,753,189,436 
70.833,655,940 

ft 
1 

1881 

1882 

1883 

1SS1 

(*) 

1885 » 

(*) 

1886 

$48  211,643,771 

1887 

52,126  704  488 

1888 

48  750  886  813 

1889 

53  501  411  510 

1890 

58  845  279  505 

1891 

57  298  737  938 

1892 A 

1893 1 

60,883,572,438 

58,880,682,455 

1894 1 

45  028  496  746 

1895 1 

50  975  155  046 

1896 1 

51.935.651.733 
54.179,545.030 
65  924  830  769 

1897 

1898 

88  828  672  533 

1900 i 

84  582  450  081 

1901 

114  819  792  086 

1902 

115  892  198  634 

1903 

114,068  837  569 

*No  data. 


fDemocratic  and  low  tariff  years. 


Number  and  mileage  of  railroads  placed  under  receiverships  and 
sold  under  foreclosure  during  the  calendar  years  1876  to  1903. 

[From  the  Railway  Age,  Chicago.] 


Placed  under  receiverships. 

Sold  under  foreclosure. 

Years. 

Number 
of  roads. 

Miles. 

Stocks  and 
bonds. 

Number 
of  roads. 

Miles. 

Stocks  and 
bonds. 

1870 

42 

38 
27 
12 
13 
5 
12 
11 
37 
44 
13 
9 
22 
22 
26 
26 
36 
74 
38 
31 
34 
18 
18 
10 
16 
4 
5- 
9 

6,662 

3,637 

2,320 

1,102 

885 

110 

912 

1,990 

11,038 

8,386 

1,799 

1,046 

3,270 

3.803 

2,963. 

2,159 

10,508 

29,340 

7,025 

4,089 

5,441 

i;537 

2,069 

1,019' 

1,165 

73 

.278 

229 

$467,000,000 

220,294,000 

92,385,000 

39,367,000 

140,265,000 

3,742,000 

39,074,000 

108,470,000 

714,755,000 

385,400,000 

70.340,000 

90,318,000 

180,814,000 

99,064,000 

105,007,000 

84,479,000 

357,692,000 

1,781,040,000 

395,791,000 

309,075,000 

275,597,000 

92,909,000 

138,701,000 

52,285,000 

78,234,000 

1,027,000 

5,835,000 

'    18,823,000 

30 
54 
48 
05 
31 
29 

ie 

18 
15 
22 
45 
31 
19 
25 
29 
21 
28 
25 
42 
52 
58 
42 
47 
32 
24 
18 
18 
13 

3,8<*0 

3,900 
4,909 
3,775 
2.017 

807 
1,354 

710 
3.150 
7,087 
5,478 
1,596 
2.930 
3.825 
3,223 
1,922 
1,613 
5,643 
12,831 
13,730 
6.075 
0.054 
4,294 
3.477 
1.139 

093 

555 

$217,848,000 

U<77 

198,984,000 

1878 

311.C31.000 

1879 

243,288.000 

1880 

203,882,000 

'1881 

137.923.000 

1882 

05,420.000 

1883 

47,100,000 

1884 

23,504,000 

1885 

278.394,000 

1886 

374,109,000 

1887 

1888 

328.181.000 
04,555.000 

1889 

137,815.000 

1890 

182,495,000 

1891  

109.009.000 

1892 

95.898,000 

1893 

79,924,000 

1894 

318,999,000 

1895 

701,791.000 

1896 

1,150.377,000 

1897 

517,080,000 

1898 

252.910.000 

1899 

267,534,000 

1900 

190.374,000 

1901  

85,808,000 

1902 

39,885.000 

1903 

15.885.000 

Total 

652 

114.855 

0,415.055,000 

897 

112,374 

6.821.209.000 

Our  country  is  growing;  better,  not  worse. — Hon.  C.  W.  Pair- 
banks,  at  Baldwin,  Kas.,  June  7,  1901. 

In  the  ballot-box  our  liberties  are  compounded.  See  to  it  that 
it  gives  true  expression  to  the  public  will.  Preserve  it  from  pollu- 
tion; protect  and  defend  it  as  you  would  the  Ark  of  the  Covenant, 
for  it  has  been  purchased  by  the  priceless  blood  of  countless 
heroes  upon  the  battlefields  of  the  Republic. — Hon.  C.  W.  Pair- 
banks,  at  Baldwin,  Kas.,  June  7,   1901. 


PROSPERITY. 


113 


Bank  Deposits  In  Each  State  in  1892  and  1903. 

The  following  table  shows  the  total  bank  deposits  in  each 
State  in  1892,  the  last  year  of  President  Harrison,  1896,  the  last 
year  of  Cleveland,  and  1903  under  President  Roosevelt : 

Deposits  in  banks  of  all  Icinds  in  the  United  States,  1892,  J806r 

and  1903. 
[Prom  Official  Reports  of  the  Comptroller  of  the  Currency.] 


States. 


Maine 

New  Hampshire 

Vermont 

Massachusetts 

Rhode  Island 

Connecticut 

New  York 

New  Jersey 

Pennsylvania 

Delaware „-. 

Maryland rr. . 

District  of  Columbia. 

Virginia 

West  Virginia 

North  Carolina 

South  Carolina 

Georgia 

Florida 

Alabama 

Mississippi 

Louisiana 

Texas 

Arkansas 

Kentucky 

Tennessee 

Ohio 

Indiana 

Illinois 

Michigan 

Wisconsin 

Minnesota 

Iowa 

Missouri 

North  Dakota 

South  Dakota 

Nebraska 

Kansas 

Montana 

Wyoming 

Colorado 

New  Mexico 

Oklahoma 

Indian  Territory 

Washington 

Oregon 

California 

Idaho 

Utah 

Nevada 

Arizona 

Alaska 


65.850,798 

80,435,557 

33,748,904 

616.598,531 

99,066.388 

165,415,581 

417.556,006 

98.891,294 

423,548,016 

10,121,401 

83.219,217 

15,670,372 

29,693,500 

11,037,899 

8,461,372 

9,849,188 

15,363,576 

5,740,494 

7.661,421 

7.093,530 

26,308,565 

34,120,225 

4,563,594 

49,603,578 

24,543,584 

175,952,224 

54,206,771 

226.801,889 

107,704.951 

79.738,823 

76.795,498 

85,460,606 

117,478,165 

8,278,548 

7.551,266 

43,770,311 

38,514,219 

16.515.264 

3,167,147 

33,827,434 

3,104,956 

723.968 

309,119 

17,807,584 

12.647,373 

198.024,954 

2.006,760 

9,213.285 

412,320 

758,212 


$    75,804,424 

71,921,727 

40,572,077 

705,759.418 

110.535,846 

188.712,003 

1.604.236,105 

115,583,033 

459,041,848 

7,019,958 

87,354,355 

18.677,413 

28,243,822 

17,745,571 

9,722,451 

9,890,679 

10.952,349 

5,531,365 

6,856,065 

8,908,660 

25,306,751 

31,747,215 

3.555,383 

41,502,038 

21,722,670 

174,954.981 

52.386,403 

213,798,711 

103,670,827 

68.863,503 

68,494.642 

78.439,707 

117,150,075 

7.032,369 

7.216,612 

30.865,894 

30,529,481, 

16,800,929 

2,650,866 

29,966,835 

2,311.296 

755,519 

704,202 

9.228.843 

9,262,021 

;  202,874,270 

1,969.292 

6,366.103 

579,731 

1.548.074 


$  112.447.981 

78,453.488 

56,386,990 

938,627.298 

155,644,733 

264,131,827 

2.861,024,291 

254.960,170 

1,011,947.132 

19,592,430 

144,703.712 

37.916,326 

59,993,002 

50.387.589 

28,224,670 

16,584.452 

43,053.919 

16,535,101 

19,963,480 

29,174.325 

63.450.271 

80,389.641 

14,458,572 

68,501,184 

62,183,036 

448,120,819 

141,601,752 

522,889,978 

218,432,300 

156,140,971 

135,564,105 

211.033,378 

298,747,005 

22,147,222 

27.801,725 

80,565.404 

84,055.110 

32.023,515 

7,821,629 

69,739.278 

7,249,032 

18,677,080 

8,433.629 

53,242,953 

26.039.463 

406,532,343 

7,849.030 

33,526,202 

4,107,492 

8,458.306 

893,913 


Total i      $240,870,488        $231,828,339        $540,649,702 


Aggregate,  United  States  only,  $9,530,429,252. 
Annual  increase   in   individual   deposits,    1892-1896,    $   70,000,000. 
Annual  increase  in  individual  deposits,    1896-1903,   $657,000,000. 

Commercial  Failures.,  1880  to  1903. 
The  table  which  follows  shows  the  number  of  failures,  the 
number  of  business  concerns,  the  percentage  of  failures,  the 
total  liabilities  of  failing  firms,  and  average  liabilities,  in  each  year 
from  1880  to  1903,  as  shown  by  Dun's  Review,  a  reliable  and 
nonpartisan  publication.  The  table  needs  no  discussion,  though 
attention  is  called  to  the  fact  that  in  no  year  since  1897  has  the 
number  of  failures  or  the  amount  of  liabilities  been  as  great  as  the 
lowest  record  of  the  four  years'  period  under  President  Cleve- 
land and  low  tariff,  threatened  or  actual.  The  annual  average  of 
the  liabilities  of  failing  firms  during  the  four  years  1893,  1894, 
1895,  and  1896  was  230  million  dollars,  and  during  the  four  year  -; 
ending  with  1903  was  131  million  dollars,  in  spite  of  the  fact 
that  population  -at  the  end  of  the  second  period  was  80  millions, 
against  70  millions  at  the  close  of  the  first  period.  Thus  while 
population  increased  14  per  cent,  the  liabilities  of  failing  firms 
decreased  40  per  cent. 


114 


PROSPERITY. 


Commercial  failures  and  average  of  liabilities,  1880  to  1903. 
[From  Dun's  Review,  New  York.  | 


Calendar  year. 


Total  for  the  year. 


Number 
of  failures. 


Number  of 

Per  ct. 

business  con- 

of fail- 

cerns. 

ures. 

746.823 

0.63 

781.689 

.71 

822.256 

.82 

863,993 

1.06 

904.759 

1.21 

919.990 

1.16 

969,841 

1.01 

994,281 

.90 

1,046.662 

1.02 

1.051.140 

1.04 

1,110.590 

.98 

1,142,951 

1.07 

1,172,705 

.88 

1,193,113 

1.39 

1,114,174 

1.26 

1,209,282 

1.09 

1,161,079 

1.31 

1,058,521 

1.26 

1,105.830 

1.10 

1,147,595 

.81 

1.174,300 

.92 

1,219,242 

.90 

1,253,172 

.93 

1,281,481 

1.12 

Amount  of 
liabilities. 


Average 

liabilities. 


1881 . . 
1882.. 
1883.. 
1884.. 
1885.. 
1886.. 
1887.. 
1888.. 
1889.. 
1890.. 
1891.. 
1892.. 
1893* 
1894* 
1895* 
1896* 
1897.. 
1898.. 
1899.. 
1900.. 
1901.. 


4.735 

5.582 

6.738 

9.184 

10.968 

10,637 

9.834 

9.634 

10.676 

10,882 

10.907 

12,273 

10,344 

15,242 

13,885 

13,197 

15,088 

13,351 

12,186 

9,337 

10,774 

11,002 

11,615 

12,069 


$65,752,000 

81.155,932 

101,547,564 

172.874.172 

226,343,427 

124,220,321 

114,644.119 

167,560,944 

123,829,973 

148,784.337 

189,856,964 

189.868,638 

114,044,167 

346,779,889 

172,993,856 

173,196,060 

226,096,834 

154.332,071 

130,662,899 

90,879,889 

138,495,673 

113,092,376 

117,476,769 

155,444,185 


$13,886 

14,530 

15,070 

18,823 

20,632 

11,678 

11.651 

17.392 

11,595 

13.672 

17.406 

15,471 

11,025 

22,751 

12,458 

13,124 

14,992 

11,559 

1U.722 

9,733 

12,854 

10,279 

10,114 

12,879 


♦Democratic  and  low-tariff  period. 
Value  of  the  Principal  Farm  Crops  of  the  United  States  in  1899  and 
1903   Compared   with    1893 — Farm   Value   of  Ten   Principal   Crops 
Increased  More  Than  $1,000,000,000  since  1895. 

This  table  shows  the  value  of  the  principal  farm  crops  of  the 
United  States  in  1895,  1S99,  and  1903,  and  illustrates  forcibly  the 
importance  of  protection  to  the  farmer.  The  values  of  ten  prin- 
cipal crops  are  stated.  It  will  be  seen  that  in  every  case  there 
has  been  a  large  increase  and  in  some  cases  the  value  has  prac- 
tically doubled,  while  the  total  value  of  the  ten  articles  named  is 
62  per  cent,  greater  in  1903  than  in  1895.  Here  is  a  gain  of  over 
one  billion  dollars  ($1,215,596,903)  in  the  value  of  these  ten  ar- 
ticles of  farm  production  for  the  single  year  1903  compared  with 
1895. 

The  figures  are  from  the  Department  of  Agriculture,  except 
those  of  flax,  for  each  year,  and  those  of  cotton  for  the  year  1903. 


1895. 

1899. 

1903. 

Crop. 

Total  value. 

Value 
per. 
unit. 

Total  value. 

Value 
per 
unit. 

Total  value. 

Value 
per 

unit. 

Corn 

Wheat 

Oats 

Rye 

Barley 

Potatoes. . . 

Cotton 

Hay 

Tobacco... 
Flax 

$544,985,534 

237,938.998 

163,655,068 

11.964,826 

29,312.413 

78.984,901 

260,338,096 

393,185.615 

35.574,220 

12,000.000 

$0,253 
.509 
.199 
.440 
.337 
.266 
.076 
.835 
.069 
.750 

$629,210,110 

319,545.259 

198.167,975 

12,214,118 

29,594.254 

89,328,832 

332,000,000 

411.926,187 

45,000.000 

24.000.000- 

$0,303 
.584 
.249 
.510 
.403 
.390 
.070 
.727 
.090 
.125 

$952,868,801 
443,024.826 
267,661,665 
15,993,871 
60,166,313 
151,638,094 
460,000,000 
556,376,880 
55,514.627 
*22.291,557 

$0,425 
.695 
.341 
.545 
.456 
.614 

'.908  ' 

.068 

.817 

1.767,939,671 

2  090  986  735    1 

2,985,536,634 

♦Estimate  of  Department  of  Agriculture. 
To  appreciate  what  this  means  to  each  individual  stock  owner 
note  the  change  in  the  average  price  per  head  of  each  class  of 
animals : 


Jan.  1,  1897. 

Jan 

1.1904. 

$31.50 

41.66 

23.16 

16.65 

1.82 

4.10 

$67.93 

Mules 

78.88 

29.21 

Cattle 

16.32 

Sheep  

2.59 

Hogs 

6.15 

PROSPERITY. 


115 


Expenditures  of  the  United  States  Compared  with  Those  of  Other 

Leading    Nations — Our    Per    Capita    Much    Below    That    of 

Principal  Countries  of  the  World. 

The  expenditures  of  the  United  States  Government  are  much 
less  in  proportion  to  population  than  those  of  many  other  of  the 
!  leading  nations  of  the  world.     This  fact  is  shown  by  a  statement 
published  by  the  Department  of  Commerce  and  Labor,  through  its 
!  Bureau  of  Statistics,  showing  the  population,  revenues,  expendi- 
tures, and  indebtedness  of  the  principal  countries  of  the  world. 
It  shows  that  while  the  expenditure  of  the  United  States,  with  80 
millions  of  people,  is  G40  million  dollars,  that  of  the  United  King- 
dom, with  42  millions  of  people,  is  898  million  dollars;  that  of 
France,  with  39  million  people,  is  695  million  dollars ;  that  of  Ger- 
many, with  58  million  people,  553  million  dollars ;  while  in  prac- 
I   tically   every   country   aside   from   China    and   India,   with   their 
enormous  population,  the  per  capita  of  government  expenditures  is 
:  greater  than  in  the  United  States.     Even  in  the  case  of  Russia, 
!   with  its  population  of  141  million,  the  per  capita  of  government 
i   expenditure  is  about  the  same  as  that  of  the  United  States. 

While  it  is  true  that  a  larger  proportion  of  public  expenditures 
is  borne  by  State  and  local  governments  in  the  United  States  than 
in  many  of  the  more  centralized  governments  of  Europe,  these 
figures  of  the  relative  national  expenditures  of  the  various  govern- 
ments are  at  least  interesting  at  the  present  time. 

The  table  puts  the  population  of  the  United  States  at  80,372,000, 
j  the  Government  expenditure  in  1903  at  $040,323,000,  and  the  per 
;  capita  expenditure  $7.97.    The  per  capita  government  expenditure 
:  of  Canada  is  given  at  $9.30;  the  German  Empire,  $9.45;   Italy, 
■  $10.97  ;  Austria-Hungary,  $14.27 ;  Belgium,  $17.40 ;  France,  $17.84  ; 
;  the  United  Kingdom,  $21.39,  and  Australia,  $37.69.     Russia's  an- 
I  nual  expenditure  is  put,  for  the  latest  available  year,  at  $1,116,- 
'■  095,000,  as  against  $644,883,000  in  the  United  States ;  but  the  fact 
|   that  Russia's  population  is  given  at  141  million  brings  the  per 
capita  expenditure  to  about  the  figure  shown  by  the  United  States. 
The  table  in  question  also  shows  in  the  case  of  each  country 
the  excess  of  revenue  or  expenditure  in  the  latest  available  year, 
and  in  this  particular  the  United  States  also  presents  a  satisfac- 
tory   showing,    the  excess    of   revenues   over   expenditures   being 
greater  than  that  of  any  other  country,  while  in  many  countries 
!   the  expenditures  exceed  the  revenues.     For  the  latest  available 
year  the  United  States  shows  an  excess  of  revenues  over  expendi- 
tures amounting  to  50  million  dollars,  while  France  shows  an  ex- 
cess of  revenues  amounting  to  only  $26,000;  Germany,  an  excess 
of  expenditures  over  revenues  amounting  to  57  million  dollars,  and 
the  United  Kingdom   an   excess   of   expenditures   over   revenues 
amounting  to  160  million  dollars. 

The  table  which  follows  shows  the  population,  expenditure,  and 
per  capita  expenditure  in  the  more  important  countries  of  the 
world  in  the  latest  available  year.  Most  of  the  statements  are  for 
1902,  that  of  the  United  States  for  1903. 


Countries. 


Population. 

Expenditure. 

788,000 

$30,441,000 

3.772,000 

142,148.000 

41,961,000 

897,790,000 

38,962,000 

695,250,000 

6,694,000 

116,500,000 

636,000 

11,007,000 

46.406.0C0 

647,969,000 

4,794,000 

60,757,000 

1,573,000 

19,515,000 

5,347,000 

61,468  000 

5.429,000 

62,170,000 

18,618,000 

187,846,000 

5,199,000 

49,593,000 

58,594  000 

553.222,000 

5.457.000 

60.759,000 

80,372,000 

640,323,000 

Per  capita 
Expenditure 


New  Zealand 

Australian  Commonwealth 

United  Kingdom 

France 

Belgium 

Paraguay 

Austria-Hungary 

Argentina 

Cuba 

Netherlands 

Portugal 

Spain 

Sweden 

German  Empire 

Canada 

United  States .-. 


$38.38 
37.69 
21.39 
17.84 
17  40 
17  30 
14  27 
12.68 
12.40 
11.49 
11.45 
10  09 
9.54 
9.45 
9.30 
7.97 


Every  man  who  lias  made  wealth  or  used  It  in  developing: 
{great  legitimate  business  enterprises  has  been  of  benefit  and  not 
harm  to  the  eountry  at  large. — President  Roosevelt  at  Spokane, 
Wash.,  May  26,  1903. 


11G 


l'KOSIM  Kl  I  1'. 


COMPARISON  OF  FINANCIAL,  COMMERCIAL  AND  INDUS- 
TRIAL CONDITIONS  IN  THE  UNITED  STATES  IN  vi89a 
1896,  1900  AND  1903. 

This  table  is  intended  to  show  the  contrast  in  conditions  in  the 
United  States  under  Republican  and  Democratic  administrations. 
The  indebtedness,  interest  charge,  money  in  circulation,  bank  de- 
posits, commerce,  agriculture  and  the  value  of  its  products,  manu- 
facturing, railway  operations,  and  other  measures  of  business  and 
commercial  activity  and  prosperity  are  shown  for  the  years  1892, 
189G,  1900,  and  1903.  The  year  1892  was  the  last  under  President 
Harrison,  1896  the  last  under  President  Cleveland ;  and  while  the 
McKinley-Roosevelt  term  has  been  continuous  and  one  of  continu- 
.ous  prosperity,  conditions  in  the  year  1900,  the  last  full  year  of 
President  McKinley's  life,  are  shown,  since  the  comparison  of 
conditions  in  1903  with  those  in  1900  shows  that  prosperity  and 
activity  have  continued  under  President  Roosevelt  and  that  the 
assertions  that  business  has  not  prospered  under  the  present  ad- 
ministration are  not  true.  No  detailed  explanation  or  comment 
upon  the  table  is  necessary.  .It  speaks  for  itself  and  is  in  itself 
evidence  of  Republican  prosperity  and  Democratic  adversity. 

The  figures  of  the  table  are  in  all  cases  official  and  in  most 
instances  arc  those  of  fiscal  years. 


Financial, 


commercial,    and    industrial    conditions    in    the     United 
States,  1892,   1896,  1900,  and  1903. 


ITEMS. 


1896. 

1900. 

1903, 

70.365.000 

76.303.000 

80,487.000 

847,363,890 

1,023,478,860 

914,541,410 

34,387,266 

33,545,130 

25,541,573 

49 

44 

32 

152,158,617 

233,164,871 

284,479,582 

326,976.200 

567.240,852 

560,396,674 

316,794,417 

447,553.458 

477,542,658 

102.494,781 

222,844.953 

254,162,230 

497.103,183 

811,539,491 

994,519.298 

1,506,434,966 

2,055,150,998 

2,367.692.169 

21.41 

26.94 

h  30.38 

29,350,894.884 

51.964,588,564 

70,833,655,940 

51,935,651,733 

84,582,450,081 

114.068,837,569 

91,71.642.012 

2.623,512,201 

3,415,045.751 

5.065,494 

6,107,083 

7.305,228 

1.907,156.277 

2,449,547,885 

2,935,204,845 

4,916,814,233 

7,298,814,381 

9,673,385,303 

888,266,586 

1,468,986,366 

al. 806.890,864 

5,943.067.492 

8.562,138,746 

10,508,478.776 

779.724.674 

849,941,184 

1,025,719.237 

10.66 

10.88 

12.54 

882,606,938 

1.394,483,082 

1,420,141.679 

12.11 

17.96 

17.64 

102,882.264 

544.541.898 

394,422,442 

281,302,206 

379,926,075 

480,828.386 

228,571,178 

433,851,756 

407.526,159 

26.48 

31.65 

29.28 

569,879,297 

835.858,123 

873.322,882 

131,503,590 

184,453,055 

179,839,714 

42,827.258 

108,305,152 

bl06,771,591 

2,102,094 

4,260,890 

11,976.134 

3.985,707 

13,077.506 

10,787,666 

162,446 

2,635,624 

4,028.677 

1,727,926,084 

2,228.123,134 

3,102.515,540 

500,140,186 

603,969,442 

1,030.705.959 

872,883.961 

1.204,298,366 

1,340,766,816 

103.204,457 

111.717,092 

197.753,327 

186.529,745 

185,472,321 

364.973,688 

65.107,135 

122.665,913 

168,315.750 

38,298,783 

41,883.065 

63,964,876 

1.70 

2.93 

2.63 

1,432,396,852 

1.861.466,582 

2,456,381.183 

491,006,967 
310,602,539 

751  220,034 

952,868.801 

323,515.177 

443.024.826 

132.485,033 

208,669.233 

267,661,665 

388,145,614 

445.528,870 

556,376,880 

72.182,350 

90,811,167 

151,638,094 

Population^. 65.191.000 

Interest-bearing  debt $585,029,330 

Annual  interest  charge $22,893,883 

Annual  interest' per  cap.  Cts  35 

Receipts  from  customs $177,452,964 

Treasury  receipts,  net  ordi- 
nary       $354,937,784 

Gov't  expenditrs,  (j ) $321,645,214 

Gold  in  treasury $114,612,892 

Gold  and  gold  certificates  in 

circulation $549,662,443 

Money  in  circulation $1,601,347,187 

Money  in  circulat'n,  per  cap.  $24.56 

Bank  clearings.  New  York.. $36,279,905,236 
Bank  clear'gs.  total,  U.  S.  ..$60,883,572,438 
Loans   and    discounts.nat'l 

banks $2,127,757,191 

Savings  bank  deposit'rs.No.  4,781,605 

Savings  bank  deposits $1,712,769,026 

Bank  deposits,  total $4,619,373,659 

Industrial  life  insurance  in 

force * $583,527,016 

Total  life  insurance  in  force.  $4,897,731,359 

Imports $827,402,462 

Imports,  per  capita $12,44 

Exports $1,030,278,148 

Exports,  per  capita $15.53 

Excess  of  exports  over  im- 
ports       $202,875,686 

Imports  of  mf  r's  materials. .  $278,319,966 
Exports  of  manufactures. . .  $159,510,937 
Share  mf  r's  form  of  ex-   I  15  61 

ports %    S 

Exports  of  ag'l  products ....      $798,328,232 

Exports  of  provisions $140,362,159 

Exports  to  Asia  and  Oceania.       $35,163,117 

Exports  to  Porto  Rico $2,856,003 

Exports  to  Hawaii $3,781,628 

Exports  to  Philippine  Isles,.  $60,914 

Animals  on  farms,  total 

value $2,461,755,698 

Horses $1,007,593,636 

Cattle.... $922,127,287 

Mules $174,882,070 

Swine $241,031,415 

Sheep..... $116,121,290 

Sheep,  total  in  U.  S No.         44,938.365 

av.  value  per  head...  $2.60 

Farm  products,   value i  $1,826,989,201 

Corn. $642,146,630 

Wheat $322,111,881 

Oats $209,253,611 

Hay $490,427,798 

Potatoes $103,567,520 


PROSPERITY. 


117 


Financial,    commercial,    and    industrial    conditions    in    the 
States,  1892,  1896,  1900,  and  1903— Continued. 


ITEMS. 


1892. 


Wool  production lbs  294.000.000 

Wool  value $79,075,777 

Cotton  production,  value $313,000,000 

Beet-sugar  production — Tons  12,000 

Mineral  production,  value $648,675,081 

Coal  production -Tons  160,115.242 

Furnaces  in  blast No.  253 

Pig-iron  production Tons      9,157,000 

Steel  rails  mfg Tons     1.298.936 

Steel  manufactured Tons     4,927,581 

Exports  of  iron  and  steel $28,800,930 

Tin  plates  manufactured.. lbs.     42,119,192 

Tin  plates  imported lbs.  422, 176.202 

Pig  tin  imported Pounds    43,908,652 

Domestic  cotton  used  in  mfg 

Bales      2,856,000 

Silk  imported  for  mfg lbs.      8,642,828 

Hides  and  skins  import $26,850,218 

Rubber  imported  for  mfg . .  lbs.    39,976.205 

P.  O.  Dept.  receipts  of $70,930,476 

Telegraph  messages  sent.  .No.    71.722.589 

Telephone  subscribers No.        216,017 

Patents  issued No.  23,559 

Failures No.  10.344 

Failures,  liabilities $114,044,167 

Original  homestead  entries 

Acres  e  6,808,791 

Railways  built Miles  4,441 

Railways,  net  earnings $352,817,405 

Railways,  dividends  paid $93,862,412 

Railways,  employees No.         821,415 

Railways,  wages  paid $440,318,900 

Railways,  freight  carried. Tons  730,645,011 
Railways,  passengers   carried 

No.  575,769,678 

Railways,  f  r'g't  rec'ts  ton  per 

mile Cents  94 

Railways  sold  under  foreclos- 
ure  .' Miles  1,922 

Freight   passing   Sault   Ste. 
Marie  canals Tons   10,647.203 

PBICES  (ANNUAL  AVERAGE),     j 

Wheat,  in  New  York.. per  bush  .540 

Corn,  in  New  York per  bush  .363 

Oats,  in  New  York per  bush  4.34 

Flour,  patent Barrel  5.15 

Hogs,  in  Chicago 100  lbs  7.87 

Bacon 100  lbs  4.50 

Steers,  in  Chicago 100  lbs  7.62 

Beef,  fresh  native,  sides.  100  lbs  .043 

Sugar,  granulated Pound  .143 

Coffee.  Rio  No.  7 Pound  .301 

Tea,  Formosa,  fine Pound  2.50 

Men's  shoes,  vici  kid Pair  1.037 

Men's  shoes,  brogan Pair  .065 

Calico,  "Cocheco" Yard 

Serge  suitings Yard  .91 

,  Alpaca  dress  goods Yard  .072 

Wool,  Ohio  XX Pound  .611 

Coal,  anthracite Ton  3.94 

Coal,  bituminous,  at  mine. .  Ton  .90 

Petroleum,  refined Gallon  .07  > 

Pig.  iron,  foundry  No.  l....Ton  15.74 

Wire  nails 100  lbs  2.1  > 

Cut  nails 100  lbs  1.7 

Tin  plates 100  lbs  5.: 

Steel  rails Ton  30.( 

Steel  billets Ton  23.<  , 

Rope,  manila Pound  .  i 


a   1902. 

b  Including1  Hawaii. 

c  Includes  corn,  wheat,  oats, 
barley,  rye,  buckwheat,  potatoes, 
and  hay. 

d  Includes  statistics  of  Amer- 
ican Telephone  and  Telegraph 
Company  and  operating  com- 
panies associated  with  it. 

e  1893. 

f  1895. 


1900. 


272,474.000 

288.636,000 

32,529.536 

45,670,053 

269.116.000 

357,000,000 

40,000 

82,000 

622,533,016 

1,063.620,548 

171,416,393 

240,780,238 

159 

232 

8,623,129 

13,789,242 

1,300,325 

2,271,108 

5,281.689 

10,188,329 

41,160,877 

121,913,548 

359.209,798 

677,969,600 

385,138,983 

147,963,804 

49,952,957 

70,158,915 

2,505.000 

3,644,000 

9,084,920 

13.043.714 

30,520,177 

57,935,698 

36,774.460 

49,377,138 

82,499,208 

102,354,579 

72,221,896 

79.696,227 

281,695 

632,946 

23,273 

26,499 

15,088 

10,774 

226,096.834 

138,495,673 

4,830,915 

8,478,409 

1,704 

3,516 

332,766,979 

483,247,526 

81,528,154 

140,343,653 

f  785,034 

1,017,653 

f  445,508.261 

577,264,841 

773,868,716 

1.071,431.919 

535,120.756 

584,695,935 

82 

75 

13.730 

3,477 

17,249,418 

22,315,834 

.340 

.453 

.233 

.273 

3.79 

3.84 

3.35 

5.08 

4.94 

7.52 

4.27 

5.39 

6.98 

8.04 

.045 

.053 

.123 

.082 

r      .258 

.297 

2.25 

2.00 

.993 

.937 

.052 

.052 

.614 

.810 

.064 

.071 

.394 

.659 

3.55 

3.91 

.90 

1.20 

.104 

.118 

12.95 

19.98 

2.92 

2.63 

2.71 

2.25 

3.43 

4.67 

28.00 

32.28 

18.83 

25.06 

.066 

.132 

g  1892  figures  are  for  im- 
ported tin;  those  of  subsequent 
years  of  domestic  manufacture. 

h  December  1. 

i    Except  cotton. 

j  Prices  of  farm  products 
are  those  of  Chicago  markets; 
Iron  and  steel,  those  of  Pitts- 
burg; general  merchandise,  in 
most  cases,  those  of  New  York, 
and  in  all  cases  are  wholesale 
rates. 


Our  -workshops  never  were  so  busy,  our  trade  at  borne  was 
never  so  large,  and  our  foreign  trade  exceeds  that  of  any  like 
period  in  all  our  history. — President  McKinley  at  Chicago.  Oct. 
10.   1899. 


118 


PR0S1MUI  I  5f. 


Do  Trust*   Control  PrlcfcH? 

Much  has  been  said  about  the  advance  in  prices,  coupled  with 
the  assertion  that  the  advances  in  cost  of  living  is  due  to  trust 
control  and  that  the  increase  in  prices  has  been  more  rapid  than 
the  advance  in  wages.  This  general  question  of  wages,  and  the 
relation  of  wages  to  prices  is  discussed  in  the  chapter  on  Labor, 
to  which  attention  is  especially  called,  but  In  addition  to  the 
facts  there  presented  some  statements  with  reference  to  the 
advance  and  more  recent  decline  in  prices  is  worthy  of  special 
attention.  That  statement,  from  official  and  recent  reports  of 
the  Bureau  of  Labor,  completely  disproves  the  charge,  and  shows 
clearly  the  falsity  of  the  Democratic  assertion  that  cost  of  living 
has  advanced  more  rapidly  than  wages. 

Another  extremely  important  fact  is  the  marked  decline  in 
prices  in  many  articles  during  the  present  year,  among  these 
articles  being  many  controlled  by  trusts  and  great  industrial  cor- 
porations, which  are  constantly  charged  by  the  Democracy  with 
advancing  prices  and  with  ability  to  control  the  same.  A  table 
compiled  from  reports  of  the  Bureau  of  Statistics  shows  the 
prices  of  principal  articles  of  food  and  manufactures,  in  March, 
1004,  compared  with  March,  1003: 


Articles. 


March,  1903. 

March.  1904. 

Dollars. 

Dollars. 

0.05% 

0.06% 

.84 

1.12 

.26 

.28 

.09 

.09% 

.08% 

.07% 

.04% 

.04% 

'.0362% 

.036 

4.45 

3.80 

.30% 

.289% 

23.10 

14.35 

21.00 

9.75 

.02 

.01% 

.016 

.014% 

32.50 

23.00 

28.00 

28.00 

1.50 

1.71 

.10% 

.113% 

.0462% 

.045 

.15 

.1287% 

.0467% 

.0462% 

.057 

.0512% 

4.00 

3.65 

.105 

.0725 

.10 

.07 

.05^ 

.04% 

19.00 

15.50 

15.00 

12.50 

.055 

.057% 

.043 

.050 

.050 

.046 

.12% 

.UK 

.31 

.33 

.81% 

1.07% 

JWH 

.58K 

.43% 

.48% 

.09)* 

■  UK 

Prices  of  imported  articles. 

Coffee,  Rio,  No.  7 Pound 

Rubber do . . 

Japan  tea  (choice) do.. 

Manila  hemp do . . 

Sisal do.. 

Jute do . . . 

Sugar,  raw do . . . 

Silk,  raw do . . . 

Tin.  pig do... 

Prices  of  articles  of  domestic  production. 

Pig  iron: 

Bessemer ton. 

Southern do... 

Iron  bars pound . 

Steel  bars do 

Steel  billets ton.. 

Steel  rails do.... 

Petroleum: 

Crude barrel . . 

Refined gallon . . 

Sugar,  refined pound.. 

Copper ■= do 

Lead do 

Zinc do 

Tin  plate box.. 

Lard pound.. 

Oleostearine do  — 

Tallow do  — 

Pork,  mess barrel . . 

Beef,  family do.... 

Native  steers pound.. 

Texas  steers do  — 

Cows do  — 

Hides do.... 

Wool,  Ohio  XX do.... 

Wheat.  No.  2 bushels 

Corn,  No  2 do i . . .. 

Oats,  No.  2 do.... 

Cotton pound . . 


Of  the  40  articles  named  in  this, table,  practically  all  of  those 
in  which  advances  occurred  are  the  natural  products  of  the 
farm— wheat,  corn,  oats,  and  wool— in  which  the  advances  cannot 
be  ascribed  to  the  trusts;  while  practically  all  of  the  articles 
manufactured  by  trusts  or  great  corporations,  such  as  iron  and 
steel,  sugar,  copper,  tin-plate,  show  a  marked  reduction  in  March, 
1904,  as  compared  with  March,  1903.  If  the  assertion  that  trusts 
are  able  to  control  prices  were  true,  how  is  it  that  practically  all 
of  the  trust-made  articles  in  the  United  States  have  declined  in 
price  during  the  last  year  and  that,  too,  during  the  very  time 
when  prices  of  farm  products  and  prices  of  many  of  the  articles 
imported  for  use  in  manufacturing  were  advancing? 

Attention  is  especially  called  to  the  fact  that  the  single  article 
of  trust  production  in  which  an  advance  is  shown  is  petroleum 


PROSPERITY. 


119 


both  crude  and  refined,  an  article  upon  which  no  tariff  duty  is 
collected,  and' in  which  therefore  the  assertion  that  trusts  ad- 
vance and  maintain  high  prices  by  reason  of  the  tariff  is  not 
justified.  In  practically  all  of  the  articles  in  this  table  which  are 
subject  to  duty,  whether  trust-made  or  otherwise,  the  prices  in 
March,  1904,  are  less  than  those  of  the  corresponding  date  of 
1903,  while  the  single  trust-made  article  upon  the  free  list  is  the 
one  in  which  an  advance  in  price  has  been  made 

Does  the  Tariff   Control   Prices? 

Upon  this  subject  of  relative  advance  in  price  of  articles  on 
the  free  list  and  those  upon  which  a  tariff  is  collected,  a  table  is 
also  presented  which  includes  eleven  articles  on  the  free  list  and 
twenty-one  articles  on  the  dutiable  list  This  table  was  pre- 
sented in  the  House  of  Representatives  by  Representative  E.  J. 
Hill,  of  Connecticut.  Every  article  named  in  this  table  was  in- 
cluded in  the  list  of  "articles  controlled  by  trusts"  published  in 
the  Democratic  Campaign  Text-Book  of  1902,  page  369.  Of  the 
11  articles  on  the  free  list  every  one  shows  a  marked  advance  in 
price  since  1896,  the  average  advance  on  all  being  53.54  per 
cent.  Of  the  21  items  on  the  dutiable  list,  12  show  an  advance  in 
price,  comparing  1904  with  1896;  three  show  not  change,  and  six 
show  a  reduction.  The  average  advance  on  the  dutiable  list  is 
8.6  per  cent,  as  against  53.54  per  cent  on  the  free  list. 

Statement  in  Congressional  Record,  February  18,  1904,  by 
Hon.  E.  J.  Hill,  of  Connecticut,  showing  the  relative  advance  in 
prices  of  free  and  dutiable  articles,  respectively  (denominated  by 
the  Democratic  Campaign  Book  as  "Controlled  by  Trusts"),  1896 
to  1904: 


Items  on  free  list. 


July, 


July. 
1901. 


July. 
1902. 


July. 
1903. 


Janu- 
ary, 
1904. 


Anthracite  stove  coal  (f.  o.  b.  New 

York) per  ton.. 

Anthracite  broken  coal  (f.  o.  b.  New 

York) per  ton . 

Copper,  lake,  ingot  (New  York) 

per  pound. 

Flax,  Kentucky do  — 

Jute,  spot do — 

Petroleum,  crude  ( at  well)  per  barrel . . 

Petroleum,  refined per  gallon. 

Petroleum,  refined  (150  per  cent  test 

for  export) per  gallon. 

Rubber,  island per  pound. 

Sisal,  spot do  — 

inder  twine do. ... 


$3,881 

3.228 

.115 

.08 

.035 

1.0825 


.108' 
.84 


.0675 


$4,236 

3.509 

.17 
.10 
.035 
1.1337 


.0562 
.0975 


$0.1225 


1.22 
.074 


$4.80 
4.55 
.1425 


.045 
1.50 
.14 

.1005 
.87 
.0762 
.145 


$4.75 

5.00 

.125 


.045 
1.85 
.15 

.1405 
.94 
.075 
.145 


Items  on  dutiable  list. 


July, 


July, 
1901. 


July, 


July 
1903. 


Janu 
ary, 
1904. 


Duty. 


Alcohol  (94  per  cent) ....  per  gal . . 

Brick per  thousand'. . 

Bread,  Boston  crackers . . .  per  lb . . 
Cotton  flannels per  yard . . 

Cement,  Rosendale per  bbl . . 

Fish,  canned  salmon per  doz . . 

Ginghams per  yard.. 

Glassware,  pitchers per  doz.. 

Wire  nails per  keg . . 

Cut  nails do 

Fresh  beef  sides per  lb . . 

Salt  beef per  bbl.. 

Salt  pork do.... 

Hams,  smoked do  — 

Pig  iron,    foundry,  Philadelphia, 

per  ton.. 

Rice per  lb.. 

Sugar,  centrifugal do  — 

Sugar,  granulated do 

Steel  rails,  Pittsburg  —  per  ton . . 

Ashtonsalt per  bush.. 

Tin  plate percwt.. 


$2.31 
5.25 
.065 
.065 

.85 
1.65 

.0425 
1.25 
3.15 
2.90 

.075 
16.00 
8.25 

.10 

12.75 
.0525 
.035 


28.00 


2.10 
3.45 


12.43 
5.75 
.08 
.0625 

1.00 
1.70 

.0475 
1.30 
2.40 
2.10 

.09 
21.50 
16.75 

.115 

15.87 
.0537 
.0425 

.0524 

28.00 

2.25 
4.19 


$2.51 
6.25 


.95 
1.65 


$2.48 
5.25 


.OH 


.90 
1.65 


$2.40 

07 ' 


.95 
1.65 
.08 


2.10 
2.05 


22.50 

19.75 

125 

22.75 

0575 
0337 


2.05 

2.20 

1.25 
11.50 
17.75 
.1375 

18.50 
55 


.0475 
.00 


2.25 
4.19 


017 
28.00 


2.25 
4.00 


2.00 

1.95 

.125 

11.00 

13.50 

.12 

15.00 
.04 
.0347 

.0436 

28.00 

2.25 

3.80 


$2.25  per  gal. 
25  p.  c. 
20  p.  c. 
50  p.  c.  and 

up. 
8c.  per  lb. 
30  p.  c. 
45  p.  c. 
40  p.  c. 
He.  per  lb. 
6-lOc  per  lb. 
2c.  per  lb. 
5c.  per  lb. 
25  p.  c. 
5c.  per  lb. 

$4  per  ton. 
2c.  per  lb. 
$1,825    per 

cwt. 
$1.95    per 

cwt. 
$7.84    per 

ton. 
12c.  per  lb, 
l^c.  per  lb. 


1L'<)  PROSP1  KM  V. 

HKIiATlVK   (   H-W.I-.    IN    BBtOJM   "I'    AKT1CLKH    OF    KAKM   PRODUCTION   AND  FARM 
CONSUMPTION. 

Two  additional  tables  on  pages  144  and  145  show  (1)  the 
prices  of  Leading  articles  of  farm  production,  and  (2)  the  prices 
of  leading  articles  of  farm  consumption.  Attention  is  especially 
qalled  t<>  these  and  to  the  fact  that  they  efcow  in  nearly  nil  cases 
a  greater  advance  in  prices  of  farm  products  than  in  prices  of 
farm  consumption,  indicating  that  in  this  large  and  important 
class  of  thpse  engaged  in  the  great  industries,  earnings  have 
grown  more  rapidly  than  the  cost  of  living.  These  tables  have 
been  compiled,  for  the  earlier  years  from  the  Aldrich  tables  on 
prices,  and  for  the  later  period  from  prices  tables  prepared  by 
the  Bateau  of  Labor  and  Bureau  of  Statistics,  being  in  all  cases 
from'  official  figures.  The  prices  of  farm  products  are  from  the 
official  publications  of  the  Department  of  Agriculture.  The 
prices  of  farm  products  are  those  on  the  farm;  those  of  other 
merchandise  are  the  wholesale  prices  in  New  York.  In  most 
cases  the  prices  quoted  are  an  average  of  the  available  quota- 
tions for  the  year;  those  of  wheat,  however,  being  the  prices  for 
December  1st  of  each  year,  and  those  of  animals,  for  January  1st 
of  each  year. 

A  study  of  these  tables  and  the  relative  advance  in  prices  of 
the  leading  articles  presents  some  interesting  facts,  among  them 
being  the  following:  Wheat,  which  the  farmer  sells,  shows  an 
advance  from  49.1c  per  bushel  in  1894  to  69.5c  in  1903,  an  in- 
crease of  40  per  cent;  while  sugar,  which  is  a  staple  article  of 
purchase  and  consumption  by  the  farmer  (a  trust-controlled 
article  also)  shows  an  advance  from  4.12c  per  pound  in  1894  to 
4.64c  per  pound  in  1903,  an  increase  of  but  12.6  per  cent,  as 
against  a  40  per  cent  increase  in  wheat.  Corn  shows  an  increase 
of  68  per  cent  from  1894  to  1903,  while  coffee  increased  but  59 
per  cent  meantime.  Oats  show  an  increase  in  price  of  70  per  cent 
from  1895  to  1903,  and  coal  an  increase  of  but  8.6  per  cent. 
Horses  show  an  increase  of  71  per  cent  from  1895  to  1903,  while 
nails,  an  article  which  the  farmer  must  purchase,  increased  in 
the  same  time  but  60  per  cent  Sheep  show  an  increase  of  67 
per  cent  from  1895  to  1903,  and  wool,  an  increase  of  76  per  cent; 
while  carpets,  made  from  the  wool,  show  an  increase  of  but  22  per 
cent  meantime.  Cotton  shows  an  increase  of  41  per  cent  from  1896 
to  1903;  and  shirtings,  drills,  sheetings,  and  prints  averaged  show 
an  increase  of  but  13  per  cent,  as  against  an  increase  of  41  per 
cent  in  the  price  of  the  raw  material"  from  which  they  are  pro- 
duced. Hay  shows  an  increase  of  38  per  cent  from  1896  to  1903, 
and  salt  for  the  same  period  showed  a  decline  of  6.4  per  'cent 
Swine  show  an  increase  of  41  per  cent  in  price  from  1896  to  1903. 
and  mineral  oil  an  increase  of  37  per  cent.  Tobacco  shows  an  in- 
crease from  1896  to  1903  of  15  per  cent;  men's  brogan  shoes  show 
a  decrease  in  the  same  period  of  6.4  per  cent  Potatoes  show  an 
increase  of  115  per  cent  from  1896  to  1903,  while  starch  shows  a 
decline  of  1.1  per  cent  in  price  during  the  same  period. 

SECRETARY  JOB  OE   THE  EMPLOYERS'   ASSOCIATION    ON  RELATIVE  ADVANCE  IN 
WAGES  AND  COST  OF  LIVING. 

Two  other  tables— one  showing  the  advance  in  prices  of  arti- 
cles of  common  use  in#the  household,  and  the  other  the  advance 
in  wages— were  prepared  ,by  Mr.  Frederick  W.  Job,  secretary 
of  the  Employers'  Association  of  Chicago.  The  table  of  prices, 
entitled  "Cost  of  Diving  in  Chicago,"  was  compiled  in  the  latter 
part  of  1903  and  covers  the  first  six  months  of  1903,  which  may 
be  looked  upon  as  the  period  of  the  very  highest  prices  of  the 
past  few  years,  prices  of  nearly  all  articles  having  materially 
declined  since  that  time.  This  table  relates  to  the  cost  of  living 
in  Chicago  in  1898  and*the  first  six  months  of  1903,  as  applied 
to  workmen  earning  wages  from  $800  to  $1,000  per  year.  It  in- 
cludes in  its  grocery  schedule,  flour,  sugar,  coffee,  tea,  potatoes, 
butter,  and  eggs;  and  in  its  meat  schedule,  steak,  beef,  chops, 
breakfast  bacon,  ham,  lard,  and  pickled  pork.  In  the  grocery 
schedule  he  finds  an  average  increase  of  5  per  cent;  in  the  meat 
schedule  an  average  increase  of  34  per  cent;  in  the  milk  schedule 


PROSPERITY, 


121 


an  increase  of  20  per  cent;  in  rents,  about  20  per  cent;  in  fuel, 
about  30  per  cent;  in  clothing',  a  reduction  of  about  3  per  cent; 
and  from  this  he  obtains  an  average  increase  in  the  cost  of  living 
in  Chicago,  over  1898,  of  1G.8  per  cent.  Mr.  Job's  second  table 
relating  to  wages  "among  the  increases  in  rates  of  wages  in  the 
past  few  years  in  Chicago,"  truck  teamsters,  an  increase  of  30 
to  40  per  cent;  grocery-wagon  drivers,  20  to  30  per  cent;  garment 
workers,  of  whom  there  are  10,000  in,  Chicago,  cutters,  40  to  50 
per  cent  advance;  sewers,  from  25  to  30  per  cent;  glove  makers, 
from  20  to  25  per  cent;  railway  street  car  employees,  printers, 
brick  layers,  mastons,  boiler  makers,  and  supply-house  clerks, 
20  per  cent;  box  makers,  22  Mj  per  cent;  electrical  workers,  men  in 
lumber  yards,  and  laundry  workers,  25  per  cent;  harness  makers, 
30  per  cent;  stockyard  employees,  35  per  cent;  coal  miners,  35  to 
45  per  cent;  and  sheet  metal  workers  and  structural  iron  workers, 
17%  per  cent.  It  will  be  noted  that  in  every  one  of  these  cases 
th^  increase  in  wages  is  greater  than  the  average  increase  which 
he  finds  in  the  cost  of.  living,  and  in  numerous  cases  the  increase 
in  wages  is  more  than  twice  as  great  as  the  increase  in  cost  of 
living. 

Greater  Savings   Show  the  Falsity  of  the  Assertion  That   the   Cost 
of  Living  Has  Advanced  More  Than  Earnings. 

Figures  quoted  elsewhere  also  call  attention  to  the  fact  that 
the  funds  deposited  in  savings  banks,  the  sums  paid  for  indus- 
trial life  insurance,  and  the  amounts  being  invested  in  building 
associations  are  much  greater  at  the  present  time  than  during 
the  period  of  abnormally  low  prices,  a  period  when  prices  were 
low  because  the  masses  had  little  with  which  to  buy.  The  fact 
that  in  all  these  great  institutions  for  the  savings  of  the  work- 
ingmen,  the  sums  being  deposited,  whether  as  savings  bank  de- 
posits, industrial  life  insurance  premiums,  or  building  associa- 
tion funds,  are  much  greater  at  the  present  time  than  in  earlier 
years  shows  beyond  question  that  the  assertion  that  cost  of  liv- 
ing has  advanced  more  than  wages  is  false;  for  if  this  were  true 
men  so  employed  would  be  compelled  to  decrease  the  amount 
of  their  earnings,  while  in  fact  their  savings  bank  deposits  are 
to-day  50  per  cent  in  excess  of  those  of  1896,  and  the  amount 
of  industrial  life  insurance  outstanding  is  more  than  double  that 
of  1896. 

National  Bank  Statistics  for  1904,  Compared  with  1903. 

The  statement  which  follows,  issued  by  the  Comptroller  of  the 
Currency  on  July  2,  1904,  shows  conditions  in  national  banks  on 
June  9,  1904,  compared  with  the  corresponding  date  in  1903,  and 
is  especially  interesting  in  its  relation  to  the  assertions  with  ref- 
erence to  business  conditions  at  the  present  time  as  compared  with 
those  of  last  year.  It  will  be  seen  that  in  deposits,  loans  and 
discounts,  circulation,  and  other  features  which  are  usually  con- 
sidered as  indications  of  business  conditions  the  figures  of  1904 
show  an  advance  over  those  of  the  corresponding  date  of  1903. 


1903. 


Increase. 


Number  of  banks 

Loans 

United  States  bonds 

Other  bonds,  etc 

Specie 

Legal  tenders 

Aggregate  resources 

Capital  stock. 

Surplus  and  undivided  profits 

Circulation. , 

Individual  deposits . . . 


4  939 

$3,415.045!751 

527,101,439 

538,671,472 

388,616,378 

163,592,829 

6,286,935,106 

743,506,048 

542,183,537 

359,261.109 

3,200,993,509 


5.331 

$3,595,013,467 
554,460.797 
576,898.062 
488,664,145 
169,729.173 

6,655,988,687 
767,378. 14B 
581,638.528 
399,583,838 

3,312,439,841 


$179,967,716 
27,359.358 
38,226,590 

100.047.767 
6,136.344 

369,053,581 
23,872.100 
39,454,991 
40,322,729 

111,446,332 


The  upshot  of  all  this  is  that  it  is  peculiarly  incumbent  upon 
us  in  a  time  of  such  material  well-being,  both  collectively  as  a  na- 
tion and  individually  as  citizens,  to  show,  each  on  his  own  account, 
that  we  possess  the  qualites  of  prudence,  self-knowledge,  and  self- 
restraint.  In  our  Government  we  need  above  all  things  stability, 
fixity  of  economic  policy. — President  Rooseveft  at  Providence,  R. 
I.,  Aug.  23,   1902. 


122 


PROSPERITY. 


COMPARISON    OF    CONDITIONS    IN    THE   UNITED    STATES 
WITH  THOSE  IN  OTHER  PARTS  OF  THE  WORLD. 

The  following  tables,  comparing  conditions  in  the  United 
States  with  those  in  other  parts  of  the  world,  recently  published 
in  a  leading  financial  journal  of  the  United  States,  are  sugges- 
tive and  worthy  of  attention. 

Comparison   of  Development   In   the  United   States   and   United 
Kingdom. 

During  the  past  twenty  years  the  percentages  of  increase  in 
a  number  of  vital  items  in  national  prosperity  are  shown  by  the 
following  table: 

Percentages  of  increase  20  years. 


Population 

National  debt 

Exports 

Banking  capital 

Deposits 

Bank  clearings,  London  and  New  York 

Railway  mileage 

Railway  capital 

Railway  receipts 

Railway  net  earnings 

Shipbuilding 

Merchant  marine 

Sailing  ships 

Steamers 

oa  1  production 

ig  iron  production 

Cotton  consumption 

Wool  consumption 


Great 

United 

Britain. 

States. 

18 

49 

2 

*36 

24 

87 

24 

53 

122 

198 

69 

63 

20 

67 

58 

70 

54 

109 

24 

67 

63 

1002 

42 

43 

*44 

*31 

'56 

580 

.38 

282 

11 

291 

14 

169 

30 

13 

♦Decrease. 

Condition   In   the    United    States    Compared   with    That   of  the    Re- 
mainder of  the  World. 

The  following  table  shows  the  relation  of  the  United  States  to 
the  rest  of  the  world: 


World. 


United 
States. 


Per  Cent 
U.  S. 


Area r square^miles . 

Population 

Internal  commerce 

Wealth 

Banking  power" » . . 

Per  capita  money  in  circulation 

Savings  bank  deposits 

National  debt 

Government  revenue 

Government  expenditures 

Stock  of  gold 

Stock  of  silver 

Gold  production  

Life  insurance  in  force 

Railroads mileage . 

Railroads passengers . 

Railroads receipts. 

Merchant  tonnage 

Area  of  coal  fields square  miles. 

Coal  production tons. , 

Copper  production do.... 

Zinc  production do 

Pig  iron  production do 

Steel  production do ... . 

Wheat  crop bushels. 

Corn  crop do... 

Barley  crop do... 

Rye  crop,  bushels do . . . 

Cotton  crop bales . 

Wool  crop pounds . 

Number  of  telegraph  messages 

Newspapers  and  periodicals 

Armed  strength,  land  men : 

Peace  footing * 

War  looting 


51,238.000 

1,600,000,000 

22,000,000.000 

$400,000,000,000 

-$27,045,000,000 

$9.47 

$9,900,749,029 

$31,662,553,258 

$6,924,291,275 

$6,908,507,815 

5,607,600.000 

3.869.300,000 

327.000,000 

$24,039,486,922 

490,000 

3,746,000.000 

3,840,000,000 

34,482.303 

471.800 

787,000,000 

525.357 

502.104 

44,557.991 

36,479,783 

3,124,422,000 

3,070,920.000 

1.777,656,000 

1,678,714.000 

13,120.000 

2,667.686,000 

448.019.887 

58,794 

4,484,736 
34,347,684 


2,445 

$100,000 
$14,000, 

$2,935 
$969, 
$684 


1,314. 
673 
74 

$17,035 


584, 

1,487, 

6, 


18 
15 

670 
2.244 

670 
33 
10, 

287, 
91. 


616.484 
000.000 
000.000 
000,000 
000.000 
$30.38 
204,845 
457,241 
326.280 
038,903 
622,524 
300,000 
000,000 
752.753 
194,000 
,000.000 
044,814 
087.345 
194.000 
078.668 
272,685 
127  751 
003,448 
186.406 
063  000 
000  000 
063,008 
631000 
758.326 
450.000 
00,000 
21,000 


59,866 
8.347,684 


7.0 
5.0 
11.0 
25.0 
52.0 

30.0 
3.6 
9.8 
8.5 
23.4 
17.4 
22.6 
70.0 
39.5 
15.5 
38,7 
17.6 
40.9 
33.8 
51.0 
25.2 
40.9 
41.7 
21.4 
73.0 
37.7 
20.0 
82.0 
10.8 


1.3 
24.5 


PROSPERITY, 


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Commerce  of  the  world  since  1830. 
[Aggregate  of  imports  and  exports  in  millions  of  dollars.] 


Country. 

1830. 

1840. 

1850. 

1860. 

1870. 

1880. 

1890. 

1897. 

1903. 

United  Kingdom 

422 

197 

220 

134 

72 

96 

33 

14 

144 

105 

168 

43 

48 

264 

547 

317 

249 

158 

105 

144 

48 

19 

216 

197 

230 

101 

96 

323 

811 
456 
336 
192 
139 
182 
53 
24 
293 
297 
336 
211 
144 
326 

1,800 
801 
624 
230 
225 
249 
120 
38 
413 
653 
451 
494 
249 
853 

2.625 

1,089 

1,017 

494 

398 

317 

197 

48 

653 

792 

648 

614 

408 

1,200 

3.350 

1.627 

1,411 

629 

513 

437 

240 

67 

1,137 

1,478 

768 

974 

518 

1,351 

3.552 

1,493 

1,761 

566 

441 

451 

283 

86 

1,488 

1,536 

797 

1,430 

629 

2,287 

3,389 

1,450 

1,996 

618 

609 

438 

301 

73 

1,915 

1,815 

826 

1,550 

440 

3.020 

4  056 

France 

a  1  702 

Germany 

2  698 

Russia 

1)799 

Austria-Hungary 

Italy 

a637 
a312 

Spain 

a97 
c  2.431 
d  2  418 

Holland  and  Belgium 

United  States 

Spanish  America 

c965 
c  2,292 

C664 
C  2  866 

India 

1,960 

2.750 

3,800 

7,200 

10,500 

14,500 

16.800 

18,500 

22  746 

a  Preliminary  figures  for  1903,  subject  to  correction, 
b  Trade  over  the  European  frontier  only, 
c  1902.  d  Fiscal  year  ending  June  30. 


124 

Total    ( \rjx  tnlit ii)( 


PEOSPEBITY. 


and  jxr  capita   expenditures  of  the  principal 
countries  of  the  world. 


Countries. 


Population. 

Year. 

4,794,000 

1901 

3,772,000 

1902-3 

788,000 

1902-3 

45.405,000 

1902-3 

6.694,000 

1901 

5,457,000 

1902 

1,078.000 

1902 

3X.1H5;>,000 

10D2 

58,549.000 

1901 

32.475,000 

1002-3 

5,347,000 

1901 

t>:stuxM> 

1902 

5,429.000 

1901-2 

18.61S.000 

1902 

5,199,000 

1901 

41,961,000 

1902-3 

80,372,000 

1902-3 

Per  capita 
expenditures. 


Argentina 

Australasia: 
Common  wealth 
New  Zealand. .. 

Austria-Hungary. 

Belgium 

Canada 

Cuba 

France 

German  Empire. . 

Italy  

Netherlands 

Paraguay 

Portugal. 

Spain 

Sweden 

United  Kingdom. 

United  States — 


Dollars. 
60.757,000 

142,148,000 

30,241,000 

647.969,000 

116,500,000 

50.759,000 

19,515,000 

695,250,000 

553,222,000 

356,492,000 

61,468,000 

11.007,000 

62,170.000 

.187,846,000 

49,593,000 

897.790,000 

640,323,000 


Dollars. 
12.69 

37.69 
38.38 
14.27 
17.40 

9.30 
12.40 
17.84 

9.44 
10.97 
11.49 
17.30 
11.45 
10.00 

9.53 
21.39 

7.97 


Wealth  and  debt  of  principal  nations. 

[Eugene  Parsons,   in  Gunton's  Magazine,   April,    1904.] 


United  State' 
United  Kingdom    . 

France 

Germany  ( Empire) 

Russia 

Austria-Hungary  .. 

Italy 

Spain... 

Scandinavia 

Danubian  States. . . 

Belgium 

Neth&rlands 

Portugal 

Greece 

Argentina 

Egypt  

Turkey 

Brazil 

Canada 

Roumania 

Mexico 

Uruguay 

Chile 


Wealth,  (a) 


Dollars. 
100,000,000,000 
59,000,000,000 
48,000,000,000 
40,000,000,000 
32,000,000,000 
21.649,000,000 
15,168,000,000 
11,424,000,000 
6,220,800,000 
4,924,800,000 
4,742,400,000 
4,224,000,000 
1,978,800,000 
1,065,600,000 
Not  stated. 
Not  stated. 
Not  stated. 
Not  stated. 
Not  stated. 
Not  stated. 
Not  stated. 
Not  stated. 
Not  stated. 


Debt. 


Dollars. 

925,000,000 

3,885,000.000 

5,856,000,000 

b  698,000.000 

3,333,000,000 

1,112,000.000 

2,560,000,000 

2,061,000,000 

Not  stated. 

Not  stated. 

504,000,000 

466,000,000 

670,000,600 

168,000,000 

509,000,000 

500,000,000 

726,000,000 

480,000,000 

265,000,000 

280,000,000 

168,000,000 

124.000,000 

113,000.000 


Per  capita 
debt. 

Dollars. 
11 
92 
150 
60 
24 
25 
81 
110 


81 
86 

151 
69 

100 
53 
29 
33 
50 
47 
13 


a  Figures  for  United  States,  1903;  United  Kingdom,  France,  and 
Germany,   1901;   remaining  countries,   1895. 

b  Exclusive  of  German  States,  $2,687,000,000. 

Estimate  of  manufactures  of  principal  countries,  1900. 
[Wm.   J.   Clark,   in   Engineering  Magazine,   May,   1904.] 


United  States $13,004,400,133 

United  Kingdom 5,000,000,000 

Germany v 4,600,500.000 

France 3,450,000,000 

Austria-Hungary 2,000,000,000 

Russia 1.980,000.000 

Italy 1,700,000,000 

Canada * 800,000.000 

Belgium 750.000,000 


There  Is  no  "worse  enemy  of  the  -wage-worker  than  the  man 
-who  condones  mob  violence  in  any  shape,  or  who  preaches  class 
hatred;  and  surely  the  slightest  acquaintance  with  our  industrial 
history  should  teach  even  the  most  shortsighted  that  the  times  of 
most  suffering  for  our  people  as  a  whole,  the  times  when  business 
is  stagnant,  and  capital  suffers  from  shrinkage  and  gets  no  return 
from  its  investments,  are  exactly  the  times  of  hardship  and  want 
and  grim  disaster  among  the  poor. — President  Roosevelt  at  Syra- 
N.  Y.,  September  7,  1903. 


DEMOCRATIC   ADVERSITY.  125 


BUSINESS  AND  INDUSTRIAL  RECORD, 
1893=1896. 

[From  Appleton's  Annual  Cyclopedia,    1893,   1894,   and   1895.] 

July  18,  1893 :  Denver,  Colo. ;  four  banks  close  their  doors 
and  there  are  runs  on  other  financial  institutions. 

July  19 :     More  banks  close  their,  doors. 

July  20.:  Kansas ;  fight  between  strikers  and  nonunion  miners 
at  Weir  City. 

July  22 :  Two  bank  failures  in  Milwaukee  and  runs  on  banks 
in  many  other  places. 

July  24 :     More  bank  failures  in  the  West. 

July  2G :     New  York  ;  two  stock  exchange  firms  fail. 

July  27 :  Ten  banks  suspend,  most  of  them  Northwestern. 
Other  business  failures  reported. 

July  28:  More  failures  and  suspensions,  including  nine  banks 
in  the  West  and  one  in  Kentucky. 

August  1 :  Collapse  of  the  Chicago  provision  deal.  Many 
failures  of  commission  houses.  Great  excitement  in  the  board 
of  trade. 

August  8:  The  Chemical  Bank,  one  of  the  strongest  in  the 
country,  is  unable  to  fill  its  weekly  orders  for  small  currency. 

August :     Madison  Square  Bank  suspends. 

August  17:  Much  excitement  on  east  side  New  York  among 
Hebrew  laborers.     Police  called  out. 

August  22 :  Encounter  between  anarchists  and  socialists  avert- 
ed by  police  in  New  York. 

August  23 :     Meeting  of  anarchists  broken  up  by  police. 

August  30:  Kansas  coal  miners  strike  ended  with  nothing 
gained. 

January  15,  1894:  Secretary  of  the  Treasury  Carlisle  an- 
nounces his  intention  to  issue  bonds. 

January  17:  The  Secretary  of  the  Treasury  offers  a  $50,- 
000,000  loan  for  public  subscription,  according  to  his  announced 
intentions. 

January  24:     Strike  in  Ohio  of  10,000  miners. 

January  27 :  A  mob  of  foreign  miners  destroy  property  at 
Brantyille,  Pa.,  and  elsewhere. 

February  16 :  Many  New  York  silk  factories  close  on  account 
of  strike. 

February  18 :  In  Ohio  all  the  mines  of  the  Massillon  district 
closed  by  strike. 

February  20 :  In  Boston  a  riotous  assemblage  of  unemployed 
workmen  dispersed  by  police. 

March  2 :  Six*  thousand  miners  in  Jackson  County,  Ohio,  out 
of  employment. 

Paterson,  N.  J. :    General  strike  among  the  silk  weavers. 

March  3 :  In  West  Virginia  striking  miners  burn  the  railroad 
bridge  and  commit  other  lawless  acts. 

March  13 :  At  Paterson,  N.  J.,  riotous  proceeding  on  the  part 
of  the  striking  silk  weavers. 

March  17:  In  Colorado  Governor  Waite  orders  State  troops 
to  Cripple  Creek  to  suppress  mining  troubles. 

March  20:  In  Boston  a  large  body  of  unemployed  working- 
men  march  to  the  State  House  and  demand  employment. 

March  24 :  A  movement  inaugurated  in  various  parts  of  the 
Northern  States,  known  as  the  Army  of  the  Commonwealth, 
Coxeyites,  etc.,  proposing  marching  .to  Washington  and  demand- 
ing help  at  the  hands  of  Congress. 

March  31 :  Coxeyites  are  a  source  of  terror  to  certain  Western 
towns  upon  which  they  quarter  themselves. 

April  1:  In  South  Carolina  a  large  force  of  State  militia  is 
dispatched  to  the  scene  of  the  whisky  war  in  Darlington  and 
Florence. 

In  Ohio  a  mob  of  strikers  at  East  Liverpool  becomes  riotous 
and  several"  persons  are  injured. 

April  2:  In  Chicago  5,000  plumbers,  painters,  etc.,  go  on 
a  strike. 


126  l»l-.MOi  KM  U      ADYKKSl  IV. 

At  Connelisviii(\  Pa.,  5,000  coke  workers  strike. 

April  .".:  in  South  Carolina  the  governor  assumes  control  of 
i  he  police  and  declares  martial  law  In  all  the  cities  of  the  State. 

April  1  :  In  Pennsylvania  r>  men  killed  and  1  wounded  in 
coke  riots. 

April  13:     General  strike  for  higher  wages  on  Great  Northern 

Railway. 

In  Alabama:  The  general  council  of  United  Mine  Workers 
orders  a  strike  affecting  8,000  men. 

April  1G:  Strike  on  the  Great  Northern  spreads  to  the 
Northern  Pacific. 

April  20:  In  Omaha  a  *mob  seizes  a  train  of  box  cars  and 
attempts  to  deport  Kelly's  industrial  army,  but  the  army  refuses 
to  go. 

April  21 :  About  150,000  miners  stop  work  in  sympathy  with 
the  coke  strikers  of  Pennsylvania. 

April  28:  Arrival  of  a  division  of  the  Coxey  army  at  Wash- 
ington. 

A  division  of  the  Coxeyites  arrested  at  Mount  Sterling  for 
holding  up  a  railway  train. 

United  States  troops  ordered  to  assist  the  civil  authorities  in 
the  far  West. 

On  the  Great  Northern  Railroad  system  the  Knights  of  Labor 
are  called  out  on  strike. 

April  29:     Kelly's  army,  1,200  strong,  at  Des  Moines. 

April  30:     Strike  of  2,000  painters  in  Chicago. 

May  1 :  Attempted  demonstrations  of  Coxey's  army  on  the 
steps  of  the  Capitol.     Leaders  arrested. 

May  2:  In  Ohio  a  mob  of  Italians  and  Poles  attack  the  iron 
mills,  but  the.  riot  is  subdued  by  the  police. 

May  4 :  Further  bloodshed  in  the  coke  regions  of  Pennsyl- 
vania ;  killed  and  wounded  on  both  sides. 

May  9 :     Kelly's  army  sails  from  Des  Moines  on  flatboats. 

May  10 :  Several  deputy  marshals  and  citizens  shot  in  a 
conflict  with  Coxeyites. 

May  11:  Two  thousand  Pullman  car  employees  strike  at  Chi- 
cago for  last  year's  wages. 

May  12 :  The  captured  Coxey  army  is  removed  to  Leaven- 
worth, where  there  is  a  strong  garrison  of  regulars. 

May  13 :  Arrest  of  a  commonweal  army  by  United  States  mar- 
shal at  Greenriver,  Wyoming. 

May  19:  Several  hundred  employees  of  the  Government  Print- 
ing office  dismissed. 

May  19 :  Considerable  detachments  of  commonweal  armies 
are  suffering  from  cold  and  hunger  in  the  neighborhood  of  Cin- 
cinnati. 

May  25 :  In  Ohio  more  conflict  between  striking  miners  and 
deputy  sheriffs. 

May  2G:  In  Pennsylvania  the  governor  «oes  to  the  coke 
regions  to  use  his  personal  influence  toward  allaying  the  dis- 
turbances. 

In  Colorado  the  governor  orders  out  the  militia  to  suppress 
riotous  miners  at  Cripple  Creek. 

May  27:  In  Illinois  the  governor  orders  troops  to  Minonk, 
where  a  mob  has  taken  possession  of  a  railway  train. 

May  30:  In  Pennsylvania  the  governor  issues  a  warning  to 
coke  rioters. 

In  Ohio:  Governor  McKinley  orders  out  the  militia  to  pre- 
vent interference  with  coal  trains. 

June  1:     At  St.  Louis  1,000  carpenters  strike. 

General  Kelly  and  his  industrial  army  leave  the  city. 

June  4 :     At  Washington  destitution  among  the  commonwealers. 

June  5:     Militia  ordered  out  to  quell  striking  miners. 

In  Idaho  a  number  of  commonwealers  sentenced  to  imprison- 
ment for  train  stealing. 

June  7 :  In  Ohio  trains  move  under  the  protection  of  the 
militia. 

Kelly  and  his  commonwealers  abandon  their  boats  at  Cairo 
and  resume  their  march  on  Washington. 

June  9 :  Nineteen  commonwealers  sentenced  to  jail  for  var- 
ious offenses. 


DEMOCRATIC    ADVERSITY.  127 

June  10:  Coal  strikers  in  Pennsylvania  killed  and  wounded 
in  an  encounter  with  sheriffs  at  Lamont.  State  troops  on  both 
sides  of  the  Ohio  River  harassed  by  strikers. 

June  11 :  Continued  destruction  of  railroad  property  in  Ohio 
and  Alabama. 

June  17 :  The  Indiana  miners  continue  to  strike.  Striking 
miners  in  Ohio,  Pennsylvania,  and  West  Virginia  decide  to  re- 
turn to  work. 

Twenty-three  commonwealers  in  Illinois  sent  to  jail  for  train 
stealing. 

June  18:  Wisconsin;  General  Cantwell's  industrial  army  cap- 
tures a  train  and  rides  200  miles. 

At  Leavenworth  121  comm'onwealers  sentenced  and  sent  to 
various  county  jails. 

June  20:  On  the  Gogebic  range,  Mich.,  2,000  miners  go  on 
a  strike. 

June  21:  Governor  of  Pennsylvania  orders  out  troops  to  sup- 
press disorders  in  Jefferson  County. 

In  Illinois :     Twenty-five  strikers  indicted  by  grand  jury. 

June  25:  In  St.  Louis  and  Ludlow,  Ky.,  about  500  employees 
strike  work  from  Pullman  Car  Company.     ~- 

June  20 :     Boycott  against  Pullman  cars  goes  into  effect. 

Industrial  army  disturbances  are  thus  far  reported  in  14 
States  and  2  Territories. 

June  28:  The  railway  strike  spreads  so  as  to  include  nearly 
all  the  great  railroads  between  the  Mississippi  and  the  Pacific. 

June  30:  The  month  closes  with  a  most  threatening  state  of 
affairs  in  the  West  and  the  Northwest ;  violence  continues  to  in- 
crease at  all  the  strike  centers. 

July  1 :  The  Federal  Government  takes  active  steps  to  pro- 
tect mails  in  transit  through  the  region  of  disturbance. 

July  2 :  United  States  courts  at  Chicago  issue  a  general  order 
against  strikers,  and  United  States  troops  are  called  out. 

July  3 :  Strikers  block  the  operations  of  all  railways  from 
Chicago  westward.  Regulars  and  State  troops  in  strong  force 
ordered  to  the  scene  of  action. 

July  5:     Great  destruction  of  property  by  rioters  at  Chicago. 

Encounters  with  militia  at  Sioux  City  and  Asbury  Park. 

July  6 :  Many  cars  burned  by  rioters  in  Chicago.  Governor 
Altgeld  protests  against  the  intervention  of  United  States  troops. 

July  7 :     State  troops  fire  on  mob  at  Chicago. 

United  States  regulars  assume  control  of  the  Northern  Pacific  m 
and  Union  Pacific  railroads. 

July  8 :  Regulars  disperse  mob  at  Hammond,  Ind. ;  1  killed 
and  4  wounded. 

July  10:  Debs  and  other  labor  leaders  arrested  at  Chicago, 
but  released  on  bail.  General  call  upon  all  Knights  of  Labor  to 
strike.  Regulars  start  for  Sacramento,  Cal.,  which  has  been  for 
several  days  under  mob  rule. 

July  11 :     About  15,000  workingmen  strike  at  Chicago. 

Strikers  wreck  a  train  at  Sacramento,  Cal.,  killing  the  en- 
gineer and  3  soldiers  and  injuring  others. 

July  13 :  Regulars  fire  upon  a  mob  at  Sacramento.  A  detach- 
ment of  Kelly's  industrial  army  captures  a  train  in  Ohio. 

July  15 :     Strikers  wreck  a  freight  train  at  Indianapolis. 

July  17 :     Debs  and  other  leaders  sent  to  jail  by  Federal  court. 

August  10 :  Two  companies  of  State  militia  ordered  to  South 
Omaha  to  restrain  packing-house  strikers. 

August  11:  An  industrial  army  at  Rosslyn,  Va.,  dispersed  by 
State  troops. 

August  13 :  Adoption  of  the  amended  Wilson  tariff  bill  by  both 
houses  of  Congress. 

August  23:     Lockout  of  25,000  mill  operatives  at  Fall  River, 


September  15 :     Strike  of  38,000  mill  operatives  at  Fall  River. 

September  20:     General  strike  of  garment  workers  in  Boston. 

September  24:     Strike  of  3,000  shirt  makers  in  New  York. 

October  23:  Residents  of  Indian  Territory  ask  the  Govern- 
ment to  detail  troops  for  the  protection  of  private  property. 

Resumption  of  strike  among  the  textile  workers  at  Fall  River. 

November  13 :  Secretary  of  the  Treasury  Carlisle  issues  a 
call  for  another  loan  of  $50,000,000  on  five  per  cent  ten-year  bonds. 


1  28 


IMPORTS    AND    EXPORTS    OF    T 


'EI)    STATES. 


i  in  ports  and  e&ports  <>f  the  United  8tttU 


i  'iM-ul  Years. 

Imports. 

Exports. 

Excess  of 
imports. 

Excess  of 
exports. 

1790 

$23,000,000 
0I.S6S.7S8 

85,400,000 
74,450,000 
72,169,172 
90,189,310 
78,093,511 
71,332.938 
81.020,083 
67.088,915 
62.720,956 
95.885,179 
95,121.762 
101,047,943 
108.609,700 
136.764.295 
176,579,154 
130,472,803 
95,970,288 
156,496,956 
98,258.706 
122,957,544 
96,075.071 
42,433,464 
102,604,606 
113,184,322 
117,914,065 
122,424,349 
148,638,644 
141,206,199 
173,509,526 
210,771,429 
207,440,398 
263,777,265 
297,803,794 
257,808,708 
310,432,310 
348,428,342 
263,338,654 
331,333,341 
353,616,119 
289,310,542 
189,356,677 
243,335,815 
316,447,283 
238,745,580 
434,812,066 
395,761,096 
357,436,440 
417,506,379 
435,958,408 
520,223,684 
626,595,077 
642,136,210 
567,406,342 
533,005,436 
460,741,190 
451,323,126 
437,051,532 
445,777,775 
667,954,746 
642,664,628 
724,639,574 
723,180,914 
667,697,693 
577,527,329 
635,436,136 
692,319,768 
723,957,114 
745.131,652 
789,310,409 
844,916,196 
827,402,462 
866,400,922 
654,994,622 
731,969,965 
779,724,674 
764,730,412 
616,049,654 
697,148,489 
849,941,184 
823,172.165 
903.320,948 
1.025,719,237 

$20,205,156 

70,971,780 
66,757,970 
69.691,609 
68.972.10f) 
90,738.333 
78,890,789 
74,309.917 
64,021,210 
67*,434,651 
71,670,735 
72,295,652 
81,520,603 
87,528,732 
102,260,215 
115,215,802 
124,338.701 
111.443,127 
104.978,570 
112.251,673 
123,668,932 
111,817,471 
99,877,995 
82,825,689 
105,745,832 
106,040,111 
109,583,248 
156,741,598 
138,190,515 
140,351,172 
144,375,726 
188,915,259 
166,984,231 
203,489,282 
237,043,764 
218,909,503 
281,219,423 
293,823,760 
272,011,274 
292,902,051 
333,576,057 
219,553,833 
190,670,501 
203,964,447 
158,837,988 
166,029,303 
348,859,522 
294,506,141 
281,952,899 
286.117,697 
392,771,768 
442,820,178 
444,177,586 
522,479,922 
586,283,040 
513,442,711 
540,384,671 
602,475,220 
694,865,766 
710,439,441 
835,638,658 
902,377,346 
750,542,257 
823,839,402 
740,513,609 
742,189,755 
679,524.830 
716,183,211 
695,954,507 
742,401,375 
857,828,684 
884,480,810 
1,030,278,148 
847,665,194 
892,140,572 
807,538,165 
882,606,938 
1 ,050,993,556 
1,231,482,330 
1,227,023,302 
1,394,483,082 
1,487,764,991 
1,381,719,401 
1,420,141,679 

$2,794,844 

20,280.988 

18,642,030 

4,758.331 

3.197,067 

"'5,262.722' 

1800 

1810 

1820 

1 V 1          

I8H   

$549,023 

l  bm           

1817 

2,977,009 

i no.*:. '.'..'. 

16,998.873 

"315,736 

ino    

'  23.589,527' 
13,601.159 
13,519,211 
6,349,485 
21,548,493 
52,240,450 
19,029,676 

8,949,779 

1831 

1832 

1834 

1835 

1836 

1 837     

1838 

9,008,282 

1839 

44,245,283 

1840 

25.410,226 

1841 

11,140,073 

1842 

3,802,924 

1843 

40,392,225 

1844 

3,141,226 

1845  

7,144,211 
8,330,817 

1 846     

1847 

34,317.249 

10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54,604,582 

1849 

1850 

1851    

1852 

1853 

1854 

1855 

1856 

1857 

1858 

8,672,620 

1859 

38,431, 2'jO 
20,040,062 
69,756,709 

I860 

1861 

1862 

1,313,824 

1863 

39,371,368 
157,609,295 
72,716,277 
85,952,544 
101,254,955 
75,483,541 
131,388,682 
43,186,640 
77,403,506 
182,417,491 
119,656,288 

]  864 

1865 

1866 

1867 

1868 

J  869 

1870 

1871 

1872 

1873 

1874 

18,876,698 

1875 

19,562,725 

1876 

79,643,481 

1877 

151,152,094 

1878 

257,814,234 

1879 

264,661,666 

1880 

167,683,912 

1881 

259  712,718 

1882 

25,902  683 

1883 

100  658  488 

1884 >. 

72  815  916 

1885 

164,662,426 

1886 

44  088,694 

1887 

23,863,443 

1888 

28,002,607 
2,730,277 

1889 

1890 

68  518  275 

39,564,614 

1892... 

202,875,686 

18,735,728 

1894 

237,145,950 

1895 : 

75,568,200 

1896 

102,882,264 

286,263,144 

1898 

615,432,676 

529,874,813 

1900.. 

544,541,898 

1901.. 

664,592,826 

1902 

478,398,453 

1903 

394  422  442 

•Total 

$34,279,263,510| 

$37,863,335,440 

$*3,584,071,93O 

*  The  totals  include  the  figures  of  all  omitted  years  and  are  thus  the  totals 
of  all  years  from  1789  to  1903. 


IMPORTS   BY  GROUPS. 


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131 


132 


EXPORTS    TO   GRAND    DIVISIONS. 


I 

E 

1850 

1855 

1860 

1865 

1875 

1880 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1901 

1902 

1903 

2 
o 

& 

4) 

S3 
S3 

O 

CO 

a 

o 

°2 
V 
-3 

•d 

a 

C3 

bi 

.O 

cv> 
o 
u 
<u 

o 

o 

1 

s 

o 

!- 

CO 

0) 

r3 

-4-> 

a> 

*-> 

'3 
P 

a) 
a 

+3 

o 

-J 

a 

CO 

*3 

5 
A 
| 

< 

0,o 

Dollars. 

682.151 

1,849.642 

3.798.518 

3,166,431 

C    9.860,058 

c  10,219.095 

d   3.789,420 

d    4,382,223 

d   4.836,842 

c    4.875.838 

c    4.565.363 

c    5,505,275 

3.321.477 

4.207.146 

5.318.052 

9,857.032 

3,479.338 

5.709.169 

11.172.979 

9,529,713 

7.193,639 

10.436,060 

11.218.437 

8.953,461 

13.447,615 

12,581.651 

OO    '  «-*    '  **    '    ■wco©ico'(»c>icocowcoco^eoeo-<«*eo-«i*-H'-<c4 

C 
OS 
V 

a 
O 

£o 

Dollars. 

1,401,340 

3.575.574 

3,495.226 

3,572.343 

1.423,212 

4.982.781 

d  14,130.604 

d  19.470,646 

d  13,665,067 

22.948.024 

26,472,885 

29,604,059 

28,356,568 

25.621.134 

23,133,062 

25.997,378 

21,457.923 

17,450.926 

24,614,668 

24,400,439 

26,859.230 

26,997,877 

34,611,108 

11,395.195 

14,166,461 

21,043,527 

efl 

o  Olneol^^cdo6oo^ooso6o6odx^•ooo•^<^^locd■<t|•*•,* 

h*3                        *"'     *"■                         ** '", *"'  "■■  *"' rt  •~l  —' '"'  ^  rt 
ep<n                                                      ♦ 

Dollars. 

10,315,486 
18,288,328 
6.201,603 
11.248.583 
31,413,378 
45,220,249 
67,008,793 
52,200.475 
68,088,821 
e  63,212,870 
61.691.675 
63.600,391 
67.506,833 
72,272.222 
80.138,251 
87,624,446 
66,186,397 
77,626.364 
89,592,318 
87.294,597 
92,594.593 
107.091,214 
139,842.330 
117,677,611 
129,682,651 
147,702,174 

cS 
O 

•c 
s 

« 

S 

0 
01 

i5£Sasg3S8SSS8838£$888S8SS38$ 

O  OoSocs"ososeo<*'^o»-'^<N«-*«*~'vftirico' ■* ■"«" *» '-' co* co o 

Dollars. 

16,647,637 
27.894.198 
v  35,992,719 
*  22,930.809 
43,596,045 
74,247,631 
82,126,922 
65.289,956 
65,875,425 
79,764,191 
84,356.398 
92,135,052 
90,006,144 
118.736,668 
150,727,759 
102,207,815 
100,147,107 
112,167,120 
108,828,462 
107,389,405 
92.091,694 
86,587,893 
93,666,774 
110,367.342 
119.785,756 
107.428,323 

4 

o 

u 

I 

< 

u 
C 

Y: 

l3s2S283a$:SS88£aBSSS8S;£ffi88SS?S| 

OOco^oiQt^eoo3Qos"o6oJOQOOSrt«"krfodcdMT^co"u5^cdo6 

p4° 

Dollars. 

24,136,879 
44,781,394 
75,082.583 
83,912,382 
126,544,611 
132.035,363 
130,077.225 
117.450,701 
125,431,516 
130,790,843 
139,818,918 
150,865,817 
148.368.706 
163,226.079 
174,054.181 
183.732.712 
166.962,559 
133.915,682 
126,877.126 
105.924,053 
91.376,807 
112,150,911 
130,035,221 
145,158,104 
151.076,524 
189.736.475 

i 

0 
E 

3 

09PS^S^"^'"J"J^^^^*>"^'>^^wco<ca»Q^c5'(Nco 

Dollars. 

124,954.302 
165.079,384 
216.831,353 
109.603,619 
249.540,283 
287,201,034 
370.821,782 
318,733,328 
357,538,465 
390,728.002 
407,051.875 
403,421,058 
449,987.266 
459,305,372 
391,628,469 
458,450,093 
295,077.865 
383,645,813 
418.639.121 
430.192,205 
305,933,691 
353,884.534 
440,567.314 
429.620.452 
475.161.941 
547.226.887 

t 
as 

1850 

1855 

1860 

1865 

1870b 

1875 

1880 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

* 

PER   CAPITA    COMMERCE    AND   CONSUMPTION. 


133 


Merchandise  imported  into,  exported  from,  and  retained  foi   con- 
sumption in  the  United  States,  1871  to  1903. 
I  From  the  Statistical  Abstract.] 


Imports, 
per  capita. 

ExportB  of  domestic 
merchandise. 

Retained  for  consumption, 
per  capita. 

Merchandise  im- 
ported for  con- 
sumption, per 
capita. 

-a 

I| 

3  P. 

O  53 
►.© 

4> 

P.    . 

on  *» 

2  * 

Co 
M 

H 

Exports  of  agri- 
cultural  prod- 
ucts,  per   cent 
of  total  exports. 

Exports  of  prod- 
ucts of  manufac- 
ture, per  cent  of 
total  exports. 

s 
o 

o 
o 

► 

33 

S3 
V 
A 

P 

M 
g 

Raw  wool. 

Year. 

if 

P 
"8 
1 

1871 

$12.65 
13  80 
l.\91 
13.26 
11.97 
10  29 
9.49 
9.21 
899 
12.51 
12  68 
13.64 
13.05 
12  16 
10  82 
10.89 
1165 
1188 
12.10 

12  35 

13  38 
12  50 
12  73 

9.41 
10.61 
10  81 
1102 
8.05 
9.22 
10  88 
10  58 
11.89 
12  54 

S5  12 
5.23 
4.44 
3.75 
3.51 
3.22 
2.77 
2.67 
2.73 
3.64 
8.78 
4.12 
3  92 
3.47 
8  17 
3.30 
3.65 
3.60 
8.60 
8.62 
8  40 
2.68 
3.00 
1.92 

2  17 
2.23 
2.41 
1.99 
2.72 

3  01 
3  06 
3.17 
8.49 

810.83 

10  65 
12  12 
13.81 

11  86 

11  64 

12  72 
14.30 
14  29 
16.43 
17.23 
13.97 
14  98 
13.20 
12.94 
1160 
11.98 
11.40 
1192 
13.60 

13  63 
15.61 
12.98 
12.85 
11.51 
12.29 

14  42 
16  59. 
16  29 
17.96 
1881 
17.16 
17.32 

P.  cent. 
70.74 
74.18 

7610 
79.37 
76.95 
71.67 

72  63 
77.07 
78.12 
83.25 
82  63 
75.31 
77.00 

73  98 
72.96 
72.82 
74.40 
73.23 
72.87 
74.51 
73  69 
78.69 
74.05 
72.28 
69.73 
66.02 
66.23 
70  54 
65.19 
60.98 
64.62 
62.83 
62.78 

P.  cent. 

Lbs. 

14  10 
11.10 
1519 
13.60 
11.90 
14.77 
14.03 
13.71 
15.90 
18  94 
19.64 
16.15 
20.80 
16.80 
15.16 
19.69 
16.84 
19.59 
17.22 
18.50 
22.38 
24.58 
17.84 
16.45 
22.75 
18.67 
18.77 
25  76 
27.87 
22  57 
25.94 
25.65 
24.64 

Bush. 
4.69 
4.79 
4.81 
4.46 
5.38 
489 
501 
5.72 
5.58 

5  35 

6  09 
4.98 
6.64 
5.64 
6.77 
457 
5.17 
5.62 

5  84 
6.09 
4.59 
5.94 
4.89 
3.44 
459 
4.85 
8.95 
4  29 

6  09 
4  74 
3  95 
6  50 
5.81 

Lbs. 
5.73 
6.75 
5  67 

4.81 
5.28 
5.21 
6.16 
5.28 
5.03 
6.11 

5  66 

6  36 
6.62 

6  85 
6.69 
7.39 
6.68 
6.81 
6.33 
6.03 
6.44 
6.75 

7  10 
5.13 
7.89 
6  98 
8.40 
5  44 
4.53 
5.72 
5.18 
6.07 
5.74 

P.  cent. 
294 

1872 

45  3 

1873 

33.2 

1874 

17  5 

1875 

16  57 
17.08 
21.61 

17  79 
16  72 
12.48 
12  92 

18  38 
16.69 
18.81 
20.25 
20.50 
19.45 

19  05 
18.99 
17.87 
19  37 
15.61 
19.02 
81.14 
23.14 
26.48 
26.87 
24.02 
28.21 
31.65 
28.14 
29.77 
29.28 

22.1 

1876 

18.3 

1877   

16  8 

1878      

16.9 

1879 

14  2 

1880   

34  9 

1881 

1882 

17.8 
19 

1883 

1884 

18.7 
20.6 

1885* 

18  0 

1886* 

28.9 

1887*.  

18*8* 

1889 

189  t 

27.4 
28.9 
318 
27.0 

1891  

30.8 

1892 

1893f 

33,1 

35.7 

189  4 1 

14.2 

1895t 

40.0 

1896f  

46.9 

1897f 

57.8 

1898 

32  8 

1899 

19.2 

1900 

34  4 

1901 ... 

1902  

24.9 
84.1 

1903 

37.8 

*  Democratic  President,  but  Republican  control  of  on*  branch  of  Congress. 
t  Democratic  President  and  low  tariff. 

Total  Values  of  Imports  Entered  for  Consumption  and  Duties  Col- 
lected Thereon  from  1876  to  1903. 


[Frorr 

Statistical  Abstract.] 

Average  ad  valo- 

Year 
ending 

Total. 

Per 

Amounts  of 

duty 

rem  rates  of 
duty  on- 

Duty 
collect- 

Imports 
per 

ed  per 
capita. 

June  30— 

of  free. 

collected. 

Dutiable 

Free  and 
dutiable 

capita. 

Dollars. 

Dollars. 

Per  cent 

Per  cent 

Dollars. 

Dollars. 

1877 ...... 

439,829,389 

32.02 

128,428,343 

42.89 

26.68 

2.77 

9.49 

1878 

438,422,468 

32.24 

127,195,159 

42.75 

27.13 

2.67 

9.21 

1879 

439,292.374 

32.45 

133,395,436 

44.87 

28.97 

2.73 

8.99 

1880 

627,555,271 

33.15 

182,747.654 

43.48 

29.07 

3.64 

12.51 

1881...... 

650,618,999 

31.13 

193,800.880 

43.20 

29.75 

3.78 

12.68 

1882 

716,213,948 

29.42 

216,138,916 

42.66 

30.11 

4.12 

13.46 

1883 

700,829,673 

29.52 

210.637,293 

42.45 

29.92 

3.92 

13.05 

1884 

667.575,389 

31.15 

190.282,836 

41.61 

28.44 

3.47 

12.16 

1885 

579,580,054 

33.28 

178,151.601 

45.86 

30.59 

3.17 

10.32 

1886 ...... 

625,308,814 

33.83 

189,410,448 

45.55 

30.13 

3.30 

10.89 

1887 

683,418,981 

34.11 

214,222.310 

47.10 

31.02 

3.67 

11.65 

1888 

712.248,626 

34.27 

216,042,256 

45.63 

29.99 

3.60 

11.88 

1889 

741.431,398 

34.61 

220,576,989 

45.13 

29.50 

3.62 

12.10 

1890 

773,674,812 

34.39 

226,540.037 

44.41 

29.12 

3.62 

12.35 

1891 

854.519.577 

45.41 

216,885,701 

46.28 

25.25 

3.40 

13.38 

1892 

813,601.345 

56.30 

174,124,270 

48.71 

21.26 

2.68 

12.50 

1893 

844.454.583 

52.60 

199,143,678 

49.58 

23.49 

3.00 

12.73 

1894 

636,614,420 

59.53 

129,558,892 

50.06 

20.25 

1.92 

9.41 

1895 

731.162,090 

51.55 

149,450,608 

41.75 

20.23 

2.17 

10.46 

1896 

759,694.084 

48.56 

157,013,506 

39.95 

20.67 

2.23 

10.81 

1897 

789.251,030 

48.39 

172,760,361 

42.17 

21.89 

2.41 

11.02 

1898 

587,153.700 

49.65 

145.438.385 

48.80 

24.77 

1.99 

8.05 

1899 

685,441,892 

43.72 

202.072,050 

52.07 

29.48 

2.72 

9.22 

1900 

830.519,252 

44.16 

229,360,771 

49.24 

27.62 

3.01 

10.88 

1901 

807.763,301 

41.98 

233.556.110 

49.64 

28.91 

3.06 

10.58 

1902 

899,793.754 

44.01 

251,453,155 

49.78 

27.95 

3.17 

11.39 

1903 

1,007,960,110 

43.38 

a  280,762,197 

49.03 

27.85 

3.49 

12.54 

131  KK(  !  NTS     \\i>    I  \l'i:\i)Ill  kks    OK   THE    UNITED   STATES. 


Receipts  and  expenditure*  of  the  r>iitc<i  states. 

!  PtOXB  St;itis1i<>;il   Abstract.] 


Total *$17,096,217,866 


Net  ordinary 

receipts. 


$4,409,951 
10.848,740 
0.884,214 
17,810,670 
I0t881,2ia 
21.840,868 
25,260,484 
22,966,364 
24,763,089 
21,827,027 
24.844,117 

31,867.451 
33,948,426 
21,791,036 

35,430,087 
50,826,796 
24.954.153 

26,302.562 

31.482,750 

19,480,115 

16,860,160 

19,976,197 

8,231,001 

29,320,708 

29,970,106 

29,699,968 

26,467,403 

35,698,699 

30,721,078 

43,592.889 

52,555.039 

49.846.816 

61,587.032 

73,800,341 

65.350,575 

74,056,699 

68,965,313 

46,665,366 

52,777,108 

56,054,600 

41,476,299 

51,919,261 

112,094,946 

243,412,971 

322,031.158 

519,949,564 

462.846,680 

376,434,454 

357,188,256 

395,959,834 

374,431,105 

364,694,230 

322.177,674 

299,941,091 

284.020.771 

290.066,585 

281.000.642 

257,446.776 

272,322,137 

333,526,501 

360,782,293 

403.525,250 

398,287,582 

318,519,870 

323.690,706 

336,439,727 

371.403.278 

379,2667075 

387,050.059 

403,080.983 

392.612,447 

354,937,784 

385,819.629 

297,722,019 

313,390,075 

326,976.200 

347,721,705 

405,321,336 

515.960,620 

567.240.851 

587,685,337 

562,478.233 

558.887.526 


Net  ordinary 
expenditures. 


$3,097,452 
10.813,971 
8.474,753 

18.285,535 

20,273.703 

15.&57.217 

17.037,859 

16.139.167 

16,394,842 

15.184,054 

15.142.108 

15.237,817 

17,288,950 

23,017,552 

18.627.570 

17,572.813 

30,868,164 

37.243,214 

33,864,715 

26,896,783 

24,314,518 

26,481,818 

25,134.886 

11,780,093 

22,483.560 

22,935.828 

27,261,183 

54,920.784 

47,618,221 

43,499,078 

40,948,383 

47,751,478 

44,390,252 

47,743,989 

55,038,455 

58,630,663 

68,726,350 

67,634,409 

73,982,493 

68,993,600 

63,875,876 

66,650,213 

469,570,242 

718,734,276 

864,969,101 

1,295,099.290 

519,022,356 

346,729,326 

370,339,134 

321,190,598 

293,657,005 

283,160,394 

270,559.696 

285.239.325 

301.238,800 

274,623,393 

265,101,085 

241,334,475 

236,964,327 

266,947,884 

264,847,637 

259,651,639 

257,981,440 

265,408,138 

244.126,244 

260,226.931 

242,483.139 

267,932.180 

259.653,959 

281,996,616 

297,736.487 

355,372.685 

345,023.331 

383.477,954 

367,525,280 

356,195,298 

352,179,446 

365.774.160 

443.368.583 

605,072.180 

487,713,791 

509,967,353 

471,190,858 

506,272,073 


Excess  of 
receipts. 


$1,312,498 

34.778 

909,461 


5,983.641 
8.222,575 
6.827.197 
8.369.087 
9,643,573 
9.702,009 
13,289,004 
14,578,501 
10,930,874 
3,164,366 
17,857,274 
19,958,632 


Excess  of 
expenditures. 


4,585,967 


6,837,148 
7,034,278 
2,438,785 


2,644,506 
4,803.561 
5.456,564 
13,843.043 
18,761,886 
6,719,912 
5,330,349 
1,330,904 


927,208 
116,117,354- 
6,095,320 
35,997,658 
102,302,829 
91,270,711 
94,134.534 
36,938,349 


9,397,378 

24,965,500 

39,666,167 

20,482,449 

5,374,253 

68,678.864 

101,130.654 

145,543,810 

132,879,444 

104,393,626 

63,463,775 

93,956,588 

103.471,098 

119,612,116 

105,053,443 

105,344,496 

37,239,762 

9,914,453 

2,341,675 


79,527,060 
77,717,984 
91,287.375 
52,615,453 


$17,864,398,913 


$768,181,047 


Note. — Does  not  include  receipts  from  loans  or  payments  on 
principal  of  public  debt.  Fiscal  year  ended  September  30  prior  to 
1843;  since  that  date  ended  June  30.  Footings  include  the  figures 
of  omitted  years  prior  to  1810,  and  are  totals  of  all  years  from 
1790  to  1903, 


ANALYSIS  OF  THE  PRINCIPAL  OF  THE  PUBLIC  DEBT. 


135 


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136  a<;kiculturai,   PROSPERITY. 


AGRICULTURAL    PROSPERITY    UNDER  REPUBLICAN    AD- 
MINISTRATION,   DEPRESSION    UNDER 
DEHOCRATIC  RULE. 

The  farmers  of  the  country  create  most  of  its  wealth  and  send 
abroad  63  per  cent,  of  our  exports  in  addition  to  producing  much 
of  the  material  from  which  manufactures  are  made  that  are  used 
at  home  and  abroad.  The  Republican  administration  lias  greatly 
developed  agricultural  investigation  in  the  last  seven  years,  until 
scientific  inquiry  is  being  made  in  all  our  States  and  Territories 
and  in  the  isles  of  the  sea  under  our  flag,  to  the  end  we  may 
produce  the  necessities  of  life  for  ourselves  and  tliose  for  whom 
we  are  responsible.  The  power  of  the  man  and  the  acre  to  produce 
is  being  increased  all  over  the  land;  new  grains,  grasses,  legumes, 
fruits,  fibers  and  vegetables  are  being  imported  from  foreign  coun- 
tries into  continental  United  States  and  into  our  island  posses- 
sions in  order  to  diversify  crops  and  bring  into  productiveness 
sections  of  our  country  that  have  heretofore  been  barren.  The 
weather,  the  animals,  the  plants,  the  forests,  the  soils,  our  roads, 
our  foods,  our  insect  friends  and  enemies  are  being  studied  from 
the  farmer's  standpoint  by  2,000  scientists  in  the  Department  of 
Agriculture,  which  has  grown  in  helpfulness  every  day  since 
1896. 

The  farm  value  of  the  wheat,  corn,  and  oat  crops  in  1903  was 
nearly  double  that  of  1896,  the  last  year  of  the  Cleveland  adminis- 
tration. This  is  rather  a  startling  statement,  but  it  is  borne  out  by 
the  Statistical  Abstract,  published  by  the  Government  and  made  up 
from  the  official  figures  which  have  no  partisan  bias. 

For  the  year  1896  the  farm  value  of  corn  was  $491,006,967,  that 
of  the  wheat  crop  $310,602,539,  and  that  of  the  oat  crop  $132,485.- 
033,  the  total  farm  value  of  the  three  crops  for  that  year  being 
$934,094,538. 

The  farm  value  of  the  corn  crop  in  1900  was  $751,220,034,  that 
of  the  wheat  crop  $323,515,177,  and  that  of  the  oat  crop  $208,- 
669,233,  making  the  total  farm  value  of  the  three  crops  in  1900 
$1,283,404,444,  or  $349,309,905  more  than  the  farm  value  of  the 
same  crops  in  1896.  In  1903  the  farm  value  of  the  corn  crop  was 
$952,868,801,  that  of  the  wheat  crop  $443,024,826r  and  that  of  the 
oat  crop  $267,661,665,  a  total  farm  value  of  the  three  crops  in 
1903  of  $1,663,555,292,  or  $380,150,848  more  than  the  farm  value 
of  the  same  crops  in  1900,  and  $729,460,753  more  than  their  farm 
value  in  1896. 

Increase  in  Farm  Values. 

I 

This  increase  of  farm  value  under  Republican  administrations 
is  not  accidental.  It  is  a  matter  of  history  that  rural  prosper- 
ity and  Republican  rule  are  coincident,  it  is  equally  a  matter  of 
record  that  agricultural  depression,  mortgage  foreclosures,  and 
low  prices  for  farm  products  accompany  Democratic  administra- 
tion of  national  affairs.  The  prosperity  of  the  farmer  depends 
upon  the  prosperity  of  all  other  industrial  elements  of  our  popu- 
lation. When  the  industrial  classes  are  employed  at  American 
wages  their  consumption  of  farm  products  is  on  a  liberal  scale. 
and  they  are  able  and  willing  to  pay  good  prices  for  the  necessities 
and  luxuries  of  life.  Under  such  conditions  there  is  a  good  market 
for  all  the  farmer  has  to  sell.  When  the  reverse  is  true  and  the 
workmen  are  idle  or  working  scant  time  at  cut  wages  they  are 
forced  to  practice  pinching  economy  and  the  farmer  necessarily 
loses  part  of  his  market.  The  American  farmer  is  prosperous 
when  well  paid  workmen  are  carrying  well  filled  dinner  pails, 
a  conditions  which  has  accompanied  Republican  supremacy  since 
the  birth  of  the  party.  Idle  men,  tramps,  and  soup  houses,  fa- 
miliar sights  under  Democratic  rule,  furnish  but  poor  markets  for 
farm  produce. 

The  .  records  for  the  last  four  administrations,  which  alter- 
nated between  the  Republican  and  Democratic  parties,  show  that 
the  farmers  received  more  for  their  crops  under  Republican  ad- 
ministrations than  under  Democratic  administrations. 


AGRICULTURAL    PROSPERITY.  137 

The  farm  -value  of  the  corn  crops  for  the  four  years  of  Cleve- 
land's first  administration,  from  1885  to  1889,  aggregated  $2,509,- 
053,980. 

In  the  four  years  of  the  Harrison  administration  which  fol- 
lowed, the  farm  value  of  the  corn  crop  aggregated  $2,830,938,138, 
an  increase  in  value  of  more  than  $250,000,000  over  that  of  this 
crop  during  the  Cleveland  administration. 

For  the  next  four  years,  while  Mr.  Cleveland  was  President 
and  Democratic  policies  were  in  force,  the  farm  value  of  the  corn 
crop  aggregated  $2,182,337,290,  a  decrease  of  $750,000,000  from 
that  during  the  Harrison  administration. 

Then  came  the  Republican  administration  of  William  Mc- 
Kinley,  and  for  the  first  four  years  of  that  administration  the 
farm  value  of  the  corn  crop  aggregated  $2,433,526,524,  or  an  in- 
crease of  $250,000,000  over  that  of  the  last  Democratic  adminis- 
tration, while  in  the  succeeding  three  years,  1901-03,  it  was  $2,- 
891,441,918,  or  $457,915,394  more  in  three  years  than  in  the  pre- 
ceding four  years. 

Wheat  and  Oats. 

The  same  law  of  fluctuation  according  to  political  policies  in 
administration  held  good  as  to  wheat  and  oats.  The  farm  value 
of  the  wheat  crop  for  the  four  years  of  the  first  Cleveland  ad- 
ministration aggregated  $1,285,407,400,  and  for  the  next  four 
years,  including  the  Harrison  administration,  the  farm  value 
of  the  wheat 'Crop  aggregated  $1,512,859,980,  an  increase  of  $227,- 
000,000  in  the  farm  value  of  wheat  -over  that  for  the  preceding 
Democratic  administration. 

For  the  next  four  years,  under  the  second  Cleveland  adminis- 
tration, the  farm  value  of  the  wheat  crop  aggregated  $987,614,943, 
a  shrinkage  of  $525,000,000  in  the  value  of  the  wheat  crop  from  the 
preceding  four  years  under  Republican  administration. 

Again  came  a  change  of  policy  in  government,  and  during  the 
first  four  years  of  the  McKinley  administration  'the  wheat  crop 
took  another  advance  in  value.  For  these  four  years  of  the  Mc- 
Kinley administration  the  farm  value  of  the  wheat  crop  aggregated 
$1,464,387,877,  an  increase  in  value  amounting  to  nearly  $500,- 
000,000.  For  the  succeeding  three  years  of  the  Republican  ad 
ministration,  1901-03,  the  farm  value  of  the  wheat  crop  amounted 
to  $1,332,599,099,  almost  as  much  in  three  years  as  in  the  pre- 
ceding four  years  and  $344,984,156  more  than  in  the  four  years  of 
the  second  Cleveland  administration. 

The  farm  value  of  the  oat  crop  in  the  four  years  of  the  first 
Cleveland  administration  aggregated  $761,943,820;  for  the  next 
four  years,  under  the  Harrison  administration,  the  farm  value  of 
the  oat  crop  increased  to  $835,395,372;  for  the  next  four  years, 
under  Cleveland,  this  crop  decreased  in  value  to  $698,533,113,  and 
for  the  next  four  years,  under  McKinley  administration,  it  in- 
creased to  $741,217,291. 

During  the  last  three  years  of  the  Republican  administration 
its  aggregate  value  has  been  $864,905,294,  or  $123,688,003  more 
in  three  years  than  during  the  preceding  four  years  of  the  second 
Cleveland  administration. 

The  farm  value  of  the  hay  crop  in  1896  was  $388,145,614,  in 
1900  it  was  $445,538,870,  and  in  1903  it  was  $556,376,880. 

The  farm  value  of  the  potato  crop  in  1896  was  $72,182,350,  in 
1900  it  was  $90,811,167,  and  in  1903  it  was  $151,638,094. 

Farm  Animals. 

During  the  seven  years  of  Republican  administration  the  farm 
animals  of  the  country  have  increased  in  value  from  $1,655,414,- 
612  on  January  1,  1897,  to  $2,998,247,479  on  January  1,  1904. 

The  number  of  horses  has  increased  from  14,364,667  to  16,- 
736,0^9,  and  their  value  from  $452,649,396  to  $1,136,940,298. 

The  number  of  mules  has  increased  from  2,215,654  to  2,757,916, 
and  their  value  from  $92,302,090  to  $217,532,832. 

The  number  of  milch  cows  has  increased  from  15,941,727  to 
17,419,817,  artd  their  value  from  $369,239,993  to  $508,841,489. 

The  number  of  cattle,  other  than  milch  cows,  has  increased 
from  30,508,408  to  43,629,498,  and  their  value  from  $507,929,421 
to  $712,178,134. 


138  Af.iiK  i  i.i  thai.   PB06PEBITV, 

The  number  of  sheep  has  Increased  from  .°>6,818,643  to  51,- 
<•..".<).  144,  and  their  value  from  $67,020,942  to  $183,590,099. 

The  number  of  Bwine  has  Increased  from  40,600,276  to  47,009,- 
987,  and  their  value  from  $1  (',<;, 2 72, 7 7()  to  $289,22 1,027. 

On  January  1  of  the  present  year  there  were  116  horses,  124 
mules,  LOO  milch  cows,  143  other  cattle,  11(5  swine,  and  140 
sheep  for  every  hundred  of  each  kind  seven  years  ago. 

It  will  readily  be  perceived  from  the  foregoing  figures  that 
the  increase  in  total  value  is  far  more  than  proportional  to  the 
increase  in  number.  The  total  value  of  sheep,  for  example,  is  al- 
most double,  that  of  mules  considerably  more  than  double,  and 
that  of  horses  more  than  two  and  one-half  times  as  great  as  it 
was  when  the  Republicans  took  hold  of  the  administration  of  the 
eountry  seven  years  ago. 

The  "man  with  the  hoe"  has  only  to  look  at  the  record  to 
see  which  way  points  to  prosperity. 

Increase  of  Farm  Values. 

The  value  of  the  live  stock  on  the  farms  of  the  country,  which 
was  reported  by  the  Agricultural  Department  in  1896  at  $1,727,- 
926,084,  was  reported  at  $2,228,123,134  in  1900,  an  increase  of 
$500,197,050,  and  in  1904  at  $2,998,247,479,  a  further  increase  of 
$770,124,345,  making  a  total  increase  in  eight  years  of  $1,270,- 
321,395. 

With  the  increased  activity,  increased  earnings,  and  increased 
consumption  the  farmer  has*  received  greatly  increased  prices  for 
his  productions. 

The  Agricultural  Department  reports  an  increase  of  $353,047,- 
657  in  the  farmj  value  of  the  cereals  alone  in  1900,  as  compared 
with  1896,  and  a  further  increase  of  $423,249,664  in  1903,  as  com- 
pared with  1896,  making  a  total  increase  of  $776,297,321,  these 
figures  being  those  of  the  actual  value  upon  the  farm  before 
leaving  the  hands  of  the  producer,  while  other  articles  of  farm 
production  show  an  equal  advance  in  value. 

The  exportation  of  agricultural  products  increased  from  $574.- 
398,264  in  1896  to  $844,616,530  in  1900,  and  to  $873,285,142  in 
1903,  a  total  increase  of  $298,886,878  in  the  mere  surplus  re- 
maining after  supplying  the  great  and  rapidly  expanding  home 
market. 

Exports  of  Agricultural  Products  Under  the  McKinley,  Wilson  and 
Dingley  Tariffs,  Respectively. 

This  table  shows  the  exports  of  leading  agricultural  pro- 
ducts under  the  McKinley,  Wilson,  and  Dingley  tariffs,  respectively, 
in  the  fiscal  years  1894,  1895,  1899,  and  1903.  The  year  1894  was 
the  last  under  the  McKinley  tariff,  that  of  1895  the  first  year 
under  the  Wilson  tariff.  (The  fiscal  year  ends  June  30,  and  the 
Wilson  law  went  into  effect  in  August,  1894.)  It  will  be  seen 
that  there  was  a  reduction  in  the  exports  of  practically  all 
classes  of  agricultural  products  under  the  Wilson  law.  Under 
the  Dingley  law  there  has  been  a  large  increase  in  the  ex- 
portation of  practically  all  articles.  These  stubborn  facts  are  a 
remarkable  commentary  upon  the  Democratic  assertion  that  the 
protective  tariff  hampers  our  sales  abroad. 

Tables  of  the  exports  of  manufactures  presented  on  another 
page  show  also  that  the  exportation  of  manufactures  increased 
very  greatly  under  the  Dingley  tariff,  as  compared  with  the  Wil- 
son law.  The  average  exportation  of  manufactures  during  the 
three  years  of  the  Wilson  law  was  240  million  dollars  per  annum 
and  during  the  last  four  years  of  the  Dingley  law  has  been  over 
400  millions  per  annum. 

A  table  presented  on  another  page  also  shows  that  the  total 
exportation  during  the  57  years  of  low  tariff  was  actually  514 
million  dollars  less  than  the  imports  of  those  years,  while  in  the 
57  years  of  protective  tariff  the  exports  exceeded  the  imports  by 
4,099  millions. 

These  facts  seem  to  fully  refute  the  assertion  that  protection 
destroys  or  reduces  the  export  trade  or  the  opportunities  in  for- 
eign markets. 


AGRICULTURAL  PROSPERITY. 


139 


Exports  of  farm  products   from  the   United  States  tinder  three 

tariffs. 

[Compiled  from  reports  of  Bureau  of  Statistics.] 


McKinleylaw 
•   fiscal 
year  1894. 


"Wilson  law, 
calendar 
year  1895. 


Dingle  y  law, 

fiscal 

year  1899. 


Dingley  law, 
1903. 


Cotton 

Breadstuff's  (all) 

Provisions  (all) 

Flour 

Wheat 

Lard 

Bacon 

Animals  (all) 

Cattle 

Corn 

Beef 

Oil  cake 

Seeds 

Cheese 

Pork 

Clover  seed 

Hides 

Hops 

Tallow 

Flaxseed 

Barley 

Sugar  and  molasses . . . 

Oats 

Vegetables 

Hay 

Broom  corn 

Rye 

Tobacco,  unmfg'd 

Fruits  and  nuts 

Cotton  seed  oil 


$210,869,298 

166,774,558 

145,262,273 

69,271,760 

59,470,041 

40,089,721 

38,338.357 

35,698.180 

33.455,092 

30,211,154 

25.673.699 

•  8,807,256 

7,942,221 

7,180,331 

5.159,868 

4,540,851 

3,972,494 

3.844,232 

2,766.164 

2,426,284 

2,379,714 

1,717,663 

2,027,934 

1,744,462 

890,654 

210.742 

126.532 

24.087,934 

2,424,239 

6.008,405 


$189,890,645 

125,266,871 

132,456,827 

50.292,886 

40,898.547 

37,348,753 

37,411,944 

33,791,114 

26.997.701 

27,907,766 

25.741 .709 

7,851,246 

1,983,894 

3,401.117 

4,430,155 

1.126.618 

2,835.947 

1,745,945 

1,207,350 

31,076 

1.485.038 

1,300.993' 

599.835 

1.557,483 

701,346 

179.856 

724 

24,707.563 

5.450.878 

6,429,828 


$210,089,576 

273,999,699 

175.508,608 

73.093,810 

104.269,169 

42,208,465 

I    41,557,067 

37.880.916 

30,516,833 

68,977.448 

29,720,258 

14,548,765 

5,079.396 

3.316.049 

10,639.727 

1,264,922 

929.117 

3.626,144 

4.367,356 

2,815.449 

1,375,274 

2.350,718 

9,787,540 

2,799,400 

858,992 

185,902 

5,936.078 

25.467.218 

7,897.485 

12,077,519 


$317,065,271 

221,242,285 

179,839,714 

73,756,404 

87,795,104 

50,854,504 

22,178,525 

34,781,193 

29,848,936 

40,540,637 

36.847.106 

19,839.279 

9,455,283 

2,250,229 

13,364.940 

1.549,687 

1,224,401 

1,909,952 

1.623,852 

5.698,494 

4.662.541 

2,569,248 

1.850,728 

2,543.483 

828.483 

211.250 

3,143.913 

35,250.899 

18.057.677 

14,211,244 


Value  of  principal  farm  crops  in  the  United  States,  December  1, 
1866  to  m3. 

[From  reports  of  the  Department  of  Agriculture.] 


Calendar 
year. 


Corn. 


Wheat. 


Oats. 


Rye. 


Barley. 


1867.... 

1868.... 

1869.... 

1870.... 

1871 

1872.... 

1873.... 

1874 

1875.... 

1876.... 

1877.... 

1878.... 

1879.... 

1880.... 

1881.... 

1882.... 

1883.... 

1884.... 

1885.... 

1886.... 

1887.... 

1888.... 

1889.... 

1890.... 

1891 

1892 

1893*... 

1894*... 

1895*... 

1896*... 

1897.... 

1898.... 

1899.... 

1900.... 

1901.... 

1902 

1903.... 


$411 
437 
424 
522 
540 
430 
385 
411 
496 
484 
456 
467 
440 
580 
679 
759 
783 
658 
640 
635 
610 
646 
677, 
597 
754. 


591 
554 
544 
491 
501 
552 
629 
751 
921 
1.017 
952 


,450,830 
,769,763 
,056,649 
,550,509 
,520,456 
,355,910 
,736,210 
961,151 
,271,255 
674,804 
108,521 
635,230 
,280,517 
486,217 
714,499 
,482,170 
,867,175 
,051,485 
735.560 
674,630 
311,000 
106,700 
561,580 
918,829 
433,451 
439,228 
146,630 
625,627 
719,162 
,985,534 
,006,967 
,072,952 
,023,428 
,210,110 
,220,034 
,555,768 
,017,349 
,868,801 


$232,109,630 
308,387,146 
243,032,746 
199,024,996 
222,766,969 
264,075,851 
278,522,068 
300,669,533 
265,881,167 
261,396,926 
278,697,238 
385,089,444 
325,814,119 
497.030,142 
474,201,850 
456,880.427 
445,602,125 
383,649,272 
330,862,260 
275,320,390 
314,226,020 
310,612,960 
385,248,030 
342,491,707 
334,773,678 
513,472,711 
322,111,881 
213,171,381 
225,902,025 
237,938,998 
310,602,539 
428,547,121 
392,770,320 
319,545,259 
323,515,177 
467,350,156 
422,224,117 
443,024,826 


$94,057,945 
123,902,556 
106,355,976 
109,521,734 
96,443,637 
92,591.359 
81,303,518 
93,474,161 
113,133,934 
113,441,491 
103,844,896 
115,546,194 
101,752,468 
120,533,294 
150,243,565 
193,198,970 
182,978,022 
187,040,264 
161,528,470 
179,631,860 
186,137,930 
200,699,790 
195,424,240 
171,781,008 
222,048,486 
232,312,267 
209,253,611 
187,576,092 
214,816,920 
163,655,068 
132,485,033 
147,974,719 
186,405.364 
198,167,975 
208,669,233 
293,658,777 
303,584,852 
267,661,665 


$17,149,716 
23,280,584 
21,349,190 
17,341,861 
11,326,967 
10,927,623 
10,071,061 
10,638,258 
11,610,339 
11,894,223 
12,504,970 
12.201,759 
13,566,002 
15,507.431 
18,564,560 
19,327,415 
18.439,194 
16,300,503 
14,857,040 
12,594,820 
13,181,330 
11,283,140 

12,'009>52 
16,229,992 
24,589,217 
15,160,056 
13,612,222 
13,395,476 
11,964,826 
9,960,769 
12,239,647 
11,875,350 
12,214,118 
12,295,417 
16,909,742 
17,080,793 
15,993,871 


$7,916,342 
18,027,746 
24,948,127 
20,298,164 
20,792,213 
20,264,015 
18,4.15,839 
27,794,229 
27,997,824 
27,367,522 
24,402,691 
2f, 629, 130 
24,454,301 
23,714,444 
30,090,742 
33.862,513 
30,768,015 
29,420,423 
29,779,170 
32,867,696 
31,840,510 
29,464,390 
37,672.032 
32,614,271 
42,140,502 
45,470,342 
38,026,062 
28,729,386 
27,134,127 
29,312,413 
22,491,241 
25,142,139 
23,064,359 
29,594,254 
24,075,271 
49,705,163 
61,898,634 
60,166,313 


♦Pemocratic  and  low-tariff  years. 


AGRICULTURAL    PROSPER]  n  , 


3  cJ 


E-i  c9 


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AGRICULTURAL   PROSPERITY. 


141 


Wheat    Production    and    Consumption    in    the    United    States,    1897 

to    1903. 

Quantities  of  wheat  produced  in  the  United  States,  and  of  wheat 
and  ivheat  flour  exported,  and  retained  for  consumption, 
1877  to  1899. 

[From  the  Statistical    Abstract.] 


Year  ending 
June  30— 


Produc- 
tion, a 


Exports 

of 
domestic. 


Domestic 
retained 
for  con- 
sumption. 


Quantity. 


Value 

Per 

of  crop 

capita, 

per 

acre. 

Bush. 

5.01 

$14.65 

5,72 

10.15 

5.58 

15.27 

5.35 

12.48 

6.09 

12.12 

4.98 

12.02 

6.64 

10.52 

5.64 

8.38 

6.77 

8.05 

4.57 

8.54 

5.17 

8.25 

5.62 

10  32 

5.34 

8.98 

6.09 

9.28 

4.59 

12.86 

5.94 

8.35 

4.89 

6.16 

3.44 

6.48 

4.59 

6.99 

4.85 

8.97 

3.95 

10.86 

4.29 

8.92 

6.09 

7.18 

4.74 

7.61 

3.95 

9.37 

6.50 

9.14 

5.81 

8.96 

World's 
production. 


1877 

1878 

1879 

1880 

1881 

1882 

1883 

1884 

*1885 

*1886 

*1887 

*1888 

1889 

1890 

1891 

1892 

*1893 

*1894 

*1895 

*1896 

*1897 

1898 

1899 

1900 

1801 

1902 

1903 


Bushels. 
289,356,500 
364,196,146 
420,122,400 
448,756.630 
498,549.868 
383,280,090 
504,185,470 
421,086,160 
512,765,000 
357,112,000 
457,218,000 
456,329,000 
415,868,000 
490,560,000 
399,262,000 
611.781,000 
515,949,000 
396,131.725 
460,267.416 
467,102,947 
427,684,346 
530,149,168 
675.148,705 
547,303.846 
522,229,505 
748,460.218 
670,063,008 


Bushels. 

57,043,936 

92,071,726 
150,502,506 
180,304,180 
186-.321.514 
121,892,389 
147.811.316 
111,534,182 
132,570,366 

94,565,793 
153,804,969 
119,624,344 

88.600,742 
109,430,467 
106,181,316 
225,665,812 
191,912,635 
164.283,129 
144,812,718 
126,443,968 
145,124,972 
217.306,004 
222,618,420 
186,096,762 
215,990,073 
234.772.515 
202,905,598 


Bushels. 
232,312,564 
272,154,520 
269.619,894 
268,452,450 
312,228,354 
261,387,701 
356.374,154 
309,551,978 
380,196,634 
262,543,207 
303,413,031 
336,700,656 
327,267,258 
381,129,533 
293,080,684 
386.114,188 
324,036,365 
231,848,596 
315,454,698 
340.658,979 
282,559,374 
312,843,164 
452,530,285 
361,207,084 
306,239,432 
513,687,703 
467,157,410 


Average 
crop. 

1,944,000,000 


2.115,000.000 

'2,m,ob6,o6o 


2,639,746.000 
2,414,414,000 
2,559,174,000 
2.660,557,000 
2,502,518.000 
2,488.349,000 
2,226.745,000 
2.879,424.000 
2.783,885,000 
2,627,971,000 
2,929,333,000 
3,103,710,000 
3,195,853,000 


♦Democratic  and   low-tariff  years. 

Wheat  flour  is  reduced  to  wheat  at  the  rate  of  4%   bushels  to 
the  barrel. 

Value  of  Farm  Animals   Under  Harrison,  Cleveland,  McKinley,  and 
Roosevelt. 

After  lands  and  improvements  the  .greatest  item  of  wealth 
of  the  American  farmer  is  his  live  stock,  and  the  value  of  such 
farm  stock  is  a  perfect  barometer  of  his  financial  condition. 
Practically  the  Highest  point  ever  reached  was  at  the  close  of 
1892,  the  last  year  of  the  Harrison  Administration,  when  the 
valuation  was  $2,483,506,681,  the  country  being  prosperous,  labor 
fully  employed,  and  wages  good.  The  lowest  point  reached  in 
the  past  20  years  was  at  tie  close  of  1896,  when  mills  were  closed, 
tires  drawn,  labor  idle,  capital  in  hiding,  and  business  confidence 
destroyed  by  four  years  of  Democratic  administration.  In  four 
years  the  shrinkage  of  this  form  of  farm  wealth  had  amounted 
to  33  per  cent,  making  $828,091,000  the  price  which  the  owners 
of  live  stock  paid  for  the  Democratic  experiment  of  1892.  In  the 
years  of  industrial  activity  which  followed  the  election  of  Mc- 
Kinley the  value  of  live  stock  has  kept  pace  upward  with  the 
increased  earning  and  spending  capacity  of  American  labor,  and 
on  January  1,  1900,  it  had  advanced  to  $2,288,375,413,  or  a  rise 
of  $632,960,000,  or  38  per  cent,  from  the  depths  of  the  depression. 
The  figures  in  detail,  as  shown  in  the  official  reports  of  the 
Department  of  Agriculture,  are  as  follows : 


Value 

of  live  stock. 

Jan.  1,  1892, 
Harrison. 

Jan.  1,  1897, 
Cleveland. 

Jan.  1,  1900. 
McKinley. 

Jan.  1,  1904. 
Roosevelt. 

Horses 

$1,007,593,636 
174.882,070 
351.378,132 
570,749,155 
116,121.290 
241,031,415 

$452,649,396 

92,302.000 

369,239,993 

507,929,421 

67.020,942 

166,272,770 

$603,969,042 
111,717.092 
514,812,106 
689.487,260 
122.665.913 
245,725,000 

$1,136,940,298 
217,532,832 
508.841,489 
712,178.134 
133.530,099 
289,224,627 

Mules 

Cattle 

Hogs 

Total 

2,461.755,698 

1,655,414,612 

2,288,375r413 

2,998,247,479 

142 


AGRICULTURAL   PRODUCTS— FARM    PRICES. 


I'riccs  of  principal  agricultural  products  on  the  farm  December  1, 
1892,  to  December  1,  1903— Continued. 

[From  report  of  Department  of  Agriculture.] 
Corn   (per  bushel). 


States. 

1892. 

1893. 

1894. 

1895. 

1896. 

1897. 

1898. 

1899. 

1900 

1901. 

1902 

1903. 

Cts 
67 
65 
64 
62 
63 
62 
60 
58 
57 
44 
45 
53 
54 
57 
56 
60 
52 
51 
50 
45 
47 
43 
56 
40 
42 
46 
40 
37 
38 
37 
32 
36 
31 
28 
33 
40 
70 
61 
40 
72 
65 
58 

Cts 
62 
57 
61 
62 
69 
64 
55 
52 
49 
40 
44 
46 
50 
65 
56 
68 
59 
55 
57 
54 
45 
39 
55 
43 
40 
45 
36 
31 
35 
34 
27 
30 
31 
27 
25 
38 
70 
63 
51 
71 
66 
58 

Cts 
72 
76 
69 
61 
75 
68 
61 
54 
55 
45 
50 
47 
47 
60 
58 
71 
53 
49 
62 
56 
47 
39 
57 
44 
43 
50 
37 
39 
45 
43 
45 
40 
43 
50 
46 
44 
82 
65 
61 
75 

100 
58 

Cts 
54 
51 
48 
52 
56 
51 
45 
42 
39 
34 
37 
37 
38 
46 
41 
47 
37 
37 
40 
31 
32 
27 
40 
27 
27 
32 
23 
22 
30 
20 
18 
20 
19 
18 
23 
24 
75 
57 
41 
56 
75 
49 

Cts 
47 
45 
38 
46 
49 
42 
38 
36 
33 
25 
32 
32 
37 
46 
43 
53 
45 
44 
45 
41 
37 
28 
34 
25 
21 
24 
19 
18 
22 
19 
14 
20 
18 
13 
18 
25 
60 
78 
36 
55 

Cts 
47 
45 
43 
47 
54 
49 
40 
38 
34 
30 
30. 
38 
43 
49 
48 
55 
46 
45 
45 
41 
40 
36 
40 
35 
25 
27 
21 
21 
25 
24 
17 
24 
22 
17 
21 
32 
65 
50 
38 
58 

Cts 
48 
46 
44 
49 
64 
52 
43 
40 
40 
31 
35 
35 
43 
46 
48 
50 
41 
39 
41 
34 
29 
29 
37 
27 
27 
34 
25 
25 
28 
24 
23 
27 
26 
22 
23 
36 
66 
55 
40 
56 

Cts 
50 
49 
47 
51 
53 
50 
45 
40 
41 
34 
36 
38 
47 
50 
50 
53 
47 
46 
44 
36 
38 
39 
45 
37 
30 
36 
27 
26 
30 
24 
23 
30 
25 
23 
26 
33 
52 
43 
43 
58 

Cts 
55 
56 
50 
54 
67 
55 
47 
45 
45 
38 
41 
49 
57 
64 
57 
60 
58 
58 
50 
47 
43 
49 
50 
40 
34 
37 
32 
32 
33 
29 
27 
32 
32 
31 
29 
42 
59 
60 
48 
64 

Cts 
76 
78 
73 
76 
76 
75 
72 
66 
62 
57 
58. 
59 
73 
84 
82 
85 
77 
74 
75 
80 
81 
65 
65 
61 
57 
52 
55 
57 
52 
45 
52 
67 
63 
54 
45 
46 
90 
72 
74 
77 
90 
90 

Cts 

74 
73 
68 
74 
78 
74 
67 
56 
58 
49 
51 
52 
60 
69 
73 
77 
67 
61 
66 
66 
49 
47 
54 
42 
42 
52 
36 
36 
50 
40 
33 
33 
34 
30 
4* 
45 
72 
59 
59 
78 
101 
67 

Cts 
66 

New  Hampshire 

63 
62 

66 

81 

67 

60 

57 

57 

49 

51 

53 

61 

South  Carolina 

69 

69 

Florida 

73 

57 

54 

58 

48 

51 

49 

West  Virginia 

64 

56 

Ohio 

47 

46 

36 

Illinois 

36 

43 

Minnesota  

38 

38 

34 

36 

28 

35 

North  Dakota 

42 

62 

58 

54 

75 

Arizona 

90 

Utah 

51 

55 

60 

59 

63 

70 

Idaho  

70 
60 
56 
55 

71 
62 
47 
50 

59 
69 

56 
57 

62 
40 
55 
53 

60 

58 
57 
68 
76 
76 

62 

65 
66 
77 
39 
43 

57 

Washington 

57 
56 
53 

55 
53 
56 

42 
60 
62 

I 

60 
20 

59 
57 
61 
26 

55 

67 

74 

38 

39 

United  States 

39.3 

36.5 

45.7 

25.3 

21.5 

•6.3 

28.7 

30.3 

35.7 

60.5 

40.3 

42.5 

Wheat 

(per  bushel.) 

States. 

1892. 

1893. 

1894. 

1895. 

1896. 

1897. 

1898. 

1899. 

1900. 

1901. 

1902. 

1903. 

Maine 

$1.02 

$1.02 

$0.79 

$0.82 

$0.84 

$1.06 

$0.89 

$0.91 

$0.90 

$0.97 

$0.92 

$0.98 

New  Hmpshre 

1.00 

.85 

.80 

.76 

1.00 

1.10 

.92 

.95 

.92 

Vermont 

.96 

.85 

.67 

.69 

.93 

1.04 

.90 

.85 

.78 

.94 

1.09 

.95 

Massachusetts 

.97 

.87 
.85 

.68 

.68 

"m 

1.00 
.90 

.88 
.72 

.95 

.80 

.82 

.77 

New  York 

.76 

.62 

.82 

.79 

.81 

New  Jersey... 

.83 

.70 

.61 

.71 

.89 

.93 

.73 

.75 

.74 

.72 

.76 

.82 

Pennsylvania . 

.81 

.65 

.56 

.65 

.83 

.91 

.68 

.66 

.72 

.72 

.73 

.79 

Delaware 

.75 

.60 

.55 

.64 

.87 

.94 

.69 

.68 

.70 

.71 

.75 

.78 

Maryland 

.74 

.76 

.54 

.64 

.88 

.93 

.70 

.68 

.71 

.71 

.72 

.79 

Virginia 

.76 

.63 

.56 

.65 

.80 

.92 

.66 

.69 

.72 

.73 

.79 

.84 

North  Car'lina 

.89 

.72 

.65 

.72 

.83 

.94 

.78 

.82 

.82 

.82 

.92 

.97 

South  Car'lina 

.93 

.98 

.87 

.88 

.89 

1.18 

.94 

.99 

1.01 

.98 

1.02 

1.01 

Georgia 

.90 

.90 

.76 

.82 

.89 

1.03 

.98 

.98 

.95 

.94 

.98 

.96 

Florida 

Alabama 

.93 

.88 

.78 

.80 

.85 

1,01 

.90 

.89 

.89 

.88 

.93 

.95 

Mississippi 

.90 

.85 

.75 

.61 

.82 

.99 

.83 

.78 

.84 

.86 

.85 

.93 

Louisiana 

Texas 

.75 

,58 

.54 

.66 

.75 

.89 

.68 

.68 

.64 

.78 

.77 

.78 

Arkansas 

.80 

.65 

.55 

.59 

.71 

.84 

.58 

.64 

.65 

.78 

.67 

.78 

Tennessee  .... 

.68 

.57 

.51 

.62 

.74 

.95 

.67 

.78 

.79 

.74 

.76 

.84 

AGRICULTURAL  PRODUCTS—FARM  PRICES. 


143 


Wheat  (per  bushel) 

—Conti 

nucd 

1892. 

1893. 

1894. 

1900.   1? 

©I. 

1902.  19 

$0.82  $0 

States. 

1895. 

1896.    U 

97. 

1898. 

1899. 

):?. 

West  Virginia 

$0.75 

$0.72 

$0.60 

$0.69 

$0.78  $0 

89 

$0.71 

$0.71 

$0.77  $0 

77 

85 

Kentucky 

.67 

.57 

.50 

.61 

76 

89 

.62 

.66 

.69 

72 

.74 

81 

Ohio 

.68 
.67 

.57 
.57 

.49 
.52 

.60 
.60 

78 
84 

88 
87 

.66 
.64 

.64 
.65 

.71 

.69 

71 
71 

.71 

80 

Michigan 

77 

Indiana 

.64 

.53 

.46 

.57 

80 

89 

.63 

.64 

.70 

70 

.68 

78 

.63 
.62 

.51 
.54 

*.45 
.51 

.53 
.51 

74 

70 

89 

84 

.60 
.59 

.63 
.61 

.64 
.64 

69 
65 

.59 
.64 

75 

Wisconsin 

72 

Minnesota 

.61 

.51 

.49 

.44 

68 

77 

.54 

.55 

.63 

60 

.61 

09 

.60 
.58 

.49 

.48 

.50 
.43 

.46 
.51 

62 

70 

75 

85 

.52 
.59 

.55 

.62 

.59 
.63 

80 

69 

.55 

.58 

62 

Missouri 

71 

Kansas 

.52 

.42 

.44 

.45 

63 

74 

.50 

.52 

.55 

59 

.55 

59 

Nebraska 

.50 

.40 

.49 

.40 

58 

69 

.47 

.49 

.53 

54 

.49 

54 

South  Dakota. 

.51 

.44 

.46 

.38 

62 

69 

.50 

.50 

.58 

53 

.51 

62 

North  Dakota. 

.52 

.43 

.43 

.38 

64 

74 

.51 

.51 

.58 

54 

.58 

w 

Montana 

.69 

•60 

.54 

.73 

66 

68 

.58 

.61 

.61 

67 

.62 

66 

Wyoming 

.66 

.65 

.63 

.64 

62 

70 

.69 

.67 

.76 

69 

.81 

71 

Colorado 

.58 

.52 

.65 

.56 

61 

70 

.56 

.57 

.59 

67 

.75 

86 

New  Mexico.. 

.80 

.75 

.88 

.73 

66 

75 

.62 

.61 

.68 

72 

.86 

75 

Arizona 

.78 

.65 

1.00 

.65 

80 

74 

.92 

.64 

.71 

85 

1.05 

93 

Utah 

.62 
.75 

.60 
.73 

.53 
.75 

.44 
.49 

68 
69 

68 
90 

.54 

.95 

.53 
.76 

.55 

.70 

70 

88 

.76 
.98 

8(1 

Nevada 

99 

.60 

.58 

.60 

.48 

.46 
.39 

.47 
.41 

65 

74 

70 
68 

.51 
.54 

.50 
.51 

.46 
.51 

61 
47 

.70 
.65 

75 

Washington. . . 

69 

Oregon 

.64 

.55 

.43 

.47 

72 

72 

.62 

.53 

.55 

M 

.67 

77 

California 

.68 

.53 

.57 

.60 

83 

88 

.72 

.62 

.58 

60 

.80 

87 

.51 

.48 

68 

76 

.52 

.53 

.53 

63 
4 

.58 
.61 

63 

Ind.  Territory. 

89 

United  States 

.624 

.538 

.491 

.509 

.726     .8C 

8 

.582 

.584 

.619     .6S 

.630     .695 

OaU 

(per  bushel). 

States. 

1892. 

1893. 

1894. 

1895. 

1896. 

1897. 

Cts 
32 
38 
32 
33 
34 
34 
27 
30 
27 
23 
26 
29 
37 
45 
42 
53 
43 
44 
38 
27 
33 
28 
30 
27 
20 
23 
19 
18 
19 
19 
16 
19 
18 
15 
18 
26 
33 
35 
32 
41 

1898. 

Cts 
34 
38 
35 
37 
37 
36 
31 
31 
30 
30 
29 
29 
37 
45 
48 
54 
41 
42 
38 
28 
29 
28 
30 
27 
24 
27 
23 
23 
24 
21 
24 
23 

1899. 

Cts 
38 
39 
37 
38 
37 
37 
33 
33 
29 
25 
30 
33 
41 
47 
48 
50 
43 
50 
40 
30 
34 
32 
35 
32 
25 
28 
23 
22 
23 
22 
19 
24 
22 

1900. 

Cts 
38 
38 
36 
38 
38 
35 
32 
31 
30 
30 
31 
37 
45 
48 
49 
50 
44 
46 
40 
30 
35 
35 
34 
31 
26 
26 
23 
23 
23 
24 
20 
23 
23 
24 
24 
32 
42 

1901. 

Cts 
50 
52 
50 
55 
54 
54 
48 
47 
45 
45 
41 
42 
51 
62 
67 
72 
64 
63 
60 
60 
57 
45 
43 
41 
39 
41 
38 
40 
39 
34 
36 
43 
43 
37 
34 
33 
36 

1902. 

1903. 

Cts 
45 
44 
43 
48 
49 
45 
39 
41 
40 
38 
38 
39 
45 
52 
52 
55 
51 
50 
50 
38 
40 
38 
41 
37 
35 
35 
34 
31 
29 
28 
26 
30 
26 
23 
23 
28 
40 
38 
34 
56 

Cts 
45 
43 
42 
42 
43 
40 
30 
35 
35 
38 
35 
35 
44 
53 
52 
55 
51 
47 
44 
42 
39 
41 
38 
34 
30 
32 
28 
27 
27 
26 
23 
25 
27 
22 
25 
28 
37 
40 
37 
51 

Cts 
44 
49 
51 
43 
47 
43 
39 
38 
38 
35 
39 
37 
44 
53 
51 
61 
51 
47 
47 
39 
40 
35 
39 
36 
31 
34 
30 
39 
30 
30 
28 
29 
31 
36 
35 
29 
31 
48 
46 
50 

Cts 
34 
35 
33 
34 
39 
31 
28 
29 
27 
29 
27 
30 
38 
49 
46 
65 
42 
39 
36 
26 
32 
27 
32 
26 
22 
23 
20 
17 
18 
14 
14 
18 
17 
14 
17 
16 
44 
39 
28 
45 

Cts 
31 
35 
31 
35 
31 
31 
26 
28 
24 
21 
23 
26 
35 
48 
41 
53 
41 
44 
34 
34 
31 
26 
28 
24 
17 
19 
16 
15 
17 
15 
12 
17 
16 
11 
13 
18 
31 
53 
30 
40* 

Cts 
45 
44 
43 
45 
43 
41 
36 
39 
34 
42 
38 
42 
51 
59 
53 
61 
55 
51 
50 
49 
41 
42 
41 
36 
32 
33 
28 
28 
30 
27 
25 
28 
30 
25 
29 
27 
36 
50 
51 
68 
75 
47 
70 
48 
49 
41 
51 
34 
37 

Cts 
45 

48 

Vermont 

44 

49 

45 

45 

41 

43 

37 

40 

40 

43 

52 

59 

55 

60 

54 

51 

46 

44 

44 

4?, 

46 

41 

Ohio k 

3ft 

3ft 

391 

39! 

34 

30 

29 

32 

Kansas 

30 

Nebraska 

20 
21 
26 
35 
40 
41 
41 

22 
23 
27 
39 
40 
42 
44 

27 

29 

31 

35 

47 
43 
48 

48 
50 
60 
60 
51 
70 
44 
35 
34 
44 
50 
46 

39.9 

50 

41 

63 

61 

Utah 

40 

33 

34 

30 

39 

33 

38 

40 

44 

49 

68 

Idaho 

37 
35 

37 
40 

41 
35 
37 
38 

32 
31 

28 
44 

29 
28 
27 
39 

30 
40 
33 
44 

32 
35 
35 

49 

36 
40 
40 
50 

38 
38 
41 
47 

40 
40 
41 
46 

45 
38 

Oregon 

California 

44 
54 

34 

Indian  Territory 

35 

31.7 

32.4 

19.9 

18.7 

21.2 

25.5 

24.9 

25.8 

United  States 

29.4 

30.7 

34.1 

144 


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PRICES    OF   ARTICLES    OF   FARM    CONSUMPTION. 


145 


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146 


FREIGHT  i:\ns  <>\    i  \km   products, 


drain,  Chicago  to  New  York,  and  average  rates,  in  cents,  per 

oushd. 

[From  Bulletin  No.  15,  Revised.     Miscellaneous  Series,  of  the  Divi- 
sion of  Statistics.] 


Year. 


1868 
1869 
1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1881  , 
1882, 
1883, 
1884, 
1885, 
1886, 
1887, 
1888. 
1889, 
1890. 
1891  . 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901  . 
1902. 


As  re- 
ported 
by  New 

York 
Produce 

Ex- 
change. 


Wheat. 


Via  lake  and  rail. 


20.76 
18.80 
19.15 
22.38 
21.91 
23.64 
15.20 
12.71 
10.58 
15.08 
11.31 
13.30 
15.70 
10.40 
10.90 
11.5 
9.55 
9.02 
12 
12 
11 

8.70 
8.50 
8.53 
7.55 
8.44 
7 

6.95 
7.32 
7.37 


6.63 
5.05 
5.57 

5.78 


As  re- 
ported 
by  Chi- 
cago 

Board  of 
Trade 


18.80 
19.58 
22.76 
26.25 
21.63 
15.37 
12.09 
10.19 
14.75 
11.99 
13.13 
15.80 
10.49 
10.91 
11.63 
10 
9.02 
12 
12 

11.14 
8.97 
8.52 
8.57 
7.59 
8.48 
7 

6.96 
6.61 
7.42 
4.91 
6.63 
5.10 
5.54 
5.89 
6.37 


Via  all  rail. 


As  re- 
ported 
by  New 

York 
Produce 

Ex- 
change. 


30.49 

26.39 

28.98 

27.75 

29.80 

29.17 

25.81 

20.97 

14.80 

19.37 

17.56 

17.30 

19.90 

14.40 

14.60 

16.5 

13.12 

14 

16.50 

16.33 

14.50 

15 

14.31 

15 

14.23 

14.70 

12.88 

12.17 

12 

12.32 

11.55 

11.13 


As  re- 
ported 
by  Chi- 
cago 
Board  of 
Trade, 


27.09 
26.74 
26.11 
28.47 
31.13 
27.26 
23.61 
20.89 
15.12 
19.56 
17.56 
17.74 
19.80 
14.40 
14.47 
16.20 
13.20 
13.20 
15 

15.75 
14.50 
15 

14.30 
15 

13.80 
14.63 
13.20 
11.89 
12 

12.50 
12 

11.60 
9.96 
9.88 
10.62 
11.29 


Corn. 


Via  lake    Via  all 
and  rail.       rail. 


As  re- 
ported 
by  Chi- 
cago 
Board  of 
Trade. 


17.71 
19.32 
21.24 
23.67 
20.19 
12.48 
11.34 
9.68 
13.42 
10.45 
12.20 
14.43 
9.42 
10.28 
11 

8.50 
8.01 
11.20 
11.20 
10.26 
8.19 
7.32 
7.53 
7.21 
7.97 
6.50 
6.40 
6.15 
6.92 
4.41 
5.83 
4.72 
5.16 
5.51 
5.78 


As  re- 
ported 
by  Chi- 
cogo 
Board  of 
Trade. 


25.28 
24.96 
24.37 
26.57 
29.06 
25.42 
22.03 
19.50 
14.12 
18.03 
16.39 
14.56 
17.48 
13.40 
13.50 
15.12 
12.32 
12.32 
14 

14.70 
13.54 
12.6 
11.36 
14 

12.96 
13.65 
12.32 
10.29 
10.50 
11.43 
9.80 
10.08 
9.19 
9.21 
9.94 
10.54 


Live  stock  and  dressed  meats,  Chicago  to  New  York, 
freight  rates,  in  cents,  per  100  pounds. 


Average 


Cattle. 

Hogs. 

Sheep. 

Horses 
and 

mules. 

Dressed 
beef. 

Dressed  hogs. 

Year. 

Refrig- 
erator 
cars. 

Com- 
mon 
cars. 

1880 

55 
35 
36 
40 
31 
31 
33 
33 
22 
25 
23 
27 
28 
28 
28 
28 
28 
28 
28 
25 
28 
28 
28 
28 

43 
31 
2!) 
32 
28 
26 
30 
32 
26 
30 
28 
30 
28 
20 
30 
30 
30 
30 
30 
25 
30 
30 
30 
30 

65 
61 
53 
50 
44 
43 
42 
40 
31 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
25 
30 
30 
30 
30 

60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 

88 

56 

57 

64 

51 

54 

6t 

62 

46 

47 

39 

45 

45 

45 

45 

45 

45 

45 

45 

40 

45 

42.9 

41.2 

45 

1881 

1882 

1883 

1884 

1885 

1886 

1887 

59 

46 

47 

39 

45 

45 

45 

45 

45 

45 

45 

45 

40 

45 

42.9 

41.2 

45 

64 

1888 

44 
45 
39 

1889 

1890 

1891 

46 

1892 

45 

1893 

45 

1894 

45 

1895 

45 

1896 .% 

1897 

45 
45 

1898 

45 

1899 

40 

1900 

45 

1901 

42.9 

1902 

41.2 

1903 

45 

FREIGHT  RATES  ON  GRAIN,   FLOUR,   AND  PROVISIONS. 


147 


Average  freight  rates  on  grain,  flour,  and  provisions,  in  cents  per 
100  pounds,  through  from  Chicago  to  European  ports,  by  all  rail 
to  seaboard  and  thence  by  steamers,  from  1894  to  1903. 


Shipped  to— 

Articles. 

1894. 

1897. 

1900. 

1903. 

Liverpool 

Do 

32.5 

33.16 

44.06 

34.63 

35.03 

46.59 

32.88 

34.93 

45.75 

46.88 

50 

50 

50 

55.31 

66.56 

55.31 

62.5 

33.6 

36.81 

44.4 

35.23 

39.06 

52.5 

34 

36.12 

48.14 

51.09 

51 

52 

52 

57.28 

68.53 

57.28 

64.13 

29.48 

27.9 

48.84 

30.98 

31.56 

55.31 

31.1 

35.01 

55.87 

51.09 

50 

51 

51 

55.31 

64.5 

55.31 

64.12 

22.68 

Sacked  flour 

Provisions 

25.19 

Do 

41.9 

24.43 

Do 

Sacked  flour 

Provisions 

25.38 

Do 

46.88 

23.56 

Do 

Sacked  flour...... 

Provisions 

do 

25.19 

Do 

44.06 

49.69 

do 

47 

do 

42 

do 

42 

do 

49.69 

do 

52.5 

Stettin 

do 

49.69 

do 

56.25 

Average  annual  freight  rates  from  1870  to  1903. 
[From   Statistical   Abstract.] 


Year. 

Freight  rates  on 
wheat  per  bushel. 

Freight  rates  on  can- 
n  e  d  g  o  o  ds,  per 
cwt.,  from  Pacific 
coast    to    New 
York. 

Chicago 

to  New 

York,  by 

rail. 

Buffalo 
to  New 
York,  by 

canal. 

Less 
than  car- 
loads. 

In  car- 
loads. 

1870 

Cents. 

33.3 

31 

33.5 

33.2 

28.7 

24.1 

16.5 

20.3 

f7.7 

17.3 

19.9 

14.4 

14.6 

16.5 

13.1 

14 

16.5 

15.7 

14.5 

15 

14.3 

15 

14.2 

14.7 

12.9 

12.2 

12 

12.3 

11.6 

11.1 

10.0 

9.9 
.10.6 

11.3 

Cents. 
11.2 
12.6 
13. 
11.4 
10. 
7.9 
6.6 
7.4 
6. 
6.8 
6.5 
4.7 
5.4 
4.9 
4.2 
3.8 
5. 
4.5 
3.4 
4.8 
3.8 
3.5 
3.5 
4.6 
3.2 
2.2 
3.7 
2.8 
2.8 
3 

2.5 
3.5 
3.8 
4 

$3.66 
3.76 
3.74 
3.69 
-       3.78 
3.66 
3.77 
4.06 
4.17 
4.20 
4.20 
2.54 
1.50 
1.50 
1.50 
1.50 
1.18 
1.55 
1.89 
2.30 
2.30 
2.30 
3.30 
2.30 
2.30 
2.30 
1.91 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 

$3.66 
3.76 
3.74 
3.69 
3.78 
3.66 
3.77 
4.06 
4.17 
4.20 
4.20 
2.54 
1.50 
1.50 
1.41 
1.25 
1.01 
1.20 
1.13 
1.06 
1.00 
1.09 
1.05 
1.00 
1.00 
1.00 
.75 
.76 
.75 
.75 
.75 
.75 
.75 
.75 

1871 

1872 

1873  .. 

1874 

1875 

1876 

1877 

1878 

1879 

1880 

1881 

1882 

1883 

1884 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1890 

1901 

1902 

1903 

148  FARM    AND    FACTORY. 


VALUE    OF    THE     FACTORY     TO     THE 
FARMER. 


Practical  and  Statistical  Evidence  that  Manufacturing  Establish- 
ment!* Increase  the  Earnings  of  Farmers  in  the  Section  Where 
Located  and  Advance  the  Permanent  Value  of  Farm  Properties — 
A  Comparison  of  Conditions  in  the  Manufacturing  and  Non- 
manufacturing  .Sections,  Based  Upon  Official  Figures. 

The  table  here  presented  illustrates  by  figures  taken  from 
official  reports  the  value  to  the  farmer  of  the  location  of  manu- 
facturing industries  in  his  immediate  vicinity.  That  the  exist- 
ence of  a  great  manufacturing  industry  in  the  country — an  indus- 
try which  employs  5  million  people  and  pays  wages  and  salaries 
amounting  to  2%  billions  of  dollars  per  anuum — is  of  great 
value  to  the  farming  interests  goes  without  saying,  but  that  the 
location  of  the  factory  in  the  immediate  vicinity  of  the  farm 
adds  to  the  value  of  that  farm  and  to  the  earnings  of  those  who 
own  or  occupy  it  is  also  true. 

Mr.  McKinley  remarked  in  the  House  of  Representatives  in 
the  discussions  of  the  Fiftieth  Congress  that  "the  establishment  of 
a  furnace  or  factory  or  mill  in  any  neighborhood  has  the  effect  at 
once  to  enhance  the'  value  of  all  property  and  all  values  for  miles 
surrounding  it ;"  and  Thomas  B.  Reed,  of  Maine,  inquired, 
"Which  is  it  better  for  the  farmer  to  do — send  his  surplus  a 
thousand  miles  to  the  seacoast,  3,000  miles  across  the  water  and 
sell  it  to  the  mechanic  who  gets  less  wages,  or  sell  it  right  here 
at  home  to  the  mechanic  who  gets  more  wages?"  "Every  farmer 
knows,"  said  Representative  Brewer,  of  Michigan,  in  the  Fiftieth 
Congress,  "that  he  cannot  send  to  foreigners  his  potatoes,  vege- 
tables and  many  other  things  which  he  grows  upon  the  farm 
and  that  he  must  rely  upon  the  home  market  for  the  same,  and 
this  is  why  the  lands  in  rough  and  rocky  New  England  and  sterile 
New  Jersey  are  more  valuable  than  are  fertile  lands  in  Michigan 
and  Minnesota." 

"The  extraordinary  effect,"  said  President  Grant,  in  a  mes- 
sage to  Congress,  "produced  in  our  country  by  a  resort  to  diver- 
sified occupations  has  built  a  market  for  the  products  of  fertile 
lands  destined  for  the  seaboard  and  the  markets  of  the  world. 
The  American  system  of  locating  various  and  extensive  manu- 
factories next  to  the  plow  and  the  pasture  and  adding  connect- 
ing railroads  and  steamboats  has  produced  in  our  distant  in- 
terior country  a  result  noticeable  by  the  intelligent  portions  of 
all  commercial  nations." 

The  table  which  follows,  made  up  from  official  figures,  is  in- 
tended to  illustrate,  in  some  degree,  the  effect  upon  the  farm  and 
its  occupant  of  the  proximity  of  manufacturing  industries.  In 
preparing  this  table  that  part  of  the  United  States  lying  north  of 
the  Potomac  and  Ohio  rivers  and  east  of  the  Mississippi  has  been 
taken  as  the  chief  manufacturing  section  of  the  country,  and  the 
value  of  the  farm  lands  and  farm  products  in  that  section  is 
contrasted  with  that  in  the  other  part  of  the  United  States,  which 
has  comparatively  little  manufacturing  and  may  be  termed  the 
agricultural  but  non-manufacturing  section.  The  portion  of  the 
United  States  designated  as  the  manufacturing  section  in  this 
table  and  discussion,  then,  includes  all  of  the  New  England  and 
Middle  States  and  Maryland,  District  of  Columbia,  Ohio,  Indiana, 
Illinois,  Wisconsin,  and  Michigan.  This  manufacturing  section 
contains,  speaking  in  round  terms,  one-half  (50.9  per  cent)  of 
the  population  of  the  United  States,  while  the  agricultural  but 
non-manufacturing  section,  lying  south  of  the  Potomac  and  Ohio 
rivers  and  west  of  the  Mississippi,  contains  the  other  half  (49.1 
per  cent. )  of  the  population.  In  the  section  north  of  the  Potomac 
and  Ohio  rivers  and  east  of  the  Mississippi  is  produced  77  per 
cent,  of  the  manufactures  of  the  country,  and  in  the  other  section 
23  per  cent.,  as  shown  by  the  reports  of  the  census  of  1900,    Tn§ 


FARM  AND  FACTORY.  149 

section  designated  as  the  manufacturing  section  has  no  advan- 
tage in  soil  or  climate  over  large  portions  of  the  other  section. 

More  than  one-half  of  the  wheat,  two-thirds  of  the  corn,  all  of 
the  cotton,  and  by  far  the  largest  share  of  the  meat  and  wool  sup- 
ply of  the  United  States  are  produced  in  the  agricultural  and 
non-manufacturing  section,  while  more  than  three-fourths  of  the 
manufactures  are  produced  in  the  manufacturing  section,  the  popu- 
lation in  the  two  sections  being  practically  equal. 

This  division  of  the  territory  of  the  United  States  into  these 
two  great  sections — each  containing  one-half  of  the  population, 
the  one  performing  approximately  three-quarters  of  the  manufac- 
turing of  the  United  States  and  the  other  approximately  three- 
fourths  of  the  agricultural  industry  of  the  country— gives  an  op- 
portunity for  a  broad,  intelligent  and  absolutely  fair  study  of 
the  effect  of  the  proximity  of  the  factory  upon  the  farmer  as 
relates  to  the  value  of  his  property  and  its  annua*  production 
and  of  his  own  earning  power  as  an  individual.  It  will  be 
seen  by  a  study  of  the  table  that  the  average  value  per  acre  6f 
all  farm  lands  in  the  manufacturing  section  in  1900  was,  ac- 
cording to  the  census,  $24.  per  acre,  and  in  the  non-manufactur- 
ing section,  $12  per  acre ;  and  the  average  value  of  lands  and 
buildings  in  the  manufacturing  section,  $32  per  acre,  and  in  the 
non-manufacturing  section,  less  than  $15  per  acre ;  while  the  value 
per  acre  of  improved  land  only,  including  buildings,  was,  in  the 
manufacturing  section,  $58  per  acre,  and  in  the  other  section  but 
$31.  The  average  value  of  buildings,  which  represent  in  some 
degree  the  savings  of  the  farmer,  was  in  the  manufacturing  sec- 
tion, $15  per  improved  acre  and  in  the  non-manufacturing  sec- 
tion $5.50  per  improved  acre,  while  of  implements  used  upon  the 
farms  the  value  per  improved  acre  in  the  manufacturing  sec- 
tion was  nearly  twice  as  great  as  in  the  non-manufacturing  sec- 
tion. Coming  to  the  value  of  farm  products,  the  average  value 
per  improved  acre  in  the  manufacturing  section  was  $141,  and  in 
the  non-manufacturing  section  $101.  The  average  value  per  head 
of  milch  cows  in  the  manufacturing  section  was  $33,  and  in  the 
other  section  $27.  The  average  value  per  head  of  horses  in  the 
manufacturing  section  was  $60,  and  in  the  non-manufacturing 
section  $43,  and  the  average  value  of  farm  products  per  person 
engaged  was,  in  the  manufacturing  section,  $619,  and  in  the  non- 
manufacturing  section,  $394. 

Thus  in  all  of  these  evidences  of  prosperity,  earnings,  value 
of  property,  etc.,  the  condition  of  the  farmer  in  the  manufactur- 
ing section  was,  according  to  the  figures  of  the  last  census,  much 
higher  than  that  in  the  non-manufacturing  section,  despite  the  fact 
that  the  non-manufacturing  section  has  soil,  climate,  lands,  and 
producing  power  quite  as  favorable  and  in  many  cases  more 
favorable  than  those  of  the  manufacturing  section.  In  the  great 
and  final  measure  of  relative  prosperity  of  the  farmer  in  the  two 
sections,  as  indicated  by  the  item  "Average  value  of  farm  prod- 
uts  per  person  engaged,"  the  earnings  of  the  farmer  in  the  manu- 
facturing section  are  57  per  cent,  greater  than  those  in  the  non- 
manufacturing  section  whose  soil,  climate,  etc.,  and  producing 
capacity  certainly  equal,  if  they  do  not  surpass  as  a  whole,  those 
of  the  manufacturing  section  as  a  whole. 

Another  measure  of  the  relative  prosperity  of  the  people  of 
the  two  sections  is  found  in  the  deposits  in  savings  banks,  in 
which  the  per  capita  in  the  manufacturing  section  is  $57,  and  in 
the  non-manufacturing  section  less  than  $7,  while  of  deposits  in  all 
banks  the  per  capita  in  the  manufacturing  section  is  $153  and  in 
the  other  section  $37.  The  assessed  value  of  real  and  personal 
property,  that  measure  of  accumulations  and  permanent  pros- 
perity, is,  in  the  manufacturing  section,  $606  per  capita  and  in  the 
non-manufacturing  section  $278  per  capita,  while  in  other  evi- 
dences of  prosperity,  such  as  salaries  paid  to  teachers  in  public 
schools,  newspapers  circulated,  etc.,  the  per  capita  is  also  greatly 
in  favor  of  the  manufacturing  section. 

This  table  is  compiled  in  every  particular  from  official  sta- 
tistics, chiefly  those  of  the  census  of  1900,  though  in  a  few  in- 
stances those  of"  the  Department  of  Agriculture,  where  the  latter 
could  be  utilized  to  obtain  data  for  a  later  year  than  the  census. 

Attention  is  called  to  the  map  of  the  United  States  on  the 
cover  of  this  volume,  which  indicates  the  two  sections  here  dis- 
cussed and  some  of  the  countries  presented. 


150 


FARM    AN!)   FACTORY. 


Relative  conditions  of  prosperity  in   the  manufitctiirinu  and  von- 

inanufiuturiny  sections  of  the   t'nitcd  States,   respect irely* 

[From  Census  of  1900.1 


MTeSrinK    Other  State». 


Per  cent  of  total  population  of  United  States. . 

Per  cent  of  total  area  of  United  States 

Gross  value  of  manufactures  in  1900 

Per  cent  of  total  manufactures  produced  in 
section 

Salaries  and  wages  paid  in  manufactures  in  1900, 

Number  of  persons  employed  in  manufactures 
1900 

Average  value  per  acre  of  all  farm  lands 

Average  value  per  acre  of  all  lands  and  buildings. 

Average  value  per  acre  of  land  (improved 
only)  and  buildings 

Average  value  of  buildings  per  improved  acre. . 

Average  value  of  implements  owned  per  im- 
proved acre 

Average  value  per  head  of  milch  cows 

Average  value  per  head  of  horses 

Average  value  of  all  farm  products,  per  im- 
proved acre 

Average  value  of  farm  products  per  person 
engaged 

Deposits  in  savings  banks,  total 

Deposits  in  savings  banks,  per  capita 

Deposits  in  all  banks,  total 

Deposits  in  all  banks,  per  capita 

Bank  clearings,  total 

Bank  clearings,  average  per  capita 

Banking  resources,  total 

Banking  resources,  average  per  capita 

Real  and  personal  property,  assessed  valuation 

Real  and  personal  property,  per  capita 

Salaries  paid  teachers  in  public  schools 

Newspapers  published,  number 

Newspapers,  aggregate  circulation 


50.9 

49.1 

14.1 

85.9 

$10,021,718,461- 

$2,988,318,053 

77 

23 

$2,194,936,683 

$536,471,656 

4.437.714 

1,273,917 

$24.07 

$12.78 

$32.50 

$14.85 

$58.60 

$31.65 

$15.25 

$5.54 

$2.54 

$1.47 

$33.62 

$27.46 

$60.87 

$43.32 

$141.00 

$101.40 

$619.25 

$394.50 

$2,200,439,838 

$249,108,047 

$56.90 

$6.67 

$5,949,984,845 

$1,384,666,395 

$153.80 

*37.10 

$76,356,970,422 

$8,225,479,659 

$1,973.50 

$220.40 

$8,613,200,000 

$2,167,500,000 

$222.65 

$58.10 

$23,445,809,898 

$10,388,667,238 

$606.25 

$278.50 

$85,234,961 

$52,452,785 

9,151 

9,075 

6,168,125,616 

2,000,023.133 

♦Manufacturing  section  includes  area  north  of  the  Potomac 
and  Ohio  and  east  of  the  Mississippi,  viz.,  the  New  England  and 
Middle  States,  and  Maryland,  District  of  Columbia,  Ohio,  Indiana, 
Illinois,  Michigan,  and  Wisconsin. 

PROGRESS  IN  flANUFACTURINQ  IN  THE  UNITED  STATES. 

The  following  table  shows  the  gross  value  of  manufactures  in 
the  United  States  at  each  census  year  since  1850: 

1850 $1,019,106,616 

1860 1,885,861,676 

1870 4,232,325,442 

1880 / 5,369,579,191 

1890 .* 9,372,437,283 

1900 13,039,279,566 

Divided  into  principal  groups,  the  showing  for  1900  is : 

1.  Food  and  kindred  products $2,272,702,010 

2.  Iron  and  steel,  and  their  products. .     1,793,490,908 

Textiles   1,637,484,484 

Hand  trades 1,183,615,478 

Lumber  and  its  manufactures 1,030,906,579 

Miscellaneous  industries    1,004,092,294 


Metals,  other  than  iron  and  steel . .        748,795,464 

Paper  and  printing 606,317,768 

Leather  and  its  finished  products.  .        583,731,046 

10.  Chemicals  and  allied  products 552,891,877 

11.  Vehicles  for  land  transportation...        508,649,129 

12.  Liquors  and  beverages 425,504,167 

13.  Clay,  glass  and  stone  products....        293,564,235 

14.  Tobacco   283,076,546 

15.  Shipbuilding    74,578,158 

This  grand  result  gave  employment  to  5,316,802  wage  earners 

earning  $2,328,691,254;  307,174  officials  and  clerks  earning  $404,- 

230,274  in  512,734  establishments. 

Conservatively  estimating  the  increase  in  all  lines  for  the  three 

years  since  1900  and  bearing  in  mind  the  immense  immigration  of 

each  year  we  can  safely  assume  our  present  industrial  position 

to  be: 

Establishments 600,000 

Workers  and  officials 7,000,000 

Yearly  wages  and  salaries $3,750,000,000 

Yearly  product $15,000,000,000 

Wealth   $100,000,000,000 


SHEEP   AND   WOOL   INDUSTRY.  151 


THE  SHEEP  AND  WOOL  INDUSTRY. 


Some  Figures  on  the  Losses  Under  Free  Trade  in  Wool. 

The  losses  to  the  sheep  and  wool  producers  of  the  country 
through  the  Wilson-Gorman  tariff  law  which  placed  wool  on  the 
free  list  are  well  remembered  in  general  terms,  but  the  actual 
figures  regarding  the  fall  in  the  value  of  sheep  and  the  reduction 
in  the  number  of  sheep  and  the  wool  produced  are  such  as  to 
justify  presentation.  The  figures  of  the  Department  of  Agricul- 
ture show  that  the  number  of  sheep  in  the  United  States  on 
January  1,  1893,  two  months  after  the  election  of  President  Cleve- 
land, was  47,273,553,  and  their  value  $125,909,254.  The  same 
authority,  the  Department  of  Agriculture,  operating  under  a 
Democratic  Administration,  showed  on  Jan.  1,  1896,  the  closing 
year  of  President  Cleveland's  term,  30,818,643  sheep  in  the  United 
States  and  their  value  $67,020,942.  Here  is  a  decrease  of  more 
than  10  millions,  or  nearly  25  per  cent  in  the  number  of  sheep  and 
a  decrease  of  58  million  dollars,  or  nearly  50  per  cent  in  their 
value  during  President  Cleveland's  term,  under  which  wool  was 
placed  on  the  free  list.  By  January  1,  1903,  the  number  of 
sheep  had  reached  63,964,876,  and  the  value  $168,315,750,  an  in- 
crease of  practically  75  per  cent  in  the  number,  and  150  per  cent 
in  the  value  of  the  sheep  in  the  country.  This,  however,  is  not 
all  of  the  loss  to  the  farmer — a  loss  of  nearly  60  million  dollars 
in  the  value  of  sheep  alone.  There  was  also  a  great  loss  in  wool. 
The  quantity  of  wool  produced  in  1893  was  303  million  pounds 
and  by  1895  had  fallen  to  209  million  pounds  and  did  not  again 
reach  the  300  million  line  until  1901,  when  it  was  302  millions, 
and  in  1902,  316  millions.  Here  was  a  reduction  of  practically 
one-third  in  the  quantity  of  wool  produced  in  1895  as  compared 
with  1893.  But  even  this  does  not  .measure  the  loss,  since  the 
value  per  pound  of  the  reduced  production  was  far  below  that  of 
prior  years.  Wool  price  quotations  published  by  the  Bureau  of 
Statistics  show  that  grades  of  wool  which  sold  at  35  cents  per 
pound  in  1891  had  fallen  to  19  cents  per  pound  in  1896  and  by 

1901  were  again  above  the  price  of  30  cents  per  pound.  A  care- 
ful estimate  of  the  value  of  the  wool  product  of  the  United  States 
made  by  an  eminent  authority  on  the  subject  puts  the  total  value 
of  the  wool  product  of  the  country  in  1892  at  79  million  dollars, 
and  in  1896  at  32%  millions,  a  loss  of  46%  millions.  Adding  this 
loss  in  wool  to  the  58  million  dollars  loss  in  value  of  sheep,  above 
quoted,  gives  a  grand  total  of  the  loss  to  the  farmer  in  the  value 
of  sheep  and  wool  of  over  100  million  dollars  for  a  single  year 
for  which  this  calculation  is  made,  or  approximately  400  million 
dollars  for  the  four  years  of  the  Cleveland  Administration.    In 

1902  the  value  of  wool  was  estimated  by  experts  at  $65,000,000, 
or  double  that  of  1896. 


Effect  of  Protection  and  Free  Trade  in  Regard  to  Sheep. 

[Extracts  from  remarks  of  Hon.  C.  H.  Grosvenor  of  Ohio-,  in  daily 
Congressional  Record,  June  7,  1900.] 

The  official  reports  of  the  United  States  Government  upon  the 
subject  of  sheep  raising  and  sheep  values,  which  I  will  present, 
teach  a  wonderful  lesson. 

From  1878  to  1882,  inclusive,  the  Morrill  tariff  (protection) 
was  in  force,  and  the  number  of  sheep  throughout  the  country 
increased  by  over  11,000,000  during  this  period. 

The  tariff  of  1883  was  in  force  from  1883  to  1889,  inclusive. 
The  duties  imposed  by  this  tariff  upon  raw  wool  amounted  to  no 
more  than  a  revenue  tariff  on  yarns  and  some  other  goods  pro- 
duced from  wool ;  consequently  the  result  of  this  tariff  as  a  whole 
was  not  protective.  Under  its  operation  the  number  of  sheep 
throughout  the  United  States  decreased  by  about  6,000,000. 

The  McKinley  tariff,  passed  in  1890,  was  a  scientific  tariff  as 
applied  to  wool  growing,  with  the  result  that  the  number  of 
sheep  throughout  the  country  increased  by  nearly  4,000,000  be- 
fore the  free-trade  election  of  1892. 


152 


SHEEP    AND    Wool.    I NIHNTKY. 


The  Wilson  tariff,  with  free  trade  la  wool,  practically  wont 
into  effect  when  Mr.  Cleveland  was  elected,  and  Immediately  the 
Hocks  throughout  the  country  began  to  decrease,  and  from  1883 
to  1896  decreased  by  abou4  9,000,000. 

The  Dingley  tariff  reimposed  the  scientific  schedules  of  the 
McKinley  tariff,  and  with  the  promise  of  protection  through  the 
election  of  William  McKinley  and  a  Republican  Congress  the 
sheep  raising  industry  immediately  began  to  prosper.  From  J896 
to  and  including  #00  the  number  of  sheep  increased  by  1,042,411. 

The  effect  of  protection  and  free  trade  in  regard  to  the  number 
of  sheep  owned  throughout  the  country  is  not  more  Impressive 
than  the  effect  as  to  value.  Under  the  Morrill  tariff  the  lowest 
price  per  head  was  $2.09  and  the  highest  $2.55.  Under  the  tariff 
of  1883  the  lowest  price  per  head  was  $1.91  and  the  highest  price 
was  $2.27.  Under  the  McKinley  tariff  the  lowest  price  was  $2.49 
and  the  highest  price  $2.6G.  Under  free  trade  the  lowest  price  was 
$1.58  and  the  highest  price  $1.92.  Under  the  Dingley  tariff  the 
lowest  price  was  $2.75  per  head,  and  now  the  value  has  advanced 
to  $3.90  per  head,  the  highest  average  price  in  the  history  of  the 
nation. 

Report  of  the  United  States  Government  on  sheep  raising  from 
1878  to  1898,  inclusive,  and  report  for  1900,  based  upon  the 
sheep-raising  census  of  the  American  Protective  Tariff  League. 


Year. 

Number 
of  sheep. 

Average 

price 
per  head. 

Total 
value. 

The  Morrill  tariff: 

1878 

38,123,800 
40,765.900 
43,576,899 
45,016.224 
49.237,291 

50.626,626 
50.360.243 
48.322,331 
44,759,314 
43,544,755 
42,599.079 
44,336.072 

43.431.136 
44.938,365 
47,273,553 

45,048,017 
42,294.064 
38,298,783 
36.818.643 

37.656,960 
39.114,453 

$2.09 
2.21 
2.39 
2.37 
2.52 

1.37 
2.14 
1.91 
2.01 
2.05 
2.13 
2.27 

2.49 
2.58 
2.66 

1.98 
1.58 
1.70 
1.82 

2.46 

2.75 

$79  023  984 

1879 

90,230.537 

1880 

104,070.759 

1881 

106,594.954 

1882 

124,365.835 

The  tariff  of  1883: 

1883 

119,902,706 

1884 

107  960  650 

1885 

92,443,867 

1886 

89  872  839 

1887 

89  279  926 

1888 

90,640,369 

1889 

100,659,761 

The  McKinley  tariff: 

1890 

108,397,447 

1891 

116,121  290 

1892 

125,909.264 

The  Wilson  tariff,  free  trade  in  wool. 

1893 

89,186,110 

1894 

66,685,767 

1895 

65.167,735 

1896 

67,020,942 

The  Dingley  tariff: 

1897. . .                                   

92  721  133 

1898 

107,697.530 

1899  a 

1900 

63,121,881 

3.90 

246,175,335 

a  United  States  Government  report  for  1899  not  yet  published. 

In  1890  we  had  arrived  at  the  lowest  stage  of  the  wool-growing 
industry  since  the  rebellion,  and  possessed  30,818,043  sheep,  which, 
under  the  fostering  care  of  protection,  were  increased  to  03,121,881. 

The  value  of  our  sheep  in  1890  was  $07,020,942,  and  under  the 
fostering  care  of  protection  has  reached  the  enormous  value  of 
$240,175,335.  In  the  history  of  industrial  and  economic  condi- 
tions of  the  world  no  more  wonderful  result  can  be  shown. 

Over  $664,000,000  Loss  in  Two  Years  In  Live  Stock. 


[Extract  from  remarks  of  Hon.  Francis  E.  Warren,  of  Wyoming, 
in  the  Senate  of  the  United  States,  and  printed  in  the  daily  Con- 
gressional Record,  January  23,  1896.] 


LXVE  STOCK  TABLE. 

A  comparison  between  Republican  and  Democratic  Adminis- 
trations as  shown  by  the  values  of  domestic  animals,  horses',  mules, 
cattle,  sheep,  and  swine: 

When  we. resumed  specie  payment  in  1879  our  domes- 
tic animals,  horses,  mules,  cattle,  sheep,  and  swine 
were  valued   at $1,445,423,062 


SHEEP   AND   WOOL   INDUSTRY.  153 

During  the  ensuing  six  years,    until   the  election   of 

Mr.  Cleveland  in  1884,  the  values  increased  to....       2,467,868,924 

A  gain  during  six  years  of  Republican  rule  of  .  .       1,022,445,862 

I     During  the  ensuing  four  years,  until  the  election  of 

Mr.   Harrison  in   1888,   values   decreased   from 2,467,868,924 

To   2,409,043,418 

A  loss  during  four  years  of  Democratic  rule  of.  .  58,825,506 

During  the  ensuing  four  years,  until  the  second  elec- 
tion of  Mr.  Cleveland  in  1892,  values  again  in- 
creased from    2,409,043,418 

To 2,461,755,698 

A  gain  during  four  years  of  Republican  rule  of.  .  52,712,280 

During  the  last  two  years,  under  the  second  adminis- 
tration of  Mr.  Cleveland  and  under  proposed  and 
accomplished  free  trade  and  sweeping  tariff  reduc- 
tions,  values   again   decreased    from    2,483,506,681 

To  the  comparatively  insignificant  total  of 1,819,446,306 

Showing    the    enormous    loss    in    two    years    of 
Democratic  rule  of   664,060,375 

Mr.  President,  over  $664,000,000  loss  in  two  years  in  live  stock ! 
Do  the  American  people  comprehend  this?  That  their  losses  in 
live  stock  alone  have  been  $1,100,000  for  every  working  day  during 
the  past  two  years?  And  this,  too,  in  these  piping  times  of  boasted 
plenty,  prosperity,  and  pugnacity — toward  England ! 


CLASSIFIED    TABLE. 


Mr.  President,  I  will  give  the  classified  shrinkages  for  the  last 
one  year  quoted  as  to  both  numbers  and  values.  All  classes  shrank 
except  milch  cows. 


Number. 

Value. 

17.229 

187.821 

19.123 

2,243,952 

1,040.782 

$3,603,068 
192,494,219 
35.304,977 
53,790,618 
50,883,359 

Mules  shrank .'. 

Oxen  and  other  cattle  shrank 

S  wine  shrank 

But  it  remained  for  sheep  to  show  the  most  disastrous  shrink- 
age in  both  numbers  and  value,  and  to  mark  most  plainly  the  poi- 
sonous effect  of  an  un-Republican  policy. 

SHEEP   TABLE. 

In    1884,    under   Republican   policy,    our    sheep    were         1 

50,626,626   in   numbers   and   of  the  value   of    $119,902,706 

Under  the  influences  of  the  threatened  Mills  bill  they 
s'hrank  to  42,599,079  in  numbers  and  to  the  value 
Of    90,640,369 


A  shrinkage  of  8,027,547   head   and  in  value....  29,262,337 


From  the  lowest  point  recorded  under  the  Mills  bill 
fright  up  to  1893,  under  Republican  guardianship, 
sheep    increased    to    47,273,553    in   numbers    and    to 

the    value    of 125,909,264 

An  increase  of  4,674,474  head  and  an  increase  in 
value    of    35,268,895 


But  again  upon  Mr.  Cleveland's  second  election  we 
turn  backward  and  downward  as  usual  under  the 
blighting,  withering  influence  of  a  wrong  policy, 
and    in    two    years    sheep    decreased    to    42,294,064 

head,    of  the  value    of 66,685,767 

A  loss  of  4,979,489  head  and  a  loss  in  value  of.  .  59,223,497 

A  shrinkage  in  two  short  years  of  nearly  one-half! 

THE  OTHER   SIDE  OF  THE  LEDGER. 

Now,  to  exhibit  the  other  side  of  the  ledger.  Here  is  a  statis- 
tical table  (I  ask  to  have  it  incorporated  in  my  remarks)  which 
shows  our  importation  of  wool  has  increased  to  nearly  triple,  not 
in  two  years  nor  three  years,  but  in  the  first  ten  months  of  this, 
present  year,  ended  October  31,  1895, 


154 


SHEEP    AND   WOOL    INDUSTRY. 


Imports  of  tvool  (in  pounds). 


Ten  months  ending  October— 

1894. 

1895. 

Class  1 

K,  807.462 

8,841.422 

54,574.386 

113  672  709 

Class  2 

I6,7:n,9h5 

80,052,544 

Class  3 

Total 

83,223,270 

811,057.388 

1,081.441 

17,824.008 

Wool  production,  imports,  consumption,  and  manufacture  in  the 
United  States;  also  price  of  wool  and  value  of  sheep  on  farms, 
1875  to  1900. 

[From  the  Statistical  Abstract  of  the  United  States,  1903.] 


4 

Value  of  imports 

ilu 

Sheep  on  farms 

=•, 

*i 

of  wool,  and  man- 

£•" ft 

in  the  United 

=s! 

*.  o 

ufactures  of. 

°*  P-ri 

States.:): 

cS 

Produc- 
tion. 

Imports. 

1  o 

u  ft 
»  s 

■ 

Price  of 

washed  ck 

Ohio  fleec 

poun 

5" 

Wool, 
raw. 

Manufac- 
tures of 
wool. 

Number. 

Value. 

Pounds. 

Pounds. 

Dollars. 

Dollars. 

Cents. 

Dollars. 

1875.... 

181,000,000 

54,901,760 

22.1 

11,071,259 

44,609,704 

48 

33.783,600 

94,320,652 

1876.... 

192,000,000 

44,642.836 

18.3 

8,247,617 

33,209,800 

45 

35,935,300 

93,666,318 

1877.... 

200,000,000 

42,171,192 

19  3 

7.156,944 

25,701.922 

48 

35.804,200 

80  892.683 

1878.... 

208,250,000 

48,449,079 

16.9 

8,363,015 

25.230,154 

35 

35,740,500 

80,603,062 

1879.... 

211,000,000 

89,005,155 

14.2 

5,034,545 

24.355,821 

41 

38,123,800 

79,023,984 

1880.... 

232,500,000 

128,131.747 

84.9 

23,727,650 

33,911,093 

46 

40,765,900 

90,230,537 

1881.... 

240,000,0011 

55,964,236 

17.3 

9,703,968 

31,156,426 

43 

43,569,899 

104,070,759 

1882.... 

272,000,000 

67,861,744 

19.0 

11  096,050 

37,361,520 

42 

45,016,224 

106,595,954 

1883.... 

290,000,000 

70,575,478 

18.7 

10,919,331 

44,274,952 

39 

49,237,291 

124,366,335 

1884.... 

300,000,090 

78,350,651 

20.6 

12,384,709 

41,151,583 

35 

50,626,626 

119,902,706 

1885.... 

308,0" 0,000 

70,596,170 

18.0 

8,879,923 

35,776,559 

33 

50,360,243 

107,960,650 

1886.... 

302,000,000 

129,084,958 

28.9 

16,746,081 

41,421,319 

35 

48,322,331 

92,443,867 

1887.... 

285.00k.00C 

114,038,030 

27.4 

16.424.479 

44,902,718 

32 

44,759,314 

89.872,839 

1888.... 

269,000,000 

113,558,753 

28.9 

15.887,217 

47,719,393 

31 

44,544,755 

89,279,1)26 

1889.... 

265,000,900 

126.487,729 

31.8 

17,974,515 

52,564,942 

33 

42,599,079 

90,640,369 

1890.... 

276.000,000 

105,431.285 

27.0 

15,264,083 

56.582,432 

33 

44,336,072 

100,659,761 

1891.... 

285.000,090 

129,303,648 

30.8 

18,231,372 

41,060,080 

31 

43,421,136 

108,397.440 

1892.... 

294,000,00( 

148,670,652 

33.1 

19,688,108 

35,565,879 

29 

44,938,365 

116,121,290 

1893.... 

303,153,00( 

172,433,838 

35.7 

21.064,180 

38,048,515 

23 

47.273,553 

125,909  260 

1894  §.. 

298,057,384 

55,152,585 

14.2 

6,107,438 

19,439,372 

19 

45,048,017 

89,186,110 

1895  §.. 

809.748.00C 

206,033,906 

40.0 

25,556,421 

38,539,89( 

18 

42,294,064 

66,685,767 

1896  §.. 

272,474,708 

230.911,473 

45.9 

32,451,242 

53,494,400 

18 

38,298,783 

65.167.735 

1897  §.. 

259,153.251 

350,852,026 

57.8 

53,243,191 

49,162,992 

27 

36,818,643 

67,020,042 

1898.... 

266,7^0,68^ 

132,795,202 

32.8 

16,783,692 

14,823.771 

28y2 

37,656,960 

92.721,133 

1899.... 

272.191.330 

76,736,209 

19.2 

8,322,897 

13,832,621 

81 

39,114,453 

U'7,607,530 

1900.... 

288,636,621 

155,928,455 

34.4 

20,260,936 

16,164,446 

26M, 

59,756,718 

178,072,476 

1901.... 

302.502.328 

103,583.505 

24.9 

12,529,881 

14,583,306 

25 

62,039,091 

164,446,091 

1902.... 

316.341.032 

1*56.576,966 

34.1 

17,711,788 

17,384,463 

28 

63,964,876 

168,315,750 

1903.... 

287.450,000 

177,137,796 

37.8 

22,152,961 

19,546,385 

32 

51,630,144 

133,530,099 

|On  October  1  of  each  year. 

$On  January  1  of  year  named. 

§Democratic  and  low   tariff   years. 

Note.— The  importations  of  wool  and  woolen  goods  in  the  fiscal 
year  1894  were  held  back  to  obtain  the  reduction  in  duties  by  the 
Wilson  act,  then  pending-,  and  which  went  into  effect  August 
28,  1894. 


The  rich  manifestations  of  our  commercial  power,  our  military 
und  naval  strength,  great  and  splendid  as  they  are,  are  not  to  be 
counted  when  compared  with  the  moral  and  Intellectual  grandeur 
of  our  people. — Hon.  C.  W.  Fairbanks,  at  Baldwin,  Kas.,  June  7, 
1901. 

It  is,  of  course,  a  mere  truism  that  we  -want  to  use  everything 
in  our  power  to  foster  the  welfare  of  our  entire  body  politic.  In 
other  words,  we  need  to  treat  the  tarift*  as  a  business  proposition, 
from  the  standpoint  of  the  interest  of  the  country  as  a  whole,  and 
not  with  reference  to  the  temporary  needs  of  any  political  party.— 
President  Roosevelt  at  Minneapolis,  April  4,  1903. 


BEET   SUGAR.  155 


BEET  SUGAR. 

'he  fact  that  about  a  hundred  million  dollars'  worth  of  sugar 
is  brought  from  abroad  each  year  to  meet  the  demands  of  the 
people  of  the  United  States,  coupled  with  the  belief  that  the 
production  of  this  great  sugar  supply  by  our  farmers  is  possible, 
renders  proper  a  careful  consideration  of  the  effect  of  the  recent 
legislation  by  which  sugar  from  Porto  Rico  and  the  Hawaiian 
Islands  is  admitted  free  of  duty,  that  from  the  Philippines  at 
25  per  cent  below,  and  that  from  Cuba  at  20  per  cent  below  the 
regular  tariff  rates.  Will  the  absolute  removal  of  all  duty  un 
sugar  from  Porto  Rico  and  the  Hawaiian  Islands  and  the  reduc- 
tion of  25  per  cent,  on  sugar  from  the  Philippines  and  20  per  cent, 
on  that  from  Cuba  destroy  the  beet-sugar  industry  in  the  United 
States  or  work  to  its  disadvantage?  While  it  is  a  fact  that  the  an- 
nexation of  Hawaii  and  its  organization  as  a  Territory  and  cus- 
toms district  of  the  United  States  removed  permanently  all  tariff 
on  merchandise  from  those  islands  or  passing  into  them  from  the 
United  States,  that  fact  made  no  change  in  the  rates  of  duty  on 
sugar  from  the  islands,  its  only  effect  being  to  render  absolutely 
permanent  the  conditions  which  had  existed  ever  since  the  treaty 
of  1876,  by  which  sugar  from  the  Hawaiian  Islands  was  admit- 
ted free  on  agreement  that  products  of  the  United  States  should 
be  admitted  into  the  Hawaiian  Islands  free  of  duty,  and  that 
condition  continued  down  to  the  annexation  of  Hawaii,  when 
it  was  made  permanent,  as  above  indicated.  *  In  the  case  of 
Porto  Rico  all  of  the  duty  except  15  per  cent,  was  removed  by 
the  act  establishing  the  government  for  Porto  Rico,  and  the  re- 
mainder of  that  duty  disappeared  ns  soon  as  tie  Porto  Rican 
government  announced  its  ability  to  provide  its  own  revenues. 
The  reduction  of  25  per  cent  in  the  rates  of  duty  on  merchandise 
from  the  Philippine  Islands  occurred  March  8,  1902. 

EFFECT   ON   THE    HOME   PRODUCES. 

All  of  these  removals  of  duty  on  sugar  from  our  own  possessions 
have  been  in  force  a  sufficient  length  of  time  to  give  opportunity  to 
test  their  effect  upon  domestic  sugar  production.  The  quantity 
of  sugar  imported  from  Porto  Rico  increased  from  86,607,317 
pounds  in  the  fiscal  year  1897  to  201,247,040  pounds  in  the  calen- 
dar year  1903.  The  sugar  imports  from  the  Hawaiian  Islands 
have  increased  from  431,196,980  pounds  in  1897  to  858,268,351 
pounds  in  the  calendar  year  1903 ;  and  those  from  the  Philippine 
Islands  decreased  from  72,463,577  pounds  in  the  fiscal  year  1897 
to  65,348,247  pounds  in  the  calendar  year  1903— the  reduction  in 
imports  of  sugar  being,  of  course,  due  to  the  destruction  of  plan- 
tations and  machinery  during  the  war.  Thus  the  quantity  of 
sugar  imported  from  Porto  Rico,  Hawaii,  and  the  Philippine 
Islands  in  1903  was  practically  double  that  of  1897.  The  entire 
quantity  of  sugar  brought  into  the  United  States  in  the  calendar 
year  1903  amounted  to  4,388,388.809  pounds.  Of  this  total  im- 
portation, 1,059,515,391  pounds  came  from  Porto  Rico  and  the 
Hawaiian  Islands,  and  was  absolutely  free  of  duty,  and  this 
formed  24.5  per  cent,  or  practically  one-fourth,  of  the  total; 
while  that  from  the  Philippine  Islands,  which  amounted  to 
65,348,247  pounds,  came  in  with  a  reduction  of  25  per  cent,  of 
the  regular  duty  and  formed  about  1%  per  cent,  of  the  total. 
Thus  practically  one-fourth  of  the  sugar  coming  into  the  United 
States  in  1903  was  admitted  absolutely  free  of  duty  from  the 
Hawaiian  Islands  and  Porto  Rico.  In  1897  the  amount  which 
came  in  free  of  duty  from  the  Hawaiian  Islands  was  431,196,980 
pounds,  and  this  formed  8.9  per  cent,  of  the  total  sugar  importa- 
tion of  that  year. 

INCREASE    OF    BEET    SUGAR    PRODUCTION    SINCE    THE    ANNEXATION    OF 
HAWAII  AND   PORTO   RICO. 

Here,  then,  -is  a  fair  basis  upon  which  to  determine  the 
effect  of  the  importation  of  sugar  from  our  own  pos- 
sessions free  of  duty.  In  1897  practically  9  per  cent,  of  the  sugar 
imported  came  in  free  of  duty.     In  1903  practically  25  per  cent. 


15(5  B  'I'    SUGAR. 

ctBM  in  free  of  duty,  if  such  free  importation  wore  likely  to 
affect  disadvantagoously  beet  sugar  production  at  home,  an  in- 
crease from  9  per  cent,  to  25  per  cent,  in  the  importations  of  free 
sugar  would  doubtless  have  made  itself  apparent  by  a  reduction 
in  the  sugar  production  of  the  United  States.  But  let  us  see  what 
the  beet  sugar  production  of  the  country  was  in  the  two  years 
in  question— 1897,  when  9  per  cent,  of  the  sugar  was  imported 
free,  and  1903  when  25  per  cent  was  imported  free.  The  reports 
of  the  Department  of  Agriculture  and  Bureau  of  Statistics  show 
that  the  beet  sugar  produced  in  the  United  States  amounted  in 
1897  to  88,892,160  pounds.  By  1899  it  had  increased  to  141,230,160 
pounds;  by  1901  to  279,682,160  pounds;  and  in  1908  was  .154,541,120 
pounds.  Here,  then,  is  an  increase  of  524  per  cent,  in  the  beet 
sugar  production  of  the  United  States  during  the  very  period 
in  which  free  importation  of  sugar  from  Porto  Rico  was  estab- 
lished and  that  from  Hawaii  made  absolutely  permanent  by  an- 
nexation and  its  establishment  as  a  customs  district  of  the  United 
States,  and  in  which  period  the  quantity  of  sugar  imported  free 
of  duty  increased  150  per  cent.  If  an  increase  of  150  per  cent 
in  the  quantity  of  sugar  imported  free  of  duty,  coupled  with  ab- 
solute assurance  that  the  sugar  fields  of  Porto  Rico  and  Hawaii 
are  to  have  permanently  free  access  to  the  markets  of  the  United 
States,  was  accompanied  by  an  increase  of  524  per  cent  in  the  pro- 
duction of  beet  sugar  at  home,  there  seems  little  ground  for  any 
anxiety  as  to  the  effect  of  free  sugar  importation  from  our  own 
territory  in  depressing  beet  sugar  production  at  home. 

CUBAN    RECIPROCITY    WILL    NOT    PROVE    INJURIOUS. 

Regarding  the  reduction  of  20  per  cent  on  sugar  provided  by 
the  recent  reciprocity  agreement,  the  question  of  its  effect  upon 
beet  sugar  production  in  the  United  States  was  very  thoroughly 
discussed  in  Congress  before  that  body  would  agree  to  the  reci- 
procity treaty.  In  the  course  of  that  debate  Representative 
Charles  L.  Knapp,  of  New  York,  presented  a  series  of  tables  re- 
lating to  sugar  importation,  home  production,  and  consumption, 
and  said: 

"While  the  exact  effect  cannot  be  foretold  with  mathematical 
accuracy,  it  can  be  foretold  with  exact  certainty  that  after  the  re- 
duction proposed  on  beet  sugar  that  industry  will  still  remain  one 
of  the  most  highly  protected  of  all  our  industries,  and  it  is  a  fair 
and  reasonable  assumption  that  such  reduction  will  neither  jeopar- 
dize nor  injure  the  industry." 

.  Representative  McCall,  of  Massachusetts,  who  gave  the  sub- 
ject careful  attention  before  lending  his  support  to  the  treaty, 
said: 

"The  effect  upon  the  beet-sugar  industry  has  caused  alarm  to 
those  representatives  from  states  largely  interested  in  the  manu- 
facture of  beet  sugar.  I  do  not  think  it  is  in  a  particle-of  danger. 
Suppose  that  the  reduction  proposed  by  this  bill  to  1.35  cents  a 
pound  on  raw  sugar  should  measure  the  entire  protection  that 
would  exist  upon  sugar  after  the  passage  of  this  bill  (and  I  feel 
confident  that  it  will  not)  I  think  it  is  susceptible  of  demonstration 
that  the  protection  will  be  substantially  what  it  is  at  the  present 
time.  In  testimony  taken  before  the  Committee  on  Ways  and 
Means  two  years  ago  our  collector  at  Habana,  Mr.  Bliss,  testified 
that  he  had  examined  the  returns  from  eight  different  plantations 
and  found  that  the  average  cost  of  making  sugar  there  and  taking 
it  to  the  port  of  shipment  was  2 1-16  cents  per  pound.  Mr.  Atkins, 
a  successful  business  man  and  sugar  manufacturer,  reached  sub- 
stantially the  same  conclusions.  All  the  evidence  that  could  be 
called  evidence  went  to  show  that  it  cost  the  Cuban  at  least  2 
cents  a  pound  to  make  his  raw  sugar.  Now,  if  you  add  to  this  the 
1.35  cents  (the  duty)  and  to  that  you  add  the  freight  rate,  insur- 
ance, and  other  charges,  the  Cuban  cannot  afford  to  sell  his  sugar 
in  New  York  for  less  than  three  and  about  seven-eighths  of  a  cent 
per  pound.  And  it  must  after  that  be  refined,  so  that  a  price 
would  be  reached  at  which  it  would  clearly  be  profitable  to  make 
refined  sugar  here.  Mr.  Oxnard,  who  has  been  as  much  identified 
with  the  manufacture  of  beet  sugar  as  any  man  in  the  United 
States,  put  forth  a  statement,  after  he  had  been  engaged  in  that 
business  nine  years,  to  the  effect  that  at  4  cents  a  pound  and 
allowing  the  farmer  $4  a  ton  for  his  beets,  there  was  then  a  profit 
of  about  43  per  cent,  upon  the  cost  of  the  material  and  labor  em- 
ployed, in  selling  the  refined  product  at  4  cents  a  pound.  Not  a 
small  profit  by  any  means.  As  a  matter  of  fact,  he  would  get 
nearer  5  than  4  cents  a  pound.  Is  it  not  clear,  therefore,  that  under 
this  duty  of  1.35  cents  per  pound,  which  is  a  specific  duty  equivalent 
to  an  ad  valorem  duty  of  nearly  80  per  cent,  including  the  freight, 
our  beet  sugar  producers  have  nothing  whatever  to  fear?', 


BEET    SUGAR. 


157 


NO  CAUSE  FOB  ALARM. 

On  this  subject  Representative  James  E.  Watson,  of  Indiana, 
said  in  the  House  of  Representatives  on  November  19,  1903: 

"The  cost  of  100  pounds  of  Cuban  sugar,  f.  o.  b.  at  Habana,  is 
$2.00.  The  freight  to  New  York  is  9  cents  per  hundred  pounds; 
the  duty,  after  a  20  per  cent,  reduction,  would  be  1.348  cents.  The 
cost  of  refining  is  known  by  all  to  be  0.625  cents  for  every  100  pounds, 
without  any  profit  to  the  refiner.  The  freight  to  Chicago  is  29 
cents  a  hundred.  So  that  to  land  100  pounds  of  Cuban  sugar  al- 
ready refined,  in  the  market  in  Chicago,  would  cost  exactly  $4.35  a 
hundred,  and  to  land  it  in  Kansas  City  would  cost  $4.42  a  hundred. 

"H.  M.  Stewart,  president  of  the  Kalamazoo  Sugar  Company, 
when  before  the  committee,  made  the  following  statement:  'The 
total  cost  per  100  pounds  on  refined  beet  sugar  is  $4,682,  which  in- 
cludes 5  per  cent,  interest  on  the  capital  invested  and  7  per  cent, 
annual  depreciation;  leaving  out  these  two  items  the  cost  of  each 
100  pounds  of  refined  sugar  is  $4,011.'  To  this  sum  should  be 
added  13  cents  a  hundred  pounds,  freight  from  Kalamazoo  to  Chi- 
cago, so  that  it  would  cost  the  Michigan  producer  $4.14  to  land  100" 
pounds  of  his  product  in  the  Chicago  market,  while  it  would  cost 
$4.35  for  the  Cuban  planter  to  do  the  same  thing. 

"W.  L.  Churchill,  president  of  the  Bay  City  Beet  Sugar  Com- 
pany, said:  T  can  assure  you  that  we  will  make  sugar  this  year 
at  a  cost  not  to  exceed  $2.60  or  $3.75  per  100  pounds.'  Assuming 
that  the  freight  rate  is  13  cents  per  100,  it  would  cost  that  com- 
pany not  to  exceed  $4.05  to  lay  down  100  pounds  of  its  product  in 
the  Chicago  market,  as  against  $4.35  for  the  Cuban  planter,  a  dif- 
ference in  favor  of  the  home  product  of  30  cents  a  hundred,  a 
difference  great  enough  to  lift  the  Michigan  grower  above  the  pos- 
sibility of  harm  from  his  dusky  competitor. 

"Francis  K.  Carey,  president  of  the  National  Sugar  Manufac- 
turing Company,  of  Sugar  City,  Colo.,  said:  T  believe  the  cost  of 
sugar  in  Colorado  under  normal  conditions,  which  we  will  sooner 
or  later  have,  surrounding  our  factory,  ought  not  to  be  over  3  cents 
a  pound.  If  I  am  mistaken  in  my  belief  I  am  free  to  admit  that  I 
have  no  standing  before  this  committee  and  no  right  to  ask  for  the 
protection   of  my  industry.' 

"Thomas  R.  Cutler,  president  of  the  Utah  Sugar  Company, 
shows  that  the  beet  sugar  industry  of  Utah  has  nothing  to  fear 
from  Cuban  competition  and  gives  the  average  cost  to  his  company 
of  refined  sugar  for  five  years  as  follows: 

'1897 $4.51  per  hundred. 

1898 4.46  per  hundred. 

1899 3.55  per  hundred. 

1900 3.55  per  hundred. 

1901 3.42  per  hundred. 

The  average  cost  of  producing  sugar  for  these  five  years  was  $3.86 
per  hundred,  and  the  average  selling  price,  $5.76,  or  a  clear  profit 
of  $1.90  per  hundred.'  Furthermore  it  may  be  said  that  even  after 
the  proposed  reduction  of  20  per  cent.,  the  rate  on  sugar  will  still 
be  about  65  per  cent.,  which  is  higher  than  the  tariff  rate  on  any 
import  save  alone  tobacco,  the  average  rate  on  all  importations 
being  a  little  under  49  .per  cent.,  so  that  there  is  no  cause  for  un- 
due alarm  at  the  prospect  of  the  passage  of  this  bill." 

Tables  published  on  page  158  show  the  importation  of  sugar 
into  the  United  States,  the  home  production  of  various  kinds  of 
sugar,  and  the  total  home  consumption  for  a  term  of  years;  also 
the  quantity  brought  into  the  United  States  from  Porto  Rico, 
Hawaii,  the  Philippine  Islands,  and  Cuba,  respectively,  from  1895 
to  1903;  also  the  total  product  of  beet  and  cane  sugar,  respectively, 
in  the  world  during  a  long  term  of  years. 


Production  of   Cane  and   Beet  Sugar  In  the  Principal  Producing  Coun- 
tries of  the  World  for  the  Sugar  Year  1903-4.  * 


Countries. 

Cane  sugar 
production. 
Gross  tons. 

Countries. 

Beet  sugar 
production, 
Gross  tons. 

886,000 
1.130,000 
393,000 
277,000 
175.000  - 
164,000 
215,000 
1,227,000 

Germany 

1,936  500 

Austria 

1,144,600 

765,900 

1,142,400 

196  000 

Brazil 

Holland 

121  200 

All  other 

586,400 

5,893.000 

4,417,000 

♦Figures  for  cane  sugar  production  taken  from  Willett  and 
Gray's  Sugar  Trade  Journal.  April  21,  1904;  figures  for  beet  sugar 
production  taken  from  Die  Deutsche  Zuckerindustrie,  Berlin,  April 
39,  1904, 


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©-*o*eo-'*<in©r-xo5©-*oieoTt<in©t-x©©-='Oieo 


BEET  SUGAK. 


159 


World's  supply  of  beet  and  cane  sugar,  from  1840  to  1904. 


Years. 


Beet  sugar 
(tons.) 


Cane  sugar 
(tons.) 


Total  sugar 
(tons.) 


Per  cent 

supplied  by 

beet. 


1840 

1850 

1860 

1870 

1871-72. . 
1872-73. . 
1873-74. . 
1874-75.  . 
1875-76. . 
1876-77.. 
1877-78. . 
1878-79. . 
1879-80. . 
1880-81.. 
1881-82. . 
1882-83. . 
1883-84. . 
1884-85. . 
1885-86. . 
1886-87. . 
1887-88. . 
1888-89. . 
1889-90. . 
1890-91 . . 
1891-92.. 
1892-93. . 
1863-94. . 
1894-95.  . 
1895-96. . 
1896-97. . 
1897-98. . 
1898-99. . 
1899-1900 
1900-01 . . 
1901-02. . 
1902-03. . 
1903-04. . 


50.000 
200.000 
389,000 
831,000 
1,020,000 
1.210.000 
1,288.000 
1,219,000 
1,343,000 
1,045,000 
1,419.000 
1,571,000 
1,402.000 
1,748,000 
1,782,000 
2,147,000 
2,361.000 
2.545.000 
2,223,000 
2,733.000 
2.451,000 
2,725.000 
3.633.000 
3,710,000 
3,501,000 
3,428,000 
3,890.000 
4,792,000 
4,315,000 
4,954.000 
4,872,000 
4,977,000 
5,510.000 
6,066.939 
6,923.482 
5,747,630 
6,058,135 


1,100.000 
1,200,000 
1,510,000 
1,585,000 
1,599.000 
1.793,000 
1,840,000 
1,712,000 
1,590,000 
1,673,000 
1.825.000 
2,010,000 
1.852,000 
1,911,000 
2,060,000 
2,107.000 
2.323,000 
2,351.000 
2,339.000 
2,345,000 
2,465,000 
2.263.000 
2.069,000 
2,555,000 
2,852,000 
3,045,000 
3,490,000 
3,530,000 
2,830,000 
2,864,000 
2,898.000 
2,995.000 
2,904.000 
3.638,428 
4.079,046 
4,124,329 
4,294,619 


1.150,000 
1,400.000 
1.899,000 
2,416,000 
2,619.000 
3,003.000 
3,128,000 
2.931,000 
2,933,000 
2,718,000 
3,244,000 
3,581.000 
3.244,000 
3.659.000 
3.842,000 
4,254,000 
4.684,000 
4,896,000 
4,562.000 
5,078,000 
4,916,000 
4,988,000 
5,702.000 
6,265,000 
6,353,000 
6.473.000 
7.380.000 
8.322,000 
7,155.000 
8,818.000 
7.770,000 
7,973.000 
8,414,000 
9,705.367 

11.002.528 
9,889,959 

10,352,754 


4.35 
14.29 
20.43 
34.40 
36.65 
40.29 
41.17 
41.59 
45.79 
38.44 
43.75 
43.87 
43.22 
47.77 
46.38 
50.47 
50.40 
51.98 
48.73 
53.82 
49.86 
54.63 
63.71 
59.22 
55.10 
52.96 
52.71 
57.58 
58.91 
56.18 
62.70 
62.42 
65.48 
62.5 
62.9 
58.1 
58.4 


I  am  opposed  to  free  trade  because  it  degrades  American  labor; 
I  am  opposed  to  free  silver  because  it  degrades  American  money. — 
Maj.  Wm.  McKinley  to  Homestead  workingmen,  Sept  12,  1896. 

American  wage-workers  work  with  their  heads  as  well  as  their 
hands.  Moreover,  they  take  a  keen  pride  in  what  they  are  doing; 
so  that,  independent  of  the  reward,  they  wish  to  turn  out  a  per- 
fect job.  This  is  the  great  secret  of  our  success  In  competition 
with  the  labor  of  foreign  countries. — President  Roosevelt,  in  mes- 
sage to  Congress,  Dec.  3,  1901. 

Not  only  must  our  labor  be  protected  by  the  tariff,  but  It  should 
also  be  protected  so  far  as  It  is  possible  from  the  presence  in  this 
country  of  any  laborers  brought  over  by  contract,  or  of  those  who, 
coming  freely,  yet  represent  a  standard  of  living  so  depressed  that 
they  can  undersell  our  men  in  the  labor  market  and  drag  them 
to  a  lower  level. — President  Roosevelt}  in  message  to  Congress, 
Dec.  3,  1901. 

The  Government  should  provide  in  Its  contracts  that  all  work 
should  be  done  under  "fair"  conditions,  and  in  addition  to  setting 
a  high  standard  should  uphold  it  by  proper  inspection,  extending, 
if  necessary,  to  the  subcontractors. — President  Roosevelt,  in  mes- 
sage to  Congress,  Dec.  3,  1901. 

The  certain  way  of  bringing  great  harm  upon  ourselves,  with- 
out in  any  way  furthering  the  solution  of  the  problem,  but,  on  the 
contrary,  deferring  indefinitely  its  proper  solution,  would  be  to  act 
in  a  spirit  of  ignorance,  of  rancor,  in  a  spirit  which  would  make  us 
tear  down  the  temple  of  industry  in  which  we  live  because  we  are 
not  satisfied  with  some  of  the  details  of  its  management. — Presi- 
dent Roosevelt  at  Fitchburg,  Mass.,  Sept.  2,  1902. 

I  am  President  of  all  the  people  of  the  United  States,  without 
regard  to  creed,  color,  birthplace,  occupation,  or  social  condition. 
My  aim  is  to  do  equal  and  exact  justice  as  among  them  all. — Presi- 
dent, Roosevelt,  in  a  statement  to  executive  council  American  Fed- 
eration of  Labor,  Sept.  29,  1903. 


160  PUBLIC    LANDS. 


PUBLIC  LANDS. 


President   Roosevelt's   Public   Lnad  Policy. 

President  Roosevelt,  more  than  any  of  his  predecessors,  has 
manifested  an  active  interest  and  exercised  a  potent  influence 
in  endavoring  to  establish  and  put  into  execution  a  wise  public 
land  policy,  modified  to  meet  existing  conditions. 

Much  of  the  unparalleled  development  of  the  material  re- 
sources of  the  United  States  in  the  past  has  been  due  to  its  1I1>- 
eral  public  land  laws,  chief  among  which  is  the  homestead  law, 
which  was  signed  by  President  Lincoln  in  18G2.  Under  its 
beneficent  provisions  millions  of  settlers  have  established  homes 
upon  the  public  domain,  and  as  a  result  the  great  West  is  to-day 
teeming  with  the  industry  of  a  thrifty  people  of  good  citizen- 
ship and  many  new  stars  have  been  added  to  the  flag.  But  what 
was  once  a  vast  .public  domain— then  thought  to  be  almost  inex- 
haustible— embracing  an  area  of  over  eighteen  hundred  million 
acres,  through  the  operation  of  the  homestead  and  other  land 
laws,  enacted  to  meet  conditions  prevailing  at  a  time  when  culti- 
vable lands  as  well  as  timbered  and  grazing  areas  were  abun- 
dant, was  materially  decreased  until  the  remaining  public  do- 
main, exclusive  of  Alaska,  now  embraces  less  than  five  hundred 
million  acres,  a  comparatively  small  portion  of  which  is  suscepti- 
ble of  cultivation  without  irrigation. 

New  conditions  thus  arose:  the  extravagant  denuding  of  the 
timbered  areas,  the  rapidly  diminishing  extent  of  the  remaining 
public  lands  available  for  settlement,  together  with  the  increased 
demand  for  cultivable  lands,  accentuated  by  increased  popula- 
tion, satisfactory  industrial  conditions,  and  revival  of  busi- 
ness in  the  last  few  years,  rendered  necessary  and  of 
the  utmost  importance,  new  legislation  affecting  the  pub- 
lic lands,  in  order  that  the  remaining  forests  and  nec- 
essary timber  supply  might  be  duly  protected,  the  necessary 
sources  of  water  supply  needed  for  the  reclamation  of  the  arid 
regions  properly  conserved,  and  the  remaining  public  land  avail- 
able for  settlement  saved  for  disposal  to  the  bona  fide  home- 
builder,  under  such  circumstances  and  conditions  as  would  en- 
able the  same  to  be  reclaimed  and  thereby  rendered  capable  of 
its  largest  beneficial  use.  In  recognition  of  this,  the  Congress 
passed  the  act  of  March  3,  1891,  authorizing  the  creation  of  forest 
reserves,  under  which  there  have  since  been  created  fifty-six  re- 
serves, aggregating  over  63,000,000  acres  of  land.  The  establish- 
ment of  necessary  forest  reserves  having  become  a  well-fixed 
part  of  our  national  policy,  the  aid  of  the  government  in  reclaim- 
ing the  arid  lands  of  the  West  and  rendering  the  same  available 
for  settlement  and  cultivation  was  essential,  as  a  necessary  com- 
plement to  this  policy. 

IRRIGATION. 

Although  there  had  been  more  or  less  discussion  for  years  as 
to  the  necessity  for  national  aid  in  irrigation,  nothing  effective 
was  accomplished  until  Theodore  Roosevelt  became  President. 
He  was  quick  to  recognize  not  only  the  necessity,  but  also  the 
national  importance  of  such  policy,  together  with  the  benefits 
to  accrue  to  the  people  therefrom. 

President  Roosevelt,  in  his  first  message  to  Congress,  took  a 
strong  advanced  position  in  favor  of  great  storage  works  to  save 
the  flood  waters  and  to  equalize  the  flow  of  streams,  maintaining 
that  this  work  should  be  carried  on  by  the  National  Government 
and  not  by  private  efforts.  He  declared  that  it  was  as  right  for 
the  National  Government  to  make  the  streams  and  rivers  of  the 
arid  region  useful  by  engineering  works  for  water  storage  as  to 
make  useful  the  rivers  and  harbors  of  the  humid  region  by  engi- 
neering works  of  another  kind.  He  took  the  position  that  the 
Government  should  construct  and  maintain  these  reservoirs  as 
it  does  other  public  works,  and  that  the  lands  reclaimed  by  aid 
of  irrigation  should  be  reserved  by  the  Government  for  actual 


PUBLIC    LANDS.  161 

settlers.  The  cost  of  construction  should,  so  far  as  possible,  be 
repaid  by  the  land  reclaimed.  He  declared  that  the  reclamation 
and  settlement  of  the  arid  lands  will  enrich  every  portion  of  our 
country,  as  the  settlement  of  the  Ohio  and  Mississippi  valleys 
brought  prosperity  to  the  Atlantic  States. 

NATIONAL  RECLAMATION  LAW. 

Congress  enacted  the  national  reclamation  law  June  17,  1902, 
and  it  is  considered  the  most  beneficent  public  land  law  passed 
since  the  enactment  of  the  homestead  law.  The  passage  of  this 
law  was  due  largely  to  the  previous  recommendation  of  the 
President  after  he  had  lent  the  weight  of  his  influence  to  the 
perfecting  of  its  provisions  in  the  interest  of  the  actual  settler 
and  to  the  exclusion  of  the  speculator. 

Realizing  that  the  passage  of  the  reclamation  act  emphasized 
the  importance  of  saving  the  public 'lands  for  the  home-builder, 
the  President  devoted  particular  attention  thereto  in  his  second 
message,  declaring  that  "so  far  as  they  are  available  for  agricul- 
ture, and  to  whatever  extent  they  may  be  reclaimed  under  the 
national  irrigation  law,  the  remaining  public  lands  should  be 
held  rigidly  for  the  homebuilder,  the  settler  who  lives  on  his 
land,  and  for  no  one  else." 

The  President  in  this  message  also  directed  attention  as  to 
the  best  manner  of  using  public  lands  in  the  West  which  are 
suitable  chiefly,  or  only,  for  grazing,  and  he  commended  this 
matter  to  the  earnest  consideration  of  Congress,  recommending, 
•if  the  latter  experienced  any  difficulty  in  dealing  with  the  subject 
from  lack  of  knowledge,  that  provision  be  made  for  a  commis- 
sion of  experts  specially  to  investigate  and  report  upon  the  same. 
Subsequently,  a  commission  was  appointed  by  the  President, 
which  has  already  submitted  a  partial  report,  making  sundry 
recommendations  for  the  modification  of  existing  land  laws  in 
the  interest  of  actual  settlers.  Tiiis  report  the  President  sub- 
mitted to  the  favorable  consideration  of  Congress. 

Under  the  provisions  of  the  reclamation  act  over  $20,000,000 
have  already  been  covered  into  the  Treasury  of  the  United  States 
to  the  credit  of  the  reclamation  fund,  derived  from  the  sales  of 
public  lands  and  fees  and  commissions  in  the  several  States  and 
Territories  affected  by  that  act,  and  more  than  33,000,00  acres 
of  public  land  have  been  withdrawn  for  reclamation  purposes 
with  a  view  to  determining  the  feasibility  of  contemplated 
projects.  Sixty-seven  projects  in  fourteen  different  States  and 
Territories  have  been  under  consideration  and  examination,  and 
the  work  of  actual  construction  has  been  commenced  on  eight 
of  these 

President  Roosevelt,  by  reason  of  his  intimate  association  with 
Western  people,  his  actual  experience  in  that  section  of  the  coun- 
try, and  accurate  knowledge  of  the  prevailing  conditions  in  the 
public  land  states,  is  exceptionally  well  qualified  to  properly 
judge  of  the  requisite  needs  of  that  part  of  the  country  and  has 
exercised  a  forceful  influence  toward  the  perfecting  of  a  wise, 
discriminating,  up-to-date  public  land  policy,  and  when  so  per- 
fected will  see  to  it  that  the  same  is  carefully  and  properly  ad- 
minister. Such  a  policy,  perhaps,  more  than  any  other  single 
consideration,  is  essential  to  the  prosperity  of  the  West  and  the 
happiness  of  its  people,  will  add  to  the  material  wealth  and  de- 
velopment of  the  whole  country,  and  should  commend  itself  to 
every  thoughtful  citizen. 

"The  Policy  of  Washington  is  the  policy  of  the  Republican 
party." — Oullom. 

"The  safety  and  Interest  of  the  people  require  that  they  should 
promote  such  manufactures  as  tend  to  render  them  independent  of 
others." — Washington. 

"No  men  living;  are  more  worthy  to  be  trusted  than  those  who 
toil  up  from  poverty;  none  less  inclined  to  take  or  touch  aught 
which  they  have  not  honestly  earned,"— -Lincoln. 

"The  American  system  of  locating;  manufactories  next  to  the 
plow  and  the  pasture  has  produced  a  result  noticeable  by  the  fh«% 
telllgent  portion  of  all  commercial  nations,"— Grant. 


162  lamuATioN. 


IRRIGATION  FOR  ARID  AND  SEMIARID  LANDS. 

Irrigation  for  the  arid  and  somiarid  lands  of  the  United  States 
bat  never  had  a  firmer  and  more  vigorous  supporter  in  public  lit'*' 
than  President  Roosevelt.  During  the  decade  before  he  became 
President  the  subject  of  national  Irrigation  had  been  under  dis- 
cussion and  there  was  growing  throughout  the  country  a  senti- 
ment in  favor  of  national  action  of  some  character  upon.- this  sub- 
ject. There  was,  however,  wide  diversity  of  opinion  as  to  the 
method  to  be  employe)!,  and  this  very  condition  of  diverse  opinions 
reduced  the  probability  of  national  action.  When  Mr.  Roosevelt 
became  President,  however,  knowing  conditions  in  the  great  West 
as  he  did,  and  knowing  the  henelits  which  would  accrue  to  it  from 
systematic  work  in  behalf  of  irrigation,  he  consulted  with  the 
men  who  had  been  working  for  national  irrigation,  discussed  con- 
ditions with  them  an<!  told  them  of  his  belief  in  action  by  the 
National  Government  and  his  intention  to  make  irrigation  one  of 
the  topics  of  his  first  message  to  Congress.  No  President  of  the 
United  States  had  ever  before  mentioned  irrigation  in  a  message. 
The  following  are  extracts  from  his  discussion  of  this  subject 
in  his  first  message  to  Congress,  December  3,  1901 : 

The  forests  alone  can  not,  however,  fully  regulate  and  con- 
serve the  waters  of  the  arid  region.  Great  storage  works  are 
necessary  to  equalize  the  flow  of  the  streams  and  to  save  the 
flood  waters.  Their  construction  has  been  conclusively  shown  to 
be  an  undertaking  too  vast  for  private  effort,  nor  can  it  be  best  ac- 
complished by  the  individual  States  acting  alone.  Far-reaching  in- 
terstate problems  are  involved,  and  the  resources  of  single  State* 
would  often  be  inadequate.  It  is  properly  a  national  function,  at 
least  in  some  of  its  features.  It  is  as  right  for  the  National  Gov- 
ernment to  make  the  streams  and  rivers  of  the  arid  region  useful 
by  engineering  works  for  water  storage  as  to  make  useful  the 
rivers  and  harbors  of  the  humid  region  by  engineering  works  of 
another  kind.  The  storing  of  the  floods  in  reservoirs  at  the  head- 
waters of  our  rivers  is  but  ar»^enlargement  of  our  present  policy 
of  river  control,  under  which  levees  are  built  on  the  lower  reaches 
of  the  same  streams. 

The  Government  should  construct  and  maintain  these  reser- 
voirs as  it  does  other  public  works.  Where  their  purpose  is  to 
regulate  the  flow  of  streams  the  water  should  be  turned  freely 
into  the  channels  in  the  dry  season  to  take  the  same  course  under 
the  same  laws  as  the  natural' flow. 

The  reclamation  of  the  unsettled  arid  public  lands  presents  a 
different  problem.  Here  it  is  not  enough  to  regulate  the  flow  of 
streams.  The  object  of  the  Government  is  to  dispose  of  the  land 
to  settlers  who  will  build  homes  upon  it.  To  accomplish  this  ob- 
ject water  must  be  brought  within  their  reach. 

The  pioneer  settlers  on  the  arid  public  domain  chose  their 
homes  along  streams  from  which  they  could  themselves  divert  the 
water  to  reclaim  their  holdings.  Such  opportunities  are  practi- 
cally gone.  There  remain,  however,  vast  areas  of  public  land 
which  can  be  made  available  for  homestead  settlement,  but  only 
by  reservoirs  and  main-line  canals  impracticable  for  private  en- 
terprise. These  irrigation  works  should  be  built  by  the  National 
Government.  The  lands  reclaimed  by  them  should  be  reserved  by 
the  Government  for  actual  settlers,  and  the  cost  of  construction 
should,  so  far  as  possible,  be  repaid  by  the  land  reclaimed.  The 
distribution  of  the  water,  the  division  of  the  streams  among  irri- 
gators, should  be  left  to  the  settlers  themselves,  in  conformity 
with  the  State  laws  and  without  interference  with  those  laws  or 
with  vested  rights.  The  policy  of  the  National  Government  should 
be  to  aid  irrigation  in  the  several  States  and  Territories  in  such 
manner  as  will  enable  the  people  in  the  local  communities  to  help 
themselves  and  as  will  stimulate  needed  reforms  in  the  State  laws 
and  regulations  governing  irrigation. 

The  reclamation  and  settlement  of  the  arid  lands  will  enrich 
every  portion  of  our  country,  just  as  the  settlement  of  the  Ohio 
and  Mississippi  valleys  brought  prosperity  to  the  Atlantic  States. 
The  increased  demand  for  manufactured  articles  will  stimulate 
industrial  production,  while  wider  home  markets  and  the  trade  of 
Asia  will  consume  the  larger  food  supplies  and  effectually  prevent 
western  competition  with  eastern  agriculture.  Indeed,  the  prod- 
ucts of  irrigation  will  be  consumed  chiefly  in  upbuilding  local  cen- 
ters o-f  mining  and  other  industries,  which  would  otherwise  not 
come  into  existence  at  all.  Our  people  as  a  whole  will  profit,  for 
successful  home  making  is  but  another  name  for  the  upbuilding 
of  the  nation. 

The  necessary  foundation  has  already  been  laid  for  the  inau- 
guration of  the  policy  just  described.  It  would  be  unwise  to  begin 
by  doing  too  much,  for  a  great  deal  will  doubtless  be  learned,  both 
as  to  what  can  and  what  can  not  be  safely  attempted,  by  the  early 
efforts,  which  must  of  necessity  be  partly  experimental  in  char- 
acter. At  the  very  beginning  the  Government  should  make  clear, 
beyond  shadow  of  doubt,  its  intention  to  pursue  this  policy  on 
lines  of  the  broadest  public  interest.  No  reservoir  or  canal  should  ever 
be  built  to  satisfy  selfish  personal  or  local  interests,  but  only  in  ac- 


IRRIGATION. 


163 


cordance  with  the  advice  of  trained  experts,  after  long  investi- 
gation has  shown  the  locally  where  all  the  conditions  combine  to 
make  the  work  most  needed  and  fraught  with  the  greatest  useful- 
ress  to  the  community  as  a  whole.  There  should  be  no  extrava- 
gance, and  the  believers  in  the  need  of  irrigation  will  most  benefit 
their  cause  by  seeing  to  it  that  it  is  free  from  the  least  taint  of 
excessive  or  reckless  expenditure  of  the  public  moneys.     *     *     * 

The  direct  result  of  his  action  was  the  passage  of  the  reclama- 
tion act. 

The  reclamation  act  sets  aside  the  proceeds  of  the  disposal  of 
public  lands  in  thirteen  Western  States  and  three  Territories  for 
national  irrigation.  The  fund  thus  created  is  placed  at  the  dis- 
posal of  the  Secretary  of  the  Interior  for  surveys,  examination, 
and  construction  of  works.  It  is  not  a  donation,  but  the  money 
must  ultimately  be  returned  to  the  Treasury  by  the  persons  bene- 
fited, to  be  used  over  again  in  the  construction  of  other  works. 
General  Irrigation  Statistics. 

The  following  table,  prepared  by  the  Census  Office,  gives,  by 
regions,  the  number  of  farms  on  which  irrigation  was  reported, 
the  number  of  acres  irrigated,  the  construction  cost  of  the  irriga- 
tion systems,  the  average  construction  cost  per  irrigated  acre,  and 
the  number  of  miles  of  main  canals  and  ditches  for  continental 
United  States  in  1902: 

Table  I. — General  irrigation  statistics  of  the  United  States,  1002. 


Number 
of  farms 
irrigated. 

Number 
of  acres 
irrigated. 

Cost  of  construction. 

Length 
of  main 
ditches 
in  miles. 

Regions. 

Total. 

Per  acre 
irrigated. 

The  United  States 

AridStatesandTerritories 
Semiarid  States  and  Teri- 

134,036 
122,156 

7,021 

4,179 

680 

9.487.077 
8,471,641 

403.449 
606,199 

5,788 

$93,320,452 
77,430,212 

5,105,390 
10,195,992 

588,858 

$9.84 
9.14 

12.65 
16.82 
101.74 

59,243 
54,243 

3  472 

Rice  States  

1,528 

Humid  States 

The  number  of  irrigated  farms  increased  from  110,556  in  1899 
to  154,036  in  1902,  or  21.2  per  cent.  The  irrigated  area  increased 
during  the  same  period  from  7,782,188  acres  to  9,487,077  acres,  or 
21.9  per  cent.  For  the  three  years  this  is  an  average  annual  in- 
crease in  number  of  irrigated  acres  of  568,296  acres. 

In  1902  the  total  construction  cost  of  the  necessary  head  gates, 
dams,  main  canals,  and  ditches,  wells,'  reservoirs,  and  pumping 
plants  was  $93,320,452,  an  increase  since  1899  of  $21,797,672,  or 
30.5  per  cent.  This  is  equivalent  to  an  annual  expenditure  of  more 
than  seven  and  a  quarter  millions  of  dollars  for  the  construction, 
extension,  and  improvement  of  irrigation  systems.  The  average 
first  cost  of  water  for  irrigation  throughout  the  United  States  in- 
creased from  $9.19  per  irrigated  acre  in  1899  to  $9.84  in  1902. 
This  naturally  follows  because  in  many  of  the  States  practically 
all  of  the  easily  available  water  supply  was  appropriated  long 
ago,  and  methods  required  for  its  further  development  must  be 
increasingly  expensive.  In  1902,  the  aggregate  mileage  of  main 
canals  and  ditches  would  encircle  the  earth  more  than  twice,  the 
combined  length  being  59,243  miles. 

The  Arid  Region. 

Table  II. — General  irrigation  statistics   of  the  arid  States  and 
Territories,  1002. 


Number 
of  farms 
irrigated. 

N«ftber 

ofwcres 
irrigated. 

Cost  of  construction. 

Length 

States  and  Territories. 

Total. 

Per  acre 
irrigated. 

ditches 
in  miles. 

Arizona \ 

3,867 

30.404 

19.806 

10,077 

9,496 

2,260 

9,285 

5,133 

21,684 

4,585 

5,559 

247,250 

1,708,720 

1,754,761 

715,595 

1,140.694 

570,001 

254,945 

439,981 

713.621 

154.962 

773,111 

$4,688,298 
23,772,157 
14,769.561 
6,190,071 
5.576,975 
1,706.212 
4.301,915 
2.089,609 
7.303.607 
2,330,758 
4,701.049 

$18.96 
13.91 
8.42 
8.67 
4.89 
2.99 
16.37 
4.75 
10.23 
15.04 
6.08 

1,783 
7,010 
10,209 
5.640 
8  765 

California 

Colorado 

Idaho 

Montana 

3,054 
2  846 

New  Mexico 

Oregon 

3,653 
3,891 
1.095 
6.297 

Utah 

Total 

122,156 

8,471,641 

77,430.212 

9.14 

54,245 

164 


iui:k:atioN. 


While  conditions  in  11)02  were  somewhat  below  the  average  it 
many  portions  of  the  arid  region,  in  each  of  the  nine  states  an 
two  territories  comprising  it  Irrigation  made  considerable  progre/s 
during  the  three  years  ending  with  1902.  In  that  year  the  ir 
gated  area  of  the  entire  region  aggregated  8,471,641  acres,  an 
crease  since  1899  of  1,208,308,  or  16.6  per  cent.  In  number  of 
farms  the  increase  is  even  greater,  being  from  102.811)  farms  in 
1899  to  122,156  in  1902,  or  18.8  per  cent.  The  total  construct  ion 
cost  of  the"  irrigation  systems  was  $77,430,212  as  compared  with 
164,289,601  in  1899,  an  increase  of  $13,140,611,  or  20.4  per  cent. 
The  average  first  cost  of  water  per  acre  was  $9.14  and  the  com- 
bined length  of  main  canals  and  ditches,  54,243  miles. 

Of  these  States  and  Territories,  California  ranks  first  in  num- 
ber of  irrigated  farms,  Utah  second,  and  Colorado  third.  In  total 
irrigated  area  Colorado  stands  first,  California  second,  and  Mon- 
tana third. 

Semlarid  Region. 

Table  III. — General  irrigation  statistics   of  the  semiarid  States 
and  Territories,  1902. 


Number 
of  farms 
irrigated. 

Number 

of  acres 

irrigated. 

Cost  of  construction. 

Length 
of  main 
ditches 
in  miles- 

States  and  Territories. 

Total. 

Per  acre 
irrigated. 

1.115 

2,952 
102 
134 
696 

2.022 

28.922 
245.910 
10.384 
3.328 
53.137 
61.768 

$599,098 

2.463,748 

45,087 

36,770 

381,569 

1,579.118 

$20.71 
10.02 

4.34 
11.05 

7.18 
25.57 

366 

1,861 
66 

89 

426 

664 

Total 

7,021 

403,449 

5.105,390 

12.65 

3,472 

♦Exclusive  of  rice   irrigation. 

Portions  of  Kansas,  Nebraska,  North  and  South  Dakota,  Okla- 
homa, and  Texas  extend 'into  the  semiarid  region  which  lies  east- 
ward from  the  base  of  the  Rocky  Mountains.  In  1902,  the  area 
to  which  water  was  artificially  applied  was  403,449  acres,  repre- 
senting 7,021  farms.  There  were  2,946  irrigation  systems  in  opera- 
tion, the  construction  cost  of  which  was  $5,105,390,  an  average 
first  cost  of  water  of  $12.65  per  irrigated  acre.  The  increase  since 
1899  in  the  number  of  irrigated  farms  is  43.4  per  cent. ;  in  irri- 
gated area,  52.6  per  cent.,  and  in  total  construction  cost,  76.5  per 
cent. 

Of  these  six  political  divisions  Nebraska,  with  2,952  farms 
having  an  irrigated  area  of  245,910  acres  and  systems  represent- 
ing a  construction  outlay  of  $2,463,748,  stands  first,  while  Texas, 
with  rice  farms  excluded,  stands  second,  having  2,022  farms  with 
an  irrigated  area  of  61,768  acres  and  systems  costing  $1,579,118. 


The  true  welfare  of  the  nation  is  indissoluble  hound  up  with  the 
welf are  of  the  farmer  and  the .  wage-worker — of  the  man  who  tills 
the  soil,  and  of  the  mechanic,  the  handicraftsman,  the  lahorer.  If  we 
can  insure  the  prosperity  of  these  two  classes  we  need  not  trouble 
ourselves  about  the  prosperity  of  the  rest,  for  that  -will  follow  as  a 
matter  of  course. — "Vice-Presid^fct  Roosevelt  at  opening  of  Pan- 
American  Exposition,  May  20,  1901. 

"We  are  now  in  a  condition  of  prosperity  unparalleled  not 
merely  in  our  own  history,  but  in  the  history  of  any  other  nation. 
This  prosperity  is  deep  rooted  and  stands  on  a  firm  basis  because 
it  is  due  to  the  fact  that  the  average  American  has  in  him  the 
st ii  IV  out  of  -which  victors  are  made  in  the  great  industrial  con- 
tests of  the  present  day,  just  as  in  the  great  military  contests  of 
the  past,  and  because  he  is  now  able  to  use  and  develop  his  quali- 
ties to  best  advantage  under  our  well-established,  economic  sys- 
tem.— President   Roosevelt   at   Minneapolis,  April  4,   1903. 

The  prosperity  of  any  of  us  can  best  be  attained  by  measures 
that  will  promote  the  prosperity  of  all. — Vice-President  Roosevelt  at 
Buffalo,  May  20,  1901. 


RURAL   FREE  DELIVERY.  165 


£URAL  FREE  DELIVERY 


^he   Creation   of   Republican   Congress   and   Executive — Democratic 
Officials,  Including  President  Cleveland,  Opposed  it  and  Re- 
fused  to   establish   it   After   Congress   Had   Appro- 
priated Money  for  That  Purpose. 

Rural  free  delivery  is  the  creation  of  the  Republican  party  in 
Congress  and  in  the  Executive  Departments.  It  was  first  proposed 
ky  Postmaster-General  Wanamaker  during  the  Administration  of 
President  Harrison,  was  coldly  received  and  discouraged  by  Presi- 
dent Cleveland  and  his  executive  officers,  was  revived  and  put 
into  active  operation  under  President  McKinley  and  the  Republican 
Congress  elected  with  him,  and  has  been  encouraged  and  greatly 
.developed  by  President  Roosevelt  and  the  Congress  and  Executive 
Departments  during  his  Administration.  The  history  of  its  devel- 
opment, of  the  support  which  it  received  from  Republicans  and  the 
opposition  by  Democrats  is  well  told  in  the  following  extracts  from 
debates  in  the  House  of  Representatives. 

The  Democratic  Attitude  Toward  Rural  Free  Delivery. 

Hon.  Charles  F.  Scott,  of  Kansas,  in  discussing  the  subject  in 
December,  1903,  said: 

The  first  reference  which  I  find  to  this  system  appears  in  the 
report  of  the  Hon.  John  Wanamaker,  Postmaster-General  during 
.he  Harrison  Administration.  The  recommendation  which  was 
wade  by  Postmaster-General  Wanamaker,  and  to  which  I  have  just 
slluded,  was  followed  up  by  the  Administration  and  resulted  in  an 
appropriation  for  experiments  in  the  direction  suggested.  These 
experiments  in  the  first  place  were  in  the  nature  of  extending  free 
delivery  to  villages  and  small  towns.  At  the  close  of  the  Harrison 
Administration  the  experiments  which  had  been  set  on  foot  under 
the  direction  of  Mr.  Wanamaker  were  proceeding  with  great  satis- 
faction to  the  country  and  to  the  people,  and  propositions  had  been 
made  to  extend  these  systems  still  further  so  as  to  reach  out  into 
the  rural  regions. 

That  was  the  situation  which  prevailed  when  a  Democratic  Ad- 
ninistration,  the  second  Cleveland  Administration,  came  into  power. 
Eeferring  to  this  matter,  the  First  Assistant  Postmaster-General 
under  that  Administration  made  the  following  report.  After  hav- 
ing discussed  in  a  discouraging  way  the  entire  system,  he  says: 

"It  would  require  an  appropriation  of  at  least  $20,000,000  to  in- 
augurate a  system  of  rural  free  delivery  throughout  the  country." 

Following  the  recommendation  of  the  First  Assistant,  the 
Postmaster-General,  Bissell,  incorporated  the  following  in  his  an- 
nul report: 

'Although  it  was  provided  by  Congress  in  the  appropriation 
bill  for  the  fiscal  year  ending  June  30,  1894,  that  $10,000  should  be 
deToted,  at  the  discretion  of  the  Postmaster-General,  to  testing 
th«  feasibility  of  establishing  a  system  of  free  delivery  in  rural 
districts,  it  has  been  found  impossible,  by  reason  of  the  pressure 
of  more  important  questions,  for  the  officers  having  that  subject 
in  charge  to  give  tho  matter  the  study  and  consideration  that  it 
demands,  much  less  to  establish  such  rural  free  delivery.  It  was 
S')on  discovered,  furthermore,  that  the  appropriation  for  this  ex- 
periment is  not  at  all  sufficient  for  thorough  and  reliable  tests,  for 
ir.  order  to  give  the  rural  free-delivery  system  a  fair  and  thorough 
trial  tests  would  have  to  be  made  in  many  localities  differing  nec- 
essarily in  density  of  population,  topography,  class  of  interests, 
condition  of  highways  and  thoroughfares.  To  inaugurate  a  system 
of  rural  free  delivery  it  would  require  an  appropriation  of  at  least 
$20,000,000." 

He  then  refers  to  the  report  of  his  First  Assistant,  and  in- 
dorses the  recommendation  made  there  that  the  attempt  be  not 
riade. 

The  next  official  reference  which  I  find  to  this  matter  appears 
in  the  second  report  of  William  L.  Wilson  as  Postmaster-General, 
in  which  he  says,  referring  to  the  appropriation  which  had  been 
raade  in  the  preceding  year  and  which  he  had  not  used: 

"Should  Congress  see  fit  to  make  it  available  for  the  current 
ysar  I  will  make  the  experiment  ordered,  by  the  best  tests  I  can 
devise,  but  the  difficulties  in  the  way  of  such  experiments  and  the 
reasons  for  viewing  the  whole  plan  as  impracticable  are  fully  set 
forth  in  the  report  of  the  House  committee  on  the  postoffice  appro- 
priation bill,  second  session  of  the  Fifty-third  Congress." 

It  will  be  seen,  therefore,  that  Mr.  Cleveland's  Postmaster- 
General  after  two  years  of  study  and  reflection  upon  the  subject, 
after  having  absolutely  refused  to  use  the  money  which  Congress 
placed  at  his  disposal  for  this  purpose,  gave  it  as  his  opinion  that 
^the  whole  plan  was  impracticable  and  should  be  abandoned. 


166  RURAL   FREE   DELIVERY. 

The  next  official  allusion  to  this  matter  to  which  I  wish  to  call 
the  attention   of  the  House   appears   in  the   message  of  Presiden 
Cleveland  to  Congress,  under  date  of  December  4,  1893.     Referrin 
to  the  matter  of  free  rural  delivery  he  says: 

"I  am  decidedly  of  the  opinion  that  the  provisions  of  the  pres 
ent  law  permit  as  general  an  introduction  of  this  future  of  mai 
service  as  is  necessary  or  desirable,  and  that  it  oifght  not  to  b< 
extended  to  smaller  communities  than  are  now  designated." 

I  next  call  attention  to  a  single  sentence  from  the  annua 
message  of  the  following  year,  by  President  Cleveland,  in  whic] 
he  says: 

"The  estimated  cost  of  rural  free  delivery  generally  Is  so  veiv 
large  that  it  ought  not  to  be  considered  in  the  present  condition 
of  affairs." 

Thus  dismissing  it  with  a  wave  of  the  hand  as  an  utterly  im- 

ftracticable  scheme  by  reason  of  the  vast  expense  that  would  to 
nvolved. 

Tt  appears,  therefore,  that  a  Democratic  Postmaster-General 
the  Democratic  chairman  of  the  Committee  on  the  Post-Office  and 
the  Post-Roads,  and  a  Democratic  President  all  united  in  agreeing 
that  the  establishment  of  free  rural  delivery  was  an  impracticable 
proposition. 


I 


Republican  Attitude  Toward  Rural  Free  Delivery. 

Hon.  J.  H.  Davidson,  of  Wisconsin,  contrasting  the  attitude 
the  Republican  party  with  that  of  the  Democrats  on  this  subject 
said  in  the  House  of  Representatives  on  April  20,  1904:     , 

Under  President  McKinley's  first  Administration  a  number  ol 
routes  were  established  and  a  thorough  test  made.  Since  the! 
each  annual  report  submitted  by  the  head  of  the  Post-Office  Depart! 
ment  has  made  special  reference  to  this  service,  to  its  development 
and  to  the  benefits  accruing  to  the  people  through  its  establish- 
ment. 

Postmaster-General  Gary,  in  his  annual  report,  in  speaking  oi 
rural  free  delivery,  used  the  following  language: 

"It  would  be  difficult  to  point  to  any  like  expenditure  of  public 
money  which  has  been  more  generously  appreciated  by  the  people 
or  which  has  conferred  greater  benefits  in  proportion  to  th< 
amount  expended.  In  every  instance  the  introduction  of  the  serv- 
ice has  resulted  in  an  increase  in  the  amount  of  mail  matter 
handled.  There  is  no  doubt  of  the  desire,  wherever  the  systen 
has  been  tried,  that  it  should  be  made  permanent." 

Postmaster-General  Smith,  in  referring  to  this  service,  said: 
"The  benefits  accruing  from  the  extension  Sf  postal  facilities  t& 
the  rural  communities  may  be  summarized  as  follows:  Increased 
postal  receipts,  making  many  of  the  new  deliveries  almost  immedi- 
ately self-supporting.  Enhancement  of  the  value  of  farm  lanes 
reached  by  this  service  and  better  prices  obtained  for  farm  prod- 
ucts through  more  direct  communication  with  the  markets  and 
prompter  information  of  their  state.  Improved  means  of  travel, 
some  hundreds  of  miles  of  country  roads,  especially  in  the  "Western 
States,  having  been  graded  specifically  in  order  to  obtain  rural 
free  delivery.  Higher  educational  influences,  broader  circulatlot 
of  the  means  of  public  intelligence,  and  closer  daily  contact  witn 
the  great  world  of  activity  extended  to  the  homes  of  heretofore 
isolated  rural  communities." 

In  1900  the  Postmaster-General  spoke  of  rural  free  delivery 
as  follows: 

"The  extraordinary  extension  of  rural  free  delivery  during  the 
past  two  years  has  proved  to  be  the  most  salient,  significant,  snd 
far-reaching  feature  of  postal  development  in  recent  times." 

In  1901  the  Postmaster-General,  in  speaking  of  the  serv.ee, 
said: 

"The  policy  of  rural  free  delivery  is  no  longer  a  subject  of 
serious  dispute.  It  has  unmistakably  vindicated  itself  by  its 
fruits." 

"Rural-delivery  service  has  become  an  established  fact.  It  Is 
no  longer  in  the  experimental  stage,  and  undoubtedly  Congrejs 
will  continue  to  increase  the  appropriation  for  this  service  unlll 
all  the  people  of  the  country  are  reached  where  it  is  thickly 
enough  settled  to  warrant  it." 

In  1900  President  McKinley  in  his  message  to  Congress,  in 
speaking  of  the  postal  service,  used  language  as  follows: 

"Its  most  striking  new  development  is  the  extension  of  rural 
free  delivery.  *  *  *  This  service  ameliorates  the  isolation  of 
farm  life,  conduces  to  good  roads,  and  quickens  and  extends  the 
dissemination  of  general  information.  Experience  thus  far  has 
tended  to  allay  the  apprehension  that  it  would  be  so  expensive  as 
to  forbid  its  general  adoption  or  make  it  a  serious  burden.  Its 
actual  application  has  shown  that  it  increases  postal  receipts  and 
can  be  accompanied  by  reduction  in  other  branches  of  the  servicfe, 
so  that  the  augmented  revenues  and  accomplished  saving  together 
materially  reduce  the  net  cost." 

In  his  first  message  to  Congress  President  Roosevelt  said: 

"Among  recent  postal  advances  the  success  of  rural  free  de- 
livery wherever  established  has  been  so  marked  and  actual  experi- 
ence has  made  its  benefits  so  plain  that  the  demand  for  its  exten- 
sion is  general  and  urgent.  It  is  just  that  the  great  agricultural 
population  should  share  in  the  improvement  of  this  service." 

Again,  in  his  last  annual  message,  the  President  says: 

"The  rural  free-delivery  service  has  been  steadily  extended. 
The  attention  of  Congress  is  asked  to  the  question  of  the  compen- 


RURAL    FREE   DELIVERY.  167 

sation  of  the  letter  carriers  and  clerks  engaged  in  the  postal 
service,  especially  on  the  new  rural  free-delivery  routes.  More 
routes  have  been  installed  since  the  1st  of  July  last  than  in  any 
like  period  in  the  Department's  history.  While  a  due  regard  to 
economy  must  be  kept  in  mind  in  the  establishment  of  new  routes, 
yet  the  extension  of  the  rural  free-delivery  system  must  be  con- 
tinued for  reasons  of  sound  public  policy.  No  governmental  move- 
ment of  recent  years  has  resulted  in  greater  immediate  benefit  to 
the  people  of  the  country  districts.  Rural  free-delivery,  taken  In 
connection  with  the  telephone,  the  bicycle,  and  the  trolley,  accom- 
plishes much  toward  lessening  the  isolation  of  farm  life  and  mak- 
ing it  brighter,  and  more  attractive.  In  the  immedate  past  the 
lack  of  just  such  facilities  as  these  has  driven  many  of  the  more 
active  and  restless  young  men  and  women  from  the  farms  to  the 
cities,  for  they  ^rebelled  at  loneliness  and  lack  of  mental  com- 
panionship. It  is  unhealthy  and  undesirable  for  the  cities  to  grow 
at  the  expense  of  the  country;  and  rural  free  delivery  is  not  only 
a  good  thing  in  itself,  but  is  good  because  it  is  one  of  the  causes 
which  check  this  unwholesome  tendency  toward  the  urban  con- 
centration of  our  population  at  the  expense  of  the  country  dis- 
tricts." 

Appropriation  of  §20,000,000  for  Rural  Free  Delivery 

The  liberality  of  the  Republican  party  in  behalf  of  this  very 
valuable  service  to  the  farmers  is  shown  in  the  fact  that  the  ap- 
propriation of  the  last  session  of  Congress  for  rural  free  delivery 
was,  in  round  terms,  $20,000,000.  As  to  its  value  to  the  farming 
community  Representative  Arthur  L  Bates,  of  Pennsylvania,  said 
in  the  House  of  Representatives  March  15,  1904: 

It  is  my  belief  that  the  $21,000,000  appropriated  in  this  behalf 
brings  more  direct  benefit  to  the  inhabitants  of  this  Republic  whom 
it  affects  than  almost  any  other  appropriation  made  by  the  Gen- 
eral Government. 

Forty  years  ago  everyone  went  or  sent  to  the  Post-Office  for  his 
mail,  and  the  farmer  in  the  busy  season,  when  his  horses  and 
teams  were  working  in  the  fields,  could  sometimes  only  receive 
mail  for  himself  and  family  possibly  once  a  week — on  Saturday 
afternoon.  Now  it  is  not  only  delivered  several  times  daily  at 
the  homes  and  places  of  business  of  the  inhabitants  of  more  than  a 
thousand  cities,  but  for  the  last  six  months  of  the  fiscal  year 
[January  1  to  June  30,  1903)  there  were  delivered  by  the  carriers 
jf  this  service  some  310,000,000  pieces  of  mail  on  rural  routes 
throughout  the  United  States  to  farmers  and  inhabitants  of  sparse- 
y  settled  regions. 

Increased  facilities  always  bring  increased  use  and  enjoyment 
—more  letters  are  written  and  received;  more  newspapers  and 
nagazines  are  subscribed  for.  While  it  is  not  true  in  every  part 
f  the  country,  yet  the  official  report  shows  that  quite  a  number 
f  rural  routes  already  pay  for  themselves  by  the  additional  reve- 
lues  they  occasion. 

The  testimony  adduced  from  all  over  the  country  proves  that 
>y  reason  of  rural  free  delivery  the  actual  value  of  our  farm  lands 
las  been  increased.  Many  farmers  state  that  they  would  not  dis- 
3ense  with  the  service  for  $50  or  even  $100  per  annum.  It  has 
jeen  estimated  that  the  value  of  farm  lands  has  risen  by  this 
neans  as  high  as  $5  per  acre  in  several  States.  A  moderate  bene- 
it  to  the  farm  lands  of  the  whole  country  would  be  from  $1  to  $3 
>er  acre. 

The  producers,  being  brought  into  daily  touch  with  the  state 
<f  the  markets  and  in  better  communication  with  those  who  buy 
heir  products,  are  able  to  obtain  better  prices  for  all  that  the 
irm  produces.  More  definite  knowledge  of  trade  conditions  is 
aways  of  great  advantage. 

Good  roads  have  been  built  and  induced  as  an  incentive  for 
ural  free-delivery  establishment  and  to  better  encourage  their 
naintenance. 

lion.  Gilbert  N.  Haugen,  of  Iowa,  said  in  the  House  April 
IS,  1904: 

The  Post-Office  bill  contained  no  item  of  greater  importance 
than  the  $20,180,000  for  this  service  which  is  yet  in  its  infancy. 
Four  years  ago  not  a  single  route  was  in  operation  in  my  district 
—very  few  in  the  United  States — a  service  sidetracked,  neglected, 
md  abused  under  Democratic  administration.  After  these  seven 
>-ears  of  fostering,  nourishing,  and  friendly  encouragement  by  a 
Republican  Administration  it  has  grown  from  a  $10,000  appropri- 
ition  to  over  $20,000,000.  During  the  last  fiscal  year  48,954,390 
nieces  were  collected  and  390,428,128  pieces  of  mail  were  delivered 
sy  Uncle  Sam's  15,119  carriers;  8,339  routes  were  investigated,  of 
vhich  6,653  were  established  and  1,714  were  rejected.  On  June  30, 
903,  there  were  15,119  routes  in  operation,  an  average  number 
<f  40  for  each  of  the  386  Congressional  districts.  On  that  day  there 
vere  11.700  petitions  for  routes  awaiting  investigation,  and  on 
ipril  1,  1904,  there  were  22,537  rural  free-delivery  routes  in  oper- 
ation, or  an  average  of  59  for  each  Congressional  district. 

With  the  liberal  appropriation  made  for  this  service  for  the 
<oming  year,  before  the  next  fiscal  year  ends  we  will  have  in  oper- 
ation more  than  30.000  routes,  extending  the  service  to  the  fire- 
sides of  more  than  3,000,000  homes.  We  hope  in  the  near  future  to 
extend  the  service  to  every  country  home  where  it  is  practical 
and  possible,  a  recognition  justly  due  a  deserving  people,  the  bone 
and  sinew  of  our  great  Republic. 

For  figures  on  rural  free  delivery  see  chapter  on  work  of  the 
Post  Office  Department. 


168  TRUSTS    AND    INDUSTRIAL    COMBINATIONS. 


TRUSTS    AND    INDUSTRIAL    COMBINA- 
TIONS. 

Existing  industrial  conditions  are  the  natural  results  of  the 
splendid  courage  and  energy  of  the  American  people.  Compare 
the  condition  pi  our  country  now  with  what  it  was  when  the 
Republican  party  first  came  into  power.  In  that  period  of  forty- 
four  years  we  have  learned  how  to  produce  and  manufacture 
everything  essential  for  civilized  man;  we  have  not  only  captured 
our  home  markets  from  the  hands  of  Europe,  but  we  have  sent 
our  products  throughout  the  world;  we  have  changed  from  a 
borrowing  to  a  lending  nation  we  have  paid  back  the  2,140  mil- 
lions which  the  balance  of  trade  showed  against  us  in  1876,  and 
the  net  balance  of  trade  in  our  favor  is  now  3,584  millions; 
that  balance  is  increasing  at  the  rate  of  400  millions  per  year; 
we  have  bound  our  country  together  with  railroads,  well  termed 
the  arteries  of  the  nation's  body  through  which  the  blood  of 
commerce  flows;  we  have  increased  our  wealth  five- fold;  we 
have  made  it  possible  for  labor  to  have  a  bigger  wage  and  more 
just  share  of  profits  than  obtains  in  any  other  nation. 

Great  Economic  Changes  Have  Occurred. 

In  the  doing  of  these  things  great  economic  changes  have 
been  necessary.  Individual  effort  has  given  way  to  combined 
effort.  The  burden  of  enormous  undertakings  was  too  heavy  for 
individuals;  hence  the  formation  of  corporations,  trade  unions, 
all  kinds  of  combinations  of  capital  and  labor.  Throughout  these 
changes  inevitably  hardships  have  been  suffered,  abuses  have 
grown  up,  wrongs  have  been  done.  Primarily  relief  from  such 
evils  was  sought  from  the  State  governments  having  jurisdic- 
tion thereof. 

State  Regulation   Inefficient. 

Laws' for  the  prevention,  regulation,  or  suppression  of  trusts 
monopolies,  or  combinations  in  restraint  of  trade  have  been 
passed  in  36  States  and  two  Territories.  This  great  mass  of 
legislation  is  for  the  most  part  highly  penal;  its  purpose  was  to 
correct  an  industrial  wrong  by  the  infliction  of  severe  punish 
ments.  Much  of  the  legislation  was  as  bad  as  the  evils  it  was  in- 
tended to  destroy.  It  was  enacted  with  honest  intent,  but  in 
ignorance  of  real  conditions. 

On  the  other  hand,  there  have  been  passed  in  many  States 
laws  of  a  directly  opposite  character.  Some  States  permit— yes 
encourage — the  formation  of  corporations  or  combinations  witl 
unlimited  powers,  subject  to  no  restraint  or  regulation— thus  pro 
viding  the  very  machinery  for  industrial  despotism. 

Hence  the  anomalous  situation  of  a  corporation  chartered  b} 
one  State  doing  legally  therein  things  which,  if  it  dared  to  do  in 
an  adjoining  State,  would  render  its  officers  liable  to  imprison 
ment  and  fine. 

Both  kinds  of  such  extreme  legislation  are  bad.  On  the  one 
hand,  the  enforcement  of  a  law  which  prohibits  corporate  enter- 
prise because  of  the  gross  abuse  of  power  by  a  few  men,  de- 
stroys legitimate  enterprise  as  well.  On  the  other  hand,  the 
State  which  grants  unlimited  powers  to  corporations,  free  from 
restriction  and  continued  regulation,  creates  an  agency  that  may, 
by  industrial  supremacy,  become  a  menace  to  free  institutions 
As  long  as  industries  kept  within  State  borders  the  National 
Government  had  no  control  over  them. 

Mr.  Roosevelt's  Views  as  Expressed  in  1900. 

The  efforts  to  correct  abuses  and  to  enact  laws  for  the  pro 
tection  of  the  public  against  dishonesty  and  imposition  have  no} 
been  confined  to  either  of  the  great  political  parties,  but  it  is  in- 
teresting to  nofg  that  one  of  the  ablest  statements  of  the  right 
rules  of  conduct  for  the  investigation  and  correction  of  corporate 
anuses  was  made  by  President  Roosevelt  when  he  was  governor 


TRUSTS    AND    INDUSTRIAL   COMBINATIONS.  169 

of  New.  York.    In  his  message  to  the  New  York  Legislature  on 
January  3,  1900,  he  said: 

"It  is  almost  equally  dangerous  either  to  blink  at  evils  and  refuse 
to  acknowledge  their  existence  or  to  strike  at  them  in  a  spirit  of 
ignorant  revenge,  thereby  doing  far  more  harm  than  is  remedied." 

°        *  *  *.*  *  *  * 

"It  is  possible,  by  acting  with  wisdom,  coolness  and  fearless- 
ness, to  apply  a  remedy  which  will  wholly  or  in  great  part  remove 
the  evil  while  leaving  the  good  behind.  We  do  not  wish  to  discour- 
age enterprise.  We  do  not  desire  to  destroy  corporations;  we  do 
desire  to  put  them  fully  at  the  service  of  the  State  and  the  people." 
*  *  *  *  *  *  * 

"What  remains  for  us  to  do,  as  practical  men,  is  to  look  the 
conditions  squarely  in  the  face  and  not  to  permit  the  emotional 
side  of  the  question,  which  has  its  proper  place,  to  blind  us  to  the 
fact  that  there  are  other  sides.  We  must  set  about  finding  out 
what  the  real  abuses  are,  with  their  causes,  and  to  what  extent 

remedies   can  be   applied." 

******* 

"To  say  that  the  present  system  of  haphazard  license  and  lack 
of  supervision  and  regulation  is  the  best  possible  is  absurd.  *  *  * 
The  man  who  by  swindling  or  wrong-doing  acquires  great  wealth 
for  himself  at  the  expense  of  his  fellow,  stands  as  low  mor- 
ally as  any  predatory  mediaeval  nobleman,  and  is  a  more  dangerous 
member  of  society.  Any  law,  and  any  method  of  construing  the 
law  which  will  enable  the  community  to  punish  him,  either  by 
taking  away  his  wealth  or  by  imprisonment,  should  be  welcomed. 
Of  course,  such  laws  are  even  more  needed  in  dealing  with  great 
corporations  or  trusts  than  with  individuals.  They  are  needed 
quite  as  much  for  the  sake  of  honest  corporations  as  for  the  sake 
of  the  public.  The  corporation  that  manages  its  affairs  honestly 
has  a  right  to  demand  protection  against  the  dishonest  corpora- 
tion. We  do  not  wish  to  put  any  burden  on  honest  corporations. 
Neither  do  we  wish  to  put  any  unnecessary  burden  of  responsibility 
on  enterprising  men  for  acts  which  are  immaterial;  they  should  be 
relieved  from  such  burdens,  but  held  to  a  rigid  financial  accounta- 
bility for  acts  that  mislead  the  upright  investor  or  stockholder,  or 
defraud  the  public. 

"The  first  essential  is  knowledge  of  the  facts,  publicity.  Much 
can  be  done  at  once  by  amendment  of  the  corporation  laws  so  as 
to  provide  for  such  publicity  as  will  not  work  injustice  as  between 
business  rivals. 

"The  chief  abuses  alleged  to  arise  from  trusts  are  probably  the 
following:  Misrepresentation  or  concealment  regarding  material 
facts  connected  with  the  organization  of  an  enterprise;  the  evils 
connected  with  Unscrupulous  promotion;  overcapitalization;  unfair 
competition,  resulting  in  the  crushing  out  of  competitors  who 
themselves  do  not  act  improperly;  raising  of  prices  above  fair  com- 
petitive rates;  the  wielding 'of  increased  power  over  the  wage- 
earners.  *  *  *  We  should  know  authoritatively  whether  stock 
represents  actual  value  of  plants,  or  whether  it  represents  brands 
or  good  will;  or  if  not,  what  it  does  represent,  if  anything.  It  is 
desirable  to  know  how  much  was  actually  bought,  how  much  was 
issued  free,  and  to  whom;  and,  if  possible,  for  what  reason.  *  *  * 
In  the  next  place  this  would  enable  us  to  see  just  what  the  public 
have  a  right  to  expect  in  the  way  of  service  and  taxation." 

******* 

"Where  a  trust  becomes  a  monopoly  the  State  has  an  immediate 
right  to  interfere.  Care  should  be  taken  not  to  stifle  enterprise 
or  disclose  any  facts  of  a  business  that  are  essentially  private; 
but  the  State  for  the  protection  of  the  public  should  exercise  the 
right  to  inspect,  to  examine  thoroughly  all  the  workings  of  great 
corporations^  just  as'  is  now  done  with  banks,  and  wherever  the  in- 
terests of  the  public  demand  it  it  should  publish  the  results  of  its 
examination.  *  *  *  The  first  requisite  is  knowledge,  full  and 
complete." 

Became  a  National  Question. 

However,  this  question  could  not  remain  a  State  one.  Indus- 
try overleaped  State  boundaries;  it  became  interstate  and  for- 
eign commerce,  and  hence  under  the  direct  control  of  the  Na- 
tional Government 

The  States  found  themselves  helpless  to  regulate  or  control 
agencies  of  interstate  commerce.    Under  the  Republican  adminis- 
tration of  Harrison,  in  1890,  a  Republican  Congress  took  definite 
|  action  to  provide  a  remedy  for  some  of  the  trust  difficulties  by 
j  enacting  the  Sherman  Anti-Trust  Law— "An  Act  to  protect  trade 
I  and   commerce  against  unlawful   restraints  and   mononopolies." 
Frosecutions  under  the  act  were  attempted,  but  prior  to  the  ad- 
ministration of  President  McKinley  little  of  real  value  had  been 
accomplished. 

What  Has  Been  Done  Since  1900. 

I         Mr.  Root,   in   his  speech  at  the  Republican  Convention  on 
June  21,  1904,  well  stated  the  situation  as  follows: 

"Four  years  ago  the  regulation  by  law  of  the  great  corporate 
t  combinations  called  'trusts'  stood  substantially  where  it.  was  when 
j  the  Sherman  anti-trust  act  of  1890  was  passed. 


170  IKIMS    AM>    1MHSTKIAI.    COM  HINATIONS. 

"At  every  election  the  regulation  of  trusts  had  been  the  foot-/ 
ball  of  campaign  oratory  and  the  subject  of  many  insincere  declaJ 
rations. 

"Our  Republican  Administration  has  taken  up  the  subject  In 
a  practical,  sensible  way  as  a  business  rather  than  a  political  ques- 
ton,  saying  what  it  really  meant,  and  doing  what  lay  at  its  nand 
to  be  done  to  accomplish  effective  regulation.  The  principles  upon 
which  the  government  proceeded  were  stated  by  the  President  in 
his  message  of  December,   1902. 

"After  long  consideration,  Congress  passed  three  practical 
statutes — on  the  11th  of  February,  1903,  an  act  to  expedite  hear- 
ings in  suits  in  enforcement  of  the  anti-trust  act;  on  the  14th  of 
February,  1903,  the  act  creating  a  new  Department  of  Commerce 
and  Labor,  with  a  Bureau  of  Corporations,  having  authority  to 
secure  systematic  information  regarding  the  organization  and  op- 
eration of  corporations  engaged  in  interstate  commerce,  and  on 
the  19th  of  February,  1903,  an  act  enlarging  the  powers  of  the 
Interstate  Commerce  Commission  and  of  the  courts,  to  deal  with 
secret  rebates  in  transportation  chars.es,  which  are  the  chief 
means  by  which  the  trusts  crush  out  their  smaller  competitors. 

"The  Attorney  General  has  gone  on  in  the  same  practical  way, 
not  to  talk  about  the  trusts,  but  to  proceed  against  the  trusts  by 
law  for  their  regulation.  In  separate  suits  fourteen  of  the  great 
railroads  of  the  country  have  been  restrained  by  injunction  from 
giving  illegal  rebates  to  the  favored  shippers,  who,  by  means  of 
them,  were  driving  out  the  smaller  shippers  and  monopolizing  the 
grain  and  meat  business  of  the  country.  The  beef  trust  was  put 
under  injunction.  The  officers  of  the  railroads  engaged  in  the 
cotton-carrying  pool,  affecting  all  that  great  industry  of  the  South, 
were  indicted  and  have  abandoned  their  combination.  The  North- 
ern Securities  Company,  which  undertook  by  combining  in  one 
ownership  the  capital  stocks  of  the  Northern  Pacific  and  Great 
Northern  railroads  to  end  traffic  competition  in  the  Northwest, 
has  been  destroyed  by  a  vigorous  prosecution,  expedited  and 
brought  to  a  speedy  and  effective  conclusion  in  the  Supreme  Court 
under  the  act  of  February  11,   1903. 

"The  right  of*  the  Interstate  Commerce  Commission  to  compel 
the  production  of  books  and  papers  has  been  established  by  the 
judgment  of  the  Supreme  Court  in  a  suit  against  the  coal-carrying 
roads.  Other  suits  have  been  brought  and  other  indictments'  have 
been  found,  and  other  trusts  have  been  driven  back  within  legal 
bounds.  No  investment  in  lawful  business  has  been  jeopardized; 
no  fair  and  honest  enterprise  has  been  injured;  but  it  is  certain 
that  wherever  the  constitutional  power  of  the  National  Govern- 
ment reaches,  trusts  are  being  practically  regulated  and  curbed 
within  lawful  bounds,  as  they  never  have  been  before,  and  the  men 
of  small  capital  are  finding  in  the  efficiency  and'  skill  of  the  na- 
tional Department  of  Justice  a  protection  they  never  had  before 
against  the  crushing  effect  of  unlawful  combinations." 

Under  President  Roosevelt's  administration  there  has  been  no 
frittering  away  of  chances  to  enforce  the  laws  because  -of  fine- 
spun definitions  of  trusts.  Attorney  General  Knox  said  at  Pitts- 
burg, October  14,  1902: 

"The  people,  by  common  consent,  have  denominated  the  great 
industrial  and  other  corporations,  now  controlling  many  branches 
of  commercial  business,  trusts.  The  technical  accuracy  of  the 
term  is  unimportant,  but,  indeed,  it  is  much  more  apt  than  might 
be  supposed,  when  it  is  recalled  that  the  essential  difference  be- 
tween the  old  industrial  trusts  and  the  great  corporations  owning 
and  controlling  subsidiary  ones  is  that  in  respect  to  the  former  the 
shares  of  independent  corporations  agreeing  to  act  .in  harmony 
were  lodged  with  a  trustee  who  received  the  separate  earnings 
and  distributed  them  among  the  holders  of  trust  certificates,  while 
as  to  the  latter  a  corporation  is  created  to  take  over  the  title  to 
the  stock  or  properties  of  the  constituent  companies  and  issue 
its  own  shares  as  the  evidence  of  interest  in  the  combination. 
The  corporation  owner  of  corporations  invokes  specific  legal  au- 
thority from  the  legislature  of  the  State  under  which  it  is  created. 

"The  President,  in  his  first  message  to  Congress,  said: 

"  'There  is  a  widespread,  settled  conviction  in  the  minds  of  the 
American  people  that  these  trusts  are,  in  many  of  their  features 
and  tendencies,  hurtful  to  the  general  welfare.  This  springs  from 
no  spirit  of  envy  or  uncharitableness,  nor  lack  of  pride  in  the  great 
industrial  achievements  that  have  placed  the  country  at  the  head 
of  the  nations  struggling  for  commercial  supremacy.  It  does  not 
rest  upon  a  lack  of  intelligent  appreciation  of  the  necessity  of 
meeting  changing  and  changed  conditions  of  trade  with  new  meth- 
ods, nor  upon  ignorance  of  the  fact  that  combination  of  capital  and 
effort  to  accomplish  great  things  is  necessary  when  the  world's 
progress  is  demanding  that  great  things  be  done.  It  is  bottomed 
upon  sincere  conviction  that  combination  and  concentration,  while 
not  to  be  prohibited,  are  to  be  controlled,  and  in  my  judgment  this 
conviction   is    right.' 

"These  great  combinations,  now  numbering  thousands,  are  the 
instrumentalities  of  modern  commercial  activity.  Their  number 
and  size  alone  appall  no  healthy  American.  We  are  accustomed  to 
large  things  and  to  do  them  in  a  large  way.  We  are  accustomed  to 
speak  with  a  justifiable  pride  of  our  great  institutions  and  what 
we  have  fairly  accomplished  through  them.  No  right-thinking 
man  desires  to  impair  the  efficiency  of  the  great  corporations  as 
instrumentalities  of  national  commercial  development.  Because 
they  are  great  and  prosperous  is  no  sufficient  reason  for  their  de- 


TRUSTS   AND   INDUSTRIAL   COMBINATIONS.  171 

struction.  Tf  that  greatness  and  prosperity  are  not  the  result  of 
the  defiance  of  the  natural  rights  or  recorded  will  of  the  people, 
there  is  no  just  cause  of  complaint. 

"That  there  are  evils  and  abuses  in  trust  promotions,  purposes, 
organizations,  methods,  management,  and  effects  none  questions 
except  those  who  have  profited  by  those  evils.  That  all  or  any  of 
these  abuses  are  to  be  found  in  every  large  organization  called  a 
trust  no  one  would  assert  who  valued  his  reputation  for  sane  judg- 
ment. 

"The  conspicuous  noxious  features  of  trusts  existent  and  pos- 

1  sible  are  these:  Overcapitalization,  lack  of  publicity  of  operation, 
discrimination   in   prices  to   destroy   competition,    insufficient    per- 

|  sonal  responsibility  of  officers  and  directors  for  corporate  manage- 
ment, tendency  to  monopoly,  and  lack  of  appreciation  in  their  man- 
agement of  their  relations  to  the  people  for  whose  benefit  they  are 
permitted  to   exist." 

President  Roosevelt's  Words  on  This  Subject. 

The  following  utterances  of  President  Roosevelt  on  this  sub- 
ject are  clear-cut,  honest,  and  practical  expressions  of  the  atti- 
tude of  the  Republican  party: 

"The  first  essential  in  determining  how  to  deal  with  the  great 

industrial  combinations   is  knowledge  of  the  facts — publicity.     In 

the  interest  of  the  public  the  Government  should  have  the  right 

.     to   inspect   and   examine   the   workings   of   the   great   corporations 

engaged  in  interstate  business. 

"The   average   man,    however,    when   he   speaks   of  the   trusts, 

means  rather  vaguely  all  of  the  very  big  corporations,  the  growth 

of  which  has  been  so  signal  a  feature  of  our  modern  civilization, 

and  especially  those  big  corporations  which,  though  organized  in 

,     one  S'tate,  do  business  in  several  States,  and  often  have  a  tendency 

;     to  monopoly. 

"In  dealing  with  the  big  corporations  which  we  call  trusts, 
we  must  resolutely  purpose  to  proceed  by  evolution  and  not 
revolution.  *  *  *  The  surest  way  to  prevent  the  possibility  of 
curing  any  of  them  is  to  approach  the  subject  in  a  spirit  of  violent 
rancor,  complicated  with  total  ignorance  of  business  interests  and 
fundamental  incapacity  or  unwillingness  to  understand  the  limita- 
tions upon  all  law-making  bodies.  No  problem,  and  least  of  all 
so  difficult  a  problem  as  this,  can  be  solved  if  the  qualities  brought 
to  its  solution  are  panic,  fear,  envy,  hatred,  and  ignorance.  *  *  * 
Corporations  that  are  handled  honestly  and  fairly,  so  far  from 
being  an  evil,  are  a  natural  business  evolution  and  make  for  the 
general  prosperity  of  our  land.  We  do  not  wish  to  destroy  corpo- 
rations, but  we  do  wish  to  make  them  subserve  the  public  good.  All 
individuals,  rich  or  poor,  private  or  corporate,  must  be  subject  to 
the  law  of  the  land;  and  the  Government  will  hold  them  to  a  rigid 
obedience  thereof.  The  biggest  corporation,  like  the  humblest 
private  citizen,  must  be  held  to  strict  compliance  with  the  will  of 
the  people  as  expressed  in  the  fundamental  law.  The  rich  man 
who  does  not  see  that  this  is  in  his  interest  is  indeed  short-sight- 
ed. When  we  make  him  obey  the  law  we  insure  for  him  the 
absolute  protection  of  the  law. 

"I  think  I  speak  for  the  great  majority  of  the  American  people 
when  I  say  that  we  are  not  in  the  least  against  wealth  as  such, 
whether  individual  or  corporate;  that  we  merely  desire  to  see  any 
abuse  of  corporate  or  combined  wealth  corrected  and  remedied. 
*  *  *  There  is  no  proper  place  in  our  society  either  for  the  rich 
man  who  uses  the  power  conferred  by  his  riches  to  enable  him 
to  oppress  and  wrong  his  neighbors,  nor  yet  for  the  demagogic 
agitator. 

"The  necessary  supervision  and  control,  in  which  I  firmly  be- 
lieve as  the  only  method  of  eliminating  the  real  evils  of  the  trusts, 
must  come  through  wisely  and  cautiously  framed  legislation, 
which  shall  aim  in  the  first  place  to  give  definite  control  to  some 
sovereign  over  the  great  corporations,  and  which  shall  be  followed, 
when  once  this  power  has  been  conferred,  by  a  system  giving  to 
the  Government  the  full  knowledge  which  is  the  essential  for  satis- 
factory action.  Then,  when  this  knowledge — one  of  the  essential 
features  of  which  is  proper  publicity — has  been  gained,  what  fur- 
ther steps  of  any  kind  are  necessary  can  be  taken  with  the  confi- 
dence born  of  the  possession  of  power  to  deal  with  the  subject, 
and  of  a  thorough  knowledge  of  what  should  and  can  be  done  in 
the  matter. 

"In  the  interest  of  the  whole  people  the  nation  should,  without 
interfering  with  the  power  of  the  States  in  the  matter,  itself  also 
assume  power  of  supervision  and  regulation  over  all  corporations 
doing  an   interstate   business.  ♦ 

"We  are  no  more  against  organizations  of  capital  than  against 
organizations  of  labor.  We  welcome  both,  demanding  only  that 
each  shall  do  right  and  shall  remember  its'  duty  to  the  Republic. 
Such  a  course  we  consider  not  merely  a  benefit  to  the  poor  man, 
but  a  benefit  to  the  rich  man." 

However,  the  Republican  party  and  its  leaders  have  not  lim- 
ited their  dealings  with  this  question  to  mere  words,  nor  futile 
paper  attacks  upon  offending  corporations.  Passive  virtue  is 
often  as  dangerous  as  active  vice.  This  administration  has  taken 
vigorous  action  to  make  good  its  promises  and  carry  out  its 
policies. 


172  TRUSTS   AND   INDUSTRIAL  COMBINATIONS. 

Work  of  the  Department  of  Justice  in  the   Enforcement   of  Antl- 
Truat    Lavra. 

In  no  branch  of  tho  litigation  for  the  Government  has  greater] 
success  been  achieved  than  in  the  enforcement  of  the  Sherman 
Anti-Trust  law.  The  importance  of  the  suits  brought,  the  gravity 
of  the -questions  involved,  and  the  success  attained  render  spe- 
cial  mention  appropriate. 

Two  great  difficulties  encountered  in  ,the  past  in  the  enforce 
ment  of  the  Sherman  law  were  the  lack  of  power  to  compel  the 
giving  of  testimony  and  the  production  of  documentary  evidence 
in  the  form  of  books  and  paper— the  evidences  of  violation  of 
the  law;  and  also  the  delays  in  pushing  prosecutions  to  a  speedy 
conclusion,  which  could  be  availed  of  by  those  against  whom 
punishment  was  directed. 

It  thus  being  apparent  that  the  law  needed  amendment  to 
make  it  more  effective,  the  Judiciary  Committees  of  Congress, 
in  December,  1902,  called  upon  Attorney  General  Knox  for  an 
expression  of  his  views  as  to  the  amendments  which  should  be 
made  to  the  law.  In  response  thereto  the  Attorney-General  made 
several  recommendations.    Among  others,  these: 

(1)  That  the  Interstate  Commerce  law  should  be  so  amended 
as  to  make  the  penalties  prescribed  for  the  granting  of  rebates, 
concessions,  and  discriminations  apply  to  all  carriers,  whether  an 
incorporated  company  or  not,  and  to  subject  the  recipient  of  the 
rebates,  concessions,  or  discriminations  to  the  same  punishment 
as  might  be  imposed  upon  the  giver  of  them;  that  an  act 
done  or  omitted  to  be  done  by  an  officer,  agent,  or  employee  of 
a  carrier,  which  subjected  such  person  to  a  penalty,  should  also 
be  held  to  be  the  act  of  the  carrier  corporation  and  to  subject  the 
corporation  to  the  same  penalty  as  that  imposed  upon  its  officer, 
agent,  or  employee;  to  specifically  confer  upon  the  courts  the  au- 
thority to  enjoin  the  granting  or  the  receiving  of  rebates  or  con- 
cessions; and  to  make  it  ^unlawful  for  the  common  carrier  to 
transport  traffic  for  less  than  its  published  rate,  and  to  subject, 
to  heavy  penalties  all  who  participate  in  such  a  transaction. 

(2)  That  a  Commission  be  created,  with  the  power  and  duty, 
among  other  things,  to  make  diligent  and  thorough  investigation 
into  the  operations  and  conduct  of  all  corporations,  combinations 
and  concerns  engaged  in  interstate  and  foreign  commerce;  vest- 
ing in  the  Commission  the  authority,  in  making  investigations,  to 
compel  the  giving  of  testimony,  the  production  of  books  and 
papers,  and  the  making  of  such  reports  upon  such  matters  as  the 
Commission  may  desire  information;  and  to  gather  such  data  and 
information  as  will  enable  it  to  make  specific  recommendation 
for  additional  legislation  for  the  regulation  of  such  commerce. 

(3)  That  an  act  be  passed  to  expedite  the  hearing  and  determi- 
nation of  cases  under  the  Anti-Trust  and  the  Interstate  Commerce 
acts,  by  providing  that  whenever  the  Attorney-General  shall  file 
in  any  court  in  which  a  case  under  such  laws  is  pending  a  certifi- 
cate that  the  case  involves  important  questions  and  the  public 
interests  demand  a  speedy  hearing,  it  shall  thereupon  be  the 
duty  of  the  court,  a  full  bench  sitting,  to  proceed  with  the  hear- 
ing and  determination  of  the  case  at  as  early  a  date  as  is  practi- 
cable; and  that  from  a  decision  of  the  trial  court  an  appeal  may 
only  be  taken  direct  to  the  Supreme  Court  and  that  within  a 
very  limited  time. 

In  response  to  these  suggestions,  Congress  promptly  enacted 
the  following  legislation: 

(1)  On  February  11,  1903  (32  Stat,  823),  an  act  to  expedite 
the  hearing  and  determination  of  suits  under  the  Anti-Trust  and 
the  Interstate  Commerce  Acts.  The  act  provides  that  whenever 
the  Attorney-General  shall  file  with  the  clerk  of  the  court  in 
which  such  a  suit  is  pending  a  certificate  that  the  case  is  of  pub- 
lic importance,  it  shall  thereupon  be  the  duty  of  the  court,  not 
less  than  three  of  the  judges  sitting,  to  proceed  to  hear  and  de- 
termine the  case  at  the  earliest  practicable  day.  An  appeal  from 
the  decision  of  the  trial  court  will  lie  only  to  the  Supreme  Court 
and  must  be  taken  within  sixty  days  from  the*  entry  of  the  final 
decree. 

(2)  On  February  14,  1903  (32  Stat,  825,  827),  by  section  6  of 
the  act  creating  the  Department  of  Commerce  and  Labor,  there 


TRUSTS   AND   INDUSTRIAL  COMBINATIONS.  173 

was  created  a  bureau  called  the  "Bureau  of  Corporations,"  at 
the  head  of  which  was  placed  a  Commissioner.  Authority  and 
power  was  vested  in  the  Commissioner  to  make  diligent  investi- 
gation into  the  organization,  conduct,  and  management  of  the 
business  of  all  corporations,  joint  stock  companies,  and  corporate 
combinations  engaged  in  interstate  or  foreign  commerce  (except- 
ing common  carriers  subject  to  the  Interstate  Commerce  Law), 
and  to  gather  such  information  and  data  as  will  enable  the  Presi- 
dent to  make  recommendations  to  Congress  for  additional  legisla- 
tion; and  to  compel  the  giving  of  testimony,  and  the  production 
of  such  books  and  papers,  and  the  making  of  such  reports  as 
may  be  necessary  for  the  purposes  of  the  investigation. 

(3)  On  February  19,  1903,  Congress  passed  what  is  commonly 
known  as  the  "Elkins  Law"  (32  Stat,  847),  which  amended  the 
Interstate  Commerce  Law  in  several  important  particulars. 

That  act  provides  that  anything  done  or  omitted  to  be  done 
by  a  corporation  common  carrier,  subject  to  the  act,  which,  if 
done  by  an  officer,  agent,  or  employee  thereof  would  constitute  a 
misdemeanor  under  the  law,  shall  also  be  held  to  be  a  misde- 
meanor committed  by  such  corporation,  and  subjects  the  corpor- 
ation to  like  penalties; 

Requires  every  common  carrier  subject  to  the  law  to  publish 
its  tariff  rates  or  charges  and  to  maintain  them;  and  for  a  failure 
to  do  so  subjects  the  corporation  to  a  fine  of  from  $1,000  to 
$20,000  for  each  offense; 

,  Declares  it  to  be  unlawful  for  any  person  or  corporation  to 
offer,  grant,  or  give,  or  to  solicit,  accept,  or  receive  any  rebate, 
concession,  or  discrimination  in  respect  of  the  transportation  of 
any  property  in  interstate  or  foreign  commerce,  whereby  such 
property  shall  by  any  device  whatever  be  transported  at  a  less 
rate  than  that  named  in  the  tariffs  published  by  the  carrier,  and 
for  a  violation  of  this  provision  subjects  the  person  and  the  cor- 
poration to  a  fine  of  from  $1,000  to  $20,000; 

Makes  the  rate  published  and  filed  with  the  Interstate  Com- 
merce Commission  the  legal  rate,  and  every  departure  from  it  is 
to  be  deemed  an  offense  under  the  act; 

Expressly  declares  that  ai  prosecution  instituted  by  the  Gov- 
ernment under  this  act  shall  not  exempt  the  offending  carrier 
from  suits  to  recover  damages  by  any  party  injured,  as  provided 
in  the  former  acts; 

Requires  the  production,  in  any  proceeding,  of  all  books  and 
papers,  both  by  the  carrier  and  the  shipper,  which  directly  or 
indirectly  relate  to  the  transaction  charged  against  the  carrier, 
and  the  giving  of  testimony,  whether  such  books,  papers,  or  testi- 
mony may  tend  to  criminate  the  party  or  not;  but  exempts  the 
party  so  compelled  to  testify,  or  to  produce  any  books  or  papers, 
from  any  prosecution  or  penalty  on  account  of  any  transaction, 
matter,  or  thing  concerning  which  he  may  be  compelled  to  tes- 
tify or  produce  evidence; 

And  authorizes  the  expediting  and  hearing  of  any  suit  brought 
thereunder,  as  provided  in  the  act  of  February  11,  1903  (32  Stat, 
823),  for  the  hearing  and  determination  of  sutts  under  the  Anti- 
Trust  law. 

(4)  On  February  25,  1903  (32  Stat,  854,  903),  appropriated 
$500,000  for  the  purpose  of  enforcing  the  provisions  of  the  Anti- 
Trust  law,  and  vested  in  the  Attorney-General  the  authority  to 
employ  special  counsel  and  agents  of  the  Department  of  Justice 
to  conduct  proceedings,  suits,  and  prosecutions  under  that  act; 
and  exempts  from  prosecution  or  penalty  any  person  compelled  to 
testify,  or  to  produce  evidence,  in  any  suit  or  proceeding  under 
that  law. 

(5)  The  act  of  March  3,  1903  (32  Stat,  1031,  1062),  provides 
for  the  appointment  of  a  Special  Assistant  to  the  Attorney-Gen- 
eral, and  as  Assistant  Attorney-General,  to  assist  in  the  enforce- 
ment of  the  Anti-Trust  law,  and  to  perform  such  duties  as  may 
be  required  of  them  by  the  Attorney-General. 

Clothed  with  the  authority  conferred  by  this  new  legislation, 
the  Department  of  Justice,  in  connection  with  the  Interstate 
Commerce  Commission  and  the  Bureau  of.  Corporations,  has 
taken  up  the  work  of  making  a  thorough  investigation  into  the 
formation,  conduct,  and  operations  or  corporate  combinations  en- 


174  XBU8TS    AM)    INDISTUIAI,   COMBINATIONS. 

gaged  in  Interstate  and  foreign  commerce,  and  upon  the  comple- 
tion of  these  Investigations,  the  Department  will  be  in  a  position 
the  more  effectually  and  successfully  to  prosecute  violations  of 
the  Ami-Trust  and  interstate  Commerce  laws.  The  suits  under 
the  latter  laws  arc  referred  to  under  their  appropriate  heading 
hereafter. 

The  following  are  the  more  important  Anti-Trust  cases  pend- 
ing at  the  beginning  of  President  Mckinley's  Administration  and 
successfully  prosecuted,  and  those  begun  and  successfully  prose- 
cuted under  the  administrations  of  President  McKinley  and 
President  Roosevelt: 

United  States  v.  Joint  Traffic  Association,  171  U.  S.f  505  (de- 
cided October  24,  1898). 

In  this  case  the  Supreme  Court  held  illegal  what  is  known 
as  the  JoinfTraffic  Agreement,  an  agreement  entered  into  by  31 
different  railroads  operating  in  the  territory  between  Chicago  and 
the  Atlantic  Coast,  for  the  purpose  of  fixing  and  maintaining 
rates  and  fares.     The  court  held: 

That  Congress  has  the  power  to  prohibit,  as  in  restraint  of 
interstate  commerce,  a  contract  or  combination  between  compet- 
ing railorad  companies  to  establish  and  maintain  interstate  rates 
and  fares  for  the  transportation  of  freight  and' passengers  on  any 
of  the  railroads  parties  to  the  combination,  even  though  the  rates 
and  fares  thus  established  are  reasonable; 

That  Congress  has  the  power  to  forbid  any  agreement  or  com- 
bination among  or  between  competing  railroad  companies  for 
interstate  commerce  by  means  of  which  competition  is  pre- 
vented; and 

That  the  Sherman  Anti-Trust  law  is  a  legitimate  exercise  of 
the  power  of  Congress  over  interstate  commerce,  and  a  valid 
regulation  thereof. 

United  States  v.  Addyston  Pipe  &  Steel  Co.,  (decided  Decem- 
ber 4,  1899;  175,  U.  S.,  211). 

In  this  case  six  corporations,  located  in  different  States  and 
engaged  in  the  manufacture  of  cast-iron  pipe,  had  entered  into 
an  agreement  to  control  the  sale  of  cast-iron  pipe  in  36  States 
and  Territories,  by  fixing  the  price  of  sale,  dividing  up  the  terri- 
tory between  them,  and  by  refusing  to  bid  against  each  other. 
The  court  in  declaring  the  combination  to  be  illegal,  held: 

That  the  power  to  regulate  interstate  commerce,  and  to  pre- 
scribe the  rules  by  which  it  shall  be  governed,  is  vested  in  Con- 
gress and  that  any  agreement  or  combination  which  directly 
operates,  not  alone  upon  the  manufacture,  but  upon  the  sale, 
transportation  and  delivery  of  an  article  of  interstate  commerce, 
by  preventing  or  restricting  its  sale,  thereby  regulates  interstate 
commerce  to  that  extent,  and  thus  violates  the  Anti-Trust  law; 

That  the  Sherman  law  applies  to  combinations  of  individuals 
and  private  corporations  as  well  as  to  combinations  of  railways  ; 
and  that  Congress  has  authority  to  declare  void  and  to  prohibit 
the  performance  of  any  contract  between  individuals  or  corpo- 
rations where  the  natural  and  direct  effect  of  such  a  contract 
shall  be,  when  carried  out,  to  directly  regulate  to  any  extent  in- 
terstate or  foreign  commerce. 

United  States  v.  Northern  Securities  Co.  et.  al.,  183  U.  S., 
198  (decided  March  14,  1904). 

This  suit  was  brought  in  the  circuit  court  of  the  United 
States  for  the  district  of  Minnesota,  in  March,  1902,  against  the 
Northern  Securities  Company,  the  Great  Northern  Railway  Com- 
pany, and  the  Northern  Pacific  Railway  Company,  to  restrain  the 
Securities  Company  from  in  any  manner  acting  as  the  owner,  or 
from  voting  any  of  the  shares  of  the  capital  stock  of  the  two 
railway  companies;  and  to  enjoin  the  two  railway  companies 
from  permitting  the  Securities  Company  to  vote  any  of  the 
scares  of  the  capital  stock  of  the  two  roads,  or  from  exercising 
any  control  whatsoever  of  the  two  railways. 

The  Securities  Company  was  formed  by  the  officers  of  these 
two  railway  companies  for  the  purpose  of  acquiring  a  control- 
ling interest  in  the  capital  stock  of  the  two  roads,  which  it  did 
by  exchanging  its  stock  for  the  stock  of  the  two  railways.  Just 
prior  to  the  formation  of  the  Securities  Company  the  Great 
Northern  and  the  Northern  Pacific  Railway  Companies  had  joint- 


TRUSTS    AND    INDUSTRIAL   COMBINATIONS.  175 

ly  acquired  a  controlling  interest  in  the  stock  of  the  Chicago, 
Burlington  &  Quincy  Railroad  Company.  For  this  stock  the  two 
railroad  companies  issued  their  joint  bonds,  pledging  the  capital 
stock  so  purchased  as  collateral  for  the  payment  of  the  purchase 
bonds.  In  this  manner  the  two  railway  companies  secured  joint 
control  of  the  Burlington  system. 

In  securing  a  controlling  interest  in  the  stocks  of  the  Great 
Northern  ana  Northern  Pacific  systems  the  Securities  Company 
not  only  secured  the  control  of  those  two  systems  but  also  of 
the  Burlington  system  controlled  by  them,  which  enabled  it  to 
dictate  the  policy  of  all  three  railway  systems,  and  to  prevent 
all  competition  between  them.  By  these  means,  it  was  entirely 
within  the  power  of  the  Securities  Company  to  absolutely  con- 
trol all  three  systems  of  railway  and  to  suppress  all  competition 
between  these  hitherto  competing  lines  of  railway  in  all  of  the 
States  through  which  they  ran,  lying  north  of  the  line  of  the 
Union  Pacific  Railway  and  between  the  Great  Lakes  and  the 
Pacific  Ocean. 

Upon  full  hearing  the  circuit  court  held  the  combination  to 
be  illegal  and  restrained  all  acts  under  it.  On  appeal,  the  Su- 
preme Court  affirmed  the  decree  of  the  circuit  court  and,  among 
other  things,  held: 

That  the  principal,  if  not  the  sole  object  of  creating  the 
Securities  Company,  was  to  secure  and  to  hold  a  controlling  in- 
terest in  the  stock  of  both  railway  companies  and  thus  prevent 
all  competition  between  them;  and  that  such  an  arrangement  wras 
an  illegal  combination  in  restraint  of  interstate  commerce  and  a 
violation  of  the  Sherman  Anti-Trust  law; 

That  every  combination  or  conspiracy  which  would  extin- 
guish competition  between  otherwise  competing  railroads,  en- 
gaged in  interstate  trade  or  commerce,  and  which  would  in  that 
way  restrain  such  trade  or  commerce,  is  made  illegal  by  that 
act; 

That  Congress  has  the  power  to  establish  rules  by  which  in- 
terstate commerce  shall  be  governed,  and  by  the  Anti-Trust  act 
has  prescribed  the  rule  of  free  competition  among  those  engaged 
in  such  commerce;  and 

That  it  need  not  be  shown  that  such  a  combination,  in  fact, 
results,  or  will  result  to  suppress  or  restrain  such  commerce,  but 
it  is  only  essential  to  show  that  the  combination  possesses  the 
power  to  do  so,  if  it  wishes  to  exercise  it. 

United  States  v.  Chesapeake  &  Ohio  Fuel  Co.  et  al,  105  Fed. 
Rep.,  93. 

In  this  case  the  U.  S.  circuit  court  for  the  southern  district 
of  Ohio,  in  the  suit  brought  in  May,  1899,  for  that  purpose,  re- 
strained the  carrying  out  of  an  agreement  between  14  coal  com- 
panies engaged  in  mining  coal  and  making  coke  in  West  Virginia 
and  a  fuel  company— whereby  the  latier  company  was  to  take 
the  entire  product  of  the  mining  companies  intended  for  ship- 
ment to  the  Western  States;  to  sell  the  same  at  not  less  than  a 
minimum  price  to  be  fixed  by  a  committee  of  the  mining  com- 
panies; to  account  for  and  to  pay  over  to  them  the  entire  pro- 
ceeds above  a  fixed  pric#  each  company  receiving  payment  at 
the  same  rate,  and  the  fuel  company  binding  itself  not  to  sell 
the  product  of  a  competing  company— as  being  in  violation  of  the 
Anti-Trust  law,  the  combination  being  in  restraint  of  interstate 
trade  and  commerce  and  as  tending  to  monopoly.  The  court  held 
that— 

It  is  the  declared  policy  of  Congress  to  promote  individual 
competition  in  relation  to  interstate  commerce,  and  to  prevent 
combinations  which  restrain  such  competition  between  their 
members;  and  that  it  is  no  defense  to  an  action  to  dissolve  such 
a  combination  under  the  Anti-Trust  lawr  that  it  has  not  in  fact 
been  productive  of  injury  to  the  public  if  it  possesses  the  power 
to  injure  if  it  wishes  to  exercise  it. 

Upon  appeal  by  the  combination  the  circuit  court  of  appeals 
for  the  sixth  circuit  affirmed  the  decree  of  the  lower  court,  from 
which  decree  of  affirmance  no  appeal  was  taken  (115  Fed. 
Rep.,  610). 

United  States  v.  Swift  &  Co.  et  al,  122  Fed.  Rep.,  529. 

This  suit,  instituted  in  May,  1902,  commonly  called  the  "Beef 


176  TRUSTS    AMI    INIU'STKIAL    COM  HI  N  A  TIONS. 

Treat"  suit,  was  brought  in  the  U.  S.  circuit  court,  for  the  north- 
ern district  of  Illinois  to  restrain  the  operations  of  the  "Beef 
Trust,"  a  combination  composed  of  the  principal  buyers  of  live 
stock  and  shippers  of  dressed  meats  in  the  United  States.  The 
object  of  the  combination  was  to  restrain  competition  among 
themselves  in  the  buying  of  live  stock  and  in  the  sale  of  dressed 
meats.     The  court  held — 

That  the  agreement  of  the  defendants  to  refrain  from  bid- 
ding against  each  other  in  the  purchase  of  live  stock;  to  bid  up 
prices  for  a  short  time  to  induce  large  shipments  and 
then  to  reduce  the  price  and  cease  competitive  bidding  when 
the  shipments  arrived;  and  the  agreement  to  fix  and  maintain 
uniform  prices  for  dressed  meats,  wasl  in  restraint  of  trade  and 
violated  the  Sherman  law; 

That  the  Sherman  law  has  no  concern  with  prices,  but  looks 
solely  to  competition  and  to  the  giving  of  competition  full  play 
by  making  illegal  any  effort  at  restriction  upon  commerce. 

The  court  therefore  granted  the  injunction  prayed  for  by  the 
Government  From  this  action  the  Beef  Trust  has  taken  an  ap- 
peal to  the  Supreme  Court. 

United  States  v.  The  Federal  Salt  Company,  et  al. 

The  combination  involved  in  this  case  (brought  in  October, 
1902)"  was  known  as  the  "Salt  Trust,"  and  was  formed  for  the 
purpose  of  raising  and  maintaining  the  price  of  salt  in  the  States 
west  of  the  Rocky  mountains.  The  circuit  court  of  the  United 
States  for  the  northern  district  of  California  enjoined  the  com- 
bination from  acting  under  its  agreement  in  restraint  of  trade 
and  commerce,  and  the  combination  was  dissolved.  The  grand 
jury  (in  February,  1903)  also  returned  an  indictment  against 
the  trust*  to  which  it  pleaded  guilty,  and  was  sentenced  to  pay 
a  fine,  which  was  paid. 

Fiirther  "Work  Begrun  by  the  Department  of  Commerce  and  Labor. 

This  record  of  things  well  done  justifies  the  Republican  party 
in  asking  the  people  to  leave  the  further  solution  of  industrial 
problems  in  its  hands,  but  it  is  not  content  with  simply  point- 
ing to  the  past;  it  is  working  in  the  present  preparing  for  the 
future.  The  creation  of  the  Bureau  of  Corporations  in  the  De- 
partment of  Commerce  and  Labor  marks  the  change  from  the 
old  to  the  new  way  of  dealing  with  the  trusts.  The  chief  dif- 
ficulty has  been  lack  of  accurate  knowledge  regarding  existing 
conditions.  The  purpose  of  the  Bureau  is  to  get  all  essential 
facts  about  the  business  of  interstate  and  foreign  commerce, 
and  the  agencies  engaged  therein.  It  has  broad  powers  of  in- 
quiry. The  facts  it  obtains,  reported  to  Congress  through  the 
President,  will  afford  a  sound  basis  for  wise  and  progressive 
constructive  legislation. 

The  work  of  the  Bureau  thus  far  has  been  a  systematic  study 
of  legal  and  industrial  conditions  in  all  the  States  and  special 
investigations  into  particular  industries.  These  investigations 
have  been  conducted  vigorously,  but  not  with  a  spirit  of  hostility 
to  all  the  industries  because  of  the  misdeeds  of  some.  The  great 
powers  given  the  Bureau  would  be  justly  condemned  by  the 
people  if  used  for  partisan  attack  upon  special  corporations,  or 
the  exploitation  of  the  operations  of  business  enterprises  for  the 
sake  of  temporary  political  advantage. 

The  result  of  the  year's  work  is  most  gratifying.  The  people 
at  large  have  confidence  that  Congress  will  get  the  information 
it  needs,  business  men  see  that  legitimate  enterprise  need  not 
fear  unjust  attack  nor  improper  inquisitorial  investigation. 

The  Bureau  is  not  charged  with  the  enforcement  of  any  penal 
statute.  Those  Democratic  leaders  who  charge  it  wit.  failure 
to  suppress  a  corporation  alleged  to  be  violating  a  law  either  will- 
fully misrepresent  facts,  or  are  wofully  ignorant  of  the  organic 
statute.  The  clamor  of  Democracy  for  an  indiscriminate  assault 
upon  corporations  will  not  drive  this  Administration  from  its 
Steadfast,  though  undramatic,  work  of  discovering  facts  upon 
which  it  can  recommend  a  practical  change  of  laws  which  wiU 
improve,  not  destroy,  our  industries 


TRUSTS    AND  INDUSTRIAL  COMBINATIONS.  177 

The   Northern    Securities   Decision   and   the   Power   of    Congress   to 
Deal   with   Trusts. 

The  Supreme  Court  in  the  Northern  Securities  case  has 
cleared  away  many  of  the  popular  doubts  about  the  power  of 
Congress  to  deal  with  interstate  commerce,  as  shown  by  the  fol- 
lowing extracts  from  the  opinion: 

It  is  sufficient  to  say  that  from  the  decisions  in  the  above  cases 
certain  propositions  are  plainly  deducible  and  embrace  the  present 
case.     Those  propositions  are — 

That  although  the  act  of  Congress  known  as  the  Anti-Trust 
act  has  no  reference  to  the  mere  manufacture  or  production  of 
articles  or  commodites  within  the  limits  of  the  several  States,  it 
does  embrace  and  declare  to  be  illegal  every  contract,  combination, 
or  conspiracy,  in  whatever  form,  of  whatever  nature,  and  whoever 
may  be  parties  to  it,  which  directly  or  necessarily  operates  in 
restraint  of  trade  or  commerce  among  the  several  States  or  with 
foreign  nations; 

That  the  act  is  not  limited  to  restraints  of  interstate  and  inter- 
national trade  or  commerce  that  are  unreasonable  in  their  nature, 
but  embraces  all  direct  restraints  imposed  by  any  combination, 
conspiracy,  or  monopoly  upon  such  trade  or  commerce; 

That  railroad  carriers  engaged  in  interstate  or  international 
trade  or  commerce  are  embraced  by  the  act; 

That  combinations  even  among  private  manufacturers  or  deal- 
ers whereby  interstate  or  international  commerce  is  restrained  are 
equally  embraced  by  the  act; 

That  Congress  has  the  power  to  establish  rules  by  which  in- 
terstate and  international  commerce  shall  be  governed,  and,  by 
the  Anti-Trust  act,  has  prescribed  the  rule  of  free  competition 
among  those  engaged  in  such  commerce; 

That  every  combination  or  conspiracy  which  would  extinguish 
competition  between  otherwise  competing  railroads  engaged  in 
interstate  trade  or  commerce,  and  which  would  in  that  way  re- 
strain such  trade  or  commerce,  is  made  illegal  by  the  act; 

That  the  natural  effect  of  competition  is  to  increase  commerce 
and  an  agreement  whose  direct  effect  is  to  prevent  this  play  of 
competition  restrains  instead  of  promoting  trade  and  commerce; 

That  to  vitiate  a  combination,  such  as  the  act  of  Congress  con- 
demns, it  need  not  be  shown  that  the  combination,  in  fact,  results 
or  will  result  in  a  total  suppression  of  trade  or  in  a  complete 
monopoly,  but  it  is  only  essential  to  show  that  by  its  necessary 
operation  it  tends  to  restrain  interstate  or  international  trade  or 
commerce  or  tends  to  create  a  monopoly  in  such  trade  or  commerce 
and  to  deprive  the  public  of  the  advantages  that  flow  from  free 
competition; 

That  the  constitutional  guaranty  of  liberty  of  contract  does 
not  prevent  Congress  from  prescribing  the  rule  of  free  competition 
for  those  engaged  in  interstate  and  international  commerce;  and, 

That  under  its  power  to  regulate  commerce  among  the  several 
States  and  with  foreign  nations  Congress  had  authority  to  enact 
the  statute  in  question. 

No  one,  we  assume,  will  deny  that  these  propositions  were  dis- 
tinctly announced  in  the  former  decisions  of  this  court.  They 
cannot  be  ignored  or  their  effect  avoided  by  the  intimation  that 
the  court  indulged  in  obiter  dicta. 

By  the  express  words  of  the  Constitution,  Congress  has  power 
to  "regulate  commerce  with  foreign  nations  and  among  the  several 
States,  and  with  the  Indian  tribes."  In  view  of  the  numerous  de- 
cisions of  this  court  there  ought  not,  at  this  day,  to  be  any  doubt 
as  to  the  general  scope  of  such  power.  In  some  circumstances 
regulation  may  properly  take  the  form  and  have  the  effect  of  pro- 
hibition. (In  re  Rahrer,  140  U.  S.,  545;  Lottery  Case,  188  U.  S'.,  321, 
355,  and  authorities  there  cited.)  Again  and  again  this  court  has 
reaffirmed  the  doctrine  announced  in  the  great  judgment  rendered 
by  Chief  Justice  Marshall  for  the  court  in  Gibbons  vs.  Ogden  (9 
Wheat.,  1,  196,  197),  that  the  power  of  Congress  to  regulate  com- 
merce among  the  States  and  with  foreign  nations  is  the  power  "to 
prescribe  the  rule  by  which  commerce  is  to  be  governed;"  that 
such  power  "is  complete  in  itself,  may  be  exercised  to  its 
utmost  extent,  and  acknowledges  no  limitations  other  than 
are  prescribed  in  the  Constitution;"  that  "if,  as  has  already 
been  understood,  the  sovereignty  of  Congress,  though  limited 
to  specified  objects,  is  plenary  as  to  those  objects,  the 
power  over  commerce  with  foreign  nations  and  among  the  several 
States,  is  vested  in  Congress  as  absolutely  as  it  would  be  in  a  sin- 
gle government  having  in  its  constitution  the  same  restrictions 
on  the  exercise  of  the  power  as  are  found  in  the  Constitution  of  the 
United  States;"  that  a  sound  construction  of  the  Constitution  al- 
lows to  Congress  a  large  discretion,  "with  respect  to  the  means 
by  which  the  powers  it  confers  are  to  be  carried  into  execution 
which  enable  that  body  to  perform  the  high  duties  assigned  to  it, 
in  the  manner  most  beneficial  to  the  people;"  and  that  if  the  end 
to  be  accomplished  is  within  the  scope  of  the  Constitution,  "all 
means  which  are  appropriate,  which  are  plainly  adapted  to  that 
end  and  which  are  not  prohibited,  are  constitutional."  (Brown  v. 
Maryland,  12  Wheat.,  419;  Sinnot  v.  Davenport,  22  How.,  227,  238* 
Henderson  v.  The  Mayor,  92  TJ.  S.,  259;  Railroad  v.  Husen,  95  U.  S., 
465.  472;  Mobile  v.  Kimball,  102  U.  R,  691;  M.,  K.  &  Texas  Ry.  Co.  v. 
Haber,  169  U.  S.,  613,  626;  The  Lottery  Case,  188  U.  S.,  321,  348.) 
In  Cohens  v.  Virginia  (6  Wheat.,  264,  413),  this  court  said  that  the 
United  States  were  for  many  important  purposes  "a  single  nation," 


178  TRUSTS   AND   INDUSTRIAL  COMBINATIONS. 

and  that  "in  all  commercial  regulations  we  are  one  and  the  same 
people;"  and  it  has  since  frequently  declared  that  commerce  among 
the  several  States  was  a  unit,  and  subject  to  national  control. 
Previously,  in  McCulloch  v.  Maryland  (4  Wheat.,  316,  405),  the 
court  said  that  the  Government  ordained  and  established  by  the 
Constitution  was,  within  the  limits  of  the  powers  granted  to  it, 
"the  Government  of  all;  its  powers  are  delegated  by  all;  it  rep- 
resents all,  and  acts  for  all,"  and  was  "supreme  within  its  sphere 
of  action."  As  late  as  the  case  of  In  re  Debs  (158  U.  S.,  564,  582), 
this  court,  every  member  of  it  concurring,  said:  "The  entire 
strength  of  the  nation  may  be  used  to  enforce  in  any  part  of  the 
land  the  full  and  free  exercise  of  all  national  powers  and  the  se- 
curity of  all  rights  intrusted  by  the  Constitution  to  its  care.  The 
strong  arm  of  the  National  Government  may  be  put  forth  to  brush 
away  all  obstructions  to  the  freedom  of  interstate  commerce  or 
the  transportation  of  the  mails.  If  the  emergency  arises,  the  army 
of  the  nation,  and  all  its  militia,  are  at  the  service  of  the  nation 
to  compel  obedience  to  its  laws." 

They  serve  also  to  give  point  to  the  declaration  of  this  court 
in  Gibbons  v.  Ogden  (9  Wheat.,  194) — a  principle  never  modified  oy 
any  subsequent  decision — that,  subject  to  the  limitations  imposed 
by  the  Constitution  upon  the  exercise  of  the  powers  granted  by 
that  instrument,  "the  power  over  commerce  with  foreign  nations 
and  among  the  several  States  is  vested  in  Congress  as  absolutely 
as  it  would  be  in  a  single  government  having  in  its  constitution 
the  same  restrictions  on  the  exercise  of  power  as  are  found  in  the 
Constitution  of  the  United  States."  Is  there,  then,  any  escape 
from  the  conclusion  that,  subject  only  to  such  restrictions,  the 
power  of  Congress  over  interstate  and  international  commerce  is 
as  full  and  complete  as  is  the  power  of  any  State  over  its  domes- 
tic commerce?  If  a  State  may  strike  down  combinations  that  re- 
strain its  domestic  commerce  by  destroying  free  competition  among 
those  engaged  in  such  commerce,  what  power,  except  that  of  Con- 
gress, is  competent  to  protect  the  freedom  of  interstate  and  inter- 
national commerce  when  assailed  by  a  combination  that  restrains 
such  commerce  by  stifling  competition  among  those  engaged  in  it? 

We  reject  any  such  view  of  the  relations  of  the  National  Gov- 
ernment and  the  States  composing  the  Union,  as  that  for  which  the 
defendants  contend.  Such  a  view  cannot  be  maintained  without 
destroying  the  just  authority  of  the  United  States.  It  is  inconsis- 
tent with  all  the  decisions  of  this  court  as  to  the  powers  of  the 
National  Government  over  matters  committed  to  it.  No  State  can, 
by  merely  creating  a  corporation,  or  in  any  other  mode,  project  its 
authority  into  other  States,  and  across  the  continent,  so  as  to  pre- 
vent Congress  from  exerting  the  power  it  possesses  under  the 
Constitution  over  interstate  and  international  commerce,  or  so  as  to 
exempt  its  corporation  engaged  in  interstate  commerce  from  obedi- 
ence to  any  rule  lawfully  established  by  Congress  for  such  com- 
merce. It  cannot  be  said  that  any  State  may  give  a  corporation, 
created  under  its  laws,  authority  to  restrain  interstate  or  inter- 
national commerce  against  the  will  of  the  nation  as  lawfully  ex- 
pressed by  Congress.  Every  corporation  created  by  a  State  is 
necessarily  subject  to  the  supreme  law  of  the  land.  And  yet  the 
suggestion  is  made  that  to  restrain  a  State  corporation  from  in- 
terfering with  the  free  course  of  trade  and  commerce  among  the 
States,  in  violation  of  an  act  of  Congress,  is  hostile  to  the  re- 
served rights  of  the  States.  The  Federal  court  may  not  have  power 
to  forfeit  the  charter  of  the  Securities  Company;  it  may  not  declare 
how  its  shares  of  stock  may  be  transferred  on  its  books,  nor  pro- 
hibit it  from  acquiring  real  estate,  nor  diminish  or  increase  its 
capital  stock.  All  these  and  like  matters  are  to  be  regulated  by 
the  State  which  created  the  company.  But  to  the  end  that  effect 
be  given  to  the  national  will,  lawfully  expressed,  Congress  may 
prevent  that  company,  in  its  capacity  as  a  holding  corporation 
and  trustee,  from  carrying  out  the  purposes  of  a  combination 
formed  in  restraint  of  interstate  commerce.  The  Securities  Com- 
pany is  itself  a  part  of  the  present  combination;  its  head  and 
front;  its  trustee.  It  would  be  extraordinary  if  the  court,  in  exe- 
cuting the  act  of  Congress,  could  not  lay  hands  upon  that  com- 
pany and  prevent  it  from  doing  that  which,  if  done,  will  defeat 
the  act  of  Congress.  Upon  like  grounds  the  court  can,  by  appro- 
priate orders,  prevent  the  two  competing  railroad  companies 
here  involved  from  co-operating  with  the  Securities  Company  in 
restraining  commerce  among  the  States.  In  short,  the  court 
may  make  any  order  necessary  to  bring  about  the  dissolution  or 
suppression  of  an  illegal  combination  that  restrains  interstate 
commerce.  All  this  can  be  done  without  infringing  in  any  degree 
upon  the  just  authority  of  the  States.  The  affirmance  of  the  judg- 
ment below  will  only  mean  that  no  combination,  however  powerful, 
is  stronger  than  the  law  or- will  be  permitted  to  avail  itself  of 
the  pretext  that  to  prevent  it  doing  that  which,  if  done,  would  de- 
feat a  legal  enactment  of  Congress,  is  to  attack  the  reserved  rights 
of  the  States.  It  would  mean  that  the  Government,  which  repre- 
sents all,  can,  when  acting  within  the  limits  of  its  powers,  compel 
obedience  to  its  authority.  It  would  mean  that  no  device  in  evasion 
of  its  provisions,  however  skillfully  such  device  may  have  been  con- 
trived, and  no  combination,  by  whomsoever  formed,  is  beyond  the 
reach  of  the  supreme  law  of  the  land,  if  such  device  or  com- 
bination by  its  operation  directly  restrains  commerce  among  the 
States  or  with  foreign  nations  in  violaton  of  the  act  of  Congress. 

The  question  of  the  relations  of  the  General  Government  with 
the  States  is  again  presented  by  the  specific  contention  of  each  de- 
fendant that  Congress  did  not  intend  "to  limit  the  power  of  the 
several  States  to  create  corporations,  define  their  purposes,  fix  the 
/ 


: 


TRUSTS    AND   INDUSTRIAL   COMBINATIONS.  179 

amount  of  their  capital,  and  determine  who  may  buy,  own,  and  sell 
their  stock."  All  that  is  true,  generally  speaking,  but  the  con- 
tention falls  far  short  of  meeting  the  controlling  questions  in  this 
case.  To  meet  this  contention  we  must  repeat  some  things  already 
said  in  this  opinion.  But  if  what  we  have  said  be  sound,  repetition 
will  do  no  harm.  So  far  as  the  Constitution  of  the  United  States 
is  concerned,  a  State  may,  indeed,  create  a  corporation,  define  its 
powers,  prescribe  the  amount  of  its  stock,  and  the  mode  in  which 
it  may  be  transferred.  It  may  even  authorize  one  of  its  corpora- 
tions to  engage  in  commerce  of  every  kind;  domestic,  interstate, 
and  international.  The  regulation  or  control  of  purely  domestic 
commerce  of  a  State  is,  of  course,  with  the  State,  and  Congress 
has  no  direct  power  over  it  so  long  as  what  is  done  by  the  State 
does  not  interfere  with  the  operations  of  the  General  Government, 
or  any  legal  enactment  of  Congress.  A  State,  if  it  chooses  so  to 
do,  may  even  submit  to  the  existence  of  combinations  within  its 
limits  that  restrain  its  internal  trade.  But  neither  a  State  corpor- 
ation nor  its'  stockholders 'may,  by  reason  of  the  non-action  of  the 
State  or  by  means  of  any  combination  among  such  stockholders, 
interfere  with  the  complete  enforcement  of  any  rule  lawfully  de- 
vised by  Congress  for  the  conduct  of  commerce  among  the  States 
or  with  foreign  nations;  for.  as  we  have  seen,  interstate  and  inter- 
national commerce  is  by  the  Constitution  under  the  control  of 
Congress,  and  it  belongs  to  the  legislative  department  of  the 
Government  to  prescribe  rules  for  the  conduct  of  that  commerce. 
If  it  were  otherwise,  the  declaration  in  the  Constitution  of  its  su- 
premacy, and  of  the  supremacy  as  well  of  the  laws  made  in  pur- 
suance of  its  provisions,  was  a  waste  of  words.  Whilst  every  in- 
strumentality of  domestic  commerce  is  subject  to  State  control, 
every  instrumentality  of  interstate  commerce  may  be  reached  and 
controlled  by  national  authority,  so  far  as  to  compel  it  to  respect 
the  rules  for  such  commerce  lawfully  established  by  Congress. 

The  combination  here  in  question  may  have  been  for  the  pe- 
cuniary benefit  of  those  who  formed  or  caused  it  to  be  formed. 
But  the  interests  of  private  persons  and  corporations  cannot  be 
made  paramount  to  the  interests  of  the  general  public.  Under  the 
Articles  of  Confederation  commerce  among  the  original  States  was 
subject  to  vexatious  and  local  regulations  that  took  no  account  of 
the  general  welfare.  But  it  was  for  the  protection  of  the  general 
interests,  as  involved  in  interstate  and  international  commerce, 
that  Congress,  representing  the  whole  country,  was  given  by  the 
Constitution  full  power  to  regulate  commerce  among  the  States 
and  with  foreign  nations. 

This  decision  is  a  complete  answer  to  those  who  attack  the 
Administration  on  the  one  hand  for  failing  to  enforce  the  Sher- 
man law,  or  on  the  other  for  unwarrantedly  assailing  business 
interests. 

Attitude  of  the  Two  Parties  Contrasted. 

Therefore,  upon  its  record  of  promises  kept,  things  done,  work 
going  on,  and  policies  outlined,  the  Republican  party  confidently 
believes  that  the  industrial  welfare  of  the  country  will  best  be 
conserved  by  continuing  in  power  its  leaders.  The  issue  between 
the  two  great  parties  on  this  subject  is  not  clearly  defined,  but 
the  proposed  methods  of  dealing  with  trusts  are  widely  different. 
The  Republican  party  says  let  in  the  light,  search  the  depths  of 
industrial  conditions,  get  the  truth,  then  build  better  and  strong- 
er. The  Democratic  party  says  strike  in  the  dark,  injure  all 
because  some  are  bad,  destroy  existing  conditions  before  know- 
ing what  to  substitute. 

The  American  people  were  not  led  astray  by  the  misguided 
theories  of  Democracy  in  1896  and  1900,  nor  will  they  be  misled 
this  year.  That  party  preaches  discontent,  but  their  remedy  is 
destruction;  the  Republican  party,  industrially,  as  politically, 
recognizes  discontent  as  an  accompaniment  of  progress,  and  its 
remedy  is  construction. 

The  Real  Attitude  of  the  Two  Great  Parties. 

The  attitude  of  the  two  great  parties  on  the  Trust  question  is 
clearly  defined.  That  of  the  Democratic  party  looks  to  constant 
agitation,  with  no  restrictive  legislation ;  that  of  the  Republican 
party  to  such  restriction  as  will  prevent  arbitrary  advance  in 
prices,  or  reduction  in  wages  through  exclusive  control,  but  not 
the  destruction  by  legislation  or  injury  by  fictitious  agitation  of 
legitimate  enterprise  through  great  manufacturing  systems  by 
which  production  is  cheapened,  prices  of  manufactures  reduced, 
and  permanency  of  employment  assured.  As  far  back  as  the 
Fiftieth  Congress  the  Democrats  began  their  agitation  for  effect 
by  the  passage  of  a  resolution  authorizing  the  House  Committee 
on  Manufactures  to  enter  upon  an  investigation  of  the  Trusts  of 
the  United  States.  Such  distinguished  Democratic  leaders  as 
Representative  Wilson  of  West  Virginia,  Representative  Breckin- 


180  TKt  SIN     \M)    IMH  STHIAI,   COMBINATIONS, 

ridge  of  Arkansas,  Representative  Bynum  of  Indiana,  and  Repre- 
sentative Bacon  of  New  York  were  members  of  the  Committee, 
and  they  were  given  power  to  administer  oaths,  examine  wit- 
nesses, compel  the  attendance  of  persons  and  the  production  of 
papers,  and  make  their  investigation  a  thorough  one.  More  than 
100  witnesses,  Including  II.  A.  Havemeyer  and  Claus  Spreckels  of 
sugar  fame,  Mr.  Rockefeller,  Mr.  Flagler,  and  others  of  the 
Standard  Oil  Company,  and  representatives  of  the  cotton  bagging 
trust  and  whisky  trust  were  examined  A  thousand  pages  of  testi- 
mony were  taken  and  the  Committee  delayed  its  report  until  one 
day  before  the  expiration  of  the  Congress,  when  it  presented  its 
testimony,  but  made  no  recommendation  as  to  legislation,  "owing 
to  the  present  difference  of  opinion  between  members  of  the  Com- 
mittee." .In  the  Fifty-second  Congress  the  House  Judiciary  Com- 
mittee made  another  investigation,  and  after  an  examination  of 
many  witnesses,  submitted  a  report  in  which  it  declared  that 
"none  of  the  methods  employed  by  the  trust  in  controlling  the 
production  or  disposition  of  their  products  are  in  violation  of  the 
United  States  laws,"  and  that  "it  is  clearly  settled  that  the  pro- 
duction or  manufacture  of  that  which  may  become  a  subject  of 
interstate  commerce  and  ultimately  pass  into  protected  trade  is 
not  commerce,  nor  can  manufacturers  of  any  sort  be  instruments 
of  commerce  within  the  meaning  of  the  Constitution."  In  1894 
they  again  grappled  with  the  Trust  problem,  adding  to  the  Wilson- 
Gorman  tariff  law  a  series  of  provisions  purporting  to  authorize 
the  regulation  of  Trusts,  but  which  neither  the  Democratic  Presi- 
dent nor  the  Democratic  officials  who  were  in  power  when  the  act 
came  into  existence  made,  so  far  as  is  known,  any  attempt  to  put 
into  operation. 

The  difference  between  Democratic  promises  and  Republican 
performances  is  strikingly  illustrated  by  the  enactment  of  the 
measure  known  as  the  Sherman  Anti-Trust  Law,  which  was 
enacted  in  1890  by  a  Republican  Congress  and  signed  by  a  Re- 
publican President — Benjamin  Harrison.  Although  the  Democrats 
sneered  at  the  bill,  which  they  contended  was  simply  a  piece  of 
buncombe  and  would  be  only  a  dead  letter,  the  recent  decisions  of 
the  Supreme  Court  have  shown  that  it  is  at  least  the  only  piece 
of  legislation  ever  put  upon  the  statute  books  which  has  the  sem- 
blance of  power  to  control  and  prevent  combinations  in  restraint 
of  production  or  commerce. 

While  attacks  upon  Trusts  have  been  the  stock  in  trade  of 
professional  agitators,  none  of  them  has  offered  any  practical  leg- 
islation which  could  be  enforced  in  the  several  States  other  than 
that  which  might  be  provided  through  a  constitutional  amendment. 
Even  Mr.  Bryan,  who  omits  no  opportunity  to  declare  his  hostility 
to  Trusts,  offers  no  legislative  remedy  other  than  that  which 
would  be  supplied  by  a  constitutional  amendment.  In  his  address 
before  the  Trust  Conference  in  Chicago,  on  September  16,  1899,  he 
said:  "I  believe  we  ought  to  have  remedies  in  both  State  and 
Nation,  and  that  there  should  be  concurrent  remedies.  *  *  *  I 
believe  in  addition  to  a  State  remedy  there  must  be  a  Federal 
remedy,  and  I  believe  Congress  has,  or  should  have,  the  power  to 
place  restrictions  and  limitations,  even  to  the  point  of  prohibition, 
upon  any  corporation  organized  in  one  State  that  wants  to  do 
business  outside  of  the  State.  *  *  *  Congress  ought  now  to 
pass  such  a  law.  If  it  is  unconstitutional  and  so  declared  by  the 
Supreme  Court  I  am  in  favor  of  an  amendment  to  the  Constitution 
that  will  give  to  Congress  power  to  destroy  every  Trust  in  the 
country."  Yet,  in  the  face  of  this  assertion,  when  the  Judiciary 
Committee  of  the  House  of  Representatives  on  June  1,  1900, 
brought  before  that  body  a  joint  resolution  providing  for  a  Con- 
stitutional amendment  which  should  give  Congress  power  to  regu- 
late Trusts,  only  5  Democrats  voted  for  it,  while  practically  every 
Republican  in  the  House  voted  for  the  measure,  but  as  it  required 
a  two-thirds  vote,  the  Democrats  were  strong  enough  to  defeat  it. 

Trusts  in  Europe. 

The  development  of  the  trusts  has  not  been  confined  to  this 
country,  but  has  extended  throughout  all  the  great  commercial 
nations  of  the  world.  Under  the  direction  of  the  Industrial  Com- 
mission, Professor  J.  W.  Jenks  in  1891  made  a  careful  study  of  the 
condition  in  Europe,  his  full  report  appearing  in  volume  18  of  the 


TRUSTS    AND    INDUSTRIAL   OOMKINATTONS. 


181 


Report  of  the  Industrial  Commission.     His  conclusions  were  as 
follows : 

"1.  There  is,  relatively  speaking,  little  objection  to  com- 
binations in  Europe,  and  in  some  countries  the  governments  and 
people  seem  to  believe  that  they  are  needed  to  meet  modern  in- 
dustrial conditions.  They  do  believe  that  they  should  be  carefully 
supervised  by  the  Government  and,  if  necessary,  controlled. 

"2.  There  is  little  or  no  belief  that  the  protective  tariff  is  re- 
sponsible for  their  existence.  Tt  is  known  that  they  at  times  use 
the  tariff  to  keep  their  prices  higher  than  would  otherwise  be 
possible,  and  that  their  export  prices  are  often  lower  than  their 
domestic  prices.  The  tariff  should  be  guarded  so  as  to  prevent 
serious  abuses',  but  there  is  practically  no  thought  of  its  aboli- 
tion. 

"3.  Railroad  discriminations  have  been  practically  abolished 
in  Europe,  and  in  consequence  they  have  had  no  effect  toward  cre- 
ating combinations. 

"4.  The  great  degree  of  publicity  in  the  organization  of  cor- 
porations has  largely  prevented  the  evils  arising  from  stock 
watering,  and  has  evidently  had  much  effect  in  keeping  prices 
steady  and  reasonable,  and  in  keeping  wages  steady  and  just. 

"5.  There  seems  to  be  no  inclination  toward  the  passage  of 
laws  which  shall  attempt  to  kill  the  combinations.  That  is  be- 
lieved to  be  impossible  and  unwise.  Laws  should  attempt  only  to 
control,  and  that  apparently  chiefly  through  publicity,  though 
the  governments  may  be  given  restrictive  power  in  exceptional 
cases." 

United  States  consuls  in  1900  were  requested  to  report  such 
information  as  they  might  be  able  to  obtain  relating  to  trusts  or 
combinations  in  the  countries  in  which  they  were  serving.  These 
interesting  reports  were  published  in  the  series  of  Consular  Re- 
ports (in  volume  21,  part  3)  under  the  title  of  "Trusts  and  Trade 
Combinations  in  Europe."  The  following  are  extracts  from  the 
reports : 

TRUSTS   IN   THE   UNITED  KINGDOM. 

[From   the   U.   S.   Consul   at  Bradford^   England.] 

The  combine  mania  has  smitten  this  district  with  almost  the 
fury  of  an  epidemic,  and  more  than  any  other  part  of  the  country 
it  is  responsible  for  the  flotation  of  trusts.  To  what  extent  these 
have  been  effected  will  be  clearly  seen  from  the  following  table: 


Date  of 

Name  of  company. 

Number 
of  busi- 
nesses 
absorbed. 

Capitalization. 

flota- 
tion. 

English 
money. 

United  States 
equivalent. 

1898. 
Dec.  14. 

Bradford  Dyers'   Association. 

22 

11 

9 

38 

46 

£4,500,000 

600,000 

250.000 

2,500,000 

2,750.000 

$21,899,250 

1899. 
July     4 

Yorkshire  Indigo,  Scarlet,  and 

2,919,900 

July     6 
Oct.      9 

Bradford   Coal   Merchants   and 

Consumers'  Association.  Ltd.. 

Yorkshire  Wool  Consumers  As- 

1,216.625 
12,166.250 

1900. 
April   4 

British  Cotton  and  "Wool  Dyers' 

13.382,875 

Total 

126 

10,600,000 

51.584,900 

The  above  are  the  trusts  which  so  far  have  been  submitted  to 
the  British  public  for  support  in  this  district,  but  there  is  in  em- 
bryo a  combine  which  will  embrace  all  the  firms  engaged  in  the 
manufacture  of  cards  for  the  woolen  and 'worsted  trade.  There 
are  about  thirty  firms  carrying  on  business,  and  more,  than  half 
have  already  signified  their  intention  to  form  a  syndicate,  but  it 
is  felt  that  such  a  combination  should  comprise  at  least  75  p^r 
cent  of  the  whole  trade.  It  is  expected  that  the  capital  of  the 
combination,  if  it  is  formed,  will  be  about  £200,000  ($973,300)  or 
£250,00$  ($1,216,625). 

There  is  also  a  movement  which  it  is  hoped  will  result  in  the 
formation  of  a  trust  comprising  the  Bradford  dress-goods  manu- 
facturers. Already  a  meeting  has  been  held,  and  invitations  have 
been  sent  asking  whether  firms  would  be  willing  to  join  in  the 
syndicate.  The  dress-goods  manufacturers  in  this  district  are  so 
multitudinous  and  the  variety  of  goods  made  is  so  great  that  such 


182  fBl  ITf    AMI    INDUSTRIAL   COMBINATIONS 

a  trust  would  be  almost  past  human  genius  to  manage.  Another 
proposed  combine  covers  the  interests  of  the  Bradford  worsted 
spinners.  Here,  again,  the  trade  is  confronted  with  such  a  huge 
Bcheme  that  many  express  the  opinion  that  it  will  never  be  accom- 
plished. The  matter  has  been  freely  talked  over  by  many  leading 
worsted  spinners  in  this  district  with  the  promoter  of  textile  com- 
bines, and  although  there  is  a  good  deal  yet  to  be  done,  I  am 
assured  that  matters  are  proceeding  satisfactorily.  The  proposed 
combination  will  include  not  only  the  spinners  of  fine  and  "Bot- 
any" yarns,  but  also  of  "crossbreds." 

Spinners'  and  Skipping  Trust. 

Consul  Halstead  writes  from  Birmingham,  March  1,  1900,  in 
regard  to  the  apathy  with  which  the  people  of  Great  Britain  re- 
gard the  formation  of  trusts. 

The  news  editor  of  the  London  Mail  (circulation,  one  million 
two  hundred  and  odd  thousand)  gives  only  some  thirty-two  lines 
to  an  item  of  the  kind,  and  the  editor  in  chief  is  not  disturbed  to 
the  extent  of  a  single  editorial  paragraph.  Except  an  approving 
paragraph  or  two  in  the  financial  columns  when  the  flotation  is 
advertised,  one  can  look  in  vain  in  other  papers  for  either  news 
or  editorial  notice  referring  to  English  trusts.  Mr.  Halstead  con- 
tinues : 

I  have  a  clipping  from  the  February  1  issue  of  the  London 
Daily  Mail.  It  is  an  announcement  of  a  proposed  formation  of  a 
worsted  spinners'  trust.  This  trust  is  to  have  a  capital  of  £18,- 
000,000  ($87,597,000),  and  one  hundred  and  six  firms  are  con- 
cerned ;  yet  the  news  editor  of  the  Mail  judges  this  item  to  be 
worth  only  a  two-line  head,  twenty-eight  lines  of  small  type,  set 
solid.    The  item  is  as  follows : 

Another  Huge  Trust — Bradford  Spinners  Discuss  an  £18,000,000 
Combine.  • 

A  meeting-  of  spinners  engaged  in  the  worsted  trade  was  held 
yesterday  in  Bradford  to  consider  the  question  of  forming  a  com- 
bination of  firms  in  that  branch  of  business.  One  hundred  and 
six  firms  were  represented. 

Mr.  Scott  Ling,  of  Manchester,  who  presided,  explained  that  it 
was  proposed  to  buy  out  firms  on  the  basis  of  allowing  nothing 
for  good  will  of  concerns  which  show  only  5  per  cent,  profit.  All 
profit  beyond  5  per  cent,  will  be  multiplied  seven  and  a  half  times, 
and  that  amount  allowed  for  good  will.  On  such  a  basis  he  calcu- 
lated they  could  show  iy2  to  8  per  cent,  for  ordinary  shareholders. 

A  resolution  in  favor  of  combination  was  unanimously  passed, 
and  the  following  committee  appointed  to  devise  a  scheme:  Mr. 
Ickeringill,  of  Keighley;  Mr.  James  Drummond,  of  Bradford;  Mr. 
Alfred  Haley,  of  Wakefield;  Mr.  A.  Anderton,  of  Checkheaton;  Mr. 
J.  Hoyle,  of  Halifax;  Mr.  Smithies,  of  Halland,  and  Mr.  H.  White- 
head of  Bradford. 

Opinion  is  divided  as-  to  the  possibility  of  a  successful  com- 
bination.    Some  put  the  probable  total  capital  at  £18,000,000. 

I  take  from  the  same  issue  of  the  Daily  Mail  the  following 
extract  in  regard  to  the  amalgamation  as  a  "trust"  of  two  great 
South  African  steamship  companies: 

Cape  Shipping  Combination. 

Details  are  now  fully  arranged  of  the  recently  announced 
amalgamation  of  the  two  well-known  Cape  mail  companies. 

The  object  of  the  amalgamation  is  to  provide  for  the  more  effi- 
cient working  of  the  South  African  trade  and  for  the  carrying  out 
of  the  joint  mail  contract  which  the  companies  have  made  with  the 
Cape  Government  for  ten  years  from  October  next. 

The  Castle  Company  changes  its  name  to  the  "Union-Castle 
Mail  Steamship  Company,  Limited,"  takes  over  the  property  and 
liabilities  of  the  Union  Company,  and  increases  its  nominal  capital 
to  £2,000,000.  The  directorates  also  combine,  and  Sir  Francis 
Evans,  chairman  and  'managing  director  of  the  Union,  joins  the 
firms  of  Donald  Currie  &  Co.  in  the  control  of  the  amalgamated 
poncern. 

A  new  4  per  cent  debenture  stock  will  be  created,  for  which 
the  shareholders  in  both  companies  will  be  allowed  to  exchange 
their  present  stock. 

It  is  proposed  that  the  shares  of  the  united  company  shall  be 
£10  instead  of  £20  shares,  and  the  shareholders  of  the  Uniojf  Com- 
pany will  receive  for  their  paid-up  capital  an  allotment  of  an  equal 
nominal  amount  of  fully  paid-up  shares  of  the  Union  Castle  Com- 
pany, and  in  addition  will  receive  £6  13s.  4d.  per  share,  payable  in 
4  per  cent  debenture  stock. 

Wail-Paper  Trust. 

Under  date  of  Birmingham,  February  16,  1900,  Consul  Hal- 
stead says: 


TRUSTS    AND   INDUSTRIAL    COMBINATIONS.  183 

Combinations  of  the  kind  which  at  home  we  call  "trusts"  are 
created  here  without  attracting  public  attention  or  causing  alarm, 
though  no  trouble  is  taken  to  keep  the  facts  from  getting  to  the 
public,  and  it  is  rare  that  one  hears  a  voice  raised  against  trusts. 
A  wall-paper  combination  with  £6,000,000  ($29,199,000)  of  capital 
is  announced,  and  receives  from  the  London  Daily  Mail,  a  news- 
paper which  is  very  active  in  news  gathering,  only  the  scant  at- 
tention of  a  two-line  head,  twenty-one  lines  of  type  set  solid,  and 
an  inconspicuous  position.    The  Mail  article  reads  as  follows : 

The  Association  of  Wall-Paper  Manufacturers,  after  working 
jointly  since  September  30,  are  now  preparing. a  prospectus,  and  an 
issue  of  capital  will  be  made  within  the  next  few  days'. 

The  company  is  already  registered  with  £4,000,000  of  share 
capital,  plus  debentures,  and  the  new  issue  will  probably  be 
£6,000,000. 

Practically  every  maker  of  paper  hangings  in  the  Kingdom  is 
stated  to  be  embraced  by  the  federation,  including  Scotch,  Lan- 
cashire, Yorkshire,  and  London  concerns.  The  chairman  of  the 
combination  is  W.  P.  Huntington,  late  member  of  Parliament  for 
the  Darwen  division  of  Lancashire,  and  sheriff  of  Lancashire. 

Many  important  consolidations,  adjustments,  and  economies 
have  already  been  effected  since  the  formation  of  the  federation. 

Trust  in  Bleaching  Trade. 

Consul  Halstead  writes  from  Birmingham,  February  24,  1900 : 
Wednesday's  edition  of  the  London  Mail  refers  to  the  forma- 
tion of  a  bleaching  trust  with  a  capitalization  of  £10,000,000  or 
£12,000,000.  This,  in  the  judgment  of  the  managing  editor,  is 
worthy  of  only  one  headline,  twenty-two  lines  of  nonpareil  type 
set  solid.    The  Daily  Mail  article  reads  as  follows: 

Bleaehing-Triule  Combine. 

The  Lancashire  bleaching  trade  will  shortly  be  in  the  hands 
of  a  powerful  company. 

It  is  said  that  the  combination  will  involve  the  capitalization 
of  from  £10,000,000  to  £12,000,000  ($48,665,000  to  $58,398,000),  and 
the  object  in  view  is  to  prevent  individual  concerns  from  indulging 
in  sharp  practices,  cutting  prices,  discounts,  etc. 

Individual  businesses  are  to  be  taken  over  and  worked  from 
March  31  by  the  company,  which  will  be  known  as  the  Lancashire 
Bleachers'  Association,  Limited,  and  the  prospectus  will  probably 
be  in  the  hands  of  the  public  soon  after  that  date. 

Experts  are  confident  that  there  is  no  branch  of  the  textile  in- 
dustries which  will  so  well  and  profitably  lend  itself  to  the  adop- 
tion of  joint-stock-combination  principles  as  that  of  the  Lanca- 
shire bleaching  trade. 

A  provisional  committee  has  been  appointed  from  among  the 
members   of  the  largest  firms. 

Mr.  Halstead  adds,  July  23,  1900: 

In  the  advertising  columns  of  the  Times,  Mail,  Express,  and 
other  London  and  provincial  papers  appears  to-day  the  prospectus 
of  the  Bleachers'  Association,  Limited,  the  cotton  bleaching 
"trust"  the  proposed  formation  of  which  I  reported  some  time  ago. 
The  share  capital  of  this  new  "trust"  is  given  at  £6,000,000,  and 
added  to  this  as  an  exact  statement  of  the  money  involved  there 
are  £2,250,000  in  4*4  per  cent  first  mortgage  debenture  stock,  mak- 
ing a  total  of  £8,250,000,  equivalent  in  American  money  to  $40,- 
148,625.  Power  is  reserved  by  the  "trust"  deed  to  create  further 
debenture  stock  in  addition  to  the  amount  announced,  provided  it 
is  necessary.  I  have  not  seen,  in  the  five  daily  newspapers  I  have 
read  this  morning,  a  single  editorial  comment  on  the  formation  of 
this  great  "trust,"  which  is,  by  the  way,  a  full  brother  organiza- 
tion to  the  Bradford  Dyers'  Association,  Limited,  an  equally  great 
"trust,"  and  with  which  it  has  a  working  arrangement,  which  is 
shown  by  this  paragraph  taken  from  the  prospectus : 

A  few  of  the  amalgamated  firms  are  dyers  as  well  as  bleachers, 
and  the  two  businesses'  may  be  usefully  and  profitably  continued 
side  by  side.  There  is,  however,  no  intention  of  competing  with 
the  Bradford  Dyers'  Association,  Limited,  and  in  the  case  of  one 
firm  which  carries  on  at  one  of  its  works  piece  dyeing  of  the 
Bradford  class',*  the  Gompany  has  arranged  to  transfer  the  dye 
works   to  that  association. 

The  prospectus  states  that  the  company  has  been  formed  with 
the  object  of  acquiring  and  amalgamating  numerous  firms  and 
companies  engaged  in  the  bleaching  trade  and  of  strengthening  and 

*I  think  this  means'  dyeing  of  wool. — Consul. 


184  TRUSTS   AND   INDUSTRIAL   COMBINATIONS. 

extending  various  associations  which  previously  existed  for  vari- 
ous purposes  In  connection  with  Hie  trade. 

The  Dames  of  the  fifty-three  linns  which  have  entered  into 
contract  for  the  sale  of  their  businesses  to  the  "trust"  are  given, 
and  are  as  follows: 

Richard  Ainsworth,  Son  &  Co.,  Halliwell  Bleachworks,  Boiton, 
established  1760. 

The    Birkacre    Company,    Limited    (bleaching    business    only), 
Birkacre  Bleachworks.   Chorley,   established  1871. 

John   &   Henry    Bleachley,    Myrtle   Grove    Bleachworks',    Prest- 
wich,    established   1799. 

Thomas  Ridgway  Bridson  &  Sons,  Bolton  Bleachworks,  Bolton, 
established  prior  to   1800. 

Thomas  Ridgway  Bridson  &  Sons,  Lever  Bank  Bleachworks, 
Little  Lever,  established  prior  to  1832. 

W.  E.  Buckley  &  Co.,  Limited,  Pilsworth  Bleachworks,  White- 
field,   near  Manchester,  established   1878. 

Buckley  &  Brennand,  Seedley  Bleachworks,  Seedley,  estab- 
lished  1887. 

R.  &  A.  Chambers',  Limited,  Spring  Waters  Bleachworks 
Whitefield,   near  Manchester,   established  1856. 

Thomas  Cross'  &  Co.,  Limited,  Mortfield  Bleachworks,  Bolton, 
established   1820. 

Davies  &  Eckersley,  Limited,  Huyton  Bleachworks,  Adlington, 
Lancashire,  established  1831. 

Deeply  Vale  &  Co.,  Limited,  Deeply  Vale,  near  Bury. 
Eccles  Bleaching  Company,  Limited,  Bentcliffe  Works,  Eccles, 
established   1877.- 

Eden  &  Thwaites,  Limited,  Waters  Meeting  Bleachworks,  Bol- 
ton, established  1770. 

Forrest.  Gillies  &  Co.,  Lanfine  Bleachworks,  New  Milns,  Ayr- 
shire, established  1882. 

Andrew  Greenhalgh,  Clough  Bleachworks,  Radcliffe,  estab- 
lished  1831. 

Andrew  Greenhalgh,  Ballydown  Bleachworks,  Banbridge,  es- 
tablished 1820. 

Edward  Hall  &  Bros.,  Limited,  Whaley  Bridge  Bleachworks, 
Whaley  Bridge,  established  1830. 

Adam  Hamilton  &  Sons,  Blackland  Mill,  near  Paisley,  estab- 
lished 1780. 

Handforth  Bleaching  Company,  Limited,  Handforth,  estab- 
lished 1860. 

James  Hardcastle  &  Co.,  Bradshaw  Works,  Bolton,  established 
1784. 

Thomas  Hardcastle  &  Son,  Firewood  Works,  Bolton,  estab- 
lished 1803. 

Hepburn  &  Co.,  Limited,  The  Square  Works,  Ramsbottom,  es- 
tablished  prior   to  1800. 

Robert  Heywood,  Crescent  Bleachworks,  Salford,  established 
1838. 

Horidge  &  Co.,  Raikes  Bleachworks,  Bolton,  established  1822. 
The    Irkdale    Bleachworks    Company,   Limited,    Irkdale   Works, 
Middleton,   established   1874 

Kay  &  Smith,  Lands'  End  Works,  Middleton,  established  prior 
to  1820. 

The  Kersal  Bleaching  Company,  Kersal  Vale  Bleachworks, 
Higher  Broughton.  established   1892. 

A.  J.  King  &  Co.,  Ingersley  Vale,  Bollington,  near  Macclesfield, 
established  1876. 

Kirkpatrick  Brothers,  Ballyclare  Bleachworks,  Ballyclare, 
County  Antrim,  established  prior  to  1800. 

Knowles  &  Green,  Underscore  Bleachworks,  Bolton,  estab- 
lished 1800. 

Thomas  Lewis  Linsey,  Hollins  Vale  Bleachworks,  Whitefield, 
established   1849. 

Longworth  &  Co.,  Springfield  Bleachworks,  Astley  Bridge,  Bol- 
ton,  established   1840. 

James  McHaffie  &  Son,  Kirktonfield,  Neilston,  established  1817. 
John  McNab  &  Co.,  Midtownfield,  Howard,  New  Brunswick,  es- 
tablished 1825. 

Melland  &  Coward,  Limited,  Heaton  Mersey,  Manchester,  es- 
tablished  1820. 

H.  Milner  &  Co.,  Northdean  Bleachworks,  Pendlebury,  estab- 
lished 1885. 

William  Mosley,  Cheadle  Bleachworks',  Cheadle,  Manchester, 
established   1875. 

George  Murton  &  Co.,  Sharpies  Bleachworks  and  Mill  Hill 
Bleachworks,  Bolton,  established  1845. 

The  Rawtentsall  Bleaching  Company,  Rawtentsall,  established 
1884. 

Thomas  Ridgway  &  Co.,  Wallsuches  Bleachworks,  Horwich, 
established  1801. 

Robert  K.  Roberts,  Stormer  Hill  Bleachworks,  Tottington, 
near  Bury,  established  1799. 

Executors  of  S.  Rothwell,  Woodhill  Bleachworks,  Elton,  near 
Bury. 

G.  &  S.  Slater,  Dunscar,  Bolton,  established  prior  to  1800. 
Simpson   &  Jackson,   Street  Bridge  Bleachworks,   Royton,  Old- 
ham, established  1761. 

John  Smith,  Jr.,  &  Co.,  Great  Lever  Works',  Bolton,  estab- 
lished 1840. 

John  Stanning  &  Son,  Limited,  Leyland  Bleachworks,  Leyland, 
established  prior  to  1830, 


r  TRUSTS    AND   INDUSTRIAL   COMBINATIONS.  185 

S'ykes  &  Co.,  Limited,  Edgeley  Bleachworks,  Stockport,  estab- 
lished 1871. 

John  Waterhouse  &  Co..  Tootel  Bridge  Bleachworks,  Breight- 
ment,  Bolton,   established  1793. 

Samuel  Walch,  Outwood  Bleachworks,  near  Prestwich,  estab- 
lished 1850. 

John  Whitehouse,  Elton  Works,  Bury,  established  prior  to  1800. 

John  Whittaker  &  Co.,  Mount  Sion  Bleachworks,  Radcliffe,  es- 
tablished 1771. 

Charles  Whowell,  Two  Brooks  Bleachworks,  Tottington,  es- 
tablished 1859. 

John  Young  &  Co.,  Crumpsall,  Limited,  Anchor  Bleachworks, 
Hendham,  Hendham  Vale,  Manchester,  established  prior  to  1800. 

From  the  prospectus  I  take  the  following  paragraphs  explana- 
tory of  the  purposes  of  the  trust : 

The  principal  business  of  the  company  is  the  bleaching  and 
finishing  of  cotton  piece  goods  of  every  description. 

The  chief  center  of  the  cotton  industry  is  Manchester,  and  all 
the  works  acquired  by  the  company  are  situated  within  convenient 
distance  of  that  city  excepting  those  of  four  Scotch  and  two  Irish 
firms,  who  are  engaged  in  special  branches  of  the  bleaching  busi- 
ness, and  are  regarded  as  desirable  acquisitions  for  the  company. 

A  few  of  the  malgamated  firms  are  dyers  as  well  as  bleachers, 
and  the  two  businesses  may  be  usefully  and  profitably  continued 
side  by  side.  There  is,  however,  no  intention  of  competing  with 
the  Bradford  Dyers'  Association,  Limited,  and  in  the  case  of  one 
firm,  which  carries  on  at  one  of  its  works  piece  dyeing  of  the 
Bradford  class,  the  company  have  arranged  to  transfer  the  dye 
works  to  that  association. 

The  bleaching  trade  is'  one  of  the  oldest  in  Lancashire,  and 
has  proved  itself  a  steady  and  prosperous  one.  It  is  also  preemi- 
nently a  safe  trade.  Bleachers  are  not  buyers  or  sellers  of  the 
goods  upon  which  they  operate,  their  business  being  to  bleach  and 
finish  goods  for  the  merchants.  It  is  practically  free  from  ordi- 
nary trade  risks;  the  profits  are  believed  to  have  been  exception- 
ally stable,  and  there  is  no  record  of  any  bleacher  having  suffered 
appreciable  loss  through  bad  debts'  incurred  in  the  course  of  his 
legitimate  trade. 

The  great  and  ever  increasing  difficulty  of  obtaining  an  ade- 
quate supply  of  water  renders  the  position  of  the  old  established 
bleaching  firms  a  very  strong  one,  while  enforcement  of  law 
against  pollution  of  rivers  tends  still  further  to  prevent  the  erec- 
tion of  new  works. 

For  a  great  many  years  past,  there  have  existed  in  the  Man- 
chester bleaching  trade  voluntary  associations  for  the  regulation 
of  prices  in  branches  of  the  business  and  for  other  purposes,  and 
these  have  worked  in  harmony  with  the  merchants  as  well  as  to 
the  advantage  of  the  trade;  but  it  has  been  realized  that  the -full 
advantages  of  cooperation  can  be  secured  only  by  amalgamation, 
for  the  success  of  which  the  organization  and  existence  of  these 
associations  give  exceptional  facilities. 

The  present  amalgamation  has  secured  the  adhesion  of  many 
firms  who  were  not  previously  members  of  any  price  association. 

It  is  believed  the  formation  of  this  company  will  strengthen 
the  cordial  relations  already  existing  with  the  Manchester  merch- 
ants, for,  being  in  possession  of  works  of  every  description  capa- 
ble of  dealing  at  appropriate  prices  with  every  branch  of  bleaching 
and  finishing,  the  amalgamated  firms  will  be  enabled  to  satisfy  the 
varying  demands  of  the  whole  Manchester  trade  and  meet  any 
competition  from  abroad  or  elsewhere. 

Individual  effort  will  be  maintained  among  che  various'  amal- 
gamated firms.  So  far  as  possible,  the  management  of  each  works 
will  be  left  in  the  hands  of  those  who  have  been  responsible  for 
its  conduct  in  the  past,  and  the  heads  of  each  branch  may  under 
the  articles  of  association  be  remunerated  wholly  or  partially  by  a 
commission  of  percentage  on  the  profits  of  the  branch  managed  by 
them.  Each  firm  will  continue  to  deal  personally  with  its  own 
customers,  and  arrangements  which  have  been  made  by  individual 
firms  with  regard  to  special  finishes  for  particular  customers  will 
be  strictly  adhered  to. 

The  general  management  of  the  business  of  the  company  is 
vested  in  general  managers.  The  first  two  managers  will  hold 
.  office  for  three  years,  and  the  remuneration  attached  to  their  posts 
is  limited  to  a  commission,  payable  to  each  of  them,  of  2y2  per 
cent  on  the  balance  of  the  net  profits  made  by  the  company  during 
each  year  over  and  above  the  sum  required  to  pay  the  debenture 
interest  and  preference  divided  for  that  year. 

The  directors  believe  that  the  successful  management  of  the 
undertaking  and  the  cordial  cooperation  of  all  the  amalgamated 
firms  are  secured  by  the  appointment  as  first  general  managers  of 
Mr.  John  Brennand  and  Mr.  John  Stanning. 

The  remuneration  of  the  chairman,  vice-chairman,  and  direc- 
tors (other  than  the  general  managers)  will  be  fixed  by  the  share 
holders  in  general  meeting. 

As  so  many  kinds  of  cottons  are  shipped  to  America  from  Man- 
chester, this  trust  has  an  interest  to  us.  In  the  year  ending  De- 
cember 31,  1899,  it  sent  to  the  United  States,  colors,  dyestuffs,  and 
chemicals  to  a  total  value  of  $125,592.76. 


Igg  TRUSTS    AND   INDUSTRIAL   COMBINATIONS. 

Cement  Trust. 

Consul  Ilalstead  writes  from  Birmingham,  under  date  of  July 
14,  1900 : 

British  newspapers  are  to-day  printing  in  their  advertising 
columns  the  preliminary  notice  of  the  Associated  Portland  Cement 
Manufacturers.  Limited,  with  a  total  capital  of  £8,000,000.  This 
$40,000,000  cement  "trust"  attracts  do  attention,  and  its  formation 
is  not  even  commented  upon  by  the  newspapers.  In  a  recent  num- 
ber of  the  Advance  Sheets  of  Consular  Reports,  Consul  Worman, 
Of  Munich,  announces  that  German  manufacturers  of  cement  are 
to  hold  a  meeting  for  the  formation  of  a  syndicate,  which  will 
open  a  central  bureau  for  the  sale  of  all  cement  of  German  manu- 
facture. 

Scotland. 

[From  the  United  States'  Consul  at  Edinburgh.] 

I  submit  the  following  list  of  trade  combinations  in  the  United 
Kingdom  : 

In  February,  1891,  the  United  Alkali  Company,  Limited,  was 
formed,  combining  in  one  undertaking  various  chemical  works  in 
the  United  Kingdom,  in  which  some  or  all  of  the  following  chemi- 
cals are  manufactured,  viz. :  Bleaching  powder,  soda  ash,  caustic 
soda,  white  alkali,  sulphate  of  soda,  crystals  of  soda,  chlorate  of 
potash,  sulphuric  acid,  hydrochloric  acid,  sulphur,  etc.  Salt  mines 
and  works  were  also  acquired.  This  company  consolidated  the 
works  and  businesses  of  forty-eight  firms  or  companies.  Offices, 
Liverpool. 

In  July,  1896,  J.  &  P.  Coats,  Limited,  thread  manufacturers,  a 
company  organized  several  years  before,  acquired  the  dominant 
interest  in  the  businesses  of  Messrs.  Clark  &  Co.,  Messrs.  Jonas 
Brooks  &  Bros.,  and  Messrs  James  Chadwick  &  Bro.,  Limited,  and 
the  capital  was  increased  from  £3,750,000  ($18,249,375)  to  £5,500,- 
000  ($26,705,750).     Offices,  Paisley. 

The  English  Sewing  Cotton  Company,  Limited,  was  formed  in 
November,  1897,  uniting  the  principal  English  firms  and  companies 
engaged  in  the  manufacture  of  sewing,  crochet,  knitting,  mend- 
ing and  other  cottons,  including  in  some  cases  the  allied  busi- 
nesses of  cotton  spinning,  doubling,  twisting,  dyeing,  bleaching, 
polishing,  bobbin  making,  etc.  Fifteen  companies  were  amalga- 
mated.    Capital,   £2,750,000    ($13,382,875).     Offices,   Manchester. 

The  Fine  Cotton  Spinners  and  Doublers,  Limited,  was  formed 
in  May,  1898,  consolidating  thirty-one  businesses  and  having  a 
capital  of  £6,000,000  ($29,199,000). 

The  American  Thread  Company,  Limited,  organized  in  Decem- 
ber, 1898,  united  thirteen  businesses.  Capital,  £3,720,000  ($18,- 
103,380). 

The  Bradford  Dyers'  Association,  Limited,  was  formed  in  De- 
cember, 1898,  for  the  purpose  of  acquiring  the  businesses  of  the 
various  companies  and  firms  engaged  in  the  piece-dyeing  trade. 
Twenty-two  businesses  were  thus  amalgamated,  comprising  about 
90  per  cent  of  the  Bradford  piece-dyeing  trade. 

In  July,  1899,  The  Yorkshire  Indigo,  Scarlet,  and  Color  Dyers, 
Limited,  was  formed  for  the  purpose  of  acquiring  and  carrying  on 
the  works  of  several  firms  and  companies  engaged  in  the  Yorkshire 
indigo,  scarlet,  and  color  dyeing  trade.  Eleven  businesses  were 
consolidated.  Capital,  £600,000  ($2,919,000).  Offices,  Hudders- 
field. 

In  July,  1899,  The  Bradford  Coal  Merchants  and  Consumers, 
Limited,  was  formed,  uniting  eight  businesses.  Capital,  £250,000 
($1,216,625). 

The  Yorkshire  Wool  Combers'  Association,  Limited,  was  or- 
ganized in  October,  1899,  acquiring  and  amalgamating  into  one 
concern  the  wool-combing  businesses  of  thirty-eight  companies 
and   firms.     Capital,  £2,500,000    ($12,166,250).     Offices,   Bradford., 

The  British  Oil  and  Cake  Mills,  Limited,  formed  in  July, 
1899,  amalgamated  seventeen  companies  and  firms  engaged  in  oil 
and  cake  manufacture  and  oil  refining.  Capital,  £1,500,000  ($7,- 
299,750).     Offices,  London. 

Barry,  Ostlere  &  Shepherd,  Limited,  incorporated  in  October, 
1899,  consolidated  the  businesses  of  five  companies  having  eight 
works  engaged  in  the  manufacture  of  floor  cloth  and  linoleum. 
Capital,  £4,000,000  ($19,4(36,000).     Offices,  Kirkcaldy. 


.... 


TRUSTS    AND   INDUSTRIAL   COMBINATIONS.  18' 


The  United  Indigo  and  Chemical  Company,  Limited,  formed  in 
November,  1899,  consolidated  eight  companies.  Capital,  £250,000 
($-1,216,025).     Offices,  Manchester. 

The  Calico  Printers'  Association,  Limited,  formed  in  December, 
1899,  amalgamated  sixty  businesses  valued  at  £8,047,031.  Capi- 
tal, £9,200,000  ($44,771,800).     Offices,  Manchester. 

The  Wall  Paper  Manufacturers,  Limited,  incorporated  in  Feb- 
ruary, 1900,  united  thirty-one  firms  and  companies  engaged  in 
the  manufacture  of  wall  papers  and  raised  decorative  materials. 
Capital,  £4,200,000  ($20,439,300).     Offices,  Darwen,  England. 

The  United  Velvet  Cutters'  Association,  Limited,  formed  in 
March,  1900,  consolidated  four  businesses,  the  principal  ones  en- 
gaged in  this  branch  of  trade  in  England.  Capital,  £300,000  ($1,- 
459,950).     Offices,  Manchester. 

The  British  Cotton  and  Wool  Dyers'  Association,  Limited,  in- 
corporated in  April,  1900,  united  forty-six  businesses.  Capital,  £2,- 
750,000  ($13,382,875). 

In  The  Yorkshire  Soap  Makers'  Association,  Limited,  formed 
last  April,  were  amalgamated  twelve  firms  and  companies  en- 
gaged in  the  soap  making,  oil,  and  packing,  cotton-waste  manu- 
facturing, and  other  kindred  trades.  Capital,  £400,000  ($1,940,- 
000).     Offices,  Bradford. 

I  send  under  separate  cover  a  copy  of  the  prospectus  of  each 
of  these  combinations  :1 

The  United  Alkali  Company,  Limited;  The  English  Sewing 
Cotton  Company,  Limited;  The  Yorkshire  Indigo,  Scarlet  and 
Color  .Dyers,  Limited ;  The  Yorkshire  Wool  Combers'  Association, 
Limited ;  The  British  Oil  and  Cake  Mills,  Limited ;  Barry,  Ostlere 
and  Shepherd,  Limited;  United  Indigo  and  Chemical  Company, 
Limited ;  The  Calico  Printers'  Association,  Limited ;  The  Wall 
Paper  Manufacturers,  Limited ;  The  United  Velvet  Cutters'  Asso- 
ciation, Limited;  The  Yorkshire  Soap  Makers'  Association,  Lim- 
ited; and  The  Bradford  Dyers'  Association,  Limited. 

A  rumor  has  been  current  that  there  is  a  movement  among 
the  tweed  manufacturers  of  the  south  of  Scotland  to  amalgamate, 
but  those  manufacturers  who  have  been  approached  on  the  subject 
say  that  the  story  is  an  invention. 

As  to  the  effect  of  the  combinations  in  various  trades  upon 
production,  wages,  and  prices,  the  opinions  of  well-informed  men 
differ.  It  would  seem  that,  generally  speaking,  the  effect  has  been 
most  marked  in  preventing  a  rise  in  wages. 

Wall  paper  has  advanced  about  10  per  cent  since  March  last. 
In  the  same  period,  ordinary  sewing  cottons  have  risen  15  per 
cent,  and  ordinary  linen  sewing  thread  from  10  to  15  per  cent. 
The  cheaper  qualities  of  floor  cloth  are  2  per  cent  higher  than  the 
average  prices  in  September,  1899,  and  the  better  qualities  have 
risen  4  per  cent  since  January  1,  1900. 

Glasgow. 

[From  the  United  States  Consul  at  Glasgow.] 

Under  the  law  of  Scotland,  which  is  also  the  law  of  the 
United  Kingdom,  a  corporation  may  be  formed  for  the  purpose 
of  carrying  on  any  business,  by  seven  persons  subscribing  a  memor- 
andum of  association.  The  memorandum  states  the  object  for 
which  the  company  is  to  be  formed,  the  amount  of  capital  with 
which  it  is  to  start  business,  and  the  number  of  shares  into  which 
the  capital  is  divided,  and  whether  any  number  of  shares  are  to 
be  preferred  over  the  others  as  to  dividend  or  as  to  payment  of 
capital  in  the  event  of  winding  up ;  also  the  name  of  the  proposed 
company  and  the  situation  of  its  registered  office.  The  subscribers 
of  the  memorandum  of  association  may  only  have  one  share 
each.  This  memorandum  of  association  is  usually  accompanied 
by  articles  of  association,  which  are  by-laws  for  regulating  the 
business  of  the  company,  the  appointment  of  directors,  votes  of 
shareholders,  etc.  These  documents  are  sent  to  the  registrar  of 
joint-stock  companies,  who  is  a  Government  official,  and  on  being 
registered  by  him,  a  certificate  of  incorporation  is  issued  to  the 
company.  The  Company  is  then  incorporated  and  entitled  to  com- 
mence business.  Hitherto,  there  has  been  no  regulation  as  to 
what  proportion  of  the  nominal  capital  must  be  subscribed  before 
commencing  business,  but  there  is  a  bill  at  present  before  the  legis- 
lature, and  which  it  is  intended  will  became  law  immediately. 


188  TRUSTS    AND   INDUSTRIAL   COMBINATIONS. 

making  it  imperative  that  a  certain  proportion  of  the  nominal 
capital  must  be  subscribed  before  any  business  is  done.  The  lia- 
bility of  shareholders  is  limited  to  the  amount,  if  any,  unpaid  on 
the  shares  held  by  them.  A  list  of  shareholders,  with  the  num- 
ber of  shares  held  by  them  and  the  amount  paid,  and  a  balance 
sheet  showing  the  position  of  the  company,  must  be  lodged  with 
the  registrar  annually.  Any  person,  whether  a  creditor  or  not, 
can,  on  payment  of  a  small  fee,  get  from  the  registrar  full  in- 
formation as  to  the  positions  of  any  registered  company. 

So  far  as  trust  combinations  are  concerned,  there  are  no 
statutory  enactments  either  prohibiting  or  regulating  them.  Such 
combinations  are  formed  under  the  provisions  appertaining  to 
all  corporations.  It  is  worthy  in  passing,  however,  to  mention 
that  little  or  no  attention  is  given  to  these  combinations,  when 
formed,  in  the  public  prints.  They  excite  no  comment  whatever. 
It  is  for  that  reason  very  difficult  to  obtain  information  of  their 
workings  and  influence.  In  this  report,  I  have  endeavored  to  give 
such  details  as  I  can  obtain  of  the  principal  trusts  or  combina- 
tions which  have  their  habitation  in  Scotland.  The  list  may  pos- 
sibly not  be  complete,  though  in  the  main  I  think  it  will  be  found 
to  include  all  worth  mentioning. 

I  have  said  above  that  little  or  no  discussion  of  trusts  is 
found  here  in  the  public  prints.  Very  recently,  a  member  of  the 
Glasgow  Chamber  of  Commerce  gave  notice  in  that  body  that  at 
the  next  meeting  he  would  move  to  discuss  the  subject  of  trusts 
or  combinations,  and  to  ask  the  Chamber  to  record  its  opinion 
that  such  combinations  are  "highly  prejudical  to  the  commercial 
interests  of  this  country  and  unjust  to  others  engaged  in  similar 
trades  or  manufactures,  creating  as  they  do  virtual  monopolies." 
It  was  further  proposed  by  this  member  that  the  directors  of  the 
Chamber  should  advise  the  Chamber  to  petition  the  Government 
to  take  "such  steps  as  seem  to  them  right"  to  prevent  the  forma- 
tion of  these  combinations  and  to  recommend  other  chambers  to 
take  similar  actions. 

Speaking  of  this  movement  on  the  part  of  the  Chamber  of 
Commerce,  the  "Glasgow  Herald"  says: 

It  has  been  objected  that  this  is  not  a  matter  of  practical  poli- 
tics, and  should  not,  therefore,  be  debated  by  the  chamber  at  all. 
But  it  is  a  matter  of  large  social  and  economic  importance  that 
will  sooner  or  later  be  projected  into  the  ordinary  political  arena. 
If  the  system  of  business  combinations  known  in  America  as 
"trusts"  has  not  in  this  country,  or  in  Europe,  either  attained  the 
dimensions  or  developed  the  evil  qualities  to  be  found  in  the 
United  States,  it  is  by  no  means  a  novelty  in  the  Old  World.  It  is, 
moreover,  a  perfectly  natural  evolution  of  commercial  enterprise, 
whether  it  is'  to  be  commended  or  not.  Nor  is  there  anything  new 
in  the  antipathy  to  such  combinations  and  the  desire  to  prevent 
them  by  force  of  law,  for  there  existed  on  our  statute  books  a 
hundred  years  ago,  or  more,  a  number  of  ordinances  imposing 
penalties  on  combinations  to  fix  the  prices  or  secure  the  monopoly 
in  several  branches'  of  industry.  There  is  a  material  practical  dif- 
ference, no  doubt,  between  trusts  as  we  hear  of  them  in  America 
and  as  we  know  them  in  Europe.  The  big  American  trusts  are 
formed  on  such  a  scale  as  to  carry  out  the  definite  object  of  con- 
trolling all  the  influences  that  can  affect  the  interests  of  the  co- 
partners, including  railway  and  other  corporations  and  local,  State, 
and  Federal  governing  bodies.  For  the  most  part,  the  combines 
in  Great  Britain  and  on  the  Continent  are  of  comparatively  modest 
dimensions,  and  are,  or  are  alleged  to  be,  formed  to  prevent  exces- 
sive underselling,  injurious  to  the  producers  and  not  greatly  bene- 
ficial to  the  consumers.  In  both  cases  the  ultimate  aim  is,  of 
course,  profit,  and  profit  is  the  legitimate  aim  of  all  commerce. 
It  becomes  illegitimate  only  when  gained  at  the  expense  of  the 
Commonwealth.  If,  for  instance,  trusts  or  combines  operate  in  re- 
straint of  trade,  they  are  injurious  to  the  Commonwealth.  And  it 
is  just  here  that  economic  opinion  varies*.  To  the  American  trusts 
the  balance  of  opinion  is  adverse.  As  to  the  European  combines, 
opinion  is  pretty  much  divided.  Curiously  enough,  Germany  has 
both  more  numerous  and  larger  industrial  organizations  than  any 
other  country  on  this  side  of  the  Atlantic.  It  is'  stated  that  there 
are  upward  of  two  hundred  trusts  in  Germany,  but  probably  only 
a  very  few  of  them  at  all  approximate  to  American  ideas.  For 
the  majority  of  them  it  is  claimed  that  by  checking  overproduction 
and  preventing  underbidding,  they  have  proved  a  blessing  to  the 
trades  concerned,  without  at  all  affecting  the  public  welfare.  And 
here  it  may  be  at  once  admitted  that,  while  it  is  for  the  public  wel- 
fare to  have  commodities  cheap,  it  is  not  for  the  public  welfare 
that  producers  should  be  ruined  and  industries  destroyed  in  the 
pursuit  of  cheapness.  Perhaps  the  German  combination  best  known 
to  Britain  is  the  Rhenish-Westphalian  Coal  Syndicate,  which  con-' 
trols  the  bulk  of  the  German  coal  industry  and  practically  regu- 
lates prices.  It  is'  by  no  means  clear  that  the  public  welfare  has 
not  suffered  at  the  hands  of  this  combination,    And  it  would  be  un- 


TBUSTS    AND    INDUSTRIAL    COMBINATIONS.  189 

wise  to  conclude  that  this  and  similar  combinations  in  Germany  are 
popular,  or  at  all  events  are  not  regarded  with  popular  disfavor 
merely  because  they  have  not  been  denounced  by  any  portion  of 
the  people  as  fiercely  as  the  trusts  are  denounced  in  America.  The 
circumstances  of  the  two  countries  are  so  very  different. 

Perhaps  one  reason  why  the  German  trusts  have  not  created  a 
political  crisis  is  that  they  have  hitherto  exercised  their  powers 
with  moderation,  and  have  not  attempted  to  manipulate  prices  so 
as  to  give  cause  for  legal  interference.  And  the  same  may  be  said 
of  the  combines  and  unions  that  have  been  formed  in  this  country 
of  recent  years.  Thread  has  not  been  made  dearer  by  the  great  or- 
ganization of  thread  producers,  though,  of  course,  it  may  be  said 
that  it  might  have  been  cheaper  had  production  remained  free  and 
open.  It  is  probable  that  coal  would  have  been  no  dearer  than  it  is' 
now  had  the  late  Sir  George  Elliot  been  able  to  carry  out,  his 
scheme  of  a  great  coal  combine.  But  there  are  other  considerations 
besides  the  influence  of  such  organizations  upon  price.  There  is, 
for  instance,  the  distribution  of  productive  industry.  Under  the 
trust  system,  the  plan  followed  is  to  concentrate  production  for 
economy,  and  to  close  up  the  least  profitable  factories.  One  has 
only  to  study  the  history  of  th^s  Alkali  union  to  see  how,  by  this 
method,  an  industry  may  be  cleared  out  of  several  districts  alto- 
gether, to  the  obvious  disadvantage  of  the  workers  and  traders 
in  these  districts.  It  has  been  sometimes  said  by  American  writ- 
ers that  it  is  the  free-trade  principles  of  Britons  that  lead  them  to 
comment  so  severely  on  the  trust  system,  but  free  trade  has  not 
prevented  the  development  of  a  form  of  the  system  here — a  de- 
velopment which  has  presented  some  very  striking  examples  within 
quite  recent  months.  The  very  essence  of  all  these  combines  is' 
monopoly.  Now  monopoly  is  an  ugly  word,  but  it  is  not  necessarily 
a  bad  thing.  Monopoly  in  practical  economics  is  not  absolute  ab- 
sorption by  individuals  or  associations  of  individuals.  It  is,  rather, 
the  antithesis  of  competition.  An  American  economist  has,  not 
unhappily,  provided  a  definition  of  modern  monoply  as  substantial 
unity  of  action  on  the  part  of  persons  engaged  in  some  particular 
kind  of  business"  which  gives  practical  control  over  prices.  That 
control,  of  course,  is  obtained  by  concentration  and  economization 
in  production  and  distribution.  And  one  of  the  greatest  powers 
the  monopolists  under  the  trust  and  combine  systems  possess  is 
that  of  underbidding.  They  can  stave  off  competitors  by  undersell- 
ing, but  this  very  power  induces  the  prudential  policy  of  staving  off 
competition  by  keeping  prices  at  a  moderate  level.  When  all  is' 
said  and  done,  however,  one  is  constrained  to  perceive  that  trusts 
and  combines  have  not  abolished  overproduction  or  prevented  in- 
dustrial crises.  And,  with  whatever  good  features  they  may  be 
accredited,  we  must  remember  that,  if  impelled  by  greed  and  un- 
scrupulousness,  such  organizations  must  in  time  involve  very 
serious  dangers  to  the  Commonwealth.  Is  it  safe  to  trust  human 
nature  with  the  opportunity  and  the  means  to  wax  fat  and  kick 
at  the  expense  of  the  community?  * 

The  impression  that  seems  to  exist  here  that,  somehow  or 
other,  these  "combinations"  in  Great  Britain  differ  in  some  of 
their  essentials,  aims,  objects,  and  workings  from  trusts  in 
America,  is  erroneous.  If  there  be  any  difference  it  is  merely  in 
degree  rather  than  in  kind.  Trusts  in  this  country  have  thus  far 
met  with  no  opposition  either  in  legislation  or  public  opinion. 
Consequently,  they  have  not  been  called  upon  in  self-defense  to 
exercise  those  more  disagreeable  qualities  which  are  attributed 
to  them  by  aggressive  enemies.  The  question  of  trusts  has  never 
figured  in  politics  (few  commercial,  economic,  or  financial  ques- 
tions do  in  this  country),  hence  no  accusations  of  official  favorit- 
ism to  gain  political  advantage  are  made.  However,  one  has  but 
to  go  through  the  country  and  note  the  tall  chimney  stacks  stand- 
ing here  and  there,  idle  and  alone,  from  which  the  rest  of  the 
works  have  been  moved  or  razed,  to  understand  that  the  com- 
bination has  reduced  output  or  confined  operations  to  narrower 
limits . 

Extract  from  Speech  of  General  Garfield.  July  2,  1873. 

"What  is  likely  to  be  the  effect  of  railway  and  other  similar 
combinations  upon  our  community  and  our  political  institutions? 
Is  it  true,  as  asserted  by  the  British  writer  quoted  above,  that 
the  State  must  soon  recapture  and  control  the  railroads,  or  be 
captured  and  subjugated  by  them?  Or  do  the  phenomena  we  are 
witnessing  indicate  that  general  breaking  up  of  the  social  and 
political  order  of  modern  nations  so  confidently  predicted  by  a 
class  of  philosophers  whose  opinions  have  hitherto  made  but  little 
impression  on  the  public  mind?  That  you  may  not  neglect  this 
broader  view  of  the  question,  I  will  quote  some  sentences  written 
by  Charles  Fourier,  sixty-six  years  ago — nearly  a  quarter  of  a 
century  before  the  fire  of  the  first  steam  locomotive  was  lighted. 
After  tracing  the  course  of  civilization  through  its  several  phases 


190  TRUSTS    AND    INDUSTRIAL    COM  HI  NATIONS. 

of  development,  and  declaring  that  it  was  then  (1808)  past  the 
middle  Of  its  third  phase,  ami  moving  towards  its  own  destruction, 
be  said : 

"Civilization  is  tending  towards  the  fourth  phase,  by  the  in- 
-  fiuence  of  joint  stock  corporations,  which,  under  the  cover  of  cer- 
tain legal  privileges,  dictate  terms  and  conditions  to  labor,  and 
arbitrarily  exclude  from  it  whomever  they  please.  These  corpora- 
tions contain  the  germ  of  a  vast  feudal  coalition,  which  is  destined 
soon  to  invade  the  whole  industrial  and  financial  system,  and  give 
birth  to  a  commercial  feudalism.  *  *  *  These  corporations 
will  become  dangerous  and  lead  to  new  outbreaks'  and  convulsions 
only  by  being  extended  to  the  whole  commercial  and  industrial 
system.  The  event  is  not  far  distant,  and  will  be  brought  about 
all  the  more  easily  from  the  fact  that  it  is  not  apprehended.  *  * 
*  Extremes  meet;  and  the  greater  the  extent  to  which  anarchial 
competition  is  carried,  the  nearer  is  the  approach  to  the  reign  of 
universal  monopoly,  which  is  the  opposite  excess.  It  is  the  fate  of 
civilization  to  be  always  balancing  between  extremes.  Circum- 
stances axe  tending  toward  the  organization  of  the  commercial 
classes  into  federal  companies,  or  affiliated  monopolies,  which,  oper- 
ating in  conjunction  with  the  great  landed  interest,  will  reduce  the 
middle  and  laboring  classes  to  a  state  of  commercial  vassalage, 
and  by  the  influence  of  combined  action  will  become  master  of  the 
productive  industry  of  entire  nations.  The  small  operators  will 
be  forced  indirectly  to  dispose  of  their  products  according  to  the 
wishes  of  these  monopolies;  they  will  become  mere  agents  for  the 
coalition.  We  shall  thus  see  the  reappearance  of  feudalism  in  an 
inverse  order,  founded  on  mercantile  leagues,  and  answering  to  the 
baronial  leagues  .of  the  middle  ages.  Everything  is  concurring  to 
produce  this  result.  *  *  *  We  are  marching  with  rapid  strides 
toward  a  commercial  feudalism,  and  to  the  fourth  phase  of  civili- 
zation." 

"These  declarations  read  something  like  prophecy,  so  far  as 
they  relate  to  the  effects  of  combined  corporations.  New  mechan- 
ical forces  have  hastened  the  development  of  corporations  since 
Fourier  wTrote.  We  need  not  take  alarm  at  his  prophecy  of  the 
speedy  decay  of  civilization;  but  the  analogy  between  the  in- 
dustrial condition  of  society  at  the  present  time  and  the  feudalism 
of  the  middle  ages  is  both  striking  and  instructive.  In  the  dark- 
ness and  chaos  of  that  period,  the  feudal  system  was  the  first 
important  step  towards  the  organization  of  modern  nations. 
Powerful  chiefs  and  barons  intrenched  themselves  in  castles,  and 
in  return  for  submission  and  service  gave  to  their  vassals  rude 
protection  and  ruder  laws.  But  as  the  feudal  chiefs  grew  in 
power  and  wealth,  they  became  the  oppressors  of  their  people, 
taxed  and  robbed  them  at  will,  and  finally,  in  their  arrogance, 
defied  the  kings  and  emperors  of  the  mediaeval  states.  From 
their  castles,  planted  on  the  great  thoroughfares,  they  practiced 
the  most  capricious  extortions  on  commerce  and  travel,  and  thus 
gave  to  modern  language  the  phrase  'to  levy  black  mail.'  The 
consolidation  of  our  great  industrial  and  commercial  companies, 
the  power  they  wield,  and  the  relations  they  sustain  to  the 
States  and  to  the  industry  of  the  people,  do  not  fall  far  short  of 
Fourier's  definition  of  commercial  or  industrial  feudalism.  The 
modern  barons,  more  powerful  than  their  military  prototypes,  own 
our  vast  highways,  and  levy  tribute  at  will  upon  all  our  vast 
industries.  And,  as  the  old  feudalism  was  finally  controlled  and 
subordinated  only  by  the  combined  efforts  of  the  kings  and  the 
people  of  the  free  cities  and  towns,  so  our  modern  feudalism  can 
be  subordinated  to  the  public  good  only  by  the  great  body  of  the 
people  acting  through  their  governments  by  wise  and  just  laws. 

"My  theme  does  not  include,  nor  will  this  occasion  permit, 
the  discussion  of  methods  by  which  this  great  work  of  adjustment 
may  be  accomplished.  But  I  refuse  to  believe  that  the  genius  and 
energy  that  have  developed  these  new  and  tremendous  forces,  will 
fail  to  make  them,  not  the  masters,  but  the  faithful  servants  of 
society.  It  will  be  a  disgrace  to  our  age  and  to  us  if  we  do  not 
discover  some  method  by  which  the  public  functions  of  these  or- 
ganizations may  be  brought  into  full  subordination  to  the  public, 
and  that  too  without  violence,  and  without  unjust  interference 
with  the  rights  of  private  individuals.  It  will  be  unworthy  of 
our  age  and  of  us,  if  we  make  the  discussion  of  this  subject  a 
mere  warfare  against  men.  For  in  these  great  industrial  enter- 
prises have  been,  and  still  are,  engaged  some  of  the  noblest  and 
worthiest  men  of  our  time.  It  is  the  system,  its  tendencies  and 
its  dangers,  which  society  itself  has  produced,  that  we  are  now  to 
confront.  And  these  industries  must  not  be  crippled,  but  pro- 
moted.    The  evils  complained  of  are  mainly  of  our  own  making. 


TRUSTS    AND   INDUSTRIAL    COMBINATIONS.  191 

States  and  communities  have  willingly  and  thoughtlessly  con- 
ferred these  great  powers  upon  railways,  and  they  must  seek  to 
rectify  their  own  errors  without  injury  to  the  industries  they 
have  encouraged.     *     *     * 

"It  depends  upon  the  wisdom,  the  culture,  the  self-control  of 
our  people,  to  determine  how  wisely  and  how  well  this  question 
shall  be  settled.  But  that  it  will  be  solved,  and  solved  in  the 
interest  of  liberty  and  justice,  I  do  not  doubt.  And  its  solution 
will  open  the  way  to  a  solution  of  a  whole  chapter  of  similar 
questions  that  relate  to  the  conflict  between  capital  and  labor. 
The  gloomy  views  of  Socialistic  writers  on  this  question  would 
have  more  force,  if  the  dangers  here  discussed  had  grown  up  in 
spite  of  our  efforts  to  prevent  them.  But  the  fact  is  they  have 
grown  up  by  our  help,  while  we  were  unconscious  of  the  fact  that 
they  were  dangers." 

DEMOCRATIC   RECORD    ON   TRUSTS. 

[Address  of  Hon.  Leslie  M.  Shaw  Before  the  Young  Men's  Repub- 
lican Club,  Providence,  R.  L] 

Hon.  Leslie  M.  Shaw,  Secretary  of  the  Treasury,  before  the 
Young  Men's  Republican  Club,  Providence,  R.  I.,  Wednesday 
evening,  March  23,  1904,  said  in  part: 

"No  sooner  was'  the  result  of  the  merger  case  announced  than 
the  opposition  inaugurated  widely  varying  and  inconsistent  tac- 
tics to  rob  the  Adminstration  of  the  fruits  of  its  victory.  Some 
demanded  the  institution  of  similar  suits  against  every  large  busi- 
ness and  producing  enterprise  and  every  consolidation  of  railroad 
interests,  whether  of  competing  systems  or  of  continuous'  lines. 
The  most  amusing  effort  to  avoid  a  comparison  of  Republican 
and  Democratic  administrations,  to  the  great  advantage  of  the 
former,  appears  in  a  recent  interview  by  ex-President  Cleveland. 
He  does  not  claim  to  have  recommended  any  anti-trust  legislation 
during  either  of  his  administrations.  He  does  not  claim  that  any 
anti-trust  legislation  was  passed  during  either  of  his  administra- 
tions. He  does'  not  claim  credit  for  any  litigation  ever  instituted 
to  suppress  any  trust  or  combination  during  either  of  his  adminis- 
trations. He  simply  seeks  to  explain  why  nothing  was  done,  and 
he  places  the  responsibility  therefor  upon  the  courts  and  the  Con- 
stitution and  upon  the  fact  that  the  Northern  Securities  Company 
was  not  organized  during  his  administration. 

"I  am  very  glad  that  the  ex-President  has  again  commenced 
to  take  notice,  notwithstanding  the  McKelway  letter.^  Eight  years 
is  a  long  time  to  remain  in  mourning.  But  now  that  he  has  volun- 
tarily entered  the  lists  and  invited  comparisons,  he  can  not  com- 
plain   if   comparisons   be   made. 

"Mr.  Cleveland  was  first  inaugurated  President  March  4,  1885.' 
Neither  in  his  inaugural  address  nor  in  any  message  does'  he  men- 
tion the  subject  of  trusts  until  immediately  preceding  the  election 
of  18S8.  In  his  last  message  preceding  that  campaign  he  refers  to 
the  existence  of  'combinations  frequently  called  trusts,'  and  closes 
with  this  sage  conclusion: 

"  'The  people  can  hardly  hope  for  any  consideration  in  the 
operation  of  thes'e  selfish  schemes.' 

V'He  recommends  no  relief  and  suggests  no  remedy.  Neverthe- 
less the  Congress  to  which  this  comprehensive  statement  of  fact 
was  submitted,  a  majority  of  the  Members'  of  which  belonged  to  his 
school  of  political  thought,  appointed  a  commission  to  investi- 
gate the  subject.  The  purpose  of  the  commission  was  to  con- 
vince the  people  that  their  interests  were  not  being  neglected, 
at  least  during  the  campaign,  and  that  if  Mr.  Cleveland  was  re- 
elected some  remedial  legislation  would  follow.  To  that  end  this 
commission  held  meetings  from  time  to  time  throughout  the  cam- 
paign. Mr.  Cleveland  was  not  re-elected,  however,  but  when 
Congress  reconvened,  in  a  paragraph  of  five  lines,  he  refers  to 
the  subject  of  trusts,  and  closes  with  this  sad  and  terrifying  an- 
nouncement: 'Corporations,  which  should  be  the  carefully  re- 
strained creatures  of  the  law  and  the  servants  of  the  people,  are 
fast  becoming  the  people's  masters.'  But  he  recommends  no  relief 
and  suggests  no  possible  way  of  escape. 

"Two  days  before  the  inauguration  of  President  Harrison  the 
commission  to  which  I  have  referred  made  its  report,  setting  forth 
what  evidently  appeared  to  the  commission  as  a  most  deplorable 
condition. 

"  'Your  committee  respectfully  report  that  the  number  of  com- 
binations and  trusts  formed  and  forming  in  this  country  is',  as 
your  Committee  has  ascertained,  very  large,  and  affects  a  large  por- 
tion of  the  important  manufacturing  and  industrial  interests  of  the 
country.  They  do  not  report  any  list  of  these  combinations,  for 
the  reason  that  new  ones'  are  constantly  forming  and  old  ones 
are  constantly  extending  their  relations  so  as  to  cover  new 
branches   of  business   and  invade  new   territories.' 

"Their  words  of  encouragement  which  follow  must  be  read  in 
the  light  of  the  fact  that  two  days  later  a  Republican  Congress 
elected  some  months  before,  was  to  convene.     Listen! 

"  'Your  committee  further  report  that  owing  to  present  differ- 
ences of  opinion  between  the  members  of  your  committee,  they 


193  TRUSTS    AND    JM)I  STK1A1.    COMBINATIONS. 

limit  this  report  to  submitting  to  the  careful  consideration  of 
subsequent  Congresses  the  tacts  shown  by  the  testimony  taken 
before  the  committee.' 

"Both  the  President  and  the  committee  acknowledges  the  exis- 
tence of  harmful  trusts  and  combinations,  but  neither  holds  forth 
to  the  people  any  ray  of  hope  except  at  the  hands  of  those  who 
were  about  to  fill  their  seats. 

"The  Republican  Congress  was'  not  long  Inactive.  The  very 
first  bill  introduced  in  the  Senate  of  the  Fifty-first  Congress  was 
John  Sherman's  Anti-Trust  bill,  Senate  File  No.  1.  It  passed  both 
Houses  and  received  the  signature  of  Benjamin  Harrison. 

"The  passage  of  this  act  was  followed  by  several  suits  for  its' 
enforcement  and  several  decisions  by  the  Supreme  Coure  were 
secured,  declaring  it  constitutional  and  applying  it  to  various  con- 
ditions. Then,  on  March  4,  1893,  President  Cleveland  was  again  in- 
augurated, and  in  his  Inaugural  address  he  refers  to  trusts,  saying: 

"  'These  aggregations  and  combinations  frequently  constitute 
conspiracies  against  the  interests  of  the  people,  and  in  all  their 
phases  they  are  unnatural  and  opposed  to  our  American  sense  of 
fairness.  To  the  extent  that  they  can  be  reached  and  restrained 
by  Federal  power  the  General  Government  should  relieve  our  cit- 
izens from  their  interference  and  exactions.' 

"He  suggests  no  modification  of  the  Sherman  act,  and  recom- 
mends nothing  in  its  place,  but  in  harmony  with  the  teachings  of 
State  sovereignty  statesmanship,  of  which  he  always  had  been, 
and  therefore  always  will  be,  a  diligent  student,  he  suggests  that 
it  is'  very  doubtful  whether  the  Federal  Government  has  any 
jurisdiction  in  the  premises. 

"That  was  in  his  inaugural  address.  He  does  not  again  refer  to 
the  subject  of  trusts  in  message  or  proclamation  until  December, 
1896,  after  the  election  of  William  McKinley,  when  he  can  throw 
the  responsibility  upon  another.  In  this,  his  last  message,  he  de- 
nounces combinations  of  every  description  in  language  as  intem- 
perate and  inflammatory  as  was  ever  employed  by  his  party's  more 
recent  candidate  for  the  Presidency.     He  says: 

"  'Their  tendency  is  to  crush  out  individual  independence  and 
to  hinder  and  prevent  the  free  use  of  human  faculties  and  the  full 
development  of  human  character.' 

"He  then  discouraged  Federal  legislation  by  saying: 

"  'The  fact  must  be  recognized,  however,  that  all  Federal  legis- 
lation on  this  subject  may  fall  short  of  its  purpose  because  of 
the  complex  character  of  our  governmental  system,  which,  while 
making  the  Federal  authority  supreme  in  its'  sphere,  has  carefully 
limited  that  sphere  by  meets  and  bounds  that  cannot  be  trans- 
gressed. The  decision  of  our  highest  ourt  on  this  precise  question 
renders  It  quite  doubtful  whether  the  evils  of  trusts  and  monop- 
olies can  be  adequately  treated  through  Federal  action  unless  they 
seek,  directly  and  purposely,  to  include  in  their  objects  transporta- 
tion or  intercourse  between  States  or  between  the  United  States 
and  foreign  countries.' 

"This,  so  far  as  the  record  shows,  is  his  last  utterance,  official 
or  otherwise,  on  the  subject  of  trusts,  until  he  explains,  in  his  re- 
cent interview,  the  reason  why  nothing  was  done  during  either  of 
"his  administrations.  While  the  platform  on  which  he  was  elected  • 
the  second  time  promised  much  in  the  way  of  anti-trust  legislation, 
nothing  was  done  except  to  include  in  the  tariff  act  of  1894  a  pro- 
vision rendering  'null  and  void  any  combination,  conspiracy,  trust, 
agreement,  or  contract  between  two  or  more  persons  or  corpora- 
tions engaged  in  importing  articles  from  any  foreign  cuntry  into 
the  United  States  intended  to  operate  in  restraint  of  trade  or  to 
increase  the  market  price  of  any  imported  article  or  any  manufac- 
ture into  which  imported  articles  have  entered.'  Their  sole 
legislation  was  against  combinations  of  importers,  with  intent 
to  put  up  the  price  of  imported  goods.  In  no  way,  shape,  or 
form  did  they  seek  to  prohibit  a  combination  of  American  manu- 
facturers, producers,  or  transportation  companies.  It  is  needless 
to  say  that  no  effort  has  been  or  ever  will  be  made  to  enforce  this 
act,  for  it  is  directed  against  an  imaginary  evil.  Importers  may 
represent  foreign  trusts,  but  they  do  not  combine  in  this  country 
to  increase  the  price  of  their  imported  wares.  It  was'  intended  to 
please  the  people  and  I  see  no  reason  to  presume  that  any  existing 
or  contemplated  trust  was   scared  thereby. 

"And  now  I  want  to  refer  to  the  language  of  Mr.  Cleveland's 
explanation  for  the  sad  neglect  of  his  administration  as*  set  forth 
in  his  authorized  interview.     He  says: 

"  'The  question  of  the  Government  taking  legal  action  against 
the  so-called  trusts  was  given  much  consideration  during  my  last 
administration,  from  1893  to  1897.  I  recall  that  I  examined  closely 
the  law  and  received  reports  from  Mr.  Olney,  who  was  then 
Attorney-General.  I  was  most  anxious  to  have  something  done, 
but  we  were  blocked  by  decisions  of  the  Supreme  Court,  which  at 
that  time  tied  our  hands.  *  *  *  The  decisions  of  the  Supreme 
Court,  as  pointed  out  in  my  message,  restricted  our  action  against 
trusts  unless  they  were  engaged  in  interstate  transportation. 
There  was  a  distinct  difference  drawn  between  railroads  and  pure- 
ly producing  combinations.  It  could  not  be  said  that  the  sugar 
trust,  or  the  beef  trust,  or  the  Standard  Oil  Company  was  directly 
engaged  in  interstate  transportation.' 

"I  think  Mr.  Cleveland  has  overlooked  the  fact  that  Attorney- 
General  Knox  has  at  this  time  an  injunction  in  full  force  against 
seven  corporations,  one  copartnership,  and  twenty-three  individ- 
uals' engaged  in  the  production  and  transportation  of  meats  and 
meat  products,  restraining  them,  as  the  opinion  shows,  from  re- 
quiring their  purchasing  agents  to  refrain   from   bidding  against 


TRUSTS    AND    INDUSTRIAL    COMBINATIONS.  193 

each  other  when  making  purchases;  from  bidding  up  the  price  of 
live  stock  for  a  few  days  to  induce  large  shipments,  and  then 
ceasing  to  bid  so  as  to  obtain  live  stock  at  prices  less  than  it 
would  bring  in  the  regular  way;  from  agreeing  between  them- 
selves upon  prices  to  be  adopted  by  all;  from  restricting  the  quan- 
tities of  meat  to  be  shipped;  from  requiring  their  agents  to  im- 
pose uniform  charges  for  cartage,  and  from  making  agreements 
with  transportation  companies  for  rebates  and  other  discrimination 
rates'. 

"Of  course,  this  action  is  based  upon  the  allegation  admitted  in 
the  demurrer,  that  these  packing  concerns  are  engaged  not  only 
in  the  production  of  articles  entering  into  interstate  commerce, 
but  that  the  concerns  are  themselves  engaged  in  interstate  com- 
merce. Admittedly,  the  Federal  Government  has  no  jurisdiction 
to  restrain  combinations  between  individuals  or  corporations,  ex- 
cept such  as  is  derived  under  the  provision  of  the  Constitution, 
giving  Congress  control  of  interstate  and  foreign  commerce.  Thus, 
what  Mr.  Cleveland  just  last  week  said  can  not  be  done  is  an  ac- 
complished fact,  and  the  action  was'  brought  under  the  Sherman 
act,  a  Republican  measure,  promised  in  a  Republican  platform, 
passed  by  a  Republican  Congress,  signed  by  a  Republican  Presi- 
dent, and  enforced  by  a  little  giant  under  the  direction  of  the 
present  Republican  President.  And  while  the  case  has  been  ap- 
pealed, it  stands  and  holds  and  will  remain  effective  until  re- 
versed. 

"Nor  is  this  all,  nor  the  most  astonishing  feature  of  Mr.  Cleve- 
land's interview.  In  the  closing  paragraph  he  takes  no  small 
pains'  to  explain  why  nothing  was  done  during  his  administration, 
and  by  so  doing  endorses,  in  the  most  emphatic  language,  what 
has  been  done  by  his  successors.  Without  admitting  the1  suffi- 
ciency of  his  explanation,  it  is  quite  gratifying  to  have  so  distin- 
guished a  person  unqualifiedly  approve  the  institution,  the  prose- 
cution, and  the  result  of  the  merger  case.  Listen  to  the  explana- 
tion he  gives  for  his  own  inactivity: 

"  'There  was  then  no  opportunity  to  take  any  such  action  as  this 
merger  suit.  The  case  did  not  present  itself.  If  contracts  existed 
among  these  business  combinations  for  the  restraint  of  trade,  they 
were  kept  secret  and  no  evidence  offered  itself  on  which  to  act. 
At  that  time  this  merger  of  railroads  had  not  been  formed,  so 
that  there  was  no  action  of  this  sort  to  take.' 

"How  unfortunate  it  is'  for  so  many  of  us  that  opportunities 
never  present  themselves  in  our  times.  Those  who  lived  before 
us,  and  those  who  come  after  us,  have  great  opportunities.  Of  all 
men  we  are  most  miserable.  And  so  Mr.  Cleveland  bewails  his' 
misfortune,  in  much  the  same  tone,  if  not  in  the  same  language, 
that  Ben  King  employs: 

"Jane  Jones  keeps  talkin'  to  me  all  the  time, 

An'    says    you   must    make    it    a   rule 
To  study  your  lessons  'nd  work  hard  'nd  learn, 

An'  never  be   absent   from   school. 
Remember   the   story   of  Elihu  Burritt, 

An'  how  he  clum  up  to  the  top, 
Got  all  the  knowledge  'at  ever  he  had 

Down  in  a  blacksmithing  shop? 
Jane  Jones  she   honestly  said  it  was   so! 
Mebby   he  did — 
I  dunno! 
O'  course  what's  a-keepin'  me  'way  from  the  top, 
Is'  not  never  havin'   no   blacksmithing  shop. 

She  said  "at  Columbus  was  out  at  the  knees 

When  he  first  thought  up  his  big  scheme, 
An'  told  all  the  Spaniards  'nd  Italians  too, 

An'  all  of  'em  said  'twas  a  dream. 
But  Queen  Isabella  jest  listened  to  him, 

'Nd  pawned  all  her  jewels  o'  worth, 
'Nd  bought  him  the  Santa  Maria  'nd  said, 

'Go   hunt  up   the   rest   of   the   earth!' 
Jane  Jones  she  honestly  said  it  was  so! 
Mebby   he  did — 
I  dunno! 
Of  course,  that  may  be,  but  then  you  must  allow, 
They  ain't  no  land  to  discover  jest  now!" 

WHAT  THE  MERGER  SUIT  HAS  SAVED* 

[From   the  Philadelphia   Press,    July    16,    1904.] 

What  were  the  profits  threatened  by  the  Northern  Securities 
decision?  What  is  the  saving  to  the  country  by  the  instituting  of 
the  merger  suit  and  its  judicial  affirmance?  The  organization 
of  this  corporation  was  the  outgrowth  of  the  attempt  by  "com- 
munity of  interest"  to  eliminate  competition  and  add  to  railroad 
profits.  "Community  of  interest"  in  four  years  added  $155,000,- 
000  to  railroad  charges  for  freight.  Last  April  the  Interstate 
Commerce  Commission  proved  this  in  a  report,  to  the  Senate. 

In  1887  the  Interstate  Commerce  act,  which  was  the  first  of 
the  various  measures  passed  for  the  purpose  of  preventing 
combination  and  destroying  competition,  began  the  work  of  re- 


194  TRUSTS    AND    INDUSTRIAL   COMBINATIONS. 

dueing  rates  under  its  Republican  Administration,  From  1890 
until  1899  freight  rates  steadily  decreased.  The  railroads  be- 
tween 1890  and  1899  increased  their  tons  of  freight  by  one-half, 
and  the  sum  received  for  carrying  it  by  less  than  one-third,  or 
two-sevenths.  In  other  words,  freight  was  being  carried  cheaper 
for  the  public,  although  more  was  being  moved. 

The  aggregate  freight  carried  in  1890  was  636,541,61^  tons,  at 
a  cost  of  $714,464,277.  By  1899  the  freight  had  increased  to 
959,763,583  tons,  while  the  freight  receipts  had  only  risen  to 
$913,737,155.  As  will  be  seen,  the  increase  in  freight  was  323,- 
221,964  tons,  or  50.9  per  cent,  and  the  increase  of  income  $199, 
272,878,  or  16.4  per  cent 

A  better  comparative  showing  could  be  made,  if  one  wished 
to  force  this  point,  by  taking  one  of  the  years  of  extreme  depres- 
sion. The  year  1899  was  not.  In  it  the  railroads  were  making  a 
fair  return  on  their  capital  and  their  business.  No  one  was 
complaining. 

The  decisions  of  the  United  States  Supreme  Court  destroyed 
traffic  agreements.  "Community  of  interests"  began.  The  trunk 
lines  were  drawn  to  closer  relations.  These  had  their  effect  on 
the  railroad  systems  of  the  country.  All  the  186,000  miles  which 
then  constituted  the  railroad  mileage  of  the  United  States  be- 
came a  vast  web  whose  rates  responded  to  the  determination 
of  a  few  great  financiers  in  New  York  to  make  the  country  pay 
for  its  transportation. 

The  next  step  after  the  "community  of  interest"  was  to  be 
the  "holding  corporations,"  of  which  the  Northern,  Securities 
Company  was  the  first  example.  Rates  advanced  from  1899  to 
1903.  Aggregate  freight  tonnage  rose  to  1,221,475,948  tons,  an 
increase  of  about  one-fourth,  but  the  freight  receipts  rose  still 
faster.  They  advanced  to  $1,318,320,604.  This  was  an  increase 
of  nearly  one-half.  The  advance  in  the  cost  of  freight  to  the 
people  of  the  United  States  wTas  $404,583,449,  an  increase  of 
44.28  per  cent,  while  total  freight  tonnage  had  only  increased 
261,712,365  tonsi  or  27.27  per  cent 

If  rates  had  remained  in  1903  as  they  were  in  1899 — and  the 
railroads,  as  we  have  already  said,  were  making  money  in  1899 
—stocks  were  rising  and  new  bonds  and  shares  were  selling- 
shippers  instead  of  paying  $405,000,000  more  would  have  paid 
in  addition  only  $250,000,000.  Instead  they  were  taxed  an  ad 
ditional  $155,000,000.  This  was  the  measure  of  the  advance  in 
rates  from  1899  to  1903,  a  measure  obtained  by  ascertaining  how 
much  the  freight  carried  in  1903  would  have  cost  the  country  if 
it  had  been  carried  at  the  same  rate  as  received  in  1899. 

This  advance  and  this  increased  tax  laid  upon  tne  trade  of  the 
country  were  gained  through  the  "community  of  interest,"  and 
schemes  like  the  Northern  Securities  Company,  which  were  in- 
tended to  carry  a  step  forward  the  "community  of  interest"  and 
still  more  eliminate  competition.  The  industries  and  the  labor 
of  the  country,  which  had  steadily  improved  from  1897  to  1899 
under  low  rates,  went  on  under  a  period  of  enlarging  business 
under  higher  rates. 

But  the  tax  was  fej.t.  It  is  not  possible  to  make  $155,000,000 
in  a  year  out  of  the  profits  of  everybody  who  uses  railroads  for 
freight,  as  every  business  does,  directly  or  indirectly,  and  not 
have  someone  feel  it.  The  corporations  gained.  The  shipper 
lost.  When  President  Roosevelt's  Administration  attacked  the 
Northern  Securities  combination  it  served  notice  on  everybody 
concerned  that  this  process  could  go  on  no  longer. 

The  corporations  objected.  Naturally.  Under  combination, 
more  or  less  veiled — within  the  letter  of  the  law,  but  against 
its  spirit— they  had  slowly  marked  up  rates  until  they  were  ob- 
taining $155,000,000  more  than  in  1899,  with  every  prospect  of 
adding  to  the  tax  which  they  were  levying  on  the  country.  This 
was  a  stake  worth  fighting  for.  The  corporations  and  the  small 
group  of  able  financiers  who  had  in  four  years  increased  the 
burden  of  railroad  freight  on  the  country  by  $155,000,000  had  and 
have  no  intention  of  permitting  any  interference  with  this  plan 
if  they  can  help  it. 

The  real  question  which  lies  behind  the  "trust  issue,"  brought 
into  evidence  by  the  Northern  Securities  decision,  is  whether, 
under  President  Roosevelt's  policy,  this  increase  of  freight  rates 


TBUSTS   AND   INDUSTBIAL   COMBINATIONS.  195 

shall  be  stopped,  revised  and  reduced  by  allowing  the  play  of 
natural  causes  through  competition,  or,  as  will  take  place  if 
Judge  Parker  is  elected,  the  increase  in  freight  rates  shall  go 
on  by  railroads  freed  from  opposition  to  their  "community  of 
interest"  and  to  their  consolidation. 

THE  TRUSTS  AND  THE  PROTECTIVE  TARIFF. 

[Hon.  William  B.  Allison,  United  States  Senator,  in  American  In- 
dustries for  December,   1903.] 

It  is  contended  that  the  protective  policy  is  the  basis  of  what 
are  known  as  trust  combinations  in  our  country,  and  that  if  these 
are  to  be  crippled  or  destroyed  the  most  effective  weapon  is  free 
trade  in  trust-made  goods';  that  is  to  say,  that  goods  produced  in 
other  countries  of  character  and  quality  similar  to  those  produced 
by  a  trust  in  this  country  shall  be  placed  on  the  free  list.  The 
effect  of  this,  of  course,  would  be  to  place  all  imported  goods  of 
this  character  on  the  free  list,  whether  competitive  goods'  were 
made  here  by  a  trust  combination  or  by  independent  factories  com- 
peting with  the  trust,  thus  allowing  world-wide  competition  in 
this  class   of  goods. 

This  plan  is  impossible  of  execution,  even  if  otherwise  effective, 
as  it  would  lead  to  endless  contests  and  conflicts  in  the  custom 
houses  and  in  the  courts  on  the  question  of  what  are  trust-made 
goods  and  what  are  goods  of  like  character  produced  here  and  also 
produced    abroad. 

According  to  the  census  of  1900  about  12  per  cent  of  manufact- 
ured articles  were  made  by  what  we  call  trusts  in  this  country. 
That  percentage  has  increased  since  1900,  but  certainly  does  not 
now  exceed  20  per  cent  of  the  total  product.  But  if  this  proposi- 
tion were  enacted  into  law  those  producing  the  remaining  80  per 
cent  in  competition  with  the  trusts  would  be  punished  and  crippled, 
and  it  may  be  destroyed,  through  no  fault  of  their  own,  but  by  the 
action  of  the  trusts  producing  the  20  per  cent. 

If  tariff  duties  are  necessary  to  protect  our  producers  against 
foreign  competition  then  not  only  these  who  are  in  combination 
here,  but  also  the  independent  manufacturer,  must  suffer  alike 
if  the  necessary  protection  is  withdrawn.  Is  it  possible  to  devise 
a  more  effective  method  of  destroying  the  protective  system  than 
this  proposed  insidious  method  of  withdrawing  protection  from 
trust-made  goods? 

The  basis  of  this  proposal  is  a  false  one.  The  tariff  is  not  the 
foundation  of  these  combinations,  nor  does  it  promote  them  in  any 
material  degree.  Whatever  their  origin  it  cannot  be  found  in  our 
tariff  laws.  If  it  were  so  found  then  these  combinations  would  be 
confined  to  those  manufacturers  benefited  by  the  tariff.  But  it  so 
happens  that  many  of  these  combinations,  and  the  largest  of  them, 
have  no  relation  whatever  to  the  tariff,  but  have  grown  up  with- 
out tariff  protection  and  wholly  outside  of  it. 

The  Standard  Oil  Trust  is  a  conspicuous  example  of  this.  There 
is  not  now  and  never  has  been  any  duty  on  its  product.  As  a  pre- 
cautionary measure  the  Wilson  bill  of  1894  provided  that  if  any 
country  producing  petroleum  or  its  products  imposed  a  duty  upon 
our  petroleum  or  its  products,  a  duty  of  40  per  centum  should  be 
paid  on  such  articles  imported  from  that  country,  and  this  pro- 
vision, not  materially  modified,  was  retained  in  the  Dingley  law. 
But  it  is'  of  no  value,  and  has  no  effect  upon  the  trade. 

Anthracite  coal  has  been  continually  on  the  free  list  under 
all  protective  tariffs,  and  even  including  the  Dingley  law,  although, 
by  a  mistaken  definition  of  anthracite  as  distinguished  from  bitum- 
inous coal,  the  Treasury  Department  was  led  to  decide  that  a  cer- 
tain class  of  anthracite  should  pay  duty.  About  250,000  tons  of  so- 
called  anthracite  were  imported  between  the  passage  of  the  Ding- 
ley law  and  the  repeal  of  that  provision,  as  compared  with  a  total 
production  of  150,000,000  tons  in  our  own  country  during  the  in- 
tervening time,  of  which  production  coal  to  the  value  of  $12,000,000 
was  exported  to  Canada.  The  impossibility  of  the  small  importa- 
tion having  any  effect  upon  the  price  of  anthracite  coal  in  our 
markets  is  apparent.  Whatever  the  remedy  may  be  against  the 
anthracite  combination  in  Pennsylvania,  the  tariff  had  nothing  to 
do  with  its  origin  and  progress. 

It  is  said  there  is  a  beef  combination  that  is  able  to  control 
prices  and  limit  production  because  of  the  tariff.  There  is  a 
duty  upon  live  cattle  imported.  The  repeal  of  this  duty  would  help 
rather  than  injure  this  combination.  The  repeal  of  the  duty  on 
dressed  meats  would  not  in  the  slightest  degree  affect  its  control 
over  the  market  to  the  extent  it  now  has.  There  is  no  place  front 
which  dressed  meats  could  be  imported  in  competition  with  our 
packers.  We  export  to  Canada  more  cattle  and  meat  products 
than  we  import  from  there. 

We  hear  something  of  a  trust  in  the  manufacture  of  agricul- 
tural implements.  Our  country  produces'  these  implements  in  many 
places,  and  they  are  largely  exported  to  every  part  of  the  world, 
and  practically  none  are  imported.  The  Wilson-Gorman  bill  put 
them  on  the  free  list,  with  no  effect  whatever  upon  the  price  at 
home  or  abroad.  The  present  duty  of  20  per  centum  is  of  no  value 
to  the  manufacturers,  and  I  understand  they  so  regard  it,  nor 
does  it  affect  home  prices  in  the  slightest  degree.  The  skill  in 
production  and  the  inventive  genius  of  our  people  as  respects  this 
class  of  manufactures  are  such  that  our  implements'  go  the  world 
around.  The  only  complaint  made  is  that  France  and  Germany  and 
other  countries  in  Europe,  and  the  Dominion  of  Canada,  place  a 


196  TRUSTS   AND   INDUSTRIAL   COMBINATIONS. 

hlg-h  duty  upon  these  articles  exported  by  us,  and  should  Canada 
especially  persist  In  retaining  these  duties  It  will  be  done  at  the 
cost  of  the  farmers  of  Ca  i  Canada  does  not  produce  these 

articles  to  any  extent. 

No  industry  is  more  important  to  our  country  than  that  of  iron 
and  steel.  It  has  been  truthfully  stated  by  somebody  that  the 
wealth  of  a  country  could  be  largely  measured  by  its  consump- 
tion of  iron  and  steel  products.  We  produced  in  the  United  States 
in  1880  iron  and  Bteel  products  to  the  value  of  $660,000,000  in 
round  numbers.  Twenty  years  later  we  produced  in  value  of 
these  products'  in  round  numbers  $1,800,000,000,  thus  nearly  tripling 
our  product  in  value  in  twenty  years,  and  if  we  could  carry  that 
product  down  to  1903  the  increase  would  be  still  greater.  We  con- 
sumed in  1900  nearly  as  much  pig  iron  as  the  United  Kingdom, 
Germany,  and  France  combined.  These  three  countries  are  our 
principal  competitors  in  the  production  of  iron  and  steel,  and  also 
the  principal  consumers  of  these  products  outside  of  our  country. 
Although  England  is  a  large  exporter  of  iron  and  steel  she  also 
largely  imports  both.  She  imported  from  contiguous  European 
States  in  1900  twice  as'  much  steel  as  she  imported  to  them.  No 
industry  has'  made  such  progress  as  that  of  iron  and  steel  in 
our  country.  We  are  by  far  the  largest  producers  in  the  world, 
and  we  are  also  the  largest  consumers'. 

We  have  for  the  last  few  years  largely  increased  our  exporta- 
tion of  iron  and  steel,  and  it  seems  to  me  that,  with  our  great 
natural  resources  in  this  regard  and  the  competition  that  will 
inevitable  continue  in  their  production  in  our  own  country,  we 
shall  in  the  future  still  further  increase  our  exportations  or  iron 
and  steel.  Duties  on  them  may  require  adjustment  because  of 
changes  in  production  and  consumption.  Yet  the  United  States 
Steel  Corporation,  which  is  the  largest  producer,  contributing  more 
than  one-half  the  total  product,  has  substantial  competition,  which 
has  been  increased  since  the  organization  of  the  corporation,  and 
largely  increased  during  the  last  year.  Prices  of  its  products  were 
abnormally  increased  in  1900,  but  they  are  now  diminishing  and 
will  continue  to  fall. 

Effective  control  of  trusts  must  be  had.  All  parties  agree  that 
whatever  can  be  done  ought  to  be  done  to  minirnize  and  remove 
as  far  as'  possible  the  evils  which  exist  because  of  these  combina- 
tions. But  it  is  plain  that  the  adoption  of  free  trade  and  the 
abandonment  of  the  policy  of  protection  is  not  one  of  these  rem- 
edies; 

THE  NEW  YORK  WORLD  ON  THE  MERGER  CASE  AND  THE 

WORK  OF  THE  PRESIDENT  AND  ADHINISTRATION 

WITH   REFERENCE  THERETO. 

[From  the  New  York  World,  Tuesday,  March  15,  1904.] 

The  decision  of  the  Supreme  Court  against  the  Northern  Se- 
curities merger  is  an  event  of  vital  and  far-reaching  importance. 

So  clear,  so  obvious,  so  important  are  the  issues  involved  that 
wonder  grows  that  a  final  decision  in  a  case  of  the  first  magni- 
tude was  not  reached  until  almost  fourteen  years  after  the 
passage  of  the  Sherman  act. 

What  is  the  decision:  what  the  circumstances  that  led  up  to 
it;  what  its  probable  effects? 

The  Case. 

The  first  railway  across  the  continent  was  necessarily  a 
monopoly.  As  each  additional  line  was  opened  the  effort  was 
made  to  prevent  competition.  This  ettort  was  particularly  active 
in  the  Northwest,  where  the  Northern  Pacific  and  the  Great 
Northern  Railroads  were  natural  rivals. 

The  Burlington  and  the  Union  Pacific  were  other  parallel 
lines.  The  Northern  Pacific  secured  control  of  the  Burlington 
by  a  stock-conversion  deal.  To  protect  their  interests  the  mas- 
ters of  the  Union  Pacific  set  out  to  capture  the  Northern  Pacific, 
and  this  led  to  the  great  Northern  Pacific  war  and  the  panic  of 
May  9,  1901. 

The  financiers  of  Wall  street  met  to  restore  peace  and  appor- 
tion the  spoils,  and  out  of  their  efforts  grew  the  Northern  Securi- 
ties merger,  organized  in  November,  1901,  under  the  laws  of  New 
Jersey,  for  the  purpose  of  holding  the  stock  of  the  Northern  Pa- 
cific and  Great  Northern  companies,  including  the  control  of  the 
Burlington.  It  was  modestly  suggested  that  it  might  later  take 
in  the  Chicago,  Milwaukee  &  St.  Paul,  the  Chicago  &  Northwest- 
ern, and  probably  the  Chicago  Great  Western  and  Wisconsin 
Central. 

It  was  said  that  the  combination  was  legally  unassailable; 
that  all  the  railroads  of  the  United  States  might  presently  be 
consolidated  in  the  hands  of  a  few  great  holding  companies. 

This  was  a  menace  and  a  challenge. 


TRUSTS   AND   INDUSTRIAL   COMBINATIONS.  197 

The  Law. 

On  March  3,  1902,  Attorney-General  Knox,  urged  thereto  by 
President  Roosevelt,  riled  a  petition  against  the  combination  and 
its  two  constituent  companies  in  the  United  States  Circuit  Court 
of  Minnesota  under  the  Sherman  Anti-Trust  act  of  1890,  which 
provides: 

Section  1.  Every  contract,  combination  in  the  form  of  trust  or 
otherwise,  or  conspiracy  in  restraint  of  trade  or  commerce,  among 
the  several  States',  or  with  foreign  nations,  is  hereby  declared  to 
be  illegal.  Every  person  who  shall  make  any  such  contract  or  en- 
gage in  any  such  combination  shall  be  deemed  guilt}'  of  a  misde- 
meanor, and  on  conviction  thereof  shall  be  punished  by  a  fine  not 
exceeding  $5,000,  or  by  imprisonment  not  exceeding  one  year,  or  by 
both  said  punishments,  in  the  decision  of  the  court.      *      *      * 

Section  4.  The  several  circuit  courts  of  the  United  States  are 
hereby  invested  with  jurisdiction  to  prevent  and  restrain  viola- 
tions of  this  act;  and  it  shall  be  the  duty  of  the  several  district- 
attorneys'  of  the  United  States,  in  their  respective  districts,  under 
the  direction  of  the  Attorney-General,  to  institute  proceedings  in 
equity  to  prevent  and  restrain  such  violations. 

The  Decree. 

The  case  was  vigorously  pushed.  One  week  later  the  At- 
torney-General alleged  in  a  bill  in  equity  filed  at  St.  Paul  that 
the  Northern  Pacific  and  Great  Northern  were  "the  only  trans- 
continental lines  of  railway  extending  across  the  northern  tier 
of  States  west  of  the  Great  Lakes  *  *  *  to  the  Pacific  Ocean, 
and  were  (previously)  engaged  in  active  competition  for  freight 
and  passenger  traffic";  that  by  the  merger  the  defendants  were 
monopolizing  interstate  and  foreign  commerce  in  violation  of  the 
Sherman  act,  and  that  the  Securities  Company  "was  not  or- 
ganized in  good!  faith  to  purchase  and  pay  for"  the  roads  it  ac 
quired,  but  "solely  to  incorporate  the  pooling  of  stocks  of  said 
companies." 

Mr.  Knox  added  that  if  this  were  permitted  the  act  of  Con- 
gress could  be  set  at  naught  and  all  the  railway  systems  of  the 
country  could  be  "absorbed,  amerged  and  consolidated,  thus 
placing  the  public  at  the  absolute  mercy  of  the  holding  corpora- 
tion." 

This  view  was  sustained  on  April  3  of  last  year  by  the  United 
State  Circuit  Court  of  Appeals,  Justice  Thayer  saying  that  Con- 
gress, after  forbidding  the  "trusts"  known  at  the  time  of  the 
passage  of  the  law: 

Evidently  anticipating  that  the  combination  might  be  other- 
wise formed,  was  careful  to  declare  that  a  combination  in  any 
other  form,  if  in  restraint  of  interstate  trade  or  commerce — that  is, 
if  it  directly  occasioned  or  effected  such  restraint — should  like- 
wise be  deemed  illegal. 

The  Supreme  Court: 

By  a  majority  of  five  to  four  in  the  Supreme  Court  itself  the 
decree  of  the  Circuit  Court  is  now  confirmed.  This  is  final. 
There  is  no  appeal.  .    . 

The  decision,  written  by  Justice  Harlan,  states  that,  than  the 
holding  company,  "no  scheme  or  device  could  certainly  more  ef- 
fectively come  within  the  prohibition  of  the  Anti-Trust  law." 
The  law  is  not  an  interference  with  the  right  of  the  States  to 
charter  companies.  The  authority  of  Congress  is  supreme. 
Sweeping  away  by  broad  principles  a  maze  of  technicalities,  Jus- 
tice Harlan  finds  that  the  merger  is  "a  combination  in  restraint 
of  interstate  and  international  commerce,  and  that  is  enough 
to  bring  it  under  the  condemnation  of  the  act." 

If  such  a  combination  was  not  destroyed— 

The  entire  commerce  of  the  immense  territory  in  the  northern 
part  of  the  United  States,  between  the  Great  Lakes  and  the  Pacific 
at  Puget  Sound,  will  be  at  the  mercy  of  a  single  holding  corpora- 
tion, organized  in  a  state  distant  from  the  people  of  that  terri- 
tory. 

The  Effect. 

Of  business  interests  the  decision  is  conservative,  not  destruc- 
tive, not  obstructive. 

Because  of  it  no  wheel  need  cease  to  turn.  No  property  is 
destroyed,  no  right  of  wealth  invaded,  no  legitimate  ambition 
assailed.  The  sun  will  rise  and  set  as  before,  the  rain  will  fall, 
the  grain  will  grow  as  bravely  in  all  that  vast  region  which  the 


198  TBUSTS   AND   INDUSTRIAL  COMBINATIONS. 

merger  sought  to  make  subject  in  the  important  matter  of  trans- 
portation to  one  corporate  will.    *    *    * 

The  Supreme  Court  has  proved  itself  the  protector  of  the 
rights  of  the  people  against  trusts,  as  upon  occasion  it  would 
prove  the  protector  of  the  trusts  themselves  against  unfair  at- 
tack. 

Trusts,  like  workingmen,  are  entitled  to  the  protection  of  the 
law  as  long  as  they  remain  within  and  under,  not  over  and 
against  the  law.  No  man  of  sense  expects  the  destruction  of  all 
commercial  combinations.  The  shouting,  insincere,  hypocritical 
demagogue  who  only  wishes  to  get  power  by  denouncing  the 
trusts  is  perhaps  a  greater  public  enemy  than  the  trusts  them- 
selves. 

The  Future. 

Politically,  the  effect  of  the  decision  can  hardly  be  exagger- 
ated. 

It  will  greatly  strengthen  President  Roosevelt  as  a  candidate. 
People  will  love  him  for  the  enemies  he  has  made.  Mr.  Cleve- 
land lost  popularity  among  the  Democratic  masses  by  not  en- 
forcing this  law.     Mr.  Roosevelt  will  gain  by  enforcing  it. 

It  cannot  now  be  said  that  the  Republican  party  is  owned  by 
the  trusts.  It  cannot  now  be  said  that  Mr.  Roosevelt  is  con- 
trolled by  them.  His  prospects  of  re-election  were  not  small  be- 
fore; they  are  brighter  to-day,  and,  barring  some  act  of  impetu- 
ous unwisdom  on  his  part  before  November,  brighter  they  will 
remain. 

But  in  the  last  analysis  it  is  not  the  President  who  has  tri- 
umphed. It  is  not  the  court.  It  is  not  the  law.  It  is  the  people 
— the  plain  people  who  elect  Presidents  and  set  up  courts  and 
through  their  representatives  do  ordain  the  laws. 

The  President  did  what  public  opinion  called  for.  The  law 
itself  was  framed  because  public  opinion  demanded  it. 

It  is  public  opinion  and  the  people's  will  that  has  triumphed, 
as  in  the  end  it  must  always  triumph,  in  the  court  of  last  resort. 

Trust   Officials  as   Managers  of  the  Parker   Candidacy. 

[From  New  York  Tribune  May  4,  1904.] 

David  B.  Hill  and  August  Belmont,  in  their  reorganization 
of  the  Democratic  State  Committee  at  Albany,  last  Saturday, 
seem  to  have  established  close  relations  with  the  trust  officials 
of  New  York  and  New  Jersey,  and  especially  with  the  American 
Sugar  Refining  Company.  The  declaration  of  the  platform  adopt- 
ed by  the  Albany  convention  on  April  18  in  favor  of  "a  reasona- 
ble revision  of  the  tariff"  and  free  raw  material  becomes  illumi- 
nating, in  view  of  the  election  of  Cord  Meyer  to  be  chairman  of 
the  Democratic  State  Committee  and  Senator  P.  H.  McCarren  to 
be  chairman  of  the  executive  committee,  which  will  raise  and 
spend  the  money  during  the  campaign. 

Mr.  Meyer  is  a  capitalist,  and  was  one  of  the  original  stock- 
holders in  the  first  organization  of  the  sugar  trust.  He  was  a 
member  of  the  firm  of  Dick  &  Meyerf  with  refineries  in  Brook- 
lyn, that  was  swallowed  in  the  sugar  trust's  first  organization. 
It  is  to  be  presumed  that  Mr.  Meyer  stn  retains  his  interests  in 
the  sugar  trust  because  of  the  large  dividends  it  has  regularly 
paid.  During  the  great  struggle  over  the  sugar  schedule  in  the 
Wilson  bill  in  the  first  year  of  Cleveland's  second  administration 
the  statement  was  made  that  the  sugar  trust  had  contributed 
large  sums  of  money  to  the  Democratic  campaign  fund  of  1892. 
not  only  to  the  national  committee  but  to  the  State  committees 
of  New  York  and  Connecticut,  in  the  expectation  of  favors  yet 
to  come.  Mr.  Havemeyer  practically  admitted  its  truth  by  re- 
fusing to  testify  to  specific  amounts,  but  he  did  testify  that  he 
gave  the  Republicans  nothing,  because  he  could  see  no  advan- 
tage in  so  doing. 

It  was  charged  by  the  Republicans  that  the  sugar  trust  had 
received  a  promise  rrom  the  Democrats  that  it  would  have  the 
privilege  of  writing  its  own  sugar  schedule.  It  was  widely  pub- 
lished at  the  time  that  Cord  Meyer  waited  upon  members  of  the 
Cabinet  and  asked  whether  the  interests  of  the  sugar  trust  were 


TRUSTS   AND   INDUSTRIAL  COMBINATIONS.  199 

to  be  looked  after.  It  was  also  widely  published  that  Mr.  Have- 
meyer  himself  submitted  to  Secretary  Carlisle  the  sugar  schedule 
which  was  taken  to  the  Senate  committee  and  substituted  for 
the  schedule  in  the  Wilson  bill  which  the  Senate  committee  had 
prepared. 

In  the  end  the  sugar  trust  had  its  way,  and  there  was  a  great 
scandal  surrounding  the  whole  negotiation,  including  the  specu- 
lation in  sugar  stocks  by  United  States  Senators,  as  disclosed 
by  the  investigation,  when  Mr.  Havemeyer,  John  E.  Searles  and 
Elverton  R.  Chapman  were  reported  to  the  district  attorney  for 
being  in  contempt  of  the  Senate  in  refusing  to  answer  questions. 
Mr.  Havemeyer  and  Mr.  Searles  were  released  by  the  court  on 
the  ground  that  any  contributions  they  may  have  made  to  the 
Democratic  campaign  fund  could  not  possibly  have  concerned 
the  election  of  any  of  its  members,  notwithstanding  the  fact  that 
in  1892  there  were  elected  legislatures  which  sent  Edward  Mur- 
phy, Jr.,  to  the  United  States  Senate  from  New  York  and  James 
Smith,  Jr.,  from  New  Jersey. 

Senator  McCarren,  who  has  become  the  chairman  of  the  New 
York  Democratic  State  executive  committee,  is  the  champion 
defender  of  the  sugar  trust  in  public  life.  In  1897  there  was  an 
investigation  of  the  trust  question  by  a  joint  committee  of  the 
New  York  Senate  and  Assembly,  of  which  Senator  Clarence 
Lexow  was  chairman.  Senator  McCarren  was  the  Democratic 
member  of  this  committee  on  the  part  of  the  Senate. 


The  man  who  hy  the  use  of  his  capital  develops  a  great  mine; 
the  man  who  by  the  use  of  his  capital  builds  a  great  railroad;  the 
man  who  by  the  use  of  his  capital,  either  individually  or  joined 
with  others  like  him,  does  any  great  legitimate  business  enterprise, 
confers  a  benefit,  not  a  harm,  upon  the  community,  and  is  entitled 
to  be  so  regarded.  He  is  entitled  to  the  protection  of  the  law,  and 
in  return  he  is  to  be  required  himself  to  obey  the  law.  The  law  is 
no  respecter  of  persons.  The  law  is  to  be  administered  neither  for 
the  rich  man  as  such  nor  for  the  poor  man  as  such.  It  is  to  be 
administered  for  every  man,  rich  or  poor,  if  he  is  an  honest  and 
law-abiding  citizen;  and  it  is  to  be  invoked  against  any  man,  rich 
or  poor,  who  violates  it.  without  regard  to  which  end  of  the  social 
scale  he  may  stand  at;  without  regard  to  whether  his  ofl'eii.se  takes 
the  form  of  greed  and  cunning  or  the  form  of  physical  violence. 
In  either  case,  if  he  violates  the  law,  the  law  is  to  be  invoked 
against  him;  and  in  so  invoking  it  I  have  the  right  to  challenge 
the  support  of  all  good  citizens  and  to  demand  the  acquiescence  of 
every  good  man.  ,1  hope  I  will  have  it;  but,  once  for  all,  I  wish  it 
understood  that  even  if  I  do  not  have  it  I  shall  enforce  the  law. — 
President  Roosevelt  at  Butte,  Mont.,  May  27,  1903. 

Where  possible,  it  is  always  better  to  mediate  before  the  strike 
begins  than  to  try  to  arbitrate  when  the  fight  is  on  and  both  sides 
have  grown  stubborn  and  bitter. — President  Roosevelt  at  Labor 
Day  picnic,  Chicago,  Sept.  3,  1900. 

Our  average  fellow-citizen  is  a  sane  and  healthy  man,  who  be- 
lieves in  decency  and  has  a  -wholesome  mind.  He  therefore  feels 
an  equal  scorn  alike  for  the  man  of  -wealth  guilty  of  the  mean  and 
base  spirit  of  arrogance  toward  those  who  are  less  well  off,  and 
for  the  man  of  small  means  -who  in  his  turn  either  feels  or  seeks 
to  excite  in  others  the  feeling  of  mean  and  base  envy  for  those  -who 
are  better  off. — President  Roosevelt  at  Syracuse,  N.  Y.,  Sept.  7,  1903. 

The  duties  of  peace  are  with  us  always;  those  of  war  are  but 
occasional;  and  -with  a  nation  as  with  a  man,  the  -worthiness  of 
life  depends  upon  the  -way  in  -which  the  everyday  duties  are  done. 
The  home  duties  are  the  vital  duties. — President  Roosevelt  at  Sher- 
man statue  unveling,  Oct.  15,  1903. 

Above  all  the  administration  of  the  government,  the  enforce- 
ment of  the  laws,  must  be  fair  and  honest.  The  laws  are  not  to  be 
administered  either  in  the  interest  of  the  poor  man  or  the  interest 
of  the  rich  man.  They  are  simply  to  be  administered  Justly.— 
President  Roosevelt  at  Charleston,  S.  C,  April  9,  1902. 


200 


LABOR,    WAGES,    AND    PRICES. 


LABOR,  WAGES,  AND  PRICES. 

LABOR  CONDITIONS  UNDER  REPUBLICAN  AND  DEMOCRATIC  ADMINIS- 

TUAI'IONS. 

The  only  way  in  which  a  fair  idea  may  be  obtained  of  the 
actual  conditions  of  labor  at  any  time  is  by  careful,  impartial  In- 
vestigation. This  fact  was  recognized  when  the  United  States 
Government  and  the  governments  of  most  of  the  different  states 
of  the  Union  and  of  the  countries  of  Europe  established  bureaus 
of  labor  statistics. 

The  United  States  Bureau  of  Labor  in  its  bulletin  for  July, 
L804j  ((/)  published  the  results  of  an  extensive  investigation  into 
the  wage  conditions  in  leading  industries  throughout  the  country 
during  the  years  1890  to  1903.  To  obtain  this  information  special 
agents  of  the  Bureau  of  Labor  were  sent  to  representative  estab- 
lishments which  have  existed  during  that  entire  period  to  copy 
directly  from  the  pay  rolls  the  figures  showing  the  number  of 
persons  employed,  the  average  wages  paid,  and  the  hours  worked 
per  week.  This  investigation  was  the  most  comprehensive  of  its 
kind  ever  undertaken  by  any  government.  As  no  figures  were 
used  unless  obtained  from  establishments  which  could  furnish 
all  the  information  for  each  year  of  the  period,  the  results  are 
comparable  in  ercry  detail,  and  as  they  have  been  taken  directly 
from  the  payrolls  of  the  establishedments  they  are  believed  to  be 
entirely  trustworthy. 

The  following  tables  compiled  from  the  above  mentioned  July 
bulletin,  show  in  actual  and  relative  figures  the  average  number 
of  employees,  the  average  wages  per  hour,  and  the  average  num- 
ber of  hours  worked  per  week  from  1890  to  1903,  for  each 
of  13  leading  occupations.  It  must  be  remembered  that  the 
figures  are  for  identical  establishments,  the  number  of  which  is 
given  at  the  head  of  each  table. 

To  make  the  study  of  the  table  easier  the  Bureau  of  Labor 
computed  a  relative  number  to  accompany  each  actual  number. 
While  all  comparisons  might  have  been  made  with  1890  or  any 
other  year,  it  was  thought  best  to  take  as  a  basis  for  comparison, 
or  100.0,  not  any  one  year,  but  the  average  during  the  ten  years 
from  1890  to  1899,  owing  to  the  fact  that  the  conditions  in  any 
one  year  might  be  abnormal.  On  the  first  line,  therefore,  of  the 
table  given  below  (for  blacksmiths)  appears  the  number  576, 
which  was  the  average  number  employed  during  the  ten  years 
from  1890  to  1899  in  the  166  identical  establishments.  In  the 
second  column  is  the  relative  number  100.0,  indicating  that  the 
number  576  is  taken  as  the  basis,  or  100.0.  In  the  second  line, 
showing  the  number  of  employees  in  1890,  is  given  the  relative 
number  99.5,  indicating  that  in  1890  the  number  of  employees  in 
the  166  establishments  was  99.5  per  cent  of  the  average  number 
employed  during  the  ten-year  period  from  1890  to  1899.  The 
other  relative  figures  may  be  used  in  a  similar  manner. 

Blacksmiths  in  166  identical  establishments. 
[Averag-e   1890-1899-100.0.] 


Employees. 

Wages  per  hour. 

Hours  per 
week. 

Year. 

Actual 
No. 

Rela- 
tive 
No. 

Actual. 

Rela- 
tive. 

Actual 
No. 

Rela- 
tive 
No. 

Av.  1890-99 

576 
573 
579 
583 
586 
510 
541 
548 
541 
635 
665 
695 
753 
802 
818 

100.0 
99.5 
100.5 
101.2 
101.7 
88.5 
93.9 
95.1 
93.9 
110.2 
115.5 
120.7 
130.7 
139.2 
142.0 

$0.2639 
.2677 
.2681 
.2672 
.2677 
.2611 
.2602 
.2643 
.2604 
.2587 
.2637 
.2685 
.2757 
.2844 
.2962 

100.0 
101.4 
101.6 
101.3 
101.4 
98.9 
98.6 
100.2 
98.7 
98.0 
99.9 
101.7 
104.5 
107.8 
112.2 

59.09 
59.41 
59.20 
59.37 
59.03 
58.68 
59.18 
58.93 
58.96 
59.20 
58.98 
58.87 
57.78 
57.17 
56.65 

100.0 

1890 

100.5 

1891 

100.2 

1892 

100.5 

1893 

99.9 

1894 

99.3 

1895 

100.2 

1896 

99.7 

1897 

99.8 

1898 

100.2 

1899 

99.8 

1900 

99.6 

1901 

97.8 

1902 

96.8 

1903 

95.9 

a  The  bi-monthly  bulletins  of  the 
lished  for  free  distribution  and  can  be 
the  bureau. 


Bureau   of  Labor  are   pub- 
obtained  on  application  to 


LABOR,    WAGES,    AND   PRICES. 


201 


Boilermakers  in  97  identical  establishments. 
[Average   1890-1899-100.0.] 


Employees. 

Wages  per  hour. 

Hours  per 
week. 

Year. 

Actual 
No. 

Rela- 
tive 
No. 

Actual 

Rela- 
tive. 

Actual 
No. 

Rela- 
tive 
No. 

Av.  1890-99 

1263 
1336 
1291 
1327 
1280 
1105 
1136 
1236 
1197 
1354 
1369 
1477 
'     1585 
1624 
1700 

100.0 
105.8 
102.2 
105.1 
101.3 
87.5 
89.9 
97.9 
94.8 
107.2 
108.4 
116.9 
125.5 
'  128.6 
134.6 

$0.2609 
.2594 
.2577 
.2585 
.2583 
.2614 
.2629 
.2626 
.2607 
.2617 
.2654 
.2773 
.2794 
.2800 
.2848 

100.0 
99.4 
98.8 
99.1 
99.0 
100.2 
100.8 
100.7 
99.9 
100.3 
101.7 
106.3 
107.1 
107.3 
109.2 

58.55 
59.25 
59.23 
58.88 
58.39 
58.83 
58.47 
58.02 
58.11 
58.30 
58.06 
57.36 
56.82 
56.33 
56.24 

100.0 

1890 

1891 

1892 

101.2 
101.2 
100.6 

1893 

99.7 

1894 

1895 

100.5 
99.9 

1896 

1897 

1898 

1899          

99.1 
99.2 
99.6 
99.2 

1900 

1901 

1902 

1903 

98.0 
97.0 
96.2 
96.1 

Bricklayers  in  212  identical  establishments. 

[Average   1890-1899-100.0.] 


Av.  1890-99 
1890 
1891 
1892, 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900, 
•  1901 
1902 


4355 

100.0 

4422 

101.5 

4892 

112.3 

4967 

114.1 

4535 

104.1 

4055 

93.1 

3841 

88.2 

3998 

91.8 

4010 

92.1 

4150 

95.3 

4675 

107.3 

4576 

105.1 

5142 

118.1 

4781 

109.8 

5064 

116.3 

$0.4387 

$100.0 

51.57 

.4316 

98.4 

53.22 

.4365 

99.5 

52.80 

.4431 

101.0 

52.19 

.4436 

101.1 

51.63 

.4325 

98.6 

51.96 

.4367 

99.5 

51.56 

.4337 

98.9 

51.50 

.4361 

99.4 

51.11 

.4331 

98.7 

50.47 

.4597 

104.8 

49.24 

.4672 

106.5 

49.32 

.4912 

112.0 

48.62 

.5313 

121.1 

48.27 

.5471 

124.7 

47.83 

Carpenters  in  221  identical  establishments. 
[Average   1890-1899-100.0.] 


Av.  1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 


5655 

100.0 

5923 

104.7 

6231 

1102 

6461 

114.3 

5528 

97.8 

5049 

89.3 

5021 

88.8 

5413 

95.7 

5403 

95.5 

5402 

95.5 

6120 

108.2 

6336 

112.0 

6660 

117.8 

6906 

122.1 

6580 

116.4 

$0. 


2751 
2713 
2730 
2825 
2744 


.2740 
.2748 
.2790 


.3190 
.3403 
.3594 


100.0 
98.6 
99.2 

102.7 
99.7 
97.9 
97.9 


101.4 
103.2 
110.8 
116.0 
123.7 
130.6 


54.85 
55.94 
55.56 
55.12 
55.22 
55.27 
55.05 
54.67 
54.20 
54.02 
53.42 
51.86 
50.74 
49.70 
49.41 


Compositors  in  91  identical  establishments. 

[Average   1890-1899-100.0.] 


Av.  1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 


1148 

100.0 

$0.3939 

100.0 

52.53 

1508 

131.4 

.3980 

101.0 

53.15 

1530 

133.3 

.3997 

101.5 

52.62 

1494 

130.1 

.4013 

101.9 

52.58 

1327 

115.6 

.3933 

99.8 

53.13 

1055 

91.9 

.3796 

96.4 

52.75 

915 

79.7 

.3827 

97.2 

52.73 

883 

76.9 

.3897 

98.9 

52.58 

928 

80.8 

.3925 

99.6 

52.47 

898 

78.2 

.3934 

99.9 

52.06 

944 

82.2 

.4086 

103.7 

51.26 

969 

84.4 

.4071 

103.4 

51.09 

959 

83.5 

.4252 

107.9 

50.37 

954 

83.1 

.4352 

110.5 

49.96 

1009 

87.9 

.4467 

113.4 

49.81 

a  The  decrease  in  the  number  of  compositors  employed  is  due 
largely  to  the  creation  of  the  new  occupation  "Linotype  Operators" 
upon  the  introduction  of  the  linotype. 


202 


LABOR,    WAGES,    AND   PRICES. 


Hodcarriers  in  250  identical  establishments. 
[Averagre  1890-1899-100.0.] 


Year. 


Av.  1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 


Employees. 

Wages  per  hour. 

Hours  per 
week. 

Actual 
No. 

Rela- 
tive 
No. 

Actual. 

Rela- 
tive. 

Actual 
No. 

Rela- 
tive 
No. 

4242 

100.0 

$0.2329 

100.0 

51.60 

100.0 

4.W7 

102.0 

.2259 

97.0 

52.78 

102.3 

46*4 

109.5 

.2248 

96.5 

52.54 

101.8 

4894 

115.4 

.2314 

99.4 

51.81 

100.4 

4455 

105.0 

.2325 

99.8 

51.64 

100.1 

3698 

87.2 

J303 

98.9 

52.03 

100.8 

3844 

90.6 

.2320 

99.6 

51.53 

99.9 

3959 

93.3 

.2335 

100.3 

51.45 

99.7 

3996 

94.2 

.2322 

99.7 

51.42 

99.7 

3920 

92.4 

.2343 

100.6 

51.01 

98.9 

4685 

110.4 

.2518 

108.1 

49.79 

96.5 

4417 

104.1 

.2498 

107.3 

49.79 

96.5 

5097 

120.2 

.2546 

109.3 

49.35 

95.6 

5062 

119.3 

.2676 

114.9 

48.56 

94.1 

5242 

123.6 

.2863 

122.9 

47.98 

93.0 

Ironmoldcrs  in  183  identical  establishments. 

[Average   1890-1899-100.0.] 


Av.  1890-99 


1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 


2974 

100.0 

$0.2526 

100.0 

59.31 

2962 

99.6 

.2540 

100.6 

59.51 

2952 

99.3 

.2565 

101.5 

59.60 

3032 

102.0 

.2548 

100.9 

59.49 

3181 

107.0 

.2557 

101.2 

59.18 

2519 

84.7 

.2472 

97.9 

59.10 

2781 

93.5 

.2476 

98.0 

59.29 

2909 

97.8 

.2507 

99.2 

59.24 

2732 

91.9 

.2525 

100.0 

59.17 

3234 

108.7 

.2503 

99.1 

59.34 

3439 

115.6 

.2568 

101.7 

59.14 

3790 

127.4 

.2694 

106.7 

59.07 

3793 

127.5 

.2739 

108.4 

58.47 

3968 

133.4 

.2894 

114.6 

57.65 

42x8 

141.8 

.3036 

120.2 

56.80 

Laborers  in  1^6  identical  establishments. 

[Average  1890-1899-100.0.] 


Av.  1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 


4460 

100.0 

$0.1467 

100.0 

58.84 

5118 

114.8 

.1507 

102.7 

59.02 

4861 

109.0 

.1511 

103.0 

59.02 

4812 

107.9 

.1519 

103.5 

59.02 

4516 

101.3 

.1493 

101.8 

58.80 

4128 

92.6 

.1419 

96.7 

58.76 

3796 

85.1 

.1440 

98.2 

58.88 

4018 

90.1 

.1415 

96.5 

58.92 

4000 

89.7 

.1445 

98.5 

58.80 

4524 

101.4 

.1466 

99.9 

58.44 

4822 

108.1 

.1457 

99.3 

58.71 

5275 

118.3 

.1461 

99.6 

58.27 

4648 

104.2 

.1585 

108.0 

57.98 

5317 

119.2 

.1644 

112.1 

56.66 

5082 

113.9 

.1676 

114.2 

56.13 

Machinists  in  218  identical  establishments. 
[Average   1890-1899-100.0.] 


Av.  1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 


5414 

100.0 

$0.2404 

100.0 

59.12 

5302 

97.9 

.2413 

100.4 

59.52 

5414 

100.0 

.2435 

101.3 

59.47 

5409 

99.9 

.2459 

102.3 

59.24 

5677 

104.9 

.2450 

101.9 

59.03 

4339 

80.1 

.2347 

97.6 

59.07 

4917 

90.8 

.2347 

97.6 

59.08 

5176 

95.6 

.2397 

99.7 

59.01 

5059 

93.4 

.2397 

99.7 

58.96 

6058 

111.9 

.2377 

98.9 

59.11 

6793 

125.5 

.2417 

100.5 

58.72 

7088 

130.9 

.2485 

103.4 

58.56 

7646 

141.2 

.2555 

106.3 

57.37 

8221 

151.8 

.2646 

110.1 

56.56 

8576 

158.4 

.2709 

112.7 

56.12 

LABOR,    WAGES,    AND    PRICES. 


203 


Painters  in  203  identical  establishments. 
[Average   1890-1899-100.0.] 


Employees. 

Wages  per  hour. 

Hours  per 
week. 

Year. 

Actual 
No. 

Rela- 
tive 
No. 

Actual 

Rela- 
tive. 

Actual 
No. 

Rela- 
tive 
No. 

Av.  1890-99 

3676 
3541 
3708 
3877 
3666 
3450 
3460 
3648 
3737 
3723 
3953 
4089 
■4284 
4254 
4021 

100.0 
96.3 
100.9 
105.5 
99.7 
93.9 
94.1 
99.2 
101.7 
101.3 
107.5 
111.2 
116.5 
115.7 
109.4 

$0.2763 
.2680 
.2712 
.2747 
.2795 
.2737 
.2720 
.2742 
.2778 
.2827* 
.2892 
.3054 
.3170 
.3303 
.3450 

100.0 

97.0 

98.2 

99.4 

101.2 

•99.1 

98.4 

99.2 

100.5 

102.3 

104.7 

110.5 

114.7 

119.5 

124.9 

53.82 
55.23 
54.86 
54.43 
53.86 
54.01 
53.87 
53.61 
53.28 
52.79 
52.27 
50.91 
49.85 
49.27 
48.89 

100.0 

1890 

102.6 

1891     

101.9 

1892     

101.1 

1893               

100.1 

1894 

1895 

100.4 
100.1 

1896 

99.6 

1897 

99.0 

1898 

98.1 

1899 

97.1 

1900 

94.6 

1901 

92.6 

1902 

91.5 

1903 

90.8 

Plumbers  in  221  identical  establishments. 
[Average   1890-1899-100.0.] 


Av.  1890-99 


1898. 
1899. 
1900. 
1901. 
1902. 
1903. 


1380 
1368 
1384 
1427 
1377 
1303 
1301 
1365 
1367 
1443 
1466 
1523 
1633 
1627 
1595 


100.0 

$0.3550 

100.0 

53.23 

99.1 

.3464 

97.6 

54.33 

100.3 

.3488 

98.3 

54.09 

103.4 

.3511 

98.9 

53.86 

99.8 

.3552 

100.1 

53.36 

94.4 

.3515 

99.0 

53.28 

94.3 

.3546 

99.9 

53.08 

98.9 

.3505 

98.7 

52.86 

99.1 

.3598 

101.4 

52.67 

104.6 

.3638 

102.5 

52.53 

106.2 

.3684 

103.8 

52.28 

110.4 

.3811 

107.4 

51.40 

118.3 

.3935 

110.8 

50.77 

117.9 

.4122 

116.1 

49.52 

115.6 

.4371 

123.1 

48.97 

Stonecutters  (granite)  in  12  identical  establishments. 
[Average   1890-1899-100.0.] 


1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 


775 

100.0 

$0.3628 

100.0 

52.71 

938 

121.0 

.3730 

102.8 

52.73 

880 

113.5 

.3803 

104.8 

52.54 

882 

113.8 

.3750 

103.4 

52.70 

778 

100.4 

.3618 

99.7 

53.12 

705 

91.0 

.3593 

99.0 

52.84 

685 

88.4 

.3611 

99.5 

52.67 

709 

91.5 

.3590 

99.0 

52.77 

678 

87.5 

.3524 

97.1 

52.99 

698 

90.1 

.3467 

95.6 

53.04 

798 

103.0 

.3594 

99.1 

51.70 

901 

116.3 

.3923 

108.1 

50.20 

852 

109.9 

.3868 

106.6 

49.96 

856 

110.5 

.3938 

108.5 

49.67 

900 

116.1 

.4225 

116.5 

48.67 

Masons  (stone)  in  115  identical  establishments. 
[Average  1890-1899-100.0.] 


kv.  1890-99 


1891. 
1892. 
1893. 
1894. 
1895 
1896 
1897 
1898 
1899 
1900 
1901 


886 

100.0 

$0.3617 

100.0 

53.83 

947 

106.9 

.3722 

102.9 

54.54 

1021 

115.2 

.3732 

103.2 

54.51 

984 

111.1 

.3673 

101.5 

54.49 

898 

101.4 

.3644 

100.7 

54.17 

799 

90.2 

.3440 

95.1 

54.34 

798 

90.1 

.3485 

96.4 

54.05 

828 

93.5 

.3547 

98.1 

53.97 

796 

89.8 

.3628 

100.3 

53.05 

932 

105.2 

.3581 

99.0 

52.43 

860 

97.1 

.3719 

102.8 

52.73 

935 

105.5 

.3788 

104.7 

51.89 

927 

104.6 

.4007 

110.8 

51.23 

954 

107.7 

.4304 

119.0 

50.19 

1073 

121.1 

.4486 

124.0 

49.54 

204 


LABOR,     WAGES,    AND    PRICES. 


The  following  tables  show  the  percentage  of  increase  or  de 
crease  in  the  number  of  employees,  average  wages  per  hour  ant 
average  hours  worked  per  week  in  the  13  leading  occupations 
iu  1903,  compared  with  each  preceding  year  from  1890  to  1892. 

[The  figures  in  this  table  give  under  each  year  the  per  cent 
of  increase  or  decrease  in  wages  per  hour  (indicated  by  +  and 
— )  which  the  1903  figures  show  as  compared  with  the  year  speci- 
fied. For  example,  under  the  year  1898  opposite  blacksmiths  ap- 
pears +  14.5;  this  shows  that  the  wages  of  blacksmiths  were 
14.5  per  cent  higher  in  1903  than  in  1898.  Under  the  year  1895 
opposite  carpenters  appears  +  33.5;  this  shows  that  the  wages  of 
carpenters  were  33.5  per  cent  higher  in  1903  than  in  1895  etc 
etc.]  '       '' 


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[The  figures  in  this  table  give  under  each  year  the  per  cent  of 
increase  or  decrease  in  number  of  employees  (indicated  by  +  and 
— )  which  the  1903  figures  show  as  compared  with  the  year 
specified.  For  example,  under  the  year  1894  opposite  blacksmiths 
appears  +60.4;  this  shows  that  the  number  of  blacksmiths  em- 
ployed in  the  16G  establishments  covered  by  the  figures  was 
60.4  per  cent  greater  in  1903  than  in  1894.  Under  the  year  1894 
opposite  machinists  appears  +  97.6;  this  shows  that  the  number 
of  machinists  employed  was  97.6  per  cent  greater  in  1903  than 
iu  18134,  etc.,  etc.] 


LABOR,    WAGES,    AND    PRICES. 


205 


[The  figures  in  this  table  give  under  each  year  the  per  cent  of 
increase  or  decrease  in  the  average  hours  of  labor  per  week 
(indicated  by  +  and  — )  which  the  1903  figures  show  as  compared 
with  the  year  specified.  For  example,  under  the  year  1890  oppo- 
site blacksmiths  appear  —  4.6;  this  shows  that  the  weekly 
hours  of  work  in  1903  were  4.6  per  cent  less  than  in  1890.  Op- 
posite carpenters  under  the  year  1890  is  seen  —  11.7,  showing 
that  the  weekly  hours  of  carpenters  decreased  11.7  per  cent  be- 
tween 1890  and  1903,  etc.,  etc.] 


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These  figures  show  that  during  the  administrations  of  Presi- 
dents McKinley  and  Roosevelt  there  were  more  persons  em 
ployed  in  industrial  establishments,  and  higher  wages  were  paid 
|to  employees  than  during  the  period  of  Democratic  rule. 

Taking  up  each  occupation  separately  for  discussion,  we  find 
jthat  there  were  49.3  per  cent,  more  blacksmiths  employed  in  the 
teame  166  establishments  in  1903  than  in  1896,  and  that  the  average 
wages  per  hour  of  these  blacksmiths  were  12.1  per  cent,  higher 
in  1903  than  in  1896. 

There  were  37.5  per  cent,  more  boiler  makers  employed  in  the 
Same  97  establishments  in  1903  than  in  1896,  and  the  average 
tvages  per  hour  of  these  boiler  makers  were  8.5  per  cent,  higher. 

There  were  26.7  per  cent  more  bricklayers  employed  in  the 
same  212  establishments  in  1896  than  in  1903,  and  these  brick- 
layers received  an  average  of  26.1  per  cent  more  wages  per 
hour. 

There  were  21.6  per  cent  more  carpenters  in  the  same  227 

Fstablishments  in  1903  than  in  1896,  and  they  received  31.2  per 
ent  more  wages  per  hour. 


206  LABOR,     WAGES,    AND    PRICES. 

There  were  14.S  per  cent  more  compositors  in  the  same  91 
establishments  in  1903  than  in  1896,  and  they  received  an  average 
of  14.G  per  cent  more  wages. 

The  same  250  establishments  employed  32.4  per  cent  more  hod] 
carriers  in  1903  than  in  1890,  and  paid  them  an  average  of  22.9 
per  cent  more  wages  per  hour. 

The  same  183  establishments  employed  45  per  cent  more  iron 
molders  in  1903  than  in  1890,  and  paid  them  21.1  per  cent  more) 
wages  per  hour. 

The  same  146  establishments  employed  26.5  per  cent  more  day 
laborers  in  1903  than  in  1896,  and  gave  them  18.4  per  cent  more 
wages  per  hour. 

The  same  218  establishments  employed  65.7  per  cent  more  ma- 
chinists in  1903  than  in  1896,  and  paid  them  13  per  cent  more 
wages  per  hour. 

The  same  115  establishments  employed  29.6  per  cent  more 
stone  masons  in  1903  than  in  1896,  and  paid  them  26.5  per  cent 
more  wages  per  hour. 

The  same  203  establishments  employed  10.2  per  cent  more 
painters  in  1903  than  in  1896,  and  gave  them  25.8  per  cent  more 
wages  per  hour. 

The  same  221  establishments  employed  16.8  per  cent  more 
plumbers  in  1903  than  in  1896,  and  paid  them  24.7  per  cent  more 
wages  per  hour. 

The  same  72  establishments  employed  26.9  per  cent  more 
stone  cutters  in  1903  than  in  1896,  and  gave  them  17.7  per  cen 
more  wages  per  hour. 

If  these  figures  are  representative  of  labor  conditions  generally 

for  the  occupations  given,  and  there  is  no  reason  why  they  should 

not  be,  they  show  the  following  interesting  facts: 

Employment. 

For  every  100  blacksmiths  employed  in  1896  there  were  149 
blacksmiths  employed  in  1903;  for  every  100  boiler  makers  em 
ployed  in  1896  there  were  137  employed  in  1903 ;  for  every  10(1 
bricklayers  employed  in  1896  there  were  127  employed  in  1903  a 
for  every  100  carpenters  employed  in  1896  there  were  122  emA 
ployed  in  1903 ;  for  every  100  compositors  employed  in  1896  there 
were  114  employed  in  1903;  for  every  100  hod  carriers  employed 
in  1896  there  were  132  employed  in  1893;  for  every  100  iron 
molders  employed  in  1896  there  were  145  employed  in  1903 ;  for 
every  100  day  laborers  employed  in  1896  there  were  126  employed 
in  1903;  for  every  100  machinists  employed  in  1896  there  were 
166  employed  in  1903 ;  for  every  100  stone  masons  employed  in 
1896  there  were  130  employed  in  1903 ;  for  every  100  house  painters 
employed  in  1896  there  were  110  employed  in  1903 ;  for  every  100 
plumbers  employed  in  1896  there  were  117  employed  in  1903 ;  for 
every  100  stone  cutters  employed  in  1896  there  were  127  em-| 
ployed  in  1903. 

Wages. 

For  every  dollar  paid  to  a  blacksmith  in  1896,  $1.12  werej 
paid  in  1903  for  the  same  amount  of  labor;  for  every  dollar  paid 
to  a  boiler  maker  in  1896,  $1.08%  were  paid  in  1903;  for  every 
dollar  paid  to  a  bricklayer  in  1896,  $1.26  were  paid  in  1903; 
for  every  dollar  paid  to  a  carpenter  in  1896,  $1.31  were  paid 
in  1903;  for  every  dollar  paid  to  a  compositor  in  1896,  $1.14% 
were  paid  in  1903;  for  every  dollar  paid  to  a  hod-carrier  in  1896, 
$1.22%  were  paid  in  1903;  for  every  dollar  paid  to  an  iron 
molder  in  1896,  $1.21  were  paid  in  1903;  for  every  dollar  paid 
to  a  laborer  in  1896,  $1.18%  were  paid  in  1903;  for  every 
dollar  paid  to  a  machinist  in  1896,  $1.13  were  paid  in  1903; 
for  every  dollar  paid  to  a  stone  mason  in  1896,  $1.26%  were  paid 
in  1903;  for  every  dollar  paid  to  a  painter  in  1896,  $1.26 
were  paid  in  1903;  for  every  dollar  paid  to  a  plumber  in  1896, 
$1.24%  were  paid  in  1903;  for  every  dollar  paid  to  a  stone  cutter 
in  1896,  $1.17%  were  paid  in  1903. 

The  13  occupations  for  which  figures  have  been  shown  in  de- 
tail are  among  the  great  representative  occupations  that  are  to 
be  found  in  every  section  of  the  country.  There  are  also  many 
occupations  that  are  very  important  in  certain  particular  sec- 
tions of  the  country.  Figures  for  519  such  occupations  are  given 
in  detail  in  the  Bulletin  of  the  Bureau  of  Labor  from  which  the 


LABOR,    WAGES,   AND   PRICES. 


figures  here  quoted  are  taken,  but  the  limited  space  in  this  book 
will  not  permit  a  reprint  of  all  occupations. 

In  the  Bulletin  named  the  figures  for  the  several  occupations 
of  each  of  the  industries  represented  are  also  combined  to  form 
a  summary  for  each  industry,  thus  giving  an  opportunity  to 
study  the  figures  for  each  industry  as  a  whole. 

The  summaries  for  a  few  important  industries  are  here 
reproduced,  namely,  bar  iron,  boots  and  shoes,  cigars/  cotton 
goods,  and  lumber.  The  explanation  given  of  the  preceding 
tables  applies,  to  these  tables  as  well. 

BAB  IBON  INDUSTBY. 


Employees. 

Hours  per  week. 

Wages  per  hour. 

Per  cent  of  in- 

Per cent  of  in- 

P^r cent  of 

crease  (+)  or 

crease  (+)  or 

increase  (+) 

Year. 

Relative 

decrease  (— ) 
in  1903  as 

Relative 
number. 

decrease  (— ) 
in  1903  as 

Relative. 

or  decrease 
(— )  in  1903  as 

number. 

compared 

compared 

compared 

with  year 

with  year 

with  year 

specified. 

specified. 

specified. 

1890  . . . 

99.4 

-  9.9 

102.7 

—4.2 

110.3 

-23.8 

1891  . . . 

98.4 

-11.0 

101.6 

—3.1 

105.0 

-30.0 

1892  . . . 

98.3 

-11.1 

101.8 

—3.3 

100.0 

-36.5 

1893  .  . . 

106.9 

-  3.1 

101.4 

—3.0 

95.7 

-42.6 

1894  . . . 

100.2 

-9.0 

101.3 

—2.9 

90.1 

—51.5 

1895  .  . . 

103.7 

-  5.3 

100.7 

—2.3 

91.6 

--49.0 

1896... 

93.9 

-16.3 

101.0 

—2.6 

99.3 

-37.5 

1897  .  . . 

97.7 

-11.8 

97.1 

+1.3 

98.0 

-39.3 

1898  . . . 

99.7 

-  9.5 

96.6 

+1.9 

96.3 

-41.7 

1899  .  . . 

101.6 

-  7.5 

95.9 

+2.6 
+1.1 

113.7 

-20.1 

1900... 

108.9 

-    .3 

97.3 

118.2 

+15 

100  7 

-  8.4 

98.4 

119.7 

- 

-14  0 

1902  .. . 

104.1 

h  4.9 

98.8 

—  .4 

132.9 

+  2.7 

1903 

109.2 

98.4 

136.5 

CIGAB  INDUSTBY. 


BOOT  AND  SHOE  INDUSTBY. 

1890 .  . . 

77.2 

j 

-68.9 

100.2 

—3.6 

97.9 

-18.1 

1891 . . . 

80.0 

- 

-63.0 

100.8 

—4.2 

96.2 

-20.2 

1892 . . . 

86.4 

- 

-50.9 

100.5 

—3.9 

98.2 

-17.7 

1893  .  . . 

97.1 

- 

-34.3 

100.1 

—3.5 

100.5 

-15.0 

1894  . . . 

99.0 

-31.7 

99.9 

—3.3 

99.5 

-16.2 

1895  .  . . 

103.2 

-26.4 

99.9 

—3.3 

100.6 

-14.9 

1896  . . . 

110.5 

-18.0 

99.8 

—3.2 

100.7 

-14.8 

1897  . . . 

111.3 

-17.2 

99.7 

—3.1 

102.5 

-12.8 

1898  . . . 

111.3 

- 

-17.2 

99.6 

—3.0 

101.8 

- 

-13.6 

1899  . . . 

118.4 

-10.1 

99,5 

—2.9 

102.3 

- 

f-13.0 
f-  9.8 

1900... 

123.2 

-  5.8 

99.0 

—2.4 

105.3 

- 

1901  .. . 

127.7 

- 

-2.1 

99.2 

—2.6 

105.2 

- 

H  9.9 
-6.3 

1902  . . . 

124.0 

- 

-  5.2 

98.0 

—1.4 

108.8 

- 

1903  . . . 

130.4 

96.6 

115.6 

1890... 

76.0 

j 

-56.3 

100.1 

-1.3 

100.3 

hl6.6 

1891  ... 

85.2 

-39.4 

99.6 

-1.8 

100.6 

-16.2 

1892... 

90.3 

-31.6 

99.2 

-2.2 

99.6 

17.4 

1893  .  . . 

100.5 

-18.2 

99.7 

-1.7 

100.0 

-16.9 

1894  . . . 

103.5 

-14.8 

99.9 

-1.5 

99.0 

-18.1 

1895  . . . 

109.9 

-  8.1 

99.8 

-1.6 

97.2 

+20.3 
+18.6 

1896  . . . 

95.2 

-24.8 

100.4 

-1.0 

98.6 

1897  . . . 

107.4 

-10.6 

100.0 

-1.4 

102.4 

-14.2 

1898  . . . 

107.7 

-10.3 

100.3 

-1.1 

101.1 

-15.6 

1899  . . . 

119.9 

—    .9 

101.0 

-  .4 

101.3 

-15.4 

1900... 

93.9 

+26.5 

99.8 

-1.6 

100.8 

-16.0 

1901  .. . 

106.1 

+11.9 

100.6 

-  .8 

112.5 

-  3.9 

1902... 

116.0 

+  2.4 

100.9 

-  .5 

110.0 

- 

-6.3 

1903    .. 

118.8 

101.4 

116.9 

COTTON  GOODS  INDUSTBY. 

1890  . . . 

87.8 

-22.1 

99.9 

—0.9 

102.8 

[-19.7 

1891  . . . 

98.3 

-9.1 

100.7 

—1.7 

98.9 

-24.5 

1892  .  . . 

95.8 

-11.9 

101.2 

—2.2 

100.2 

-22.9 

1893  . . . 

98.2 

-  9.2 

99.9 

—  .9 

103.5- 

-18.9 

1894  . . . 

96.1 

-11.6 

98.6 

+  .4 

96.8 

-27.2 

4895  . . . 

94.8 

-13.1 

100.0 

—1.0 

96.9 

-27.0 

1896  . . . 

98.8 

-  8.5 

99.5 

—  .5 

104.8 

-17.5 

1897  . . . 

104.6 

-  2.5 

99.4 

—  .4 

101.1 

L-21. 8 

1898  . . . 

112.5 

—  4.7 

100.3 

—1.3 

99.9 

-23.2 

1899  . . . 

112.1 

—  4.4 

100.4 

—1.4 

97.7 

-26.0 

1900... 

115.5 

—  7.2 

100.2 

—1.2 

109.1 

-12.8 

1901  ... 

109.0 

—  1.7 

100.0 

—1.0 

110.3 

-11.6 

1902... 

117.2 

—  8.5 

99.2 

—  .2 

116.2 

-  5.9 

1903  . . . 

107J3 

99.0 

123.1 

-ZUK 


LABOR,    WAGES,   AND  PRICES. 


1ATMHKU    INDUSTRY. 


Employees. 

Hours  per  w<<  k. 

Wajres  per  hour. 

Per  cent  of  in- 

Per cent  of  in- 

Per cent  of 

Year. 

crease  (+)  or 

crease  (+)  or 

increase  (+ ) 

Relative 

decrease  (— ) 

Relative 
number. 

decrease  (— ) 

or  decrease 

Dumber. 

to,  1903  as 

in  1903  as 

Relative. 

(— )  in  1 903  as 

compared 

compared 

compared 

witii  year 

with  year 

with  year 

speciiieil. 

speciiied. 

specified. 

1890.... 

94.2 

f-32.6 

100.4 

—2.1 

102.8 

-10.2 

1891.... 

95.7 

r30.5 

100.2 

—1.9 

102.4 

-10.6 

1892.... 

96.1 

-30.0 

100.2 

—1.9 

102.1 

-11.0 

1893.... 

95.6 

-30.6 

99.7 

—1.4 

101.7 

-11.4 

1894.... 

95.3 

-31.1 

99.7 

—1.4 

97.8 

-15.8 

1895.... 

96.3 

-29.7 

100.1 

—1.8 

97.2 

-16.6 

1896.... 

•     99,1 

-26.0 

100.1 

—1.8 

97.0 

-16.8 

1897.... 

105.0 

-19.0 

99.9 

—1.6 

97.4 

-16.3 

1898.... 

107.6 

-16.1 

99.8 

—1.5 

99.4 

-14.0 

1899.... 

111.3 

-12.2 

99.8 

-1.5 

102.2 

-10.9 

1900.... 

115.5 

-  8.1 

99.5 

—1.2 

104.4 

-8.5 

1901.... 

118.7 

-  5.2 

99.1 

—  .8 

106.5 

-6.4 

1902.... 

123.6 

-  1.1 

98.4 

109.5 

h  3.5 

1903.... 

124.9 

98.3 

113.3 

Taken  all  in  all  the  preceding  figures  show  that,  as  far  as 
wages  and  employment  are  concerned,  this  country  has  never 
seen  such  an  era  of  prosperity  as  that  which  was  inaugurated 
when  industry  was  enabled  to  adjust  itself  to  the  stable  con- 
servative protective  policy  of  the  present  administration.  Never 
in  modern  times  has  employment  been  as  secure  and  general,  and 
never  in  the  history  of  the  country  have  wages  been  as  high  as 
during  the  past  few  years. 


WAGES    AND    COST   OF    LIVING. 

Comparison  of  Day  Wages  with  Retail  Prices  In  1896  and  1903 — A 

Day's  Wages  Will  Buy  More  of  the  Requirements  of  Dally 

Life  Now  Than  in  1896 — Labor  Bureau  Figures. 

The  claim  is  often  made  that  while  wages  have  advanced  they 
have  not  kept  pace  with  the  increased  cost  of  living.  The  ab- 
solute falsity  of  this  assertion  is  readily  shown  by  a  study  of 
retail  prices  of  articles  of  daily  requirement,  as  published  in  the 
United  States  Bureau  of  Labor  Bulletin  No.  53,  in  connection  with 
the  wages  paid  in  leading  occupations.  This  bulletin  was  issued 
in  July,  1904,  and  thus  contains  the  very  latest  available  data  on 
the  subject.  It  is  there  stated  that  this  is  the  first  extended  in- 
vestigation covering  a  long  series  of  years  that  has  been  made 
into  retail  prices  in  this  country.  All  previous  collections  of 
price  data  covering  a  period  of  years  have  dealt  solely  with 
wholesale  prices  which,  of  course,  do  not  represent  accurately  or 
even  approximately  the  cost  to  the  small  consumer.  The  figures 
collected  by  the  Bureau  of  Labor  were  secured  by  its  agents  di- 
rectly from  the  books  of  account  of  over  800  retail  merchants 
whose  patrons  largely  belong  to  the  class  of  small  consum- 
ers. Covering  actual  sales  in  all  parts  of  •  the  country  the 
figures  may,  therefore,  be  considered  thoroughly  representative 
as  well  as  trustworthy.  A  comparative  study  of  these  figures 
and  those  for  wages  just  given  shows  that  the  increased 
wages  of  bricklayers,  carpenters,  hod  carriers,  iron  molders, 
laborers,  stone  masons,  house  painters,  plumbers,  stone  cutters, 
etc.,  have  not  only  kept  pace  with  food  prices,  but  that  they 
have  risen  much  more,  and  that  a  day's  wages  of  workingmen  in 
these  occupations  can  purchase  much  more  food  in  1003  than  in 
1896.  Even  if  it  were  not  so,  and  if  wages  and  prices  had  in- 
creased in  the  same  proportion  it  must  not  be  forgotten  that  with 
such  higher  wages  and  prices  the  difference  between  the  income 
and  expenditures  is  greater  in  actual  dollars  and  cents. 
For  instance,  if  a  workingman  earned  $700  per  year 
in  1896  and  expended  $600  he  would  save  $100.  If  in 
1903  both  the  wages  and  prices  had  increased  15  per  cent.,  his 
wages  would  then  be  $805,  and  his  expenditures  $690,  and  his 
sayings,  in  consequence,   would  be  $115.    As  a  matter  of  fact, 


LABOR,    WAGES,    AND    PRICES. 


209 


however,  wage  rates  in  the  leading  occupations  have  increased 
more  than  prices,  and  not  only  have  the  wage  rates  increased,  but 
those  employed  have  had  much  more  constant  employment  in 
1903  than  in  1896. 

In  the  Bureau  of  Labor  report  the  average  price  of  each  com- 
modity as  a  whole  could  not  be  stated  in  dollars  and  cents 
because  the  articles  for  which  retail  prices  were  shown  vary  more 
or  less  as  to  kind  and  quality  in  different  localities.  The  aver- 
ages have,  therefore,  been  computed  on  a  percentage  repre- 
sented as  100,  or  the  base,  and  the  prices  from  year  to  year  being 
indicated  by  relative  figures. 

These  relative  figures  consist  of  a  series  of  percentages  show- 
ing the  per  cent  the  price  in  each  year  was  of  the  average  price 
for  the  ten-year  period  from  1890  to  1899.  This  average  price 
for  the  ten-year  period  was  selected  as  the  base  because  it  repre- 
sented the  average  conditions  more  nearly  than  the  price  in 
any  one  year  which  might  be  selected  as  a  base  for  all  articles. 
The  following  table  shows  the  relative  price  of  the  30  principal 
articles  of  food  considered  in  the  Bureau  of  Labor  Bulletin.  In 
order  to  miake  clear  the  manner  of  using  the  relative  figures  we 
take,  for  example,  the  column  showing  the  figures  for  "Beef, 
fresh  roasts  and  stews";  it  is  seen  that  the  price  in  1890  was 
99.5  per  cent  of  the  average  price  for  the  period  from  1890  to 
1899.  In  1891  the  price  was  exactly  the  average  price  for  the 
ten-year  period— that  is,  100.0.  The  lowest  point  reached  was 
in  1894,  when  the  price  was  98.3  per  cent  of  the  average  price 
for  the  ten-year  period.  The  highest  point  reached  was  in 
1902,  when  it  stood  at  118.6,  or  18.6  per  cent  higher  than  the 
average  price  for  the  base  period,  1890  to  1899.  In  1903  a  consid- 
erable decline  from  the  price  in  1902  is  seen,  the  relative  price 
being  113.1,  or  13.1  per  cent  higher  than  the  price  for  the  base 
period.     The  table  follows: 

Relative  retail  prices  of  the  principal  articles  of  food,  1890  to  1903. 
[Average   1890-1899-100.0.] 


Year. 

Ap- 
ples, 
evapo- 
rated. 

Beans, 
dry. 

Beef, 
fresh, 
roasts 

and 
stews. 

Beef, 
fresh, 
steaks. 

Beef, 

salt. 

Bread, 
wheat. 

But- 
ter. 

Cheese. 

Chick- 
ens. 

Cof- 
fee. 

1890. . . . 

109.0 

103.3 

99.5 

98.8 

97.5 

100.3 

99.2 

98.8 

101.3 

105.4 

1891.... 

110.3 

106.2" 

100.0 

99.4 

98.3 

100.3 

106.4 

100.3 

104.0 

105.2 

1892.... 

99.3 

102.4 

99.6 

99.3 

99.5 

100.3 

106.8 

101.5 

103.8 

103.8 

1893.... 

107.0 

105.0 

99.0 

99.6 

100.3 

100.1 

109.9 

101.8 

104.2 

104.8 

1894. . . . 

105.8 

102.8 

98.3 

98.2 

98.9 

99.9 

101.7 

101.6 

98.6 

103.3 

1895.... 

97.4 

100.5 

98.6 

99.1 

99.6 

99.7 

97.0 

99.2 

98.4 

101.7 

1896.... 

88.6 

92.7 

99.1 

99.5 

99.8 

99.9 

92.7 

97.9 

97.1 

99.6 

1897.... 

87.8 

91.5 

100.3 

100.2 

100.9 

100.0 

93.1 

99.0 

94.0 

94.6 

1898.... 

95.4 

95.9 

101.7 

102.0 

102.1 

99.8 

95.1 

97.5 

96.8 

91.1 

1899. . . . 

99.5 

99.7 

103.7 

103.9 

103.2 

99.6 

97.7 

102.4 

101.8 

90.5 

1900.... 

95.2 

110.0 

106.5 

106.4 

103.7 

99.7 

101.4 

103.9 

100.8 

91.1 

1901.... 

96.8 

113.9 

110.7 

111.0 

106.1 

99.4 

103.2 

103.3 

103.0 

90.7 

1902. . . . 

104.4 

116.8 

118.6 

118.5 

116.0 

99.4 

111.5 

107.3 

113.2 

89.6 

1903. . . . 

100.8 

118.1 

113.1 

112.9 

108.8 

100.2 

110.8 

109.4 

118.5 

89.3 

Year. 

Corn 

meal. 

Eggs. 
100.6 

Fish. 
fresh. 

Fish, 

salt. 

Flour 

wheat. 

Lard. 

Milk, 
fresh. 

Mo- 
lasses. 

Mutton 

and 

lamb. 

Pork, 

fresh. 

1890.... 

100.0 

99.3 

100.7 

109.7 

98.2 

100.5 

104.7 

100.7 

97.0 

1891.... 

109.7 

106.9 

99.6 

101.7 

112.5 

99.8 

100.5 

101.7 

100.6 

98.7 

1892.... 

105.2 

106.8 

100.1 

102.2 

105.1 

103.6 

100.6 

101.2 

101.0 

100.5 

1893. . . . 

103.1 

108.1 

100.1 

103.4 

96.1 

117.9 

100.4 

100.6 

99.9 

107.0 

1894.... 

102.2 

96.3 

100.4 

101.5 

88.7 

106.9 

100.2 

100.3 

97.8 

101.8 

1895.... 

100.8 

99.3 

99.8 

98.9 

89.0 

100.1 

100.0 

99.0 

98.7 

99.7 

1896.... 

95.0 

92.8 

100.2 

97.5 

92.7 

92.5 

99.9 

98.7 

98.7 

97.4 

1897.... 

93.7 

91.4. 

99.8 

95.2 

104.3 

89.8 

99.7 

97.7 

99.6 

97.6 

1898.... 

95.0 

96.2 

100.5 

98.8 

107.4 

93.9 

99.4 

97.9 

100.4 

98.6 

1899.... 

95.1 

101.1 

100.2 

100.2 

94.6 

97.1 

98.9 

98.2 

102.6 

101.7 

1900.... 

97.4 

99.9 

100.4 

99.1 

94.3 

104.4 

99.9 

102.2 

105.6 

107.7 

1901.... 

107.1 

105.7 

101.4 

100.9 

94.4 

118.1 

101.1 

101.3 

109.0 

117.9 

1902.... 

118.8 

J  19.1 

105.0 

102.8 

94.9 

134.3 

103.3 

102.1 

114.7 

128.3 

1903.... 

120.7 

125.3 

107.3 

108.4 

101.2 

126.7 

105.8 

103.8 

112.6 

127.0 

210 


LABOR,    WAGES,    AND    PRICES. 


Pork. 

Pork. 

salt. 

Pork. 

Pota- 

Vin- 
egar. 

Year. 

salt 

dry  or 

salt 

toes, 

Prunes 

Rice. 

Sugar. 

Tea. 

Veal. 

bacon. 

pick- 

ham. 

Irish. 

eted. 

1890.... 

95.8 

95.3 

98.7 

109.3 

116.8 

101.3 

118.6 

100.0 

98.8 

102.9 

1891.... 

96.6 

98.9 

99.3 

116.6 

11«.5 

102.5 

102.7 

100.4 

99.6 

105.5 

1892. . . . 

99.1 

100.5 

101.9 

95.7 

1M.5 

101.3 

96.2 

100.2 

100.0 

102.7 

1893.... 

'109.0 

108.7 

109.3 

112.3 

115.6 

98.4 

101.5 

100.1 

100.0 

99.5 

1894.... 

103.6 

103.4 

101.9 

102.6 

100.9 

99.0 

93.8 

98.7 

98.7 

99.8 

1895.... 

99.4 

99.2 

98.8 

91.8 

94.2 

98.8 

91.8 

98.5 

98.5 

98.9 

1896.... 

96.7 

95.5 

97.6 

77.0 

86.8 

96.7 

96.6 

98.8 

99.5 

97.2 

1897.... 

97.4 

97.3 

98.2 

93.0 

84.3 

97.9 

95.7 

98.5 

99.9 

97.4 

1898.... 

100.2 

99.1 

95.1 

105.4 

86.3 

101.7 

101.3 

100.7 

101.2 

97.9 

1899.... 

102.9 

101.8 

99.2 

96.1 

85.1 

102.4 

101.7 

104.4 

103.7 

98.3 

1900.... 

109.7 

107.7 

105.3 

93.5 

83.0 

102.4 

104.9 

105.5 

104.9 

98.5 

1901.... 

121.0 

117.5 

110.2 

116.8 

82.6 

103.5 

103.0 

106.7 

108.8 

98.9 

1602.... 

135.6 

132.5 

119.4 

117.0 

83.4 

103.5 

96.0 

107.2 

115.2 

99.5 

1903.... 

139.8 

129.0 

121.3 

114.8 

80.2 

103.9 

96.1 

106.0 

114.9 

99.1 

The  following  table  shows  the  relative  prices  of  food,  consid- 
ered as  a  whole,  for  each  year.  The  prices  are  "weighted"  ac- 
cording to  the  importance  of  each  article  in  family  consumption, 
the  degree  of  importance  having  been  determined  by  a  special 
inquiry  covering  over  2,500  families.  In  the  computation  of  a 
"simple  average"  for  all  food  the  same  importance  is  given  to 
each  article,  flour,  for  example,  being  given  the  same  weight 
as  cheese.  To  overcome  the  unfairness  of  such  an  average,  the 
exact  quantity  of  each  commodity  of  food  used  was  ascertained 
and  each  commodity  was  then  given  its  proper  importance  as 
an  article  of  consumption-  The  result  is  the  "weighted"  average 
given.  It  should  be  stated  in  this  connection,  however,  that  the 
weighted  average  as  shown  does  not  differ  materially  from  the 
simple  average.  The  last  line  of  the  table  shows  the  per  cent 
of  increase  or  decrease  (indicated  by  or  — )  in  1903  as  com- 
pared with  each  of  the  preceding  years. 

Relative  retail  prices  of  all  food  each  year  from  1890  to  1903  and 
per  cent  of  increase  or  decrease  in  1900  as  compared  with  pre- 
vious years. 

[Average   1890-1899-100.0.] 


Year. 


Relative  prices  of 
all  foods. 


Per  cent  of  increase  (+) 
or  decrease  (  )  in  1903 
as  comp  a  r  e  d  with 
years  specified. 


1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 


102.4 

103.8 

101.9 

104.4 

99.7 

97.8 

95.5 

96.3 

98.7 

100.1 

101.1 

105.2 

110.9 

110.3 


■  7.7 
6.3 
8.2 
5.7 
10.6 
12.8 
15.5 
14.5 
11.8 
10.9 
9.1 
4.8 


The  method  of  using  both  the  relative  figures  and  the  per- 
centages has  already  been  explained.  The  important  facts  dis- 
closed in  this  table  are  that  food  was  lower  in  1903  than  in  1902, 
and  that  food  was  only  15.5  per  cent  higher  in  1903  than  in 
1896— the  year  of  lowest  prices.  The  changes  in  the  cost  of  liv- 
ing, as  shown  by  the  Bulletin  of  the  Bureau  of  Labor,  relate  to 
food  alone,  representing  42.54  per  cent  of  all  family  expenditures 
in  the  2,567  families  furnishing  information.  With  respect  to 
the  remaining  expenditures  of  the  average  family  the  Bulletin 
states  as  follows: 

Of  the  remaining  articles,  constituting  57.46  per  cent  of  the 
family  expenditure,  certain  ones  are,  from  their  nature,  affected 
only  indirectly  and  in  very  slight  degree  by  any  rise  or  fall  in 
prices.  Such  are  payments  on  account  of  principal  and  interest 
of  mortgage,  taxes,  property  and  life  insurance,  labor  and  other 
organization  fees,  religion,  charity,  books  and  newspapers,  amuse- 


LABOB,    WAGES,    AND    PBICES.  211 

ments  and  vacations,  intoxicating  liquors,  and  sickness  and  death. 
These  together  constituted  14.51  per  cent  of  the  family  expenditure 
in  1901  of  the  2,567  families  investigated.  Miscellaneous  purposes, 
not  reported,  for  which,  from  their  very  character,  no  prices  are 
obtainable,  made  up  5.87  per  cent,  and  rent,  for  which  also  no 
prices  for  the  several  years  are  available,  made  up  12.95  per  cent. 

The  remaining  classes  of  family  expenditure,  24.13  per  cent  of 
all,  consist  of  clothing  14.04  per  cent,  fuel  and  lighting  5.25  per 
cent,  furniture  and  utensils  3.42  per  cent,  and  tobacco  1.42  per 
cent.  For  these  no  retail  prices  covering  a  series  of  years  are 
available,  but  it  is  probable  that  the  advance  of  the  retail  prices 
was  considerably  less  than  the  advance  in  wholesale  prices,  as  the 
advance  in  the  wholesale  prices  of  25  articles  of  food  in  1903,  as 
compared  with  1896,  was  27.9  per  cent,  while  the  advance  in  the 
retail  prices  of  25  similar  articles  or  groups  of  articles,  as  shown 
by  the  results  of  this  investigation,  was  but  15.3  per  cent.  An 
examination  of  the  relative  wholesale  prices  of  these  classes  of 
articles  in  Bulletin  No.  51,  giving  them  their  proper  weight  ac- 
cording to  family  consumption,  leads  to  the  conclusion  that  the 
retail  prices  of  these  articles  as  a  whole  in  1903  could  have  been 
but  little,  if  at  all,  above  the  level  indicated  by  food. 

If  all  classes  of  family  expenditures  as  above  be  taken  into 
consideration,  it  is  apparently  a  safe  and  conservative  conclusion, 
therefore,  that  the  increase  in  the  cost  of  living,  as  a  whole,  in 
1903,  when  compared  with  the  year  of  lowest  prices,  ivas  less  than 
15.5  per  cent,  the  figure  given  above  as  the  increase  in  the  cost  of 
food  as  shown  by  this  investigation.  It  is  shown  on  the  succeed- 
ing pages  that  the  increase  in  wages  in  1903  over  the  year  of  lowest 
wages,  as  shown  by  the  same  bulletin  of  the  Bureau  of  Labor,  was 
greater  than  the  increase  in  cost  of  living,  being  18.8  per  cent. 

A  comparison  of  the  table  showing  prices  with  that  on  page 
204  entitled  "Per  cent  of  increase  or  decrease  in  the  average 
wages  per  hour  in  13  leading  occupations  in  1903  compared  with 
each  preceding  year  discloses  the  following  interesting  facts: 

Bricklayers'  wages  advanced  26.1  per  cent  from  1896  to  1903 ; 
carpenters'  wages,  31.2  per  cent;  hod  carriers'  wages,  22.6  per 
cent ;  iron  molders'  wages,  21.1  per  cent ;  laborers'  wages,  18.4  per 
cent;  stone  masons'  wages,  26.5  per  cent;  painters'  wages,  25.8 
per  cent;  plumbers'  wages,  24.7  per  cent;  stone  cutters'  wages, 
17.7  per  cent,  etc.— while  during  the  same  period  the  retail  prices 
of  fresh  beef  roasts  increased  14.1  per  cent;  beef  steaks, 
13.5  per  cent;  salt  beef,  9  per  cent;  bread,  0.03  per 
cent;  butter,  19.5  per  cent;  cheese,  11.7  per  cent;  fresh 
fish,  7.1  per  cent;  salt  fish,  11.2  per  cent;  wheat  flour 
9.2  per  cent;  fresh  milk,  5.9  per  cent;  molasses,  5.2 
per  cent;  mutton  and  lamb,  14.1  per  cent;  rice,  7.4  per  cent; 
tea,  7.3  per  cent;  veal,  15.5  per  cent;  and  coffee  has  decreased 
10.3  per  cent  and  sugar  0.5  per  cent.  All  food  of  ordinary  con- 
sumption has  increased  an  average  of  15.5  per  cent.  Pork  prod- 
ucts, which  are  included  in  this  general  average,  advanced  from 

24.3  to  44.6  per  cent,  owing  to  the  high  price  of  hogs,  the  whole- 
sale price  of  which  advanced  75.22  per  cent  from  1896  to  1903, 
as  is  shown  in  the  chapter  on  the  exchange  value  of  farm  products 
beginning  page  216. 

By  measuring  the  purchasing  power  of  a  day's  wages  of  these 
various  articles  of  food  in  1896  and  in  1903  a  very  interesting 
result  is  obtained. 

In  the  case  of  a  bricklayer  it  shows  that  for  a  day's  wages 
in  1903,  as  compared  with  a  day's  wages  in  1896,  he  could  buy 

10.4  per  cent  more  beet  roasts  or  stews ;  11.1  per  cent  more  beef 
steak;  15.6  per  cent  more  salt  beef;  25.7  per  cent  more  wheat 
bread ;  5.5  per  cent  more  butter ;  12.8  per  cent  more  cheese ;  40.6 
per  cent  more  coffee ;  17.7  per  cent  more  fresh  fish ;  13.4  per 
cent  more  salt  fish ;  15.5  per  cent  more  wheat  flour ;  19.1  per 
cent  more  fresh  milk ;  19.9  per  cent  more  molasses ;  10.5  per  cent 
more  lamb  and  mutton ;  17.3  per  cent  more  rice ;  26.7  per  cent 
more  sugar ;  17.5  per  cent  more  tea ;  9.1  per  cent  more  veal,  and 
8.9  per  cent  more  of  the  30  food  commodities  taken  collectively. 

A  carpenter  could  buy  for  a  day's  wages  in  1903,  as  compared 
with  1896,  14.9  per  cent  more  beef  roasts  or  stews ;  15.6  per  cent 
more  beef  steak ;  20.3  per  cent  more  salt  beef ;  30.7  per  cent  more 
wheat  bread;   9.7  per  cent  more  butter;   17.3   per   cent  more 


213  LABOR,    WAGES,    AND   PRICKS. 

cheese;  46.2  per  cent  more  coffee;  22.4  per  cent  more  fresh  fish; 
1T.(.>  per  cent  more  salt  fish;  20.1  per  cent  more  wheat  flour; 
2&8  per  cenl  more  fresh  milk;  '_•  i.<;  per  cent  more  molasses;  L4.8 
per  cenl  more  lamb  and  mutton;  •->•_'.<)  per  cent  more  rice;  31.8 
per  cent  more  sugar;  22.3  per  cent  more  tea;  13.5  per  cent  more 
veal,  and  13.3  per  cent  more  of  the  30  food  commodities  taken 
collectively. 

A  ilay  laborer  could  buy  for  a  day's  wages  in  1903,  as  com- 
pared with  189G,  3.7  per  cent  more  beef  roasts  or  stews;  4.3 
per  cent  more  beef  steak;  8.5  per  cent  more  salt  beef;  18.0  per 
(tut  more  wheat  bread;  5.9  per  cent  more  cheese;  32.4  per  cent 
more  coffee;  10.5  per  cent  more  fresh  fish;  G.4  per  cent  more  salt 
fish.;  8.3  per  cent  more  wheat  flour;  11.7  per  cent  more  fresh 
milk;  12.0  per  cent  more  molasses;  3.8  per  cent  more  lamb  and 
mutton;  10.1  per  cent  more  rice;  19.0  per  cent  more  sugar;  10.3 
per  cent  more  tea ;  2.5  per  cent  more  veal,  and  2.2  per  cent  more 
of  all  the  30  articles  of  food  taken  collectively. 

A  painter  could  buy  for  a  day's  wages  in  1903,  as  com- 
pared with  1896,  10.3  per  cent  more  beef  roasts  or  stews ;  11.0  per 
cent  more  beef  steak ;  15.4  per  cent  more  salt  beef ;  25.5  per  cent 
more  wheat  bread ;  5.3  per  cent  more  butter ;  12.7  per  cent  more 
cheese;  40.3  per  cent  more  coffee;  17.6  per  cent  more  fresh  fish; 
13.2  per  cent  more  salt  fish ;  15.3  per  cent  more  wheat  flour ;  18.9 
per  cent  more  fresh  milk ;  19.7  per  cent  more  molasses ;  10.4  per 
cent  more  lamb  and  mutton;  17.2.  per  cent  more  rice;  26.6  per 
cent  more  sugar;  17.3  per  cent  more  tea;  9.0  per  cent  more 
veal,  and  8.7  per  cent  more  of  all  the  30  articles  of  food  taken 
as  a  whole. 

An  iron  molder  could  buy  for  a  day's  wages  in  1903,  as  com- 
pared with  1896,  6.2  per  cent  more  beef  roasts  or  stews;  6.8  per 
cent  more  beef  steak ;  11.1  per  cent  more  salt  beef ;  20.8  per  cent 
more  wheat  bread ;  1.4  per  cent  more  butter ;  8.4  per'  cent  more 
cheese ;  35.1  per  cent  more  coffee ;  13.1  per  cent  more  fresh  fish ; 
9.0  per  cent  more  salt  fish ;  11.0  per  cent  more  wheat  flour ;  14.4 
per  cent  more  fresh  milk ;  15.2  per  cent  more  molasses ;  6.2  per 
cent  more  lamb  and  mutton ;  12.8  per  cent  more  rice ;  21.8  per 
cent  more  sugar;  12.9  per  cent  more  tea;  4.9  per  cent  more 
veal,  and  4.7  per  cent  more  of  all  the  30  articles  of  food  taken 
as  a  whole. 

A  plumber  could  buy  for  a  day's  wages  in  1903,  as  compared 
with  1896,  9.3  per  cent  more  beef  roasts  and  stews ;  9.9  per  cent 
more  beef  steaks ;  14.4  per  cent  more  salt  beef ;  24.2  per  cent 
more  wheat  bread;  4.4  per  cent  more  butter;  11.6  per  cent  more 
cheese ;  39.1  per  cent  more  coffee ;  16.5  per  cent  more  fresh  fish ; 

12.2  per  cent  more  salt  fish ;  14.6  per  cent  more  wheat  flour ;  17.6 
per  cent  more  fresh  milk ;  18.6  per  cent  more  molasses ;  9.3  per 
cent  more  lamb  and  mutton ;  16.1  per  cent  more  rice ;  25.4  per 
cent  more  sugar ;  16.2  per  cent  more  tea ;  8.0  per  cent  more  veal ; 
7.6  per  cent  more  of  all  the  30  articles  of  food  taken  collectively. 

A  stone  cutter  could  buy  for  a  day's  wages  in  1903,  as  com- 
pared with  1896,  3.1  per  cent  more  beef  roasts  and  stews ;  3.7 
per  cent  more  beef  steaks;  7.9  per  cent  more  salt  beef;  17.3  per 
cent  more  wheat  bread;  5.3  per  cent  more  cheese;  31.2  per  cent 
more  coffee;  9.9  per  cent  more  fresh  fish;  5.8  per  cent  more  salt 
fish ;  7.8  per  cent  more  wheat  flour ;  11.1  per  cent  more  fresh 
milk ;  11.9  per  cent  more  molasses ;  3.2  per  cent  more  lamb  and 
mutton;  9.5  per  cent  more  rice;  18.3  per  cent  more  sugar;  9.7 
per  cent  more  tea;  1.9  per  cent  more  veal;  1.7  per  cent  more  of 
all  the  30  articles  of  food  taken  collectively. 

A  stone  mason  could  buy  for  a  day's  wages  in  1903,  as  com- 
pared with  1896,  10.7  per  cent  more  beef  roasts  and  stews;  11.4 
per  cent  more  beef  steaks;  15.9  per  cent  more  salt  beef;  26  per 
cent  more  wheat  bread;  5.8  per  cent  more  butter;  13.1  per  cent 
more  cheese ;  40.9  per  cent  more  coffee ;  18.0  per  cent  more  fresh 
fish ;  13.6  per  cent  more  salt  fish ;  15.5  per  cent  more  wheat  flour ; 

19.3  per  cent  more  fresh  milk ;  20.2  per  cent  more  molasses ;  10.8 
per  cent  more  lamb  and  mutton;  17.6  per  cent  more  rice;  27.1 
per  cent  more  sugar;  17.8  per  cent  more  tea;  9.5  per  cent  more 
veal,  and  9.2  per  cent  more  of  all  the  30  articles  of  food  taken 
collectively. 

Similar  comparisons  could  be  made  with  many  more  occupa- 
tions, but  it  is  believed  that  the  above,  which  all  relate  to  leading 


LABOR,    WAGES,    AND   PRICES. 


213 


sine1  well  defined  occupations,  are  sufficient  to  prove  the  fallacy 
of  the  assertion  that  wages  have  not  kept  up  with  prices  since  the 
great  industrial  depression  during  the  last  Democratic  adminis- 
tration. 

.SUMMARY  OP  CONCLUSIONS. 

As  a  summary  of  the  results  of  the  investigations  relative  to 
wages  and  cost  of  living  the  two  following  tables  are  given  in 
the  Bulletin  of  the  Bureau  of  Labor.  The  first  shows  relative  fig- 
ures while  the  second  shows  the  increase  or  decrease  in  the  year 
1903  as  compared  with  each  preceding  year  of  the  period  consid- 
ered: 

Relative  employees,  hours  per  week,  wages  per  hour,  weekly  earn- 
ings per  employee  and  for  all  employees,  retail  prices  of  food, 
and  purchasing  power  of  hourly  wages  and  of  weekly  earnings 
per  employee  measured  by  retail  prices  of  food,  1890-1903. 
[Average  for  1890-1899—100.] 


Purchasing  power 

measured  by 

Weekly 

Weekly 

retail  prices  of 

Year. 

Em- 

Hours 

Wages 

earnings 
per 

earnings 
of  all 

Retail 
prices 

food,  of— 

ployees. 

per 

per 

week. 

hour. 

em- 

em- 

of food. 

Weekly 

ployee. 

ployees. 

Hourly 
wages. 

earnings 
per  em- 
ployee. 

1890... 

94.9 

100.7 

100.3 

101.0 

95.8 

102.4 

97.9 

98.0 

1891 . . . 

97.4 

100.5 

100.2 

100.7 

98.1 

103.8 

96.5 

97.0 

1892 . . . 

99.1 

100.5 

100.8 

101.3 

100.4 

101.9 

98.9 

99.4 

1893... 

99.2 

100.3 

100.9 

101.2 

100.4 

104.4 

96.6 

96.0 

1894... 

94.1 

99.8 

97.9 

97.7 

91.9 

99.7 

98.2 

98.6 

1895... 

96.3 

100.1 

98.3 

98.4 

94.8 

97.8 

100.5 

100.2 

1896... 

98.3 

99.8 

99.7 

99.5 

97.8 

95.5 

104.4 

104.9 

1897... 

100.9 

99.6 

99.6 

99.2 

100.1 

96.3 

103.4 

103.6 

1898... 

106.3 

99.7 

100.3 

100.0 

106.3 

98.7 

101.6 

101.3 

1899... 

110.8 

99.2 

102.0 

101.2 

112.1 

99.5 

102.5 

101.7 

1900... 

115.5 

98.7 

105.5 

104.1 

120.2 

101.1 

104.4 

103.0 

1901... 

119.1 

98.1 

108.0 

105.9 

126.1 

105.2 

102.7 

100.7 

1902... 

123.6 

97.3 

112.3 

109.3 

135.1 

110.9 

101.3 

98.6 

1903... 

126.4 

96.6 

116.3 

112.3 

141.9 

110.3 

105.4 

101.8 

Note. — In  explanation  of  relative  figures  it  should  he  stated 
that  each  figure  in  the  above  table  represents  the  per  cent  which 
the  actual  figures  were  of  the  average  figures  for  the  ten-year 
period  from  18£0  to  1899,  the  latter  being  presumed  to  represent 
normal  conditions  more  accurately  than  the  figures'  for  any  one 
3*ear.  In  the  first  column,  for  example,  the  number  of  employees 
in  1890  is  shown  to  have  been  94.9  per  cent  of  the  average  num- 
ber for  the  ten-year  period;  the  number  in  1894  was  94.1  per  cent 
of  the  average  for  the  ten-year  period;  the  number  in  1903  was 
126.4  per  cent  of  the  average,  or  26.4  per  cent,  greater  than  the 
average  for  the  ten-year  period,  etc.,  etc. 

The  following  table,  which  presents  the  facts  in  the  convenient 
form  of  percentages,  discloses  most  important  information  with 
reference  to  conditions  in  1903  as  compared  with  the  period  of 
industrial  depression  which  reached  its  lowest  depths  during  the 
years  1894,   1895,  and  1896. 

First.  Employment  afforded. — As  regards  the  number  of  em- 
ployees engaged  in  the  519  occupations,  covering  67  important 
industries  and  3,429  establishments  engaged  in  the  manufactur- 
ing and  mechanic*!  industries,  it  is  seen  that  over  one-third  more 
workmen  (34-3  per  cent)  were  employed  in  1903  than  in  1894,  and 
that  during  the  administrations  of  President  McKinley  and 
President  Roosevelt  the  number  given  employment  has  steadily 
and  rapidly  increased  even  up  to  and  including  the  last  year  of 
the  period,  1903.  And  even  the  wonderful  increase  in  1903  over 
1894  as  shown  above  does  not  mark  the  extreme  limit  of  the 
betterment  of  industrial  conditions  as  regards  employment  af- 
forded; for  it  must  be  remembered  that  the  3,429  establishments 
covered  in  the  investigation  of  the  Bureau  of  Labor  wTere  prac- 
tically all  in  operation  each  year  during  the  entire  period  and 
the  figures  secured  therefrom  do  not  reflect  conditions  in  hun- 
dreds of  important  establishments  which-  were  closed  entirely 
during  the  period  of  depression  nor  in  still  other  hundreds  of  new 
establishments  which  went  into  operation  after  the  depression 
had  been  relieved   and   confidence  reestablished.       Were  figures 


214 


LABOR,    WAGES,    AND    PRICES. 


Per  cent  of  increase   (+)  or  decrease  ( — )  in   190S,  as   compare 
with  previous  years,  in  employees,  hours  per  week,  wages  pi 
hour,  weekly  earnings  per  employee  and  of  all  employees,  retail 
prices  of  food,  and  purchasing  power  of  hourly  wages  and  hf 
weekly  earnings  per  employee  measured  by  retail  prices  of  food, 
1890  to  1998. 


Per  cent  of  increase  (+) 

or  decrease  (— )  in  1903  as 

compared  with  previous  years. 

Purchasing 

power 

measured  by 

Weekly 

Weekly 

Retail 
prices 

rouiil  prices  of 

Year. 

Em- 

Hours 

Wages 

earn- 
ings per 

earn- 
ings of 

food,  of— 

ployees. 

per 

per 

of 
food. 

week. 

hour. 

em- 

all em- 

Weekly 

ployee. 

ployees. 

Hourly 
Wages. 

earn- 
ings per 
em- 

ployee. 

Av.  1890-99.. 

-26.4 

—3.4 

-16.3 

H 

hl2.3 

-41.9 

-10.3 

+5.4 

+1.8 

1890.. 

-33.2 

—4.1 

-16.0 

- 

11.2 

-48.1 

-7.7 

+7.7 

+3.2 

1891.. 

-29.8 

—3.9 

-16.1 

- 

11.5 

- 

-44.6 

-  6.3 

+9.2 

+4.9 

1892.. 

-27.5 

—3.9 

- 

-15.4 

H 

-10.9 

- 

-41.3 

-  8.2 

1+6.6 

+2.4 

1893.. 

-27.4 

—3.7 

- 

-15.3 

- 

-11.0 

- 

-41.3 

-  5.7 

-f9.1 

+5.1 

1894.. 

-34.3 

—3.2 

-18.8 

J 

-14.9 

_ 

-54.4 

-10.6 

+7.3 

+3.9 

1895.. 

-31.3 

—3.5 

- 

-18.3 

- 

-14.1 

- 

-49.7 

-12.8 

+4.9 

+1.2 

1896.. 

-28.6 

—3.2 

- 

-16.6 

_ 

-12.9 

- 

-45.1 

-15.5 

+1.0 

—2.3 

1897.. 

-25.3 

—3.0 

_ 

-16.8 

13.2 

-41.8 

-14.5 

+  1.9 

—1.2 

1898.. 

-18.9 

—3.1 

-16.0 

-12.3 

-33.5 

-11.8 

+3.7 

tl 

1899.. 

-14.1 

—2.6 

-14.0 

-11.0 

-26.6 

-10.9 

+2.8 
+1.0 

1900.. 

-  9.4 

—2.1 

-10.2 

- 

-  7.9 

-18.1 

-  9.1 

—1.2 

1901.. 

-  6.1 

—1.5 

-  7.7 

-  6.0 

12.5 

-  4.8 

+2.6 

+1.1 
+3.2 

1902.. 

h  2.3 

—  .7 

-  3.6 

-  2.7 

r  5.0 

—    .5 

i     +4.0 

Note. — The  figures  in  this  table  give  for  each  year,  and  for 
the  average  of  the  ten-year  period  from  1890  to  1899.  the  per  cent 
of  increase  or  decrease  (indicated  by  —  and  — )  whiph  the  figures 
for  1903  show  as'  compared  with  the  year  specified.  For  example, 
the  first  column  shows  that  the  number  of  employes  in  1903  was 
26.4  per  cent,  greater  than  the  average  number  in/  the  ten-year 
period,  34.3  per  cent  greater  than  the  number  in  1894,  2.3  per  cent 
greater  than  the  number  in  1902,  etc.,  etc.  / 


available  showing  the  thousands  of  workmen  thrbwn  into  abso- 
lute idleness  by  the  closing  down  of  factories  and  mills  during 
Democratic  rule  and  the  thousands  given  employment  during  Re- 
publican rule,  \he  per  cent  of  increase  in  employees  at  work  in 
1903  over  the  number  shown  for  1894  would  doubtless  be  doubte 
that  given  by  the  Bureau  of  Labor  for  the  3,429t  establishments 
in  continuous  operation. 

Second.  Working  Hours. — As  regards  hours  of  work  in  the 
establishments  covered,  it  is  seen  that  almost  without  a  halt  the 
workday  has  gradually  been  shortened  during  \he  period.  The 
average  hours  worked  per  week  in  1903  were 
than  in  1890,  3.5  per  cent  less  than  in  1895,  2.1 
in  1900,  and  .7  per  cent  less  than  in  1902.  T 
ment  of  industrial  conditions  is  nowhere  better 
figures  which  indicate  that  slowly  but  surely  tie  hours  of  labor 
are  decreasing  and  a  consequently  longer  time  is  afforded  the 
workman  for  rest,  recreation,  and  improvement. 


1  per  cent  less 
er  cent  less  than 
e  general  better- 
own  than  in  the 


Third.  Hourly  Wages. — The  table  shows  quijie  conclusively  the 
reduction  in  wages  during  the  years  of  depression  and  the  gradual 
and  rapid  increase  year  by  year  since  1896.  It  is  seen  that  the 
hourly  wages  in  1903  were  16.0  per  cent  higher  'han  in  1890;  they 
were  in  1903  18.8  per  cent  higher  than  in  1894,  \he  year  of  lowest 
wages;  they  were  18.3  per  cent  higher  than  in  J.895,  and  16.6  per 
cent  higher  than  in  1896,  etc.  It  is  most  interesting  to  note  the 
steady  and  strong  tendency  toward  higher  wagbs  during  the  last 
eight  years,  nor  should  the  fact  be  overlooked  that  the  wages  of 
1903,  the  last,  year  covered,  were  higher  than  in  any  previous  year, 
being  3.6  per  cent  higher  than  the  year  1902.  The  figures  do  not 
in  any  way  indicate  that  a  retrograde  movement  has  begun. 

Fourth.  Weekly  earnings  per  employee. — It  has  been  stated 
that  while  hourly  wages  have  increased  greatly  the  daily  hours  of 
work  have  gradually  decreased.  While  the  decrease  in  hours  has 
doubtless  been  due  to  the  movement  of  workmen  themselves  for  a 


LAB0B,    WAGES,    AND    PBICES.  215 

shorter  workday,  it  should  be  noteu,  also  that  when  the  decrease 
in  hours  per  week  is  taken  in  connection  with  the  increase  in 
wages  the  resulting  weekly  earnings  still  show  a  marked  increase 
in  1903  over  preceding  years.  For  example,  the  weekly  earnings 
in  1903  were  14-9  per  cent  greater  than  in  1894,  Uf.l  per  cent 
greater  than  in  1895,  etc.,  etc.  While  the  increase  as  shown  above 
is  quite  considerable,  it  should  be  remembered  that  it  does  not  by 
any  means  indicate  the  conditions  as  to  weekly,  monthly,  or  an- 
nual earnings  in  1903  as  compared  with  the  years  of  depression, 
inasmuch  as  the  figures  given  are  based  on  the  presumption  that 
each  employee  worked  full  time.  While  figures  are  not  available 
showing  ihe  extent  to  which  establishments  worked  "half  time" 
or  "three-quarter  time"  during  the  years  of  depression,  or  closed 
down  entirely,  it  is  safe  to  say  that  were  it  possible  to  compare 
average  ueekly,  monthly,  or  yearly  earnings  in  1903  with  those  for 
1894,  189*,  and  1896  the  per  cent  of  increase  in  1903  over  the 
latter  years  would  be  much  greater  than  that  shown  in  the  Bulle- 
tin of  the  Bureau  of  Labor,  and  would  reach  probably  between 
25  and  30  per  cent. 

Fifth.  Weekly  earnings  of  all  employes. — Some  impression  as 
to  the  infuence  of  conditions  of  employment  on  the  earnings  of 
wage-workers  may  -be  gained  by  reference  to  the  column  of  the 
table  containing  the  percentages  which  show  the  increase  (in  1903 
over  each  preceding  year  of  the  period)  in  the  weekly  earnings 
of  the  employees  covered  by  the  report.  It  will  be  remembered 
that  the  report  covers  67  industries  and  that  these  industries  are 
represented  by  a  total  of  519  distinctive  occupations  in  3,429  estab- 
lishments—all of  which  were  in  operation  during  each  year  of  the 
entire  periol.  If  the  number  of  workmen  employed  each  year  in 
the  519  occupations  is  considered  in  connection  with  their  weekly 
earnings,  the  amount  of  the  weekly  pay  roll  of  these  workmen  for 
each  year  of  the  period  is  readily  obtained.  While  for  reasons 
before  stated  the  figures  given  do  not  mark  the  extreme  decline 
and  advanct  in  the  amount  paid  out  in  wages,  they  are  extremely 
suggestive.  It  is  seen  that  the  per  cent  of  the  increase  in  1903 
over  1894  of  the  weekly  earnings  of  the  workmen  employed  in  the 
two  years  mentioned  reached  as  much  as  54-4  per  cent;  the  in- 
crease in  1903  over  1895  reached  ^9.7  per  cent;  the  increase  in 
1903  over  189(  reached  45-1  per  centh  etc.,  etc.  The  figures  for  the 
last  eight  yeats  of  the  period  again  show  the  increasing  and  almost 
marvelous  beterment  of  conditions  during  these  years  and  their 
uninterrupted  continuance  to  the  last  year  of  the  period. 

Sixth.  Reail  prices  of  food. — As  previously  indicated,  the 
figures  given  n  this  column  are  stated  by  the  Bureau  of  Labor  to 
fairly  represent  not  only  the  trend  of  cost  of  living  so  far  as  food 
is  concerned,  bit  also  to  mark  the  possible  limits  of  advance  and 
decline  in  the  tost  of  all  articles  of  family  consumption.  The  re- 
sults are  especally  important,  as  they  are  derived  from  the  first 
comprehensive  investigation  into  retail  prices  covering  a  long 
series  of  years.  Heretofore  wholesale  prices  have  been  used  to 
indicate  the  traid  of  cost  of  living,  although  it  was  recognized 
that  they  were  nore  sensitive  to  conditions  than  retail  prices,  that 
their  fluctuation?  were  considerably  greater,  and  that  they  could 
not  be  used  to  iidicate  even  approximately  the  extent  of  increase 
or  decrease  fron  year  to  year  in  cost  of  living.  The  collection  of 
retail  prices  whch  forms  the  basis  of  the  figures  in  the  table  is, 
therefore,  of  great  value  as  indicating  with  great  exactness  the 
cost  of  living  bated  on  prices  actually  paid  by  the  small  consumer. 
It  is  seen  that  tost  of  living  increased  in  1903  over  the  year  of 
lowest  prices,  1&6,  not  more  than  15  M  per  cent;  over  1897,  14-5 
per  cent;  over  1898,  11.8  per  cent.,  etc.,  etc.  It  is  interesting  to 
note  in  this  connection  that  the  cost  of  living  in  1903  was  .5  per 
cent  less  than  in  1902  and  that  the  decline  in  1903  is  the  first  since 
1896.  It  is  also  important  to  note  that  while  cost  of  living  de- 
clined in  1903,  the  number  of  workmen  employed,  the  wages  per 
houi,  and  the  earnings  per  week  continued  their  steady  advance. 

Seventh.  Purchasing  power  of  wages. — The  last  two  columns 
of  the  table  show  the  percentages  representing  the  purchasing 
p«wer  of  wages.  The  first  of  the  two  columns  shows  the  facts  for 
lourly  wages,  while  the  second  shows  those  for  weekly  earnings. 


216 


LABOR,     WAGES,     AND    PRICES. 


Considering  the  retail  priced  <>f  food  or  cosl  of  living  in  connection/ 
with  hourly  wages,  it  is  shown  thai  the  purchasing  power  of  hourly 
wages  in  t903  was  9.1  per  cent  greater  than  in  is<).t,  ?'.;?  per  bent 
r  than  in  t894,  '/••'  per  cent  areata-  titan  in  189$,  h.0  pei 
cent  greater  than  in  mo..',  etc.,  etc.  in  other  words,  an  hour'! 
wages  in  t90S  would  purchase  9.1  per  cent  more  of  the  com  modi 
ties  and.  articles  entering  into  the  cjbei  of  living  of  the  workini 

man's  fa  mil)/  than   irould  an  hour's   iruges  in    1898,  etc.;  etc.     Tl 
last  column,  which  doeta  ool  present  so  accurate  a  figure  for  rea- 
sons stated   previously    in  eonneetion   with   weekly  earnings,  con- 


bat,  con- 
has  bene- 


tinns   the  conclusion  justilied  by   tlie  preceding  column 
sidering  both   irages  and  cost  of  living  the  irorki in/man 
filed  to  a  measurable  degree  from  the  increase  in  Wages  despite  the 
increase  in  cost  of  living  and  shortening  of  icorking  hou 

WJien  it  is  remembered  also  Hint  the  betterment  of  Industrial 
conditions  has  been  greater  than  the  figures  indicate  in  some  cases 
as  previously  explained,  that  it  has  extended  in  manyjdirections 
not  covered  by  the  figures  and  not  even,  susceptible  of  iemonstra- 
tion  by  the  statistitcal  method,  and  that  the  savings  of  the.  work- 
man during  a  period  of  high  wages,  although  accompanied  by  high 
/trices,  is  considerably  greater  than  during  a  period  of  depression, 
it  st  ( ins  a  safe  and  conservative  conclusion  that  at  no  time  in  the 
history  of  this  or  ang  other  country  has  there  been  Ian  era  of 
prosperity  so  productive  of  material  benefit  to  both  tlm  working- 
man  and  the  employer  as  the  last  eight  years  of  Republican  rule. 


retail  prices 

an  advance 
the  sale  of 
$151.72  for 


EXCHANGE  VALUE  OF  FARM  PRODUCTS 

Prices   of   Raw    Materials   Compared   with    Prices   of  H^anufactured 
Articles,   1896  and   1903. 

During  the  last  few  years,  when  prices  in  generll  have  ad- 
vanced, it  is  interesting  to  determine  in  what  degiee  the  pro- 
ducer of  the  farm  products  has  been  benefited  by  the/rise. 

The  table  which  follows  has  been  prepared  from  official  figures 
published  in  Bulletin  No.  51  of  the  United  States  Biueau  of  Labor 
and  shows  the  per  cent  of  advance  in  1903  as  coinpaipd  with  1896, 
the  commodities  being  grouped  as  in  the  original /source.  The 
comparisons  are  between  wholesale  prices,  as  in  thfe  language  of 
the  original  report  "They  are  more  sensitive  than 
and  more  quickly  reflect  changes  in  conditions." 

Comparing  1903  with  1896,  farm  products  shox 
of  51.72  per  cent,  that  is  for  every  $100  received  frc 
farm  products  in  1896  the  farmer  received  in  19* 
the  same  quantity.  / 

Food,  etc.,  advanced  27.80  per  cent. ;  cloths  and/clothing,  16.76 
per  cent ;  fuel  and  lighting,  43.4  per  cent,  etc.  it  is  seen  that 
the  advance  in  farm  products  has  been  from  two  to  four  times 
as  great  as  the  advance  in  any  of  the  other  groups,  except  fuel  and 
light,  and  even  there  the  advance. has  not  been  learly  as  great 
as  in  farm  products.  It  will  likewise  be  observedjthat  the  whole- 
sale prices  of  food  have  increased  much  more  fhan  the  retail 
prices,  which  are  considered  on  pages . 

The  purchasing  power  of  farm  products  in  19$  increased  ma- 
terially over  1896.  The  same  quantity  of  farm 
purchase  in  1903  18.17  per  cent  more  food  th 
would  purchase  29.94  per  cent  more  cloths 
5.99  per  cent  more  of  the  articles  included  in  the 
lighting;  20.90  per  cent  more  metals  and  impler 
cent  more  lumber  and  building  materials;  24. li 
drugs  and  chemicals ;  26.21  per  cent  more  house  nrnishing  goods ; 
and  22.07  per  cent  more  of  the  articles  included  in  the  miscel- 
laneous group.  \ 

This  shows  that  no  one  has  been  benefited  by  the  advand?  in 
prices  as  much  as  has  the   farmer;  that  in  1903  the  prick  of 
farm  products  was  51.72  per  cent,  or  more  than  o>\e-half  greyer 
than  in  1896;  that  even  when  the  advance  in  price  oj  other  arti 
is  considered,  the  purchasing  power  of  farm  products  in  1903  w 
when  compared  with  other  groups  of  articles,  from  5.99  per  ce 
to  29.94  per  cent  greater  than  in  1896. 


products  would 
n    in   1896.      It 

and    clothing ; 

group  fuel  and 
ents ;  16.74  per 

per  cent  more 


LABOR,    WAGES,    AND    PRICES. 

The  following  table  shows  the  comparisons : 


217 


Comparative  advance  in  the  price  of  farm  products  and  other 
groups  of  commodities,  1903  compared  ivith  1896. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  I«abor.] 


Group. 

Advance. 

Purchas- 
ing 
power. 

Per  cent. 
51.72 
27.80 
16.76 
43.14 
25.51 
29.98 
21.60 
20.21 
24.29 

Per  cent. 

18.71 

29.94 

5.99 

20.90 

16.74 

24.78 

26.21 

22.07 

25.66 

20.73 

It  is  interesting  to  notice  in  the  tables  which  follow  the  com- 
parative advance  in  the  price  of  certain  related  commodities. 
The  average  price  in  1903  has  been  compared  with  the  average 
price  in  1896.  In  practically  every  case  the  raw  material  ad- 
vanced more  than  the  finished  products. 

The  first  table  shows  that  live  cattle  advanced  19.82  per  cent, 
while  fresh  beef  advanced  but  12.38  per  cent.  With  the  same 
weight  of  live  cattle  6.62  per  cent  more  fresh  beef  could  be  pur- 
chased in  1903  than  in  1896. 

Hogs  advanced  75.22  per  cent  and  smoked  hams  34.86  per  cent. 
With  the  same  weight  of  live  hogs  29.94  per  cent\  more  ham  could 
be  bought,  in  1903  than  in  1896. 

Sheep  which  the  farmer  sells  advanced  25.03  per  cent,  mutton 
which  the  workingman  buys  advanced  19.06  per  cent.  With  the 
same  weight  of  sheep  5.2  per  cent  more  mutton  could  be  purchased 
in  1903  than  in  1896. 

Corn  advanced  78.61  per  cent,  while  corn  meal  advanced  but 
61.11  per  cent.  With  the  same  quantity  of  corn  10.86  per  cent 
more  corn  meal  could  be  purchased  in  1903  than  in  1896. 

Wheat,  which  the  farmer  raises,  advanced  23.07  per  cent,  while 
wheat  flour  for  everybody's  use  advanced  6.47  per  cent.  That  is, 
with  the  same  quantity  of  wheat  15.59  per  cent  more  pour  could 
be  purchased  in  1903  than  in  1896. 

Raw  cotton  advanced  41.86  per  cent,  cotton  bags  13.76  per 
cent,  calico  declined  4.00  per  cent,  cotton  flannels  advanced 
13.74  per  cent,  cotton  thread  20.58  per  cent,  cotton  yarns  20.32 
per  cent,  denims  14.16  per  cent,  drillings  9.68  per  cent,  ging- 
hams 15.68  per  cent,  cotton  hosiery  declined  0.44  per  cent,  print 
cloths  advanced  24.64  per  cent,  sheetings  13.55  per  cent,  shirt- 
ings 5.41  per  cent,  and  tickings  8.44  per  cent.  The  average  ad- 
vance for  cotton  goods  being  but  12.08  per  cent  against  41.86  per 
cent  for  the  raw  cotton.  With  the  same  quantity  of  raw  cotton 
26.59  per  cent  more  manufactured  cotton  goods  could  be  pur- 
chased in  1903  than  in  1896. 

Wool  shows  an  advance  of  56.23  per  cent,  blankets  (all  wool) 
23.39  per  cent,  broadcloths  38.39  per  cent,  carpets  20.40  per  cent, 
flannels  33.84  per  cent,  horse  blankets  (all  wool)  29.74  per  cent, 
overcoatings  (all  wool)  27.69  per  cent,  shawls  20.09  per  cent, 
suitings  24.15  per  cent,  underwear  (all  wool)  8.31  per  cent, 
women's  dress  goods  (all  wool)  54.39  per  cent,  and  worsted 
yarns  61.87  per  cent.  An  average  advance  for  woolen  goods  of 
30.01  per  cent,  while  the  raw  material — wool — advanced  56.23 
per  cent.  Or  with  the  same  quantity  of  wool  20.14  per  cent  more 
manufactured  woolen  goods  could  be  bought  in  1901  than  in  1896. 
The  following  table  shows  this  information  in  tabular  form : 


218  LABOB,    WAGES,   AND  PRICES. 

Comparative   advance   in   price   of  certain  related  commodities, 

1903  compared  with  1896. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 

Cattle 19.82 

Fresh  beef 12.38 

Hogs 75.22 

Hams 34.86 

Sheep 25.03 

Mutton 19.06 

Corn 78.61 

Corn  meal > 61.11 

Wheat 23.07 

Wheat  flour 6.47 

Cotton— Upland  Middling 41.86 

Cotton  bags 13.76 

Calico a  4.00 

Cotton  flannels  13.74 

Cotton  thread 20.58 

Cotton  yarns 20.32 

Denims 14.16 

Drillings 9.68 

Ginghams 15.68 

Hosiery  ( cotton )    a  0.44 

Print  cloths 24.64 

Sheetings 13.55 

Shirtings 5.41 

Tickings 8.44 

Average  for  cotton  goods  12.08 

Wool 56.23 

Blankets  (all  wool) 23.29 

Broadcloths 38.39 

Carpets 20.40 

Flannels 33.84 

Horse  blankets  (all  wool)    29.74 

Overcoatings  (all  wool)  27.69 

Shawls 20.09 

Suitings 24.15 

Underwear  (all  wool)    8.31 

Women's  dress  goods   (all  wool)    54.39 

Worsted  yarns 61.87    • 

Average  for  woolen  goods  30.01 

a  Decline. 

Market  Value  of  Farm  Products  in  1896  and  1903  When  Measured 
by  the  Wholesale  Prices  of  Staple  Articles. 

The  farmer  and  stock  raiser  measures  the  value  of  his  grain 
and  stock  not  only  by  the  amount  of  money  he  will  receive  per 
bushel  or  per  pound,  but  also  by  the  value  of  such  articles  as  he 
must  buy  for  use  by  his  family  or  on  the  farm. 

No  official  retail  prices,  other  than  for  certain  articles  of  food, 
have  been  published  for  recent  years,  but  the  United  States  Bu- 
reau of  Labor  in  its  bulletin  for  March,  1904,  published  wholesale 
prices  of  the  staple  articles  in  general  use.  From  this  publication 
the  following  tables  have  been  prepared,  showing  the  value  of 
corn,  wheat,  oats,  cattle,  hogs,  and  dairy  butter  in  1896  and  1903 
when  measured  by  the  value  of  other  staple  articles  which  the 
farmer  must  buy. 

While  these  figures  do  not  represent  the  actual  purchasing 
power  (as  all  the  prices  are  wholesale),  yet  the  figures  shown  for 
the  two  years,  1896  and  1903,  are  in  practically  the  same  pro- 
portion as  retail  prices  would  show. 

Ten  bushels  of  corn  in  1896  was  equal  in  value  to  20.9  pounds 
of  Rio  coffee,  while  in  1903  it  was  equal  to  82.4  pounds,  or  about 
four  times  as  much.  In  1896  10  bushels  of  corn  was  equal  in 
value  to  56.9  pounds  of  granulated  sugar,  in  1903  equal  to 
99.2  pounds ;  in  1896  equal  to  49.1  yards  of  calico,  in  1903  to  91.4 
yards;  in  1896  equal  to  54.7  yards  of  ginghams,  in  1903  to  83.7 
yards ;  in  1896  to  41.5  yards  of  Indian  Head  sheetings,  in  1903 
to  67.6  yards ;  in  1896  to  37.1  yards  of  Fruit  of  the  Loom  shirtings, 
/ 


LABOR,    WAGES,   AND  PRICES. 


219 


in  1903  to  60.1  yards;  in  1896  to  19  bushels  of  stove  coal  (anthra- 
cite), in  1903  to  26.7  bushels;  in  1896  to  24.8  gallons  of  refined 
petroleum,  in  1903  to  33.8  gallons ;  in  1896  to  95  pounds  of  8-penny 
cut  nails,  in  1903  to  210  pounds ;  in  1896  to  88  pounds  of  8-penny 
wire  nails,  in  1903  to  222  pounds.  It  must  be  borne  in  mind  that 
these  values  are  based  on  the  average  yearly  prices  of  these  ar- 
ticles. 

The  comparative  values  of  wheat,  oats,  cattle,  hogs,  and  dairy 
butter  presented  in  the  tables  which  follow  show  wonderful  in- 
creases and  the  exchange  values  of  wheat,  oats,  corn,  cattle,  and 
hogs  during  the  present  year  are  much  greater  than  during  1903. 

The  tables  are  as  follows: 


Value  of  10  bushels  of  corn  in  1896  and  1903  when  measured  by 

the  wholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  51,    United  States'  Bureau  of  Labor.] 


Articles. 


1896.     1903 


Coffee,  Rio,  No.  7 pounds 

Sugar,  granulated do . . 

Tea.  Formosa,  fine do . . 

Shoes,  men's  calf  bal.  Goodyear  welt pairs. 

Shoes,  women's  solid  grain do . . 

Calico,  Cocheco  prints yards 

Denims,  Amoskeag do . . 

Drillings,  brown,  Pepperell do . . 

Gingham's,  Amoskeag do . . 

Hosiery,  men's  cotton  half  hose.  20  to  22  oz pairs . 

Overcoats,  chinchilla,  cotton  warp yards 

Sheetings,  bleached,  10-4,  Atlantic do.. 

Sheetings,  brown,  4-4  Indian  head do . . 

Shirtings,  bleached.  4-4  Fruit  of  the  Loom do . . 

Suitings,  indigo  blue,  all  wool,  14  oz.,  Middlesex do . . 

Tickings,  Amoskeag,  A.  C.  A do . . 

Women's  dress  goods,  cashmere,  cotton-warp,  22-inch,  Hamilton, 

yards 

Coal,  anthracite,  stove bushels 

Petroleum,  refined.  150°  test gallons 

Nails,  cut,  8-penny,  fence  and  common pounds 

Nails,  wire,  8-penny.  fence  and  common do . . 

Carbonate  of  lead,  (white  lead),  American,  in  oil do.. 

Cement,  Portland,  American barrels 

Plate  glass,  area,  3  to  5  square  feet square  feet 

Glassware,  tumblers,  }$-pint,  common 


20.9 
56.9 
10.0 
(a) 
(O 
49.1 
26.1 
45.0 
54.7 
37 

5.9 
15.2 
41.5 
37.1 

2.3 
25.3 

36.3 
19.0 
24.8 
95 
88 
49.9 
1.3 
7.6 
172 


82.4 
99.2 
20.1 

(b) 

(d) 
91.4 
40.9 
74.4 
83.7 
71 
10.2 
21.7 
67.6 
60.1 
3.2 
41.7 

62.2 
26.7 
33.8 

210 

222 
74.9 
2.3 
17.5 

313 


a  1  pair  and  1.8  cents  over. 
c  3  pairs  and  3  cents  over. 


b  1  pair  and  $2.26  over. 
d  5  pairs  and  17  cents'  over. 


Value  of  10  bushels  of  oats  in  1896  and  1903  when  measured  by 

the  wholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 


Articles. 


1896.    1903. 


Coffee,  Rio.  No.  7 pounds. 

Sugar,  granulated do 

Tea,  Formosa,  fine do 

Shoes,  men's  calf  bal.,  Goodyear  welt pairs. 

Shoes,  women's  solid  grain do... 

Calico,  Cocheco  prints yards. 

Denims.  Amoskeag — do... 

Drillings,  brown.  Pepperell do. . . 

Ginghams.  Amoskeag .• do. . . 

Hosiery,  men's  cotton  half  hose,  20  to  22  ounce pairs . 

Overcoatings,  chinchilla,  cotton  warp yards. 

Sheetings,  bleached,  10-4,  Atlantic do. . . 

Sheetings,  brown,  4-4,  Indian  head do. . . 

Shirtings,  bleached,  4-4,  Fruit  of  the  Loom do 

Suitings,  indigo  blue,  all  wool,  14-ounce,  Middlesex do. . . 

Tickings.  Amoskeag,  A.  C.  A do. . . 

Women's  dress  goods,  cashmere,  cotton  warp,  22-inch,  Hamilton, 


yards. 


Coal,  anthracite,  stove bushels. 

Petroleum,  refined.  150°  test gallons. 

Nails,  cut,  8-penny,  fence  and  common pounds . 

Nails,  wire,  8-penny,  fence  and  common do 

Carbonate  of  lead,  (white  lead)  American,  in  oil do 

Cement,  Portland,  domestic barrels. 

Plate  glass,  area,  3  to  5  square  feet square  feet . 

Glassware,  tumblers,  ji  pint,  common 


14.6 
39.7 
7.0 
(a) 
(c) 
34.3 
18.2 
31.4 
38.2 
26 
4.1 
10.6 
29.0 
25.9 
1.6 
17.7 

25.3 
13.3 
17.3 


34.8 
0.9 
5.3 

120 


63.3 
76.8 
15.4 

(b) 

(d) 
70.3 
31.4 
57.2 
64.4 
54 

7.8 
16.7 
52.0 
46.2 

2.5 
32.1 

47.8 
20.6 
25.8 

161 

171 
57.6 
1.7 
13.5 


pair. 


a  Lacks  60  cents  of  price  of  1 
c  2  pairs  and  10  cents  over. 


b  1  pair  and  $1.19  over. 

d  3  pairs  and  88  cents  over. 


220 


LABOR,    WAGES,   AND  PRICES. 


Value  <>{  10  bushels  of  wheat  In  t§96  and  190$  ifihen  measured  by 
ike  wholesale  prices  of  the  following  staple  article*. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 


Articles. 


Coffee,  Rio.  No.  7 pounds 

Sugar,  granulated do.. 

Tea.  Formosa,  fine do . . 

Shoes,  men's  calf  bal.,  Goodyear  welt pairs 

Shoes,  women's  solid  grain do. 

Calico,  Cocheco  prints yards 

Denims.  Amoskeag do . . 

Drillings,  brown,  Pepperell d< » . . 

Ginghams,  Amoskeag do.. . 

Hosiery,  men's  cotton  half  hose.  20  to  22  oz pairs 

Overcoatings,  chinchilla,  cbtton-warp yards 

Sheetings,  bleached,  10-4.  Atlantic do . . 

Sheetings,  brown,  4-4.  Indian  head do . . 

Shirtings,  bleached,  4-4.  Fruit  of  the  Loom do.. 

Suitings,  indigo  blue,  all  wool,  14  oz,  Middlesex.,  .do.. 

Tickings,  Amoskeag,  A.  C.  A do . . 

Women's  dress  goods,  cashmere,  cotton-warp,  22-inch, 

Hamilton yards 

Coal,  anthracite,  stove bushels 

Petroleum,  refined  150°  test gallons 

Nails,  cut.  8-penny,  fence  and  common pounds 

Nails,  wire,  8-penny,  fence  and  common do . . 

Carbonate  of  lead  (white  lead) ,  American,  in  oil . .  do . . 

Cement.  Portland,  American barrels 

Plate  glass,  area,  3  to  5  square  feet square  feet 

Glassware,  tumblers,  JS-pint  common 


iv.«;. 


1903. 


52.0 

141.2 

141.5 

170.1 

24.8 

84.4 

(a) 

(b) 
(d) 

(c) 

122.2 

156.6 

64.9 

70.1 

111.9 

127.5 

135.9 

143.5 

92 

121 

14.7 

17.4 

37.7 

37.2 

103.1 

115.9 

92.1 

102.9 

5.6 

5.5 

62.9 

71.5 

90.2 

106.5 

47.3 

45.8 

61.7 

57.9 

236.1 

359.6 

219.2 

380.5 

•      124.0 

128.4 

3.2 

3.9 

18.9 

30.1 

427 

537 

a  2  pairs  and  $1.61  over. 
c  7  pairs  and  56  cents'  over. 


b  3  pairs  and  85  cents  over, 
d  8  pairs  and  80  cents  over. 


Value  of  cattle  (good  to  extra  steers)  per  100  pounds  in  1896  and 
1903  when  measured  by  the  ivholesale  prices  of  the  following 
staple  articles. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 


Articles. 


Coffee,  Rio,  No.  7 pounds.. 

Sugar,  granulated do  — 

Tea,  Formosa,  fine do  — 

Shoes,  men's  calf  bal.,  Goodyear  welt pairs.. 

Shoes,  women's  solid  grain do  — 

Calico,  Cocheco  prints yards.. 

Denims,  Amoskeag do.. .. 

Drillings,  brown,  Pepperell do. . . . 

Ginghams,  Amoskeag do  — 

Hosiery,  men's  cotton  half  hose.  20  to  22  oz pairs. . 

Overcoatings,  chinchilla,  cotton- warp yards.. 

Sheetings,  bleached.  10-4,  Atlantic do.... 

Sheetings,  brown,  4-4  Indian  head do  — 

Shirtings,  bleached,  4-4  Fruit  of  the  Loom do  — 

Suitings,  indigo  blue,  all  wool,  14  oz.  Middlesex .  . .  do  — 

Tickings,  Amoskeag,  A.  C.  A. do  — 

Women's  dress  goods,  cashmere,  cotton-warp,  22-inch, 

Hamilton yards.. 

Coal,  anthracite,  stove bushels.. 

Petroleum,  refined,  150°  test gallons . . 

Nails,  cut,  8-penny.  fence  and  common pounds . . 

Nails,  wire,  8-penny,  fence  and  common do  — 

Carbonate  of  lead  (white  lead),  American,  in  oil.. do  — 

Cement,  Portland,  American barrels. . 

Plate  glass,  area,  3  to  5  square  feet square  feet . . 

Glassware,  tumblers,  M-pint,  common 


a  1  pair  and  $2.03  over. 

c  5  pairs  and  18  cents  over. 


b  2  pairs  and  61  cents  over, 
d  5  pairs  and  88  cents  over. 


Above  all  thing's  we  should  avoid  the  demagague  as  a  pes- 
tilence, and  take  counsel  only  of  reason  and  right. — Hon.  C.  W. 
Fairbanks,  at  St.  Paul,  Minn.,  August  31,  1903. 


For  years  the  commerce  of  the  world  has  demanded  an  isth- 
mian canal,  and  recent  events  give  us  the  assurance  that  this  vast 
undertaking  will  be  accomplished  at  an  early  day  under  the  pro- 
tection of  the  American  flag. — Hon.  C.  W.  Fairbanks,  at  St.  Paul, 
Minn.,  August  31,  1903. 


LABOR,    WAGES,    AND   PRICES. 


221 


Value  of  hogs  (heavy)  per  100  pounds  in  1896  and  1903  when  meas- 
ured by  the  wholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 


Articles. 


1896. 


Coffee.  Rio,  No.  7 pounds. 

Sugar,  granulated do  — 

Tea,  Formosa,  fine : ...  do ... . 

Shoes,  men's  calf  bal. ,  Goodyear  welt pairs . . 

Shoes,  women's  solid  grain do 

Calico,  Cocheco  prints yards . . 

Denims,  Amoskeag do  — 

Drillings,  brown,  Pepperell do ... . 

Ginghams,  Amoskeag do  — 

Hosiery,  men's  cotton  half  hose,  20  to  22  oz pairs . . 

Overcoatings,  chinchilla,  cotton-warp yards . . 

Sheetings,  bleached,  10-4,  Atlantic do  — 

Sheetings,  brown,  4-4.  Indian  head do  — 

Shirtings,  bleached,  4-4.  Fruit  of  the  Loom do  — 

Suitings,  indigo  blue,  all  wool,  14  oz. .  Middlesex do  — 

Tickings.  Amoskeag,  A.  C.  A do  — 

Women's  dress  goods,  cashmere,  cotton-warp,  22-inch,  Ham- 
ilton   yards . . 

Coal,  anthracite,  stove bushels . . 

Petroleum,  refined,  150°  test gallons . . 

Nails,  cut.  8-penny ,  fence  and  common pounds . . 

Nails,  wire,  8-penny,  fence  and  common do  — 

Carbonate  of  lead  (white  lead),  American,  in  oil do  — 

Cement,  Portland,  American barrels . . 

Plate  glass,  area,  3  to  5  square  feet square  feet . . 

Glassware,  tumblers,  ji-pint,  common 


27.2 

108.4 

74.1 

130.5 

13.0 

26.4 

(a) 

(b) 
(d) 

(c) 

64.0 

120.2 

34.0 

53.7 

58.6 

97.9 

71.1 

110.1 

48 

93.0 

7.7 

13.4 

19.8 

28.5 

54.0 

88.9 

48.2 

79.0 

3.0 

4.2 

33.0 

54.9 

47.2 

81.7 

24.8 

35.2 

32.3 

44.4 

124 

276 

115 

292 

64.9 

98.5 

1.7 

3.0 

9.9 

23.1 

224 

412 

1  pair  and  96  cents  over. 
3  pairs  and  81  cents  over. 


b  2  pairs'  and  $1.36  over. 
d  6  pairs  and  73  cents  over. 


Value  of  20  pounds  of  butter  (New  York  State  dairy)  in  1896  and 
1903  when  measured  by  the  wholesale  prices  of  the  follow- 
ing staple  articles. 


[Compiled  from  Bulletin  No.  51,  United  States  Bureau 

of  Labor.] 

Articles. 

1896. 

1903. 

Coffee,  Rio  No.  7 

pounds . . 

27.0 

76.9 

do.... 

73.5 

92.7 

Tea,  Formosa,  fine 

do.... 

12.9 

18.7 

Shoes,  men's  calf  bal.,  Goodyear  welt 

pairs . . 

(a) 

(b) 

Shoes,  women's  solid  grain 

do.... 

(c) 

(d) 

Calico,  Cocheco  prints 

yards . . 

63.4 

85.3 

Denims,  Amoskeag 

do.... 

33.7 

38.1 

Drillings,  brown.  Pepperell 

do.... 

58.1 

69.5 

Ginghams,  Amoskeag 

do.... 

70.6 

78.2 

Hosiery,   men's  cotton  half  hose,  20  to  22  oz 

pairs . . 

48 

66 

Overcoatings,  chinchilla,  cotton-warp,  C.  C.  grade yards . . 

7.6 

9.5 

Sheetings,  bleached,  10-4,  Atlantic 

do.... 

19.6 

20.2 

Sheetings,  brown,  4-4,  Indian  head 

do.... 

53.5 

63.1 

Shirtings,  bleached.  4-4,  Fruit  of  the  Loom 

., do.... 

47.8 

56.1 

Suiitings,  indigo  blue,  all  wool,  14  oz.,  Middlesex. . 

? do.... 

2.9 

2.9 

Tickings,  Amoskeag,  A.  C.  A 

do ... . 

32.7 

38.9 

Women's  dress  goods,  cashmere,   cotton-warp 

22-inch,  Ham- 

ilton 

46.8 
24.6 

58.0 

Coal,  anthracite,  stove 

bushels . . 

25.0 

Petroleum,  refined,  150°  test 

gallons . . 

32.1 

31.5 

Nails,  cut,  8-penny,  fence  and  common 

pounds . . 

123 

196 

Nails,  wire.  8-penny.  fence  and  common 

do.... 

114 

207 

Carbonate  of  lead  (white  lead),  American,  in  oil. 

do.... 

64.4 

69.9 

Cement,  Portland,  American 

barrels . . 

1.7 

2.1 

Plate  glass,  area,  3  to  5  square  feet 

..square  feet.. 

9.8 

16.4 

222 

293 

a  1  pair  and  93  cents  over. 
c  3  pairs  and  78  cents  over. 


b  1  pair  and  $1.98  over. 

d  4  pairs  and  78  cents  over. 


When  the  comparative  value  of  silver  is  shown,  the  decrease  is 
remarkable.  The  value  in  1903  is  less  than  in  1896,  when  meas- 
ured by  22  of  the  25  articles.  In  1896  the  value  of  10  ounces  of 
silver  was  equal  to  150.5  pounds  of  granulated  sugar,  in  1903  it 
was  equal  to  but  116.8  pounds;  in  1896  equal  to  144.5  yards  of 
ginghams,  in  1903  to  98.6  yards;  in  1896  equal  to  109.6  yards  of 
Indian  Head  sheetings,  in  1903  to  79.6  yards;  in  1896  equal  to 
50.3  bushels  of.  stove  coal  (anthracite),  in  1903  to  but  31.5 
bushels. 


222 


LABOR,    WAGES,    AND   PRICES. 


The  table  follows : 

Value  of  10  ounces  of  silver  (fine  bar)  in  1896  and  1903  when 
measured  by  the  Wholesale  prices  of  the  following  articles. 

[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 


Articles. 


Coffee.  Rio.  No.  7 pounds. . 

Sugar,  granulated do 

Tea.  Formosa,  fine do 

Shoes,  men's  calf  bal.,  Goodyear  welt pairs.. 

Shoes,  women's  solid  grain do. . . . 

Calico,  Cocheco  prints yards. . 

Denims.  Amoskeag do ... . 

Drillings,  bro  wn,  Pepperell do 

Ginghams,  Amoskeag do 

Hosiery,  men's  cotton  half  hose,  20  to  22  oz pairs. . 

Overcoatings,  chinchilla,  cotton-warp yards.. 

Sheetings,  bleached,  10-4.  Atlantic do.. .. 

Sheetings,  brown.  4-4,  Indian  head do 

Shirtings,  bleached,  4-4.  Fruit  of  the  Loom do 

Suitings,  indigo  blue,  all  wool,  14  oz.  Middlesex do 

Tickings.  Amoskeag.  A.  C.  A do 

Women's  dress  goods,  cashmere,  cotton-warp.  22-inch, 

Hamilton yards . . 

Coal,  anthracite,  stove bushels . . 

Petroleum,  refined,  150°  test gallons. . 

Nails,  cut,  8-penny,  fence  and  common pounds. . 

Nails,  wire,  8-penny,  fence  and  common do 

Carbonate  of  lead  (white  lead),  American,  in  oil.  .do 

Cement,  Portland,  American barrels . . 

Plate  glass,  area.  3  to  5  square  feet square  feet . . 

Glassware,  tumblers,  M-pint,  common 


55.3 
150.5 

26.4 
(a) 
(O 
129.9 

69.0 
119.0 
144.5 

98 

15.7 

40.1 
109.6 

98.0 
6.0 

66.9 

95.9 
50.3 
65.6 

251 

233 

131.9 
3.4 
20.1 

455 


1903. 


97.0 

116.8 
23.6 

(b) 

(d) 

107.6 
48.1 
87.6 
98.6 
83 
12.0 
25.5 
79.6 
70.7 
3.8 
49.1 

73.2 
31.5 
39.8 

247 

261 
88.1 
2.7 
20.7 


a  2  pairs  and  $2.02  over, 
c  8  pairs  and  2  cents. 


b  2  pairs  and  72  cents  over, 
d  6  pairs  and  10  cents  over. 


PROTECTED  LABOR  IN  AMERICA  VS.  FREE-TRADE  LABOR  IN  GREAT  BRITAIN. 
OFFICIAL  FIGURES   U.    S.   GOVERNMENT   REPORTS. 

A  comparison  of  wage  conditions  in  the  United  States  with 
those  of  our  free-trade  neighbor,  Great  Britain,  is  interesting. 
It  is  said  that  in  no  country  is  labor  better  organized  than  in 
Great  Britain.  Organized  labor  has  therefore  exerted  at  least 
as  great  an  influence  for  higher  wages  there  as  it  has  in  this  coun- 
try. Industrial  conditions,  under  free  trade,  have,  however,  made 
it  impossible  for  employers  of  labor  to  pay  anything  like  the 
wages  received  by  American  workingmen. 

At  the  same  time  that  the  preceding  figures  relating  to  wages 
were  being  collected  in  this  country,  a  special  agent  of  the  United 
States  Bureau  of  Labor  visited  Great  Britain  for  the  purpose  of 
obtaining  wage  statistics  from  the  pay  rolls  of  British  industrial 
establishments  doing  business  continuously  during  the  period  from 
1890  to  1903,  so  that  statistics  might  be  obtained  for  that  country 
that  are  entirely  comparable  with  those  gathered  in  the  United 
States.         a 

The  following  table,  which  was  also  compiled  from  the  July, 
1904,  bulletin  of  the  federal  bureau  of  labor,  shows  the  general 
results  of  this  investigation  abroad  as  compared  with  the  figures 
obtained  for  this  country : 

We  are  a  people  of  peace  and    desirous   of   winning   its   ample 
trophies. — Hon.   C.   W.   Fairbanks,   at    Baldwin,   Kas.,   June  7,   1901. 


In  the  United   States  law  is  liberty   and  liberty   is   law. 
C.  W.  Fairbanks,  at  St.  Paul,  Minn.,  August  31,  1903. 


-Hon. 


We  seek  physical  power  because  it  may  advance  our  moral 
and  intellectual  well-being:.— Hon.  C.  W.  Fairbanks,  at  Lancaster, 
Mass.,  June  30,  1903. 

It  is  as  much  our  imperative  duty  to  protect  capital  and  labor 
in  the  free  and  proper  exercise  of  their  functions  as  it  is  to  restrain 
and  forbid  the  encroachments  of  wrong;.— Hon.  €.  W.  Fairbanks,  at 
St.  Paul,  Minn.,   August  31,  1903. 


LABOR,    WAGES,    AND    PRICES. 


223 


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These  statistics  show  a  remarkable  difference  between  wage 
conditions  in  the  United  States  and  in  Great  Britain.  During 
the  14  year  period  from  1890  to  1903  the  average  wage  returns 
for  each  year,  as  shown  in  the  table,  range  as  follows :  Black- 
smiths, in  the  United  States,  $0.26  to  0.29 %,  and  in  Great  Britain 
$0.16%  to  0.17%  per  hour ;  boiler  makers,  in  the  United  States, 
$0.26  to  0.28%,  and  in  Great  Britain  $0.16  to  0.17%  per  hour; 
bricklayers,  in  the  United  States,  $0.43  to  0.54%,  and  in  Great 
Britain  $0.17%  to  0.20%  per  hour ;  carpenters,  in  the  United 
States,  $0.27  to  0.36,  and  in  Great  Britain  $0.17  to  0.20%  per 
hour ;  compositors,  in  the  United  States,  $0.38  to  0.44%,  and  in 
Great  Britain  $0.15%  to  0.18  per  hour ;  hodcarriers,  in  the  United 
States,  $0.22%  to  0.28%,  and  in  Great  Britain  $0.12  to  0.13  per 
hour ;  ironmolders,  in  the  United  States,  $0.24%  to  0.30%,  and  in 
Great  Britain  $0.17  to  0.18  per  hour ;  general  laborers,  in  the 
United  States,  $0.14  to  0.17,  and  in  Great  Britain  $0.09%  to  0.10% 
per  hour;  machinists,  in  the  United  States,  $0.23%  to  0.27,  and 
in  Great  Britain  $0.15%  to  0.17, per  hour;  house  painters,  in  the 


224 


LABOR.    WAGES,    AND    PRICES. 


United  States,  $0.27  to  0.34'..  and  in  Great  Britain  $0.15*4  to 
0.17%  per  hour;  plumbers,  in  the  United  Stales.  ,$(l.:!4i/,  to  0.43%, 
and  in  Great  Britain  $0.17%  to  0120%  per  hour;  stone  cutters,  in 
Hie  United  States,  $0.34%  to  0.42,  and  in  Groat  Britain  .$0.17  to 
0.20  per  hour;  stone  masons,  in  the  United  Slates,  $0.34%  to  0.45, 
and  in  Great  Britain  $0.17%  to  0.21  per  hour. 

The  claim  is  sometimes  made  that  the  increased  wages  in 
this  country  since  the  years  of  the  depression  (1803  to  1897)  were 
accompanied  by  like  increases  in  Great  Britain.  That  this  is 
not  the  case  can  be  shown  by  examining  the  following  table,  in 
which  the  wages  in  180(5  and  in  1903  and  the  percentage  of  in- 
crease in  the  United  States  and  in  Great  Britain  during  that 
period  are  placed  side  by  side: 


Wages  in  the  United  States  and  Great  Britain  in  1896  and  1903. 
[Compiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 

Wages  per  hour. 

United  States. 

Great  Britain. 

Occupation. 

1896. 

1903. 

Per 

cent 
in- 
crease. 

1896. 

1903. 

Per 
cent 
in- 
crease. 

Blacksmiths 

$0.2643 
0.2626 
.4337 
.2740 
.3897 
.2335 
.2507 
.1415 
.2397 
.2742 
.3505 
.3590 
.3547 

$0.2962 
0.2848 
.5471 
.3594 
.4467 
.2863 
.3036 
.1676 
.2709 
.3450 
.4371 
.4225 
.4486 

12.1 
8.5 
26.1 
31.2 
14.6 
22.6 
21.1 
18.4 
12.6 
26.5 
25.8 
24.7 
17.7 

$0.1716 
.1683 
.1960 
.1893 
.1695 
.1250 
.1698 
.0958 
.1607 
.1656 
.1926 
.1893 
.1977 

$0.1740 
.1719 
.2062 
.2028 
.1795 
.1250 
.1787 
.1019 
.1677 
.1774 
.2027 
.1994 
.2078 

1  4 

Boilermakers 

2.1 
5.2 

7  1 

5  9 

Hodcarriers  

0.0 

Laborers,  general, . . 

M 

4  4 

Painters,  house 

7.1 
5  2 

Stonecutters 

Stonemasons 

5.3 
5.1 

The  tendency  of  wages  in  all  industrial  countries  is  to  increase 
gradually  from  year  to  year  except  at  times  of  industrial  depres- 
sion, and  while  such  a  normal  increase  is  noticeable  in  the  figures 
for  Great  Britain  from  1896  to  1903,  the  figures  for  the  United 
States  during  this  period  plainly  show  that  the  increase  here  has 
been  phenomenal.  Thus,  while  from  1896  to  1903  the  wages  of 
blacksmiths  increased  1.4  per  cent  in  Great  Britain  they  increased 

12.1  per  cent  in  the  United  States ;  the  wages  of  boiler  makers 
increased  2.1  per  cent,  in  Great  Britain  and  8.5  per  cent  in  the 
United  States ;  the  wages  of  bricklayers  increased  5.2  per  cent 
in  Great  Britain  and  26.1  per  cent  in  the  United  States ;  the 
wages  of  carpenters  increased  7.1  per  cent   in  Great  Britain  and 

31.2  per  cent  in  the  United  States ;  the  wages  of  compositors 
increased  5.9  per  cent  in  Great  Britain  and  14.6  per  cent  in  the 
United  States ;  the  wages  Of  hod  carriers  showed  no  change  in 
Great  Britain  and  increased  22.6  per  cent  in  the  United  States ; 
the  wages  of  iron  molders  increased  5.9  per  cent  in  Great  Britain 
and  21.1  per  cent  in  the  United  States;  the  wages  of .  general 
laborers  increased  6.4  per  cent  in  Great  Britain  and  18.4  per 
cent    in  the  United  States;   the  wages  of  machinists  increased 

4.4  per  cent  in  Great  Britain  and  12.6  per  cent  in  the  United 
States ;  the  wages  of  house  painters  increased  7.1  per  cent  in 
Great  Britain  and  26.5  per  cent  in  the  United  States ;  the  wages 
of  plumbers  increased  5.2  per  cent  in  Great  Britain  and  25.8  per 
cent  in  the  United  States;  the  wages  of  stone  cutters  increased 
5.3  per  cent  in  Great  Britain  and  24.7  per  cent  in  the  United 
States ;  and  the  wages  of  stone  masons  increased  5.1  per  cent  in 
Great  Britain,  while  they  increased  17.7  per  cent  in  the  United 
States. 

Thus,  while  the  percentage  of  increase  in  these  13  occupations 
ranged  from  0.0  to  1.1  per  cent  in  Great  Britain,  it  ranged  from 

8.5  per  cent   to  31.2  per  cent  in  the  United  States. 


LABOR,    WAGES,    AND    PRICES. 


225 


Official  Fignres  from  British  Reports. 

In  the  chapter  on  wages  and  cost  of  living  it  has  been  shown 
that  in  the  United  States  the  rise  in  wages  has  more  than  kept 
pace  with  the  increased  cost  of  food  commodities.  In  the  preced- 
ing chapter  it  has  been  shown  that  from  1896  to  1903  the  per- 
centage of  increase  in  the  wage  rates  in  13  leading  occupations 
ranged  from  0  to  7  per  cent.  It  is  interesting  in  this  connection 
to  observe  how  thi£  slight  increase  in  British  wages  compares  with 
the  increase  in  the  food  prices  of  that  country.  A  report  recently 
published  by  the  British  Government  contains  statistics  of  whole- 
sale and  retail  prices  in  the  United  Kingdom  up  to  and  including 
1902.  From  this  report  the  following  quotations  of  retail  prices  in 
London  have  been  compiled: 


Articles. 


Retail  Prices. 


Per 
cent 
in- 
crease 


Articles. 


Retail  Prices. 


l!)U;2 


Per 
cent 
in- 
crease. 


Flour,  per  14  lbs. 

Pastry  whites 

Households 

Superfiue 

Brown  Meal 

American 

Rice,  per  2  lbs. 

Carolina 

Java 

Fine  Patna 

Rangoon 

Ground  

Beef,  British,  per  lb.  in 
September. 

Fillet 

Gravy  beef 

Top  ribs  (whole) 

Fore  ribs  (prime) 

Sirloin  (prime  cuts). . . 

Sirloin  (wing  end) 

Beef  steak 

Rump  steak 

Mutton,  British,  per  lb 
in  September. 

Breasts 

Chops,  trimmed 

Fore  quarters 

Hind  quarters 

Pork,  British,  per  lb.  in 
September. 

Bell/ es  or  springs.. . 

Chops 

Legs 

Loins,  fore 

Loins,  hind 

Loins,  whole 


Bacon,  best  Irish,  per  K> 

Back  ribs 

Gammon 

Fore  ends 

Loins 

Collar 

Bacon,  best  Wiltshire, 
per  lb ... 

Back  ribs 

Gammon 

Fore  ends 

Loins 

Collar 

Hams,  YOrk,  per  lb. 

Under  16  lbs 

Over  16  lbs 

Hams,  irish,  per  lb. 

Over  10  lbs 

Eggs,  cooking,  per  doz. 

in  October. .' 

Eggs,  new  laid,  per  doz. 

in  October 

Sugar,  per  7  lbs. 

Moist,  for  cooking 

Demorara  (2d  quality) 

Loaf,  for  table  use — 

Castor 

Tea.China,  unblended,  fl> 

Kaisow  Congon 

Orange  Pekoe 

Gun  Powder 

Coffee,  Mocha,  per  lb. 

Unroasted 

Roasted 

Ground  

Coffee,   Costa  Rica, 

ground,  per  lb. 


:■:? 


Thus,  while  wages  in  Great  Britain  increased  from  0  to  7  per 
cent  in  13  leading  occupations  as  above  shown,  the  price  of  flour 
in  that  country  increased  from  11  to  27  per  cent ;  the  price  of  rice 
from  0  to  12  per  cent ;  the  price  of  beef  from  7  to  20  per  cent ;  the 
price  of  mutton  from  0  to  14  per  cent;  the  price  of  fresh  pork 
from  9  to  21  per  cent ;  the  price  of  bacon  from  22  to  50  per  cent ; 
the  price  of  ham  from  14  to  24  per  cent;  the  price  of  eggs  from 
12  to  18  per  cent ;  the  price  of  sugar  from  0  to  17  per  cent ;  and 
the  price  of  tea  from  6  to  11  per  cent,  and  so  on.  This  shows  that 
our  British  cousins  have  not  been  as  fortunate  as  we  during  the 
past  few  years,  and  that,  although  we  have  paid  more  for  our 
commodities  in  1903  than  in  1896,  we,  at  least,  unlike  our  British 
cousins,  have  had  the  wages  to  pay  for  them. 

The  British  Board  of  Trade,  by  order  of  Parliament,  recently 
published  comparative  statistics  of  wages  in  Great  Britain  and 
a  few  other  countries.  The  data  relate  to  the  years  between 
1895  and  1902,  but  mainly  to  the  years  1898  to  1901,  and  cover 
returns  for  fifteen,  skilled  occupations.  The  following  table  gives 
a  summary  of  these  returns,  corrected  to  a  standard  year,  for 
Great  Britain  and  the  United  States* 


226 


LABOR,     WAGES,     AM)    PRICES. 


Current  weekly  icuyc  rates  for  c<rhii>i  shillcd  occupations. 

[Source:  Memoranda,  %  statistical  tables,  and  charts  prepared  In 
the  Board  of  Trade  with  reference  to  various  matters  bearing-  on 
British  and  foreign  trade  and  Industrial  conditions,  pp.  291 
and  191] 


Occupations. 


Weekly 

wage 

rates 

in 

London. 


Weekly 
wage 
rates 

in  New 
York. 


Per  cent 
excess 
of  New 
York 
over 
London 
wage 
rates. 


Weekly  wage  rates  in 
other  towns. 


Great 
Britain. 


United 
States. 


Per  cent 
excess 

of  Amer- 
ican 
over 
British 
wage 
rates. 


Blacksmiths 

Brass  molders 

Cabinet  makers 

Carpenters  and  joiners 

Compositors 

Lithographic  printers . . 

Machinists  (fitters) 

Machinists  (turners)... 

Masons 

Painters 

Pattern  makers 

Plasterers  

Plumbers 

Upholsterers 

AH  of  above  fifteen 
trades 


0 

0 

SlA 

9 
0 
0 
0 
0 
9 

blA 
0 
10 

10 


42      0 


75      0 


64 
108 
64 

89 


64 

86 
174 
139 

79 
133 
116 

67 

79 


d. 
0 
0 
6 
3 
3 
0 
0 
0 

OH 

0 
3 
3 
0 


s.  d. 
75  0 
66  3 
58  2 
73  4 
56  3 
85  3 
52      1 

52  10 
84      4% 
73      3 


66 


UN 
M 
M 

92 
74 
151 
51 
51 
115 
100 
86 
123 
145 
54 


The  above  statistics  show  that  the  average  wage  rates  in  the 
United  States  are  nearly  twice  as  high  as  those  in  Great  Britain, 
and  fully  corroborate  the  figures  published  by  the  United  States 
Bureau  of  Labor. 

The  following  statistics  of  wages  per  hour  in  London  in  1903, 
taken  from  the  Ninth  Annual  Abstract  of  Labor  Statistics  pub- 
lished by  the  British  labor  department,  agree  almost  exactly  with 
those  obtained  from  private  establishments  by  a  special  agent  of 
the  United  States  Bureau  of  Labor  and  shown  on  page         : 

Bricklayers,  $0.21;  carpenters,  $0.21;  painters,  $0.18;  plas- 
terers, $0.22 ;  plumbers,  $0.22 ;  stone  masons,  $0.21 ;  masons  and 
plasterers'  laborers,  $0.14. 

Lower   Prices   in  the   United   States   Than   in   England. 

The  claim  is  often  made  that  while  wages  are  higher  in  the 
United  States  the  cost  of  living  is  correspondingly  cheaper  in 
Great  Britain.  That  this  statement  is  erroneous  can  be  proved  by 
official  statistics  obtained  simultaneously  in  both  countries.  In 
1892  the  Senate  Committee  on  Finance  made  an  extensive  report 
on  "Retail  Prices  and  Wages"  in  leading  cities  of  the  United  States 
and  Europe  at  different  periods  from  June,  1889,  to  September, 
1891.  Among  the  cities  considered  in  this  report  were  St.  Louis, 
Mo.,  and  Manchester,  England.  A  comparison  of  the  prices  of 
articles  of  identically  the  same  description,  obtained  at, the  same 
time,  namely,  June,  1889,  and  September,  1891,  in  both  cities, 
shows  that  instead  of  the  necessary  commodities  of  life  being 
higher  in  the  United  States  than  in  England,  they  are,  on  the  con- 
trary, as  a  rule,  much  lower.  This  is  shown  in  the  table  which 
follows.  A  glance  at  this  table  shows  that  most  of  the  necessary 
food  products,  such  as  bread,  eggs,  lard,  bacon,  roast  beef,  hams, 
mutton,  milk,  starch,  and  canned  vegetables,  were  much  lower  in 
St.  Louis  than  in  Manchester,  while  the  prices  of  the  few  remain- 
ing food  products  averaged  about  the  same  in  both  countries. 

With  regard  to  clothing  and  cloth  goods,  we  find  that  men's 
hosiery,  cotton  shirts,  sheetings,  shirtings,  and  cotton  and  woolen 
dress  goods  of  the  same  description  and  quality,  were  cheaper  in 
St.  Louis  than  in  Manchester;  that  carpets,  flannels,  and  cotton 
underwear  averaged  about  the  same,  and  that  only  in  the  case  of 
men's  hats  was  there  any  decided  difference  in  favor  of  the  Man- 
chester purchaser. 

Household  articles,  such  as  earthenware,  glassware  and  cutlery, 
were  nearly  the  same  in  price  in  St.  Louis  as  in  Manchester,  with 
a  very  slight  difference  in  some  cases  in  favor  of  the  latter  city. 


LABOR,    WAGES,    AND    PRICES. 


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228  LABOR,    WAGES,    AND    PltlcFS. 

On  the  other  band  furniture  cost  from  about  one  lift h  to  one-half 
as  much  in  the  United  States  as  in  Great  Britain,  so  that  for  the 
<ost  of  one  bed-room  set  in  Manchester  one  could  buy  I'mm  (wo  to 
chree  sets  in  St.  Louis ;  and  for  the  cost  of  one  dining  table  at 
Manchester,  a  whole  dining-room  set  could  bo  bought   in  St.  Louis. 

While  the  figures  above  quoted  are  the  results  of  investigations 
made  several  years  ago,  there  is  no  reason  to  believe  that  relative 
conditions  have  changed  materially  since  that  time.  The  almost 
unanimous  opinion  of  members  of  the  Moseley  Labor  Commission, 
composed  of  English  worUingmon,  which  visited  the  United  States 
in  1902,  was  that  the  cost  of  living  was  about  the  same  in  the 
United  States  as  in  England.  (See  "Moseley  Commission,"  in 
index.) 

But  the  question  may  be  asked,  "If  the  American  workingmen 
earn  so  much  more  and  pay  so  much  less  for  what  they  consume, 
why  are  they  not  all  wealthy  and  contented?"  The  answer  may 
be  found  in  the  statement  of  the  eminent  French  scientist,  Prof. 
Emile  Levasseur,  in  his  work  on  "L'Ouvrier  Americain"  (The 
American  Workingman).  After  summing  up  the  conditions  of 
labor  in  America  as  compared  with  Europe,  he  says  that  wages 
in  the  United  States  are  about  double  the  wages  in  Europe;  that 
objects  of  ordinary  consumption  by  working  people  (excepting 
dwelling  houses)  cost  less  in  the  cities  of  the  United  States  than 
in  those  of  Europe ;  that  the  American  workingman  lives  better 
than  the  European,  that  he  eats  more  substantially,  dresses  better, 
is  more  comfortably  housed  and  more  often  owns  his  dwelling, 
spends  more  for  life  insurance  and  various  social  and  beneficial 
associations,  and,  in  short,  has  a  much  higher  standard  of  life  than 
the  European  workingman. 

Advantages  of  American  Labor. 

A  great  deal  has  been  written  and  said  about  the  superior  ad- 
vantages which  American  labor  holds  over  the  labor  of  other 
countries.  In  August,  1901,  a  wealthy  Scotch  manufacturing  firm 
sent  a  delegation  of  workmen  to  the  United  States  to  investigate 
practical  conditions  and  compare  them  with  British  conditions  of 
labor  and  wages.  There  were  twelve  men  in  the  party,  selected 
by  popular  vote  from  their  fellow-workmen  in  the  shops,  and 
representing  the  following  trades:  Pottery,  painting,  decorating, 
upholstery  and  woodwork,  engineering,  railways,  building,  mining, 
textile  working,  metallurgy,  coach  building,  and  electricity. 

The  delegation  visited  Pittsburg,  Cleveland,  Buffalo,  New  York, 
Paterson,  Fall  River,  Trenton,  Philadelphia,  East  Liverpool,  Ohio, 
and  Niagara,  crossing  over  into  Canada. 

The  report  made  when  they  returned,  after  a  thorough  investi- 
gation of  the  practical  features  of  the  artisan's  life,  was  very  com- 
plimentary to  the  American  mechanic  and  artisan,  and  showed 
that  under  the  beneficent  economic  policies  which  now  prevail  in 
this  country  the  American  workingman  enjoys  many  advantages 
over  his  neighbor  across  the  water. 

They  reported  that  the  ordinary  craftsman  received  more  cash 
in  return  for  his  labor  in  the  United  States,  and  thus  could  com- 
mand many  and  more  varied  luxuries  than  his  British  cousin,  but, 
at  the*  same  time,  he  has  to  pay  far  more  for  these  luxuries  than 
he  would  on  the  other  side  of  the  Atlantic.  A  frugal  American 
artisan,  however,  has  it  within  his  power  to  save  money,  which  is 
denied  his  British  rival.  The  very  fact  that  the  American  receives 
more  money  in  hand  at  the  week's  end  gives  him  this  opportunity 
to  save,  because  the  British  workman  seldom  receives  the  same 
amount,  and  therefore  is  denied  any  opportunity  of  hoarding  the 
needful  for  a  rainy  day. 

The  delegation  reported  that  the  United  States  will  not  only 
provide  for  its  own  wants  in  the  near  future,  but  will  be>  in  addi- 
tion, able  to  supply  a  great  portion  of  the  wants  of  the  civilized 
world. 

During  the  past  thirty  years  it  has  been  noted  that  in  textile 
fabrics  alone  America  has  gone  to  the  front,  and  in  the  flax,  silk, 
hemp  and  similar  industries  the  Americans  can  now  hold  their 
own.  The  trade  of  India  and  Scotland,  to  a  large  extent,  still  de- 
pends on  the  buyers  in  the  United  States,  but  year  after  year  it  is 
becoming  more  evident  that  the  buyer  will  not  only  produce  his 
own  goods  but  will  quote  to  the  merchant  who  was  originally  a 


LABOR,    WAGES,    AND    PRICES.  2^0 

seller.  In  such  a  commodity  as  binder  twine,  for  instance,  it  is 
not  a  great  number  of  years  since  the  American  farmer  used  Brit- 
ish made  twines.  Now  the  British  market  is  overrun  with  the 
American  production,  thus  reversing  the  former  order  of  things. 

Wages  in  America  total  far  more  as  compared  with  British  pay. 
This  increase  may  be  placed  at  one-half  to  two-thirds  more  than  is 
earned  in  England  and  Scotland.  The  men  from  whom  this  was 
learned  were  mechanics,  factory  workers,  dyers,  stonecutters  and 
various  other  trades. 

The  delegation  reported  that  not  in  a  single  instance  did  they 
find  the  American  workman  paid  loiver  wages  than  the  British 
workman. 

The  delegation  reported  that  the  climatic  conditions  of  America 
to  a  certain  extent  favor  the  workingman  and  the  workingman's 
wife.  Looking  back  upon  the  pottery  district  of  Trenton,  and  even 
in  the  larger  city  of  Philadelphia,  it  was  with  pleasing  satisfac- 
tion they  noted  the  evening  promenade  of  the  sexes.  Hatless  the 
ladies  came ;  coatless,  often,  were  the  gentlemen.  The  ladies' 
dresses  of  light  material,  minus  gloves,  and  even  with  arms  bare, 
carried  a  comforting  look  under  the  cloudless  skies.  The  houses 
of  the  working  classes  were  enticing  externally,  and  the  inside 
arrangements  far  ahead  of  workingmen's  houses  in  England  or 
Scotland. 

They  visited  Paterson,  N.  J.,  and  studied  the  textile  industry. 
Here  they  learned  that  the  all-important  item  of  wages  shaded 
British  pay  bills,  and  that  even  women  gained  almost  as  much 
hard  cash  within  the  walls  of  a  Paterson  factory  as  males  do  in 
England.  It  was  intensely  gratifying  to  them  to  note  that  female 
labor  was  assessed  at  greater  value  than  it  is  abroad,  and  as  it 
should  be  in  a  great  many  instances  where  it  certainly  is  not. 


TRUSTS  AND  LABOR. 

A    Study    of   Industrial   Combinations   and   Their   Effect    on   Wages, 
Employment,  and  Prices. 

The  United  States  Department  of  Labor  published  in  its  bulle- 
tin for  July,  1900,  the  results  of  a  careful  investigation  of  41 
trusts  and  industrial  combinations,  the  investigation  covering, 
among  other  subjects,  the  dates  of  formation,  capitalization, 
amount  and  character  of  stocks  and  bonds  issued,  profits,  wages, 
number  of  employes,  and  prices  before  and  after  the  combination, 
etc.  The  report  was  prepared  by  Prof.  J.  W.  Jenks,  of  Cornell 
University,  the  trust  expert  of  the  United  States  Industrial  Com- 
mission, and  the  material  was  collected  by  special  agents  and 
experts  of  the  United  States  Department  of  Labor. 

As  far  as  statistics  were  available  the  report  shows  in  general 
a  greater  number  of  persons  employed  and  higher  wages  paid  i*. 
the  same  establishment  after  the  combination  than  before.  Owing 
to  the  fact  that  the  books  of  many  corporations  before  they  en- 
tered into  the  combination  were  not  accessible,  only  a  portion  of 
the  combinations  were  able  to  furnish  statistics  of  wages  and  per- 
sons employed  before  and  after  the  combination. 

The  report  shows  that  of  14  establishments  giving  returns  9 
show  an  increase  in  the  average  wages  of  superintendents  and 
foremen,  4  show  a  decrease,  and  in  1  there  has  been  no  change. 
Out  of  these  14  companies  10  were  formed  in  the  years  1898  and 
1899,  so  that  the  comparison  of  conditions  before  and  after  is  a 
very  direct  one. 

In  7  cases  out  of  the  14  the  wages  of  traveling  salesmen  in- 
creased, in  2  they  decreased,  and  in  1  they  remained  the  same.  In 
2  cases  no  traveling  salesmen  had  been  employed  by  the  companies 
entering  into  the  combination,  whereas  after  the  combination  was 
made  such  men  were  put  to  work.  In  one  case  in  which  traveling 
salesmen  had  been  employed  by  the  separate  companies  their  serv- 
ices were  dispensed  with  after  the  combination.  One  establish- 
ment reported  none  employed  before  or  after. 

The  average  annual  wages  of  skilled  laborers  have  increased 
in  10  cases  and  decreased  in  2.  The  average  annual  wages  of  un- 
skilled laborers  have  increased  in  10  cases,  decreased  in  1,  and 
remaine/j.  the  same  in  1,  after  the  combination. 


230 


LABOR,    WAGES,    AND    PRICES. 


Taking  the  employees  as  a  whole,  the  results  show  that  out  of 
12  cases  reporting  there  had  been  an  increase  of  wages  in  9  cases 
and  a  decrease  in  .".. 

Taking  all  employees  collectively  in  each  of  the  13  combinations 
reporting,  there  have  been  but  two  cases  of  a  decrease  in  the 
number  of  employees  and  but  one  case  of  a  decrease  in  the  total 
annual  wages  paid. 

The  following  table  shows  the  annual  average  wages  paid  be- 
fore and  after  the  formation  of  the  combinations  and  the  per  cent, 
of  increase  or  decrease  in  the  average  annual  wages,  as  well  as 
the  per  cent  of  increase  or  decrease  in  the  number  of  employees 
and  the  total  amount  of  wages  paid,  by  classes  of  employes : 


Average  annual  wages-  paid  before  and  after  the  formation  of  the 
combinations,  and  per  cent  of  increase  or  decrease  in  wages  and 
the  number  of  employees. 


(Incre 

ase  (+);  decrease  (— 

).) 

0) 

u 

1* 

h 

a 

o 

Average  annual  wages 
paid. 

Per  cent   of    in- 
crease or  decrease 
in  the   number   of 
employees. 

Per  cent   of    in- 
crease or  decrease 
in  total  amount  of 
wages  paid. 

Occupations. 

lid 

3.2  ft 

0 

a  «5 

II 
P 

all 

Ah 

Superintendents  and  foremen. 

12 
12 
9 
9 
9 
9 

$1,262 
1.346 
620 
294 
757 
754 

$1,227 
1,246 
705 
351 
798 
662 

—  2.77 

—  7.43 
+13.71 
+19.39 
+  5.42 
—12.20 

+11.79 
+  4.17 
+23.34 
+20.06 
+36.45 
+29.06 

+  8.72 
—  3.57 

+40.13 

+43.38 

Clerks 

+43.98 

+13.42 

All  employees 

9 

460 

518 

+12.61 

+21.56 

+36.68 

This  table  shows  an  increase  in  the  average  annual  wages  paid 
to  skilled  laborers,  to  unskilled  laborers,  and  to  clerks,  and  a  de- 
crease in  the  average  annual  wages  paid  to  superintendents  and 
foremen,  traveling  salesmen,  and  the  unclassified  employees.  Tak- 
ing all  of  the  employees  together,  the, percentage  of  increase  of 
average  annual  wages  has  been  12.61. 

In  all  lines,  taking  together  all  the  establishments  which  have 
reported,  there  has  been  a  decided  increase  in  the  number  of  em- 
ployees; and  in  an  cases,  with  the  exception  of  the  traveling  sales- 
men, there  has  been  also  an  increase  in  the  total  amount  of  wages 
paid. 

A  table  giving  the  total  amount  of  gross  sales,  number  of  em- 
ployees and  total  annual  wages  in  the  case  of  eight  combinations 
reporting,  shows  a  decided  increase  in  the  efficiency  of  the  em- 
ployees, the  average  increase  of  gross  sales  being  47.32  per  cent., 
as  compared  with  an  increase  of  27.59  per  cent,  in  the  number  of 
employes,  and  38.19  per  cent,  in  the  total  annual  wages  paid.  The 
increase  of  38.19  per  cent,  in  the  annual  wages  as  compared  with 
the  increase  of  27.59  per  cent,  in  the  number  of  employees,  shows 
that  the  benefit  of  this  increase  of  efficiency  did  not  go  entirely  to 
the  employers,  but  was  divided  between  them  and  the  employees. 

"OUT    OF    WORK     BENEFITS"    UNBER    BEMOCRATIC    ANB    REPUBLICAN 
ABMINISTRATION. 

While  no  one  familiar  with  the  methods  of  the  federal  bureau 
of  labor  doubts  the  accuracy  and  integrity  of  its  work,  there  may 
be  some  who  either  through  ignorance  or  for  political  reasons  may 
endeavor  to  bring  discredit  upon  its  figures.  For  this  reason 
other  sources  have  been  consulted,  and  the  same  results  are  shown. 

It  is  plain  that  nothing  shows  more  clearly  the  condition  of 
employment  than  statistics  of  out-of-work  benefits  paid  by  labor 
organizations. 

The  Cigar  Makers'  International  Union  is  exhibiting  at  the 
St.  Louis  World's  Fair  a  chart  showing,  for  each  year  from  1890 
to  1903,  the  total  cost  of  out-of-work  benefits  paid  to  members  of 


LABOR,    WAGES,    AND    PRICES. 


231 


that  organization,  and  the  total  membership.  By  dividing  this  cost 
by  the  membership  we  ascertain  the  average  cost  per  member. 
These  figures  are  given  in  the  following  table: 

Out-of-work    benefits   paid    by   the    Cigar   Makers'   International 
Union  from  1890  to  1903. 


Year. 

Total  cost  of  out- 
of-work  benefits. 

Total   mem- 
bership of  C. 
M.  I.  U. 

Average  cost 
per  member 

of  out-of- 
work  benefits. 

1890 

$22,760.50 
21,223.50 
17,460.75 
89,402.75 
174.517.25 
166.377.25 
175,767.25 
117,471.40 
70.197.70 
38.037.00 
23.897.00 
27.083.76 
21.071.00 
15,558,00 

24,624 
24,221 
26,678 
26,788 
27,828 
27.760 
27.318 
26,347 
26,460 
28.994 
33.955 
33,974 
37,023 
39,301 

$0.92 

1891 

0.88 

1892 

0.65 

1893 

3.34 

1894 

6.27 

1895 

5.99 

1896 

6.43 

1897 r 

4.46 

1898 

2.65 

1899 

1.31 

1900 

0.70 

1901 

0.80 

1902 

0.57 

1903 

0.40 

This  table  is  interesting.  From  1890  to  1892  the  cost  per  mem- 
ber for  out-of-work  benefits  decreased  from  $0.92  to  $0.65.  In 
March,  1893,  the  Democratic  administration  came  into  power.  The 
cost  per  member  increased  in  that  year  to  $3.34,  then  to  $6.27, 
then  a  slight  drop  to  $5.99  and  a  rise  again  in  1896  to  $6.43  per 
member !  In  March,  1897,  the  Republican  administration  returned. 
The  cost  per  member  during  that  year  fell  to  $4.46,  and  for  each 
year  since  it  shows  a  rapid  decline,  until  in  1903  it  was  reduced 
to  but  $0.40  per  member.  Thus  while  from  1896  to  1903  the  total 
membership  increased  from  27,318  to  39,301,  or  43  per  cent.,  the 
total  cost  for  out-of-icork  benefits  decreased  from  $175,767.25  to 
$15,558.00,  or  91  per  cent. 

REPORTS  OF  STATE  LABOR  BUREAUS. 

During  recent  years  a  number  of  state  labor  bureaus,  particu- 
larly those  in  states  having  considerable  manufacturing  interests, 
have  published  from  year  to  year  information  showing,  among 
other  things,  the  number  of  persons  employed  in  leading  industries, 
the  total  and  average  wages  paid  employees,  the  number  of  days 
establishments  were  in  operation  during  the  year,  the  value  of 
products,  etc.  These  statistics  are  separately  discussed  for  each 
state  for  which  comparative  data  could  be  obtained.  Unfortu- 
nately none  of  these  bureaus  except  that  of  New  York  has  pub- 
lished data  for  1903,  the  year  of  highest  wages.  Nevertheless,  as 
far  as  the  figures  go,  they  corroborate  those  of  the  federal  bureau 
of  labor. 

Illinois   Labor  Reports. 

In  the  biennial  reports  of  the  Bureau  of  Labor  Statistics  of 
Illinois  the  industrial  conditions  are  shown  for  recent  years  in  627 
identical  establishments,  representing  38  industries.  No  informa- 
tion for  years  later  than  1899  has  yet  been  published.  Tables  are 
shown  comparing  conditions  in  the  years  1895,  1897  and  1899,  from 
which  the  following  have  been  compiled: 

Six   hundred   and   twenty-seven  identical   establishments,   repre- 
senting 38  industries. 

[Compiled  from  the  biennial  reports  of  the  Bureau  of  Labor  Sta- 
tistics  of  Illinois.] 


INCREASE  IN   NUMBER  OF  PERSONS  EMPLOYED. 


Year. 

Average 
number  of 

persons 
employed. 

Increase  as  compared 

with  previous  year 

shown. 

Increase  as  compared 
with  the  year  1895. 

Number. 

Per  cent. 

Number. 

Per  cent. 

22,466 
23,567 
29,166 

1897 

1.101 
5,599 

4.90 
23.76 

1,101 
6,700 

4.90 

1899 '. 

29.82 

232 


LABOR,    WAGES,    AND    PRICKS. 


INCHKASH    IN   ToTAIj   WA<  i  KS   run. 


Year. 

Total 

paid. 

li,>'!fasr  ns  compared 

with  previous  year 

shown. 

Increase  as  compared 
with  the  year  [896. 

Amount. 

Per  cent. 

Amount. 

Per  cent. 

$9,800,033 
10,335.919 
13.876,259 

1 



3,540.340 

5.47 
34.25 

4.076.226 

41.59 





5.47 

INCREASE  IN  AVERAGE  YEARLY  EARNINGS. 


Year. 

Average 

yearly 

earnings. 

Increase  as  compared 

with  previous  jjdar 

shown. 

Increase  as  compared 
with  the  year  1895. 

Amount. 

Per  cent. 

Amount. 

Per  cent. 

1895 '. 

$436.32 
438.58 
475.77 

1897 

$9.86 

'37.19 

0.54 
8.48 

$2.36 
39.55 

0.54 

1899 

9.07 

Massachusetts  Labor  Reports. 

The  annual  statistics  of  manufactures  in  Massachusetts,  pub- 
lished by  the  Massachusetts  Bureau  of  Statistics  of  Labor,  present 
reports  from  a  large  number  of  manufacturing  establishments  in 
the  state,  and  each  year  compare  conditions  with  the  previous 
year,  in  the  same  establishments. 

The  following  table  compiled  from  the  Massachusetts  reports 
shows  the  percentage  of  increase  or  decrease  each  year  over  the 
year  preceding  in  the  same  establishments,  in  the  number  of  per- 
sons employed,  the  average  yearly  earnings  per  employee,  and  the 
value  of  goods  made  and  work  done : 


8   & 


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CO    fit 

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CD    +* 

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LABOR,    WAGES,    AND    PRICES. 


233 


New  York  Labor  Reports. 

The  following  tables  and  text  matter  concerning  New  York 
have  been  reproduced  from  Bulletin  No.  19,  of  the  department  of 
labor  of  the  State  of  New  York : 

Since  1897  the  New  York  bureau  has  collected  statistics  of  ac- 
tual earnings  of  wage-workers  through  the  officers  of  working- 
men's  organizations,  reaching  in  this  way  150  wage-earners  where 
one  could  have  been  reached  by  means  of  individual  schedules. 
The  New  York  statistics  are  based  on  quarterly  reports  collected 
twice  a  year  and  thus  cover  one-half  of  each  year. 

Average  earnings  of  organized  workingmen,  1897-1903. 


Year. 

January- 
March. 

July-Sep- 
tember. 

Average 
for  three 
months. 

Estimated 

average 

for  one 

year. 

Estimated 
number  of 
days  of 
employ- 
ment in 
year. 

1897 

$145- 
164 
172 
176 
183 
184 
186 

$174 
175 
197 
182 
194 
197 
190 

8163 
169 
187 
179 
189 
191 
188 

$650 
678 
747 
716 
756 
765 
753 

254 

1898 

255 

1899 

273 

1900 

265 

1901 

274 

1902 

278' 

1903 

278 

Experience  r 

as  shown 

tl  ftt  ear 

nings  in 

the  six  moi 

iths  April- 

June  and  October-Decembei  run  about  the  same  as  in  the  six 
months  for  which  statistics  j,re  collected,  so  that  it  Is  not  errone- 
ous' to  estimate  the  year's  earnings  on  that  basis.  Between  1897 
and  1903  the  average  yearly  earnings  of  men  increased  $103  (from 
$650  to  $753),  or  16  per  cent.  As  a  matter  of  fact,  the  real  increase 
was  much  larger,  for  the  membership  of  trades  unions  more  than 
doubled  in  the  above-mentioned  period  and  the  new  members  al- 
most invariably  belonged  to  trades  or  lived  in  localities  where  they 
worked  for  lower  rates  of  wages  than  the  old  members.  As'  a 
consequence  of  these  additions  the  average  daily  wage  appeared  to 
be  stationary  after  1899,  while  as  a  matter  of  fact  it  was  almost 
universally  advancing.  In  1901,  for  example,  47,585  members  of' 
unions  obtained  advances  averaging  $1.97  a  week,  while  only  2.668 
suffered  reductions'  in  weekly  wages — and  these  were  principally 
due  to  the  establishment  of  shorter  hours  of  work.  In  1902,  again, 
93,225  trades-unionists  secured  increases  in  wages  averaging  $1.78 
a  week,  while  only  3,329  sustained  decreases'.  Considering  these 
facts,  it  seems  quite  conservative  to  say  that  wage  rates  increased 
at  least  10  per  cent  between  1897  and  1903.  In  that  period  em- 
ployment increased  as  follows: 


Percentage  of  workinig  time  in  which  organized  workingmen  and 
women  were  employed  and  idle. 


Year. 

Employed. 

Idle. 

1897 

Per  cent. 

76^0 
82.0 
79.5 
82.8 
86.6 
86.1 

Per  cent. 
30.3 

1898 

24.0 

1899 

18.0 

1900 

20.5 

1901 

17.2 

1902 

13.4 

1903 

13.9 

The  duration  of  employment  in  1903  was  therefore  24  per  cent 
greater  TFTan  in  1897.  Assuming  that  rates  of  wages  increased 
only  10  per  cent  in  the  same  interval,  their  gain  in  earnings  would 
be  36  per  cent.  This  is  doubtless  larger  than  the  increase  enjoyed 
by  workers  in  manufacturing  industries. 


We  have  a  veneration  for  the  past  and  it  is  well. — Hon.  C.  W. 
Fairbanks,  in  commencement  address  at  Baker  University,  Baldwin, 
Kas.,   June   7,   1901. 

Cheap  labor  is  not  the  sole  end  we  seek  in  the  United  States. 
*  *  *  We  desire  not  only  well-paid  labor,  but  want  that  labor 
steadily  employed.— Hon.  C.  W.  Fairbanks,  at  Kansas  City,  Mo., 
September  1,  1902. 


234 


LABOR      WAGES,    AND    PRICES. 


The  following  tables  show  the — 

Prevailing  daily  rates  of  wages  in  the  building  industry  of  New 
York  City  (Manhattan  Borough)   from  1883  to  1908. 


Year. 

Bricklay- 
ers and 
masons. 

Carpen- 
ters. 

House- 
smiths. 

Laborers. 

Painters 
and  decor- 
ators. 

Masons.   Plasterers. 

1883 

$4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.50 
4.00-4.50 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.4p 
4.40 
4.80 
5.20 
5.20 

18.60 

3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50-4.00 
4.00 
4.00 
4.50 
4.50 

$2.75 

2.75 

2.<5 

2.75 

2.75 

2.75 

2.75 

2.75 

2.00-2.75 

2.00-2.75 

2.00-2.75 

2.00-2.75 

2.00-2.75 

2.00-2.75 

2.50 

2.50-2.80 

2.80-3.50 

3.20-3.50 

3.76 

4.00 

4.50 

ItJO 

2.50 

2.50 

2.50 

2.75 

2.25-2.75 

2.25-2.75 

2.25-2.75 

2.40-2.50 

2.40-2.50 

2.40-2.50 

2.40 

2.40 

2.40 

2.40 

2.40 

2.64 

2.64 

2.64 

2.80 

2.80 

$3.00 
3.00 
3.00 
3.00 
8.00 

$2.50-4.00 

1884 

2.50-4.00 

1885 

3.00-4.00 

1886 

3. 12-4  XX) 

1887 

3.12-t.OO 

1888  

8.50-4.00 

1889     

3.50-4.00 

1890 

3.50-4.00 

1891 

1892 

2.50 
2.50 
2.75 
2.75 
2.75 
2.75 
2.75 
2.75 
3.00 
3.00 
3.00 
3.25 
3.25 

3.50-4.00 
3.50-4.00 

1893  

3.50-4.00 

1894   

3.50-4.00 

1895     

3.50-4.00 

1896 

3.50-4.00 

1897 

3.00-4.00 

1898 

3.00-4.00 

1899 

3.00-4.00 

1900../ 

1901 

3.00-4.00 
3.00-4.50 

1902 

a  3.50-4.50 

1903 

a  3.50-4.50 

Year. 

Plasterers. 

Plumbers 
and  gas 
fitters. 

Roofers. 

Sheet- 
metal 
workers. 

Steam 
fitters. 

Tile 
layers. 

1883 

$4.00 
4.00 
4.00 
4.00 
4.00 
4.50 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.00 
4.50 
4.50 
4.50 
5.00 
5.50 

$3.00-3.50 

3.50 

3.50 

3.50 

3.50 

3.50 

3.50 

3.50 

2.75-3.75 

2.75-3.75 

2.75-3.75 

2.75-3.75 

2.75-3.75 

2.75-3.75 

3.75 

3.75 

3.75 

3.75 

3.75 

4.25 

4.25 

$3.00 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.75 
4.00 
4.00 

$2.00-3.00 

2.00-3.00 

2.00-3.00 

2.50-3.50 

2.50-3.50 

3.00 

3.25 

3.25' 

3.25 

3.25 

3.25 

3.25 

3.25 

3.25 

3.25-3.50 

3.25-3.50 

3.50 

3.75 

3.75 

4.00 

4.00 

$3.00 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.75 
4.00 
4.00 
4.00 
4.00 

1884 

1885 

$3.50 

1886 

3.50 

1887 

3.50 

1888 

3.50 

1889 

3.50-4.00 

1890 

3.50-4.00 

1891 

4.00 

1892 

4.00 

1893 

4.00 

1894 

4.00 

1895 

4.00 

1896 

4.00 

1897 

4.00 

1898 

4.00 

1899 

4.00 

1900 

4.50 

1901 

5.00 

1902 

5.00 

1903 

5.00 

a  Amalgamated  reports  painters'  wages  $4;  the  Brotherhood, 
$3.50  and  $4;  Amalgamated  reports'  decorators'  wages  $4.50.  Decor- 
ators received  the  higher  rate  throughout  the  entire  period. 

Prevailing  daily  rates  of  wages  for  paving  and  stonecutting  in 
New  York  City  (Manhattan  Borough),  1883  to  1903. 


1883 

$4.00 
4.00 
4.00 
4.00 
5.00 
5.00 

1884 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

4.50 
4.50 
4.50 
4.50 
4.50 

1892 

1893 

1894 

1895 

1896 

1897 

4.50 
4.50 
4.50 
4.50 
4.50 
4.50 
4.50 

1898 

1899 

1900 

1901 

1902 

1903 

Paving. 


Freestone. 

Granite. 

$4.50 

$3.50 

4.50 

3.50 

4.50 

3.50 

4.50 

3.50 

4.50 

3.50 

4.50 

3.50 

4.50 

4.00 

4.50 

4.00 

4.50 

4.00 

4.50 

4.00 

4.50 

4.00 

4.50 

4.00 

4.50 

4.00 

4.50 

4.00 

$3.50  and  4.50 

4.00 

3.50  and  4.50 

4.00 

3.50  and  4.50 

4.00 

3.50  and  4.50 

4.00 

3.50  and  4.50 

4.00 

4.00-5.00 

4.00 

4.00-5.00 

4.50 

Marble. 


$2.50 
2.50 
50-3.00 
50-3.00 
50-3.00 
50-3.00 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
3.50 
4.00 
4.00 
4.00 
4.00 
4.50 
4.50 
5.00 


The  secre 


LABOB,   WAGES,   AND  PBICES. 


236 


Pennsylvania  Labor  Reports. 

secretary  of  internal  affairs  of  the  state  of  Pennsylvania, 
in  his  reports  for  1901  and  1902  publishes  a  series  of  tables  show- 
ing comparative  statistics  in  354  identical  establishments  for  the 
years  1892  to  1901,  and  771  identical  establishments  for  the  yearn 
1896  to  1902,  respectively.  The  following  tables  have  been  com- 
piled from  these  reports: 


Comparative  statistics  of  354  identical  manufacturing  establish- 
ments, 1892  to  1901. 

[Compiled   from   the  Twenty-ninth   Annual   Report   of  the   Bureau 
of  Industrial  Statistics,  Pennsylvania.] 


Average  persons 
employed. 

Aggregate  wages 
paid. 

Average  yearly 
earnings. 

Value  of  product. 

Ye 

ar. 

Per 

Per 

Per 

Per 

Num- 
ber. 

cent 
of  in- 
crease. 

Amount. 

cent 
of  in- 
crease. 

Amount. 

cent 
of  in- 
crease. 

Amount. 

cent 
of  in- 
crease. 

1892 

. . .     136,882 

$67,331,876 

$491.90 

$269,452,465 

1893 

...     122,278 

a  10.67 

56,818,289 

a  15.61 

464.66 

a   5.54 

226.017,762 

a  16.12 

1894 

. . .     109,383 

a  10.55 

45,229,667 

a  20.40 

413.50 

a  11.01 

185,626,971 

a  17.87 

1895 

...     127,361 

16.44 

56,704,511 

25.37 

445.78 

7.81 

222,730.930 

19.99 

1896 

...     118,092 

a   7.28 

52,102,365 

a   8.12 

441.29 

a   1.01 

211.252,732 

a   5.15 

1897 

...     121,281 

2.70 

52,138,941 

.07 

429.90 

a   2.58 

222,995,654 

5.56 

1898 

...     137,985 

13.77 

62.676,615 

20.21 

454.52 

5.73 

266.044,530 

19.30 

1899 

...     154,422 

11.91 

78,179,333 

24.73 

506.27 

11.38 

377.934,411 

42.06 

1900 

. . .     136.814 

a  11.40 

69.697,485 

a  10.85 

509.43 

.62 

418.790,239 

10.81 

1901 

...     156,424 

14.33 

85.219.969 

22.27 

544.80 

6.94 

432,994,653 

3.39 

a  Decrease. 

Comparative  statistics  of  771  identical  manufacturing  establish- 
ments, 1896  to  1902. 

[Compiled   from    the    Thirtieth    Annual    Report    of   the   Bureau    of 
Industrial   Statistics,',    Pennsylvania.] 


Average  persons 
employed. 

Aggregate  wages 
paid. 

Average  yearly 
earnings. 

Value  of  product. 

Year. 

Num. 
ber. 

Per 

cent 
of  in- 
crease. 

Amount. 

Per 

cent 
of  in- 
crease. 

Amount. 

Per 
cent 
of  in- 
crease. 

Amount. 

Per 

cent 

of  in. 

crease. 

1896.... 

129,240 
134,918 
150.990 
173,302 
184,623 
191.153 
203,927 

$49,430,808 
51,827,646 
60,681,022 
75,797,895 
81 ,029,889 
86.103,628 
98,432,570 

'"4.8" 
17.1 
24.9 

6.9 

6.3 
14.8 

$382.47 
384.14 
401.89 
437.37 
439.97 
450.44 
482.68 

"6.4" 
4.6 
8.8 
0.6 
2.4 
7.2 

$185,249,628 
202,292,309 
237,590,026 
320,743,139 
351,376,655 
366,722,365 
421,141,115 

1897.... 
1898 .... 
1899.... 
1900.... 
1901 ... . 
1902.... 

4.4 
11.9 
14.8 
6.5 
3.5 
6.7 

9.2 
17.5 
34.9 
9.5 
4.4 
14.8 

Other  state  labor  bureaus  have  published  statistics  showing 
similar  results,  but  only  those  have  been  reproduced  which  are 
comparable  one  year  with  another,  that  is,  statistics  for  identical 
establishments. 

WAGES   IN    HAWAII  BEFORE   AND  AFTER   ANNEXATION. 

That  the  influence  of  American  annexation  is  felt  in  our  de- 
pendencies may  well  be  seen  in  the  following  table  of  wages  paid 
on  the  plantations  of  Hawaii  each  year  from  1890  to  1902: 

Average  daily  wages  of  various  classes  of  plantation  labor,  1890 

to  1902. 

[From  Bulletin  of  the  United  States  Bureau  of  Labor,  July,  1903.] 


Occupation. 

1890. 

1892. 

1894. 

1896. 

1897. 

1898. 

1899. 

1900. 

1901. 

1902. 

Unskilled  (male ) 

Unskilled  (female) 

Field  labor  and  superin- 
tendence (a) 

$0.65 
.39 

.80 
3.04 

$0.60 
.39 

.69 
3.21 

$0.55 
.38 

.65 
3.16 

$0.53 
.35 

.62 

3.28 

$0.52 
.32 

.60 
3.29 

$0.52 
.32 

.60 
3.24 

$0.58 
.37 

.63 

3.07 

$0.64 
.39 

.72 
3.74 

$0.76 
.44 

.88 
3.69 

$0.71 
.45 

74 

3  80 

a  One  plantation  only. 


236 


LABOR,    WAGES,    AND    PRICES. 


The  annexation  of  Hawaii  took  place  in  1898.  During  the 
period  from  1890  to  1898  the  wages  of  unskilled  male  laborers  de- 
clined steadily  from  $0.65  to  $0.52  per  day,  while  from  1899  to 

1902  they  increased  from  $0.58  to  $0.71  per  day;  the  daily  wages 
of  unskilled  female  laborers  declined  from  $0.39  in  1890  to  $0.32  in 
1898,  and  increased  steadily  after  annexation  to  #<>.  i:»  per  day. 
While  the  daily  wages  of  skilled  mechanics  fluctuated  considerably 
from  year  to  year  before  annexation,  they  increased  almost  stead- 
ily from  $3.07  in  1899  to  $3.80  in  1902. 

RAILWAY  LABOR  DURLNG  REPUBLICAN  AND  DEMOCRATIC  ADMINIS- 
TRATIONS. 

There  is  no  better  index  to  the  industrial  condition  of  a  country 
than  the  amount  of  business  done  by  the  railways,  and,  as  the 
railways  in  this  country  employ  over  one  million  persons,  the  in- 
crease or  decrease  in  traffic  materially  affects  a  large  proportion 
of  the  population. 

During  the  fiscal  year  ending  June  30,  1896  (Cleveland's  ad- 
ministration), there  were  826,620  railway  employees  in  the  United 
States  receiving  a  total  yearly  compensation  of  $468,824,531.     In 

1903  there  were  1,312,537  railway  employees,  about  97  per  cent 
of  whom  received  $757,321,415.  This  shows  an  increase  in  7  years 
of  485,917  railway  employees  and  of  about  three  hundred  million 
dollars  in  aggregate  salaries  and  wages.  In  other  words,  58.8  per 
cent  more  persons  were  employed  by  the  railways  in  the  United 
States  on  June  30,  1903,  than  on  June  30,  1896,  when  the  Demo- 
cratic party  was  in  power,  and  nearly  two-thirds  more  were  paid 
in  wages  and  salaries.  The  following  table  shows  the  number  of 
railway  employees  and  the  total  salaries  and  wages  paid  in  each 
class  in  1896  and  1903 : 

Number  and  total  wages  and  salaries  of  railway  employees  in  the 
United  States  during  the  fiscal  years  ending  June  30,  1896,  and 
June  30,  1903. 

[Compiled  from  Report  on  Statistics  of  Railways,  Interstate  Com- 
merce   Commission.] 


Occupation  group. 


Railway  employees 
on  June  30— 


1896. 


1993. 


Compensation  of 

railway  employees 

for  the  year  ending 

June  30— 


General  officers 

Other  officers 

General  office  clerks 

Station  agents 

Other  station  men 

Enginemen 

Firemen 

Conductors 

Other  trainmen < 

Machinists 

Carpenters 

Other  shopmen 

Station  foremen 

Other  trackmen 

Switch  tenders,  crossing  tenders 
and  crossing  watchmen 

Telegraph  operators  and  dis- 
patchers  

Employees— A  c  c  o  u  n  t  floating 
equipment 

All  other  employees  and  laborers 

Total 


5,372 
2,718 
26,328 
29,723 
75,919 
35.851 
36,762 
25,457 
64,806 
29,272 
38,846 
95,613 
30,372 


44,266 
21,682 


5,502 
88,467 


4,842 

5,201 

42,218 

34,892 

120,724 
52,993 
56,041 
39,741 

104.885 
44,819 
56,407 

154,635 
37,101 

300,714 

49,961 


7,949 
168,430 


$12,497,957 
5,301,119 
19,037,816 
17.059,117 
39,076.478 
41,354.307 
23,724,854 
24.758,485 
38,379,035 
19,312,746 
22,948,585 
48,497,887 
17,097,832 
54,521,113 

24,950,907 

13,695.587 

3,221,290 
43,398,416 


$13,244,121 
10,010,099 
30,486,272 
21,011,724 
60,463,462 
64,173,825 
37,484,283 
39,932,537 
66,221,636 
33,414,954 
35,526,545 
84,133,168 
21,430.984 

103.426,685 

27,162,555 

19,962,487 

5,032,788 
84,203.290 


826,620 


468,824,531 


757,321,415 


a  The  figures  showing  total  wages  and  salaries  are  for  97  per 
cent,  of  the  employees  only.  The  exact  figures  for  the  total  num- 
ber of  employees  had  not  been  computed  at  the  time  when  this 
book  was  published.  On  the  basis  of  the  figures  given,  the  ap- 
proximate total  compensation  for  the  year  ending  June  30,  1903, 
was  about  $780,000,000. 

LABOR   LAWS. 


LABOR  LEGISLATION  IN  REPUBLICAN  AND  DEMOCRATIC  STAMES. 

There  is  no  better  way  of  judging  the  merits  of  a  political  party 


LABOR,    WAGES,    AND   PRICES. 


237 


than  by  the  laws  which  are  passed  by  the  legislators  who  are 
elected  to  office  from  its  ranks.  With  regard  to  legislation  for  the 
protection  of  the  workers  much  remains  to  be  done  before  they  re- 
ceive their  full  measure  of  protection  and  justice,  but  as  can  be 
shown  by  the  statistics  of  the  different  states,  nearly  all  protective 
labor  legislation  in  the  United  States  was  first  enacted  by  Repub- 
lican states,  and  then  adopted  by  way  of  imitation  by  the  Demo- 
cratic states.  At  the  present  time,  that  is,  up  to  the  close  of  1903, 
the  proportion  of  Republican  states  having  protective  labor  legis- 
lation is  much  greater  than  that  of  Democratic  states.  This  is 
plainly  shown  in  the  table  on  the  following  page. 

The  following  table  shows  the  number  and  per  cent,  of  Repub- 
lican and  Democratic  states  which  have  enacted  the  legislation 
as  shown  on  the  preceding  chart : 


Legislation  in  force  January  1,  1904 


Republican  States. 


Number.     Per  cent. 


Democratic  States. 


Number.     Per  cent. 


Creating  labor  bureaus — 

Creating  factory  inspection  serv- 
ices  

Providing  for  free  employment 
bureaus 

Providing  for  boards  of  concilia- 
tion and  arbitration — 

Establishing  an  eight-hour  day 
for  labor  on  public  works 

Prohibiting  employment  of  chil- 
dren under  12  years  of  age  in 
factories 

Limiting  hours  of  labor  of  children 

Restricting  employment  of  chil- 
dren of  school  age  and  of  il- 
literate children 

Prohibiting  employment  of  chil- 
dren in  bar-rooms 

Prohibiting  employment  of  chil- 
dren in  operating  or  cleaning 
dangerous  machinery 

Regulating  woman  labor 

Requiring  seats  for  females  in 
shops  and  stores 

Regulating  sweatshops 

Requiring  wages  to  be  paid 
weekly,  fortnightly  or 
monthly 

Protecting  members  of  labor  or- 
ganizations  

Protecting  the  union  label 


50 

31 

12% 

31 

19 


37% 
25 

12% 


56 

12% 


37% 


12% 
69 


An  examination  of  these  tables  presents  an  interesting  lesson 
in  practical  politics.  We  shall  take  up  in  rotation  each  of  the 
more  important  subjects  of  labor  legislation,  and  see  which  states 
have  done  the  most  for  the  workingman. 

Labor  Bureaus. — There  are  few  agencies  which  have  done  more 
toward  giving  a  clear  insight  into  the  problems  of  labor  and  capi- 
tal, that  have  brought  employer  and  employee  nearer  together,  or 
that  have  furnished  the  laboring  people  with  facts  for  arguments 
in  favor  of  protective  legislation,  than  bureaus  of  labor  and  labor 
statistics.  The  above  tables  show  that  at  present  there  are  33 
state  labor  bureaus  in  the  United  States.  Of  these,  25  are  in  Re- 
publican states  and  8  are  in  Democratic  states.  Reducing  these 
figures  to  a  proportionate  basis,  we  find  that  25  out  of  29  Repub- 
lican states,  or  86  per  cent.,  have  labor  bureaus ;  8  out  of  16  Dem- 
ocratic states,  or  50  per  cent,  have  labor  bureaus. 

Factory  Inspection  Service. — It  is  well  known  to  all  working 
people  that  protective  labor  laws  are  practically  a  dead  letter  in 
any  state  unless  there  is  a  factory  inspection  service  organized 
for  the  purpose  of  searching  out  and  bringing  to  justice  persons 
who  violate  such  laws.  It  is  easy  enough  to  enact  protective  legis- 
lation, but  it  is  another  thing  to  enforce  it.  If  a  state,  therefore, 
enacts  such  laws  and  fails  to  organize  a  service  for  their  enforce- 
ment, it  is  deceiving  those  whom  it  pretends  to  favor.  Let  us 
again  observe  the  tables.  We  find  that  22  out  of  29  Republican 
states,  or  76  per  cent.,  have  laws  creating  factory  inspection  ser- 
vices. We  also  find  that  5  out  of  16  Democratic  states,  or  31  per 
cent,  have  factory  inspection  services.     In  examining  the  other 


238 


LABOR,    WAGES,    AND    PRICES. 


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creating  tactory  inspection  services 

Providing  for  free  employment  bureaus 

Providing  for  boards  of  conciliation  and  arbitration. 

Kstablishing  a  compulsory  8  hour  day  for  labor  on 
public  works. .  (a) 

Prohibiting  employment  of  children  under  12  years, 
of  age  in  factories 

Limiting  hours  of  labor  of  children 

Restricting  of  employment  of  children  of  school  age 
and  of  illiterate  children 

Prohibiting  employment  of  children  in  bar-rooms 

Prohibiting  employment  of  children  in  operating  or 
cleaning  dangerous  machinery 

Regulating  woman  labor 

Requiring  seats  for  females  in  shops  or  mercantile  es- 
tablishments  

Regulating  sweatshops 

Requiring  wages  to  be  paid  weekly,  fortnightly,  or 
monthly „ 

Protecting  members  of  labor  organizations 

protecting  the  union  label 

a  In  addition  to  the  states  Indicated,  nvo  Republica 

working  day  in  the  absence  of  a  contract. 
Note.— States  having  an  age  limit  but  permitting  ch 

LABOR,    WAGES,    AND    PRICES.  239 

subjects  of  labor  legislation  which  folloiv  we  musi  not  lose  sight 
of  the  fact  that  only  5  of  the  Democratic  states  have  made  pro- 
vision for  factory  inspection  services  for  the  purpose  of  carrying 
out  the  provisions  of  the  labor  laws  which  will  be  under  consid- 
eration. 

Free  Employment  Bureaus. — The  movement  to  establish  free 
public  employment  bureaus,  where  working  people  in  search  of 
work  and  employers  desiring  help  might  be  brought  together  with- 
out expense  to  either,  was  started  in  Ohio  by  the  passage  of  a  law 
requiring  the  labor  bureau  of  that  state  to  establish  agencies  in 
the  leading  cities.  Other  states  followed  Ohio's  example,  until  at 
present  laws  providing  for  such  agencies  have  been  enacted  in  13 
states.    Of  these  11  are  Republican  and  2  are  Democratic. 

Boards  of  Arbitration  and  Conciliation. — Twenty-one  states 
have  enacted  laws  providing  for  either  state  or  local  boards  of 
conciliation  and  arbitration.  Of  these  16  are  Republican  and  5 
are  Democratic  states. 

Eight-hour  Law. — For  many  years  labor  organizations  have 
been  endeavoring  to  secure  legislation  prohibiting  labor  on  govern- 
ment works  or  public  contracts  for  over  eight  hours  per  day.  At 
the  present  time  17  of  the  45  states  have  such  laws  on  their 
statute  books.  Of  these  14  are  Republican  and  3  are  Democratic. 
In  addition  to  these,  5  Republican  states  and  1  Democratic  state 
have  laws  declaring  eight  hours  to  be  a  legal  working  day  in  the 
absence  of  a  contract. 

Child  Labor. — Ever  since  the  introduction  of  the  factory  sys- 
tem, over  a  century  ago,  the  greatest  sufferers  from  the  greed  of 
inconsiderate  and  cruel  employers  have  been  the  helpless  children, 
who  often  at  a  tender  age  are  placed  in  factories.  It  is  a  prin- 
ciple recognized  in  all  civilized  countries  that  children  under  12 
years  of  age  should  not  be  employed  in  factories,  and  nearly  all 
civilized  countries  have  laws  placing  a  minimum  age  limit  of  12 
or  14  years  upon  such  child  labor.  In  our  country  28  states  abso- 
lutely prohibit  the  employment  of  children  under  12  years  of 
age  in  factories.  Of  these,  19  are  Republican  and  9  are  Demo- 
cratic states.  Three  of  the  latter,  however,  did  not  enact  such 
laws  until  last  year.  Of  these  19  Republican  states,  17  have  fac- 
tory inspection  services  to  see  that  the  laws  are  enforced,  while 
only  4  of  these  9  Democratic  states  make  provision  for  such  in- 
spection. 

Many  states  have  enacted  laws  placing  certain  restrictions 
upon  the  employment  of  children,  usually  under  16  years  of  age, 
and  in  some  cases  even  upon  the  employment  of  all  minors.  Of 
this  class  are  laws  limiting  the  hours  of  labor  of  children  in  fac- 
tories or  stores,  which  have  been  enacted  in  27  states.  Of  these 
19  are  Republican  and  8  are  Democratic  states. 

Twenty-eight  states  have  placed  restrictions  upon  the  employ- 
ment of  children  of  school  age  or  of  illiterate  children,  of  which 
22  are  Republican  and  6  are  Democratic. 

Thirteen  states  prohibit  the  employment  of  children  or  minors 
in  places  where  intoxicants  are  sold  or  handled.  Of  these  9  are 
Republican  and  4  are  Democratic. 

Thirteen  states  prohibit  the  employment  of  children  in  operat- 
ing dangerous  machinery  or  cleaning  machinery  in  motion.  Of 
these  11  are  Republican  and  2  are  Democratic  states. 

Woman  Labor. — Next  to  the  children  the  greatest  victims  of 
abuse  by  greedy  employers  when  unrestrained  by  law  are  women. 
Investigations  have  shown  that  their  condition*  is  sometimes  piti- 
ful where  employers  are  given  free  scope  in  their  employment. 
Their  protection,  in  the  interests  of  humanity  and  morals,  has  also 
been  the  subject  of  legislation  in  nearly  all  civilized  countries.  In 
the  United  States  38  states  have  legislated  upon  this  subject.  Of 
these.  38  states,  27  are  Republican  and  11  are  Democratic.  Again 
it  is  interesting  to  notice  that  of  the  21  Republican  states  regu- 
lating woman  labor  21  provide  for  factory  inspection,  while  of  the 
11  Democratic  states  mentioned,  only  4  make  such  provision. 

Seats  for  Females  in  Shops. — Legislation  on  this  subject  needs 
no  comment.  Any  man  who  has  a  daughter  or  sister  employed  in 
a  shop  or  store*  and  every  physician,  knows  what  a  hardship  it  is 
to  a  woman  to  be  compelled  to  stand  all  day  at  a  bench  or  behind 
a  counter.  Fortunately  in  31  states  legislation  has  been  enacted 
requiring  employers  to  provide  seats  for  females.  Of  these  31 
states,  22  are  Republican  and  9  are  Democratic. 


240 


LAUOK,    \V  \CIS.     AND    PRICES. 


itshop  Legislation.-   There    Is   no   -renter   menace   to   tin* 
he;iltli  of  the   working   people.   ;in<l    nothing   wliieli    tends   more  to 

lower  and  degrade  human  beings,  than  to  crowd  them  together  in 

small,  tilt  1 1 \-  workshops,  whore  lliey  are  often  coinpelled  to  work, 
eat  and  Bleep  without  regard  to  health  Or  morals,  and  where  the 
hoOTfi  Of  labor  are  often  so  long  that   die  \ietims,  who  are  usually 

foreigners  unaoajuainted  with  our  language,  are  shut  out  from  ail 

qpportttnltles  for  education  or  heitormont  of  any  kind.  The  scenes 
ohserved  in  those  shops  hy  official  investigators  have  heen  revolt- 
ing beyond  description.  Long  ago  efforts  have  heen  made  to  regu- 
late these  so-called  "sweatshops,"  and  12  states  have  enacted  laws 
looking  to  this  end.  Of  these  12  states  10  are  Republican  and  2 
are  Democratic.     Nothing  more  need  he  said  on  this  point. 

Wage  Payments. — In  order  to  insure  the  prompt  payment  of 
workinirmen's  waires  in  cash  when  due,  21  states  have  enacted 
laws  requiring  employers  to  pay  Wages  weekly  or  fortnightly,  and 
in  some  instances  prohibiting  a  longer  interval  than  one  month 
between  pay-days.  Of  these  states  15  are  Republican  and  G  are 
Democratic. 

Protection  of  Members  of  Labor  Organizations. — Fifteen  states 
have  enacted  laws,  that  are  now  in  force,  prohibiting  employers 
from  discharging  persons  on  account  of  membership  in  labor  or- 
ganizations, or  from  compelling  persons  to  agree  not  to  become 
members  of  labor  organizations  as  a  condition  of  securing  employ- 
ment or  continuing  in  their  employ.  Of  these  13  are  Republican 
and  2  are  Democratic  states. 

Protection  of  the  Union  Label. — Thirty-eight  states  have  adopted 
laws  allowing  trade  unions  to  adopt  labels  or  trade-marks  to  be 
used  to  designate  the  products  of  the  labor  of  their  members,  and 
prohibiting  the  counterfeiting  or  the  use  of  such  labels  or  trade- 
marks by  unauthorized  persons.  Of  these  states  27  are  Republican 
and  11  are  Democratic. 

Earnings  of  railiray  employees  in  the  United  States,  1902. 

[From  the  Fifteenth  Annual  Report  on  the  Statistics  of  Railways 
by   the   Interstate   Commerce   Commission.] 


Occupation. 


Number. 


Total 
earnings. 


Average 
earnings. 


General  officers 

Other  officers 

General  office  clerks 

Station  agents i 

Other  station  men 

Enginemen 

Firemen 

Conductors 

Other  train  men 

Machinists 

Carpenters 

Other  shopmen 

Section  foremen 

Other  trackmen 

Switch   tenders,    crossing  tenders 
and  watchmen 

Telegraph   operators,   despatchers 
employees,  account  floating 
equipment 

All  other  employees  and  laborers.. 


84.816 
5.039 
37,570 
33.478 

105.433 
48.318 
50.651 
35.070 
91.383 
39,145 
51.698 

136.579 
35.700 

281,075 

50,489 
28,244 

7,426 
147,201 


$13,090,284 
9,491,146 
26,853,600 
20,172,608 
53,709,985 
58,135,447 
33,780,709 
35,211,477 
56,335,462 
28,412,840 
31,925,126 
73.269,159 
20,356.376 
89,536,409 


18,281,069 


4,363.822 
74,433,083 


£2.718.08 

1.883  54 

714.76 

602.56 

509.42 

1,203.18 

666.9o 

1,004.03 

616.48 

(a)  2.36 

(a)  2.08. 

(a)  1.78 

(a)  1.72 

(a)  1.25 

(a)  1.77 
(a)  2.01 

(a)  2.00 
(a)  1.71 


(a)  Rate  per  day. 


The  State  is  potent.  Corporations  and  combinations  which 
derive  their  breath  from  the  State  are  within  its  absolute  and 
perpetual  control.— Hon.  C.  W.  Fairbanks,  at  St.  Paul,  Minn.,.  Au- 
gust 31,  1903. 


It  remains  true  now  as  it  always  has  been,  that  in  the  last 
resort  the  country  districts  are  those  in  which  we  are  surest  to 
find  the  old  American  spirit,  the  old  American  habits  of  thought 
and  ways  of  living.  Conditions  have  changed  in  the  country  far 
less  than  they  have  changed  in  the  cities,  and  in  consequence  there 
has  been  little  breaking  away  from  the  methods  of  life  which  have 
produced  the*  great  majority  of  the  leaders  of  the  Republic  in  the 
past President  Roosevelt  at  Bangor,  Me.,  Aug.  27,  1902. 


ADVANCE  IN  PRICES.  241 


THE  ADVANCE  IN  PRICES. 

It  is  doubtless  true  that  there  has  been  an  advance  in  prices 
of  certain  manufactures  and  food  stuffs  in  the  United  States  since 
1896,  though  the  recent  reports  of  the  Labor  Bureau  show  that 
this  advance  has  not  been  as  great  as  the  advance  in  wages.  This 
subject  of  the  relative  advance  in  prices  and  wages  is  discussed 
under  the  heading  of  Labor,  Wages,  and  Prices,  page  203.  Great 
effort  has  been  made  by  the  Democratic  fault  finders  to  make  it 
appear  that  the  increase  in  prices  has  been  brought  about  by  the 
trusts  and  great  combinations  of  this  character. 

The  principal  causes  of  this  advance  in  prices  may  be  enum- 
erated as  follows :  1.  Great  increase  in  demand  at  home,  due 
to  increased  earnings  and  business  activity.  2.  Increase  in  cost 
of  labor  to  those  engaged  in  the  production  of  the  articles  in  ques- 
tion ;  and,  3,  increase  in  cost  of  materials  used  in  manufacturing. 

That  the  increase  in  the  earnings  and  business  activity,  and 
therefore  the  purchasing  power  of  the  people  of  the  United  States 
is  very  great  and  that  such  increase  in  all  cases  affects  prices  is 
too  well  known  to  require  discussion.  A  contrast  of  conditions 
to-day  with  those  of  1895  and  1896  and  the  demand  for  products 
of  the  farm  or  factory  and  the  increased  earnings  with  which  to 
purchase  such  products  is  of  itself  an  explanation  of  the  advance 
in  prices  which  would  naturally  follow.  In  all  lines  of  busi- 
ness the  demand  has  been  fully  equal  to  and  in  many  cases  has 
exceeded  the  supply,  as  is  proven  by  the  enormous  increase  in 
importation  of  many  articles  for  which  consumers  were  accus- 
tomed to  rely  upon  the  home  market. 

In  iron  and  steel,  for  example,  the  demand  of  1902  and  1903  was 
so  far  beyond  the  capacity  of  the  home  manufacturers  "to  supply 
that  the  importation  of  iron  and  steel  in  their  various  forms  in- 
creased from  17  million  dollars  in  1901  to  51%  millions  in 
1903.  As  a  consequence  of  this  excessive  demand,  steel  billets, 
which  may  be  accepted  as  a  representative  article  in  iron 
and  steel,  advanced  from  $16.75  per  ton  on  January  1,  1899, 
to  $35  per  ton  on  January  1,  1900,  and  stood  at  $29  per  ton  on. 
January  I,  1902,  $37  per  ton  in  the  middle  of  that  year,  and  at  $31 
on  January  1,  1903.  By  the  middle  of  the  year  1903  the  excessive 
demand  upon  the  home  market  began  to  grow  less,  and  in  July 
the  price  fell  to  $29 ;  in  November,  to  $23,  and  has  stood  continu- 
ously at  $23  per  ton  from  November,  1903,  down  to  May,  1904. 

DUTIES   ON  IRON   AND   STEEL   NOT   PROHIBITIVE. 

This  combination  of  circumstances  with  reference  to  prices  of 
iron  and  steel  is  especially  interesting  in  view  of  its  relation  to 
various  assertions  made  by  the  Democrats  regarding  the  relation 
of  trusts  and  tariffs  to  prices.  It  has  been  asserted  over  and 
over  again  that  the  rates  of  duty  on  iron  and  steel  are  prohibi- 
tive as  to  imports,  and  that,  therefore,  it  is  in  the  power  of  the 
manufacturers  to  maintain  such  prices  as  they  may  choose  in  the 
home  market.  It  will  be  observed,  however,  that  imports  re- 
sponded immediately  to  the  advance  in  prices.  As  above  indicated, 
prices  of  steel  billets,  a  representative  article,  which  had  been  $16 
per  ton  in  1898,  began  to  advance  in  the  early  part  of  1899.  This 
did  not  occur  sufficiently  early  in  the  year,  however,  to  affect  the 
importations  of  the  fiscal  year  1899,  which  ended  June  30  of  that 
year ;  the  value  of  iron  and  steel  imported  in  the  year  ending  June 
30,  1899,  being  12  million  dollars.     The  continuous  high  prices  of 

1899  and  1900,  however,  had  their  effect  in  increasing  the  impor- 
tations in  the  fiscal  year  1900  to  20  million  dollars.     By  July  of 

1900  prices  again  fell  somewhat  and  ranged  from  $29  per  ton  in 
July  of  that  year  to  $20.75  in  January,  February,  and  March, 
1901 ;  and,  as  a  consequence,  impqrts  of  iron  and  steel  fell  to  a 
little  less  than  18  million  dollars  in  1901.  In  the  autumn  of  1901 
and  the  early  part  of  1902  home  prices  again  advanced,  reaching 
$37  per  ton  by  the  middle  of  1902,  and  imports  increased  to  27 
million  dollars  in  the  year  ending  June  30,  1902.  Prices  remained 
high  in  the  home  market  during  the  remainder  of  1902  and  the 
early  part  of  1903,  and  as  a  consequence  the  imports  during  the 


242  ADVANCE  IN   PRICES. 

year  ending  June  30,  1903,  were  51  million  dollars,  or  a  greater 
value  than  for  20  yean  with  the  single  exception  of  1891,  which 
was  about  the  same  figure  as  that  for  1!><)3.  In  the  latter  part  of 
1903  and  the  early  part  of  1904*  however,  as  already  indicated, 
prices  fell  in  the  homo  market,  and  as  a  consequence  the  im- 
portations in  the  first  half  of  L904  foil  from  88%  millions  to  21 
millions.  This  great  Increase  Id  the  Imports  of  iron  and  steel  in 
response  to  the  unusual  demands  of  the  homo  market  and  con- 
sequent high  prices  Is  of  Itself  a  sufficient  refutation  of  the  as- 
sertion that  the  rates  of  duty  on  iron  and  steel  are  prohibitive, 
and  that  the  prices  in  the  home  market  can  be  fixed  by  home  pro- 
ducers without  reference  to  competition  from  abroad. 

Another  important  fact  with  reference  to  the  movements  of 
prices  of  iron  and  steel  in  the  past  few  months  is  that  they  com- 
pletely refute  the  assertion  that  it  is  in  the  power  of  the  manu- 
facturers to  maintain  high  prices.  The  fact  that  this  representa- 
tive class  of  steel  production — steel  billets — is  shown  by  the  re- 
ports of  the  Bureau  of  Statistics  to  have  fallen  from  $37  per  ton 
in  July,  1902,  to  $23  per  ton  by  November,  1903,  a  reduction 
of  about  one-third,  and  remained  stationary  at  that  low  figure 
since  that  time,  refutes  the  assertion  that  prices  can  be  fixed  and 
maintained  by  the  manufacturers.  If  the  steel  trust  or  any  com- 
bination of  manufacturers  were  able  to  fix  and  maintain  prices  it 
would  be  scarcely  possible  that  they  would  permit  a  reduction 
of  40  per  cent  in  prices  of  their  products  within  a  period  of  fif- 
teen months  and  permit  prices  to  remain  at  this  comparatively 
low  figure  down"  to  the  present  time. 

LABOR  AND  RAW    MATERIAL   MUCH    HIGHER. 

As  to  wages,  labor,  as  is  well  known,  forms  a  very  large  pro- 
portion of  the  value  of  the  manufactured  article.  In  many  cases 
it  forms  three-fourths  of  the  total  cost  of  the  finished  article,  but 
as  a  whole  it  may  be  fairly  set  down  as  forming  at  least  one-half 
of  the  value  of  the  manufactures  of  the  country.  That  the  cost 
of  labor  has  very  greatly  increased  is  too  well  known  to  require 
argument.  NAs  shown  elsewhere,  the  reports  of  the  Labor  Bureau 
show  a  marked  increase  in  wages  of  all  occupation,  especially  as 
compared  with  the  period  from  1893  to  1896.  The  reports  of 
Frederick  W.  Job,  Secretary  of  the  Employers'  Association  of 
Chicago,  show  that  wages  in  many  lines  of  occupation  have  in- 
creased from  20  per  cent,  to  50  per  cent,  since  1895,  and  when 
it  is  taken  into  consideration  that  from  one-half  to  three-fourths 
of  the  value  of  the  manufactured  article  consists  of  labor,  in 
which  such  increases  have  been  made  in  wages,  this  fact  accounts 
for  a  large  part  of  the  increased  cost  of  the  article. 

As  to  raw  material.  That  prices  of  raw  material  have  in- 
creased very  greatly  is  indicated  by  tables  taken  from  the  official 
reports  of  the  Bureau  of  Statistics  and  printed  on  page  ...., 
showing  the  import  prices  of  articles  required  in  manufacturing. 
They  show,  for  example,  that  raw  cotton,  which  was  imported 
in  1897  at  11.2  cents  per  pound,  averaged  in  1903  18.9  cents ; 
hemp,  which  averaged  $126  per  ton  in  1897,  was  in  1903  $150  per 
ton;  flax  increased  from  $219  per  ton  in  1897  to  $258  in  1903; 
manila  hemp  from  $79  per  ton  in  1897  to  $200  in  1903;  sisal 
grass,  for  use  in  manufacturing  rope,  twine,  etc.,  from  $60  per  ton 
in  1897  to  an  average  of  $156  in  1903 ;  jute,  from  $30  per  ton  in 
1897  to  $48  in  1903 ;  Yaw  silk  from  2.97  cents  per  pound  in  1897 
to  3.45  cents  in  1903.  India  rubber,  the  import  price  of  which 
averaged  50  cents  per  pound  in  1897,  was  69%  cents  in  1903. 
Pig  tin,  for  use  in  manufacturing  tin  plates,  which  averaged  12.8 
cents  per  pound  in  1897,  import  price,  averaged  in  1903  27.3  cents. 
It  will  be  seen  from  these  few  examples  that  prices  of  raw  ma- 
terial imported  increased  from  25  per  cent,  to,  in  some  cases, 
150  per  cent. 

A  table  on  page  244  shows  in  detail  the  increase  in  import 
prices  of  articles  used  in  manufacturing  and  will  repay  careful 
study  in  a  consideration  of  this  subject. 

ADVANCES  IN  RAW    MATERIALS. 

The  above  discussion  relates  to  prices  of  imported  raw  ma- 
terials, and  it  certainly  can  not  be  charged  that  these  advances 
are  due  to  control  by  tariff-protected  trusts,  so  called,  since  the 


ADVANCE  IN  PRICES.  243 

articles  in  question  come  from  so  many  parts  of  the  world  and 
in  a  large  proportion  of  cases  from  countries  in  which  tariff  rates 
are  extremely  low,  such  as  silk  from  China  and  Japan ;  fibers  and 
india  rubber  and  cotton  from  tropical  countries;  sugar  chiefly 
from  the  Tropics;  and  wool  from  Argentina,  Australia,  and 
Southern  Asia  and  Europe.  Nor  can  this  advance  be  charged  to 
our  tariff,  since  most  of  these  articles  are  on  the  free  list. 

A  similar  advance  in  prices  occurs  in  a  large  proportion  of 
the  raw  materials  produced  in  the  United  States  and  used  in 
manufacturing.  The  price  of  raw  cotton,  for  example,  in  1898 
averaged  5.95  cents  per  pound,  and  in  1903  11.18  cents,  having 
practically  doubled  during  that  time.  These  figures  are  supplied 
to  the  Bureau  of  Statistics  by  Mr.  Alfred  B.  Shepperson,  a  well- 
known  expert  in  matters  of  this  character.  Prices  of  wool,  as 
reported  to  the  Bureau  of  Statistics  by  Mauger  &  Avery,  a  well 
known  and  reliable  firm  of  New  York,  were,  for  October,  1896, 
18  cents  per  pound,  and  in  1903,  32  cents  for  "fine"  grades;  for 
the  "medium"  grade  19  cents  per  pound  in  1896,  and  in  1903 
Siy2  cents;  for  that  graded  as  "coarse,"  18  cents  per  pound  in 
1896,  and  28  cents  in  1903.  Of  iron  ore,  the  price  as  supplied  by 
Mr.  A.  I.  Findley,  editor  of  the  Iron  Trade  Review,  Cleveland,  was, 
in  1897,  $2.65  per  ton,  and  in  1903  $4.50  per  ton.  The  Bureau 
of  Statistics  quotes  the  price  of  Lake  copper  on  January  7,  1898, 
at  $10.90  per  ton,  and  in  April,  1963,  at  $15.  Crude  petroleum  is 
quoted  in  September,  1898,  at  $1  per  barrel,  and  in  December, 
1903,  at  $1.90.  Bessemer  pig  iron,  while  the  first  stage  of  manu- 
facture, is  nevertheless  a  manufacturer's  material,  and  is  quoted 
by  the  Bureau  of  Statistics  at  $10.50  per  ton  in  the  closing  months 
of  1898,  $25  per  ton  in  the  closing  months  of  189^  and  $23  per 
ton  in  the  opening  months  of  1903. 

Prices  Have  Also  Advanced  Abroad. 

While  it  is  true  that  the  United  States  has  witnessed  a  marked 
advance  in  prices  of  many  articles  since  the  low  tariff  period  in 
which  lack  of  earnings  of  the  people  so  reduced  their  purchasing 
power  that  values  fell  to  their  very  lowest  level,  it  is  also  true 
that  great  advances  have  also  occurred  in  other  countries.  Prof. 
Sauerbeck's  tables,  showing  the  course  of  prices  of  45  commodi- 
ties during  the  last  25  years,  published  by  the  British  Statistical 
Society,  present  figures  showing  the  prices  of  many  leading  ar- 
ticles in  London  during  past  years  and  furnish  an  illustration 
of  the  fact  that  the  advance  in  prices  has  not  been  confined  to  the 
United  States.  These  figures  show,  for  example,  that  Scotch  pig 
iron,  which  was  quoted  in  London  at  42s.,  8d.  per  ton  in  1894,  was 
69s.,  4d.  per  ton  in  1900.  Iron  bars  show  an  increase  from  4% 
pounds  sterling  per  ton  in  1894  to  9  pounds  sterling  per  ton  in 
1900;  Straits  tin,  from  68  pounds  sterling  per  ton  in  1894  to  134 
pounds  sterling  in  1900 ;  pig  lead,  from  9%  pounds  sterling  in 
1894  to  17%  pounds  sterling  in  1900 ;  manila  hemp,  from  22  pounds 
sterling  per  ton  in  1894  to  39  pounds  sterling  in  1900 ;  merino  wool, 
from  11%  pence  per  pound  in  1894  to  15%  pence  in  1900;  linseed, 
from  20%  pounds  sterling  per  ton  in  1894  to  30V2  pounds  in 
1900;  and  linseed  oil,  from  38  shillings  per  quarter  in  1894  to  54 
shillings  in  1900.  Beef  shows  an  advance  in  the  class  designated 
as  "prime"  from  47  pence  per  8  pounds  in  1894  to  51  pence 
in  1900 ;  in  the  class  designated  as  "middle"  from  37 
pence  per  8  pounds  in  1894  to  42  pence  in  1900;  prime  mutton, 
from  55  pence  per  8  pounds  in  1894  to  59  pence  in  1900 ;  butter, 
from  98  shillings  per  cwt.  in  1894  to  102  shillings  in  1900;  dry 
hides,  from  5%  pence  per  pound  in  1894  to  8%  pence  in  1900. 

Attention  is  again  called,  before  leaving  this  subject,  to  the 
fact  that  while  an  advance  has  occurred  in  prices  of  certain 
manufactures  and  foodstuffs  by  reason  of  increased  cost  of  raw 
material  and  labor,  the  advance  in  wages  has  more  than  kept 
pace  with  these  increases.  This  is  fully  and  clearly  shown  from 
the  reports  of  the  Labor  Bureau  of  the  United  States  Government, 
in  the  article  on  Labor,  Wages,  and  Prices. 


This  is  not  and  never  shall  he  a  government  of  a  plutocracy; 
it  is  not  and  never  shall  be  a  government  by  a  mob. — President 
Roosevelt  at  Butte,  Mont.,  May  27,  1903. 


244 


ADVANCE  IN  PRICES. 


Increase  In  Prices  of  Imported  Material  Used  In  Manufacturing* 

This  table  shows  the  import  price  of  the  chief  ;irticles  used  in 
manufacturing  In  the  United  States,  it  will  be  seen  that  they 
have  largely  Increased  in  price,  although  they  usually  come  from 
luw  tariff  countries  and  therefore  are  not  controlled  by  "tariff- 
made  trusts."  This  Increase  lb  price  Of  rat?  materials  is  one  of 
the  causes  of  the  Increase  In  price  of  finished  goods  manufac- 
tured from  them,  though  in  most  cases  it  is  found  that  the 
manufactured  article  has  not  increased  in  price  as  rapidly  as  the 
iaw  material  entering  it.  /  (This  subject  of  the  causes  of  the 
increase  in  price  of  manufactures  is  discussed  elsewhere;  see 
index.) 

Import  prices. 
[Represents   prices   in   foreign  countries.] 


Articles. 


March- 


1897. 


Chemicals,  drugs,  etc.: 

Bark,  cinchona,  etc per  pound . . 

Gums  :  Camphor,  crude do 

Potash,  nitrate  of do 

Quinia,  sulphate  of,  etc per  ounce . . 

Sumac,  ground. per  pound . . 

Cotton,  raw 

Manufactures  of:  Cloth,  not  bleached, 

per  square  yard 

Fertilizers:  Phosphates,  crude.. per  ton.. 
Fibers,  vegetable,  etc.: 

Flax do.... 

Hemp do  — 

Istle  or  tampico  fiber do 

Jute do 

Manila do 

Sisal  grass do 

Manufactures  of:* 

Cables,  cordage,  etc per  pound. . 

Hides  and  skins,  other  than  fur  skins  : 

Goatskins per  pound . . 

All  other,  except  hides  of  cattle . .  do 

Hides  of  cattle do 

India  rubber do 

Iron  and  steel  and  manufactures  of : 

Pig  iron per  ton . . 

Tin  plates,  terneplates.  etc.. per  pound. . 

Wire,  and  articles  made  from do 

Silk,  raw do.... 

Sugar  :  Not  above  No.  16— 

Beet do 

Cane  and  other do 

Above  No.  16 do 

Tin  in  bars,  blocks,  pigs,  etc do 

Wood  :  Boards,  planks,  etc . . .  per  M  f eet . . 
Wool :  Class  1— clothing per  pound. . 

Class  2— combing do 

Class  3— carpet do.... 

Manufactures  of  :  Cloths do . .  .>. 

Zinc  or  spelter:  in  blocks,  pigs  and  old.. do 


10.043 
.139 
.020 
.152 
.015 
.112 


219.54 
126.00 


79.74 
59.85 


.108 


.504 

22.90 

.023 

.051 

2.97 

.017 
.020 
.024 
.128 
10.27 
.171 
.200 
.111 
.567 
.033 


$0,096 
.171 
.022 
.236 
.016 
.092 

.076 
2.98 

295.66 
138.41 
49.71 
24.98 
60.64 
84.47 

.295 

.231 
.152 
.117 

.586 

25.80 

.022 

.075 

3.26 


.022 
.024 
.135 


.234 
.093 


.039 


$0,122 
.203 
.025 
.249 
.015 
.104 

.081 
5.08 

229.53 
121.50 
64.85 
32.49 
120.10 
130.33 

.395 


31.87 
.024 
.071 
3.43 

.021 
.025 
.028 
.192 

9.80 
.171 
.314 
.09 

1.02 
.049 


1900. 


$0,193 
.294 
.027 
.328 


.094 
5.08 

296.18 
133.65 
70.91 
33.59 
135.84 
166.23 

.817 

.272 
.174 
.130 
.660 

36.21 
.035 
.091 
4.63 

.021 
.027 
.027 
.254 
12.04 


.053 


1904. 


$0,152 
.342 
.027 
.232 
.015 


.112 
6.21 

258.76 
150.42 
95.00 
48.37 
200.72 
155.91 


.606 

.273 
.133 
.110 


17.47 
.027 
.070 
3.45 

.0145 
.0191 
.031 
.273 
.1559 
.188 
.206 
.114 
1.01 
.052 


♦Includes    thread  and   twine. 

Movement  Toward  the  Towns  and  Cities  Advances  Prices  of  Farm 

Products. 


Another  fact  must  be  borne  in  mind  in  seeking  for  causes  for 
the  advance  in  prices,  and  that  is  the  fact  that  the  percentage  of 
the  total  population  of  the  country  which  is  engaged  in  agricul- 
ture is  steadily  growing  less  and  the  share  congregating  in  cities 
and  towns  and  demanding  food  from  the  agricultural  sections  is 
steadily  growing  greater.  In  1880  the  census  showed  44.7  per 
cent  of  those  engaged  in  gainful  occupations  in  the  United  States 
were  employed  in  agricultural  pursuits.  In  1900  only  35.7  per 
cent  of  those  engaged  in  gainful  occupations  were  employed  in 
agriculture.  As  a  consequence  the  nonproducers  of  agricultural 
products  who  were,  however,  still  dependent  upon  the  farmers 
for  their  food,  had  increased  from  45.7  per  cent  in  1880  to  64.3 
per  cent  in  1900,  of  those  engaged  in  gainful  occupations. 


ADVANCE  IN   PRICES. 


245 


ANNUAL    AVERAGE    OF    WHOLESALE    PRICES    IN    THE 
YEARS    1880,     1900,     AND    1903. 

The  table  which  follows  shows  the  annual  average  of  prices 
of  articles  of  common  use  in  1880,  1800,  1000,  and  1003.  It  is 
presented  for  the  purpose  of  illustrating  the  fact  that,  despite 
all  the  complaints  with  reference  to  prices  at  the  present  time, 
they  are,  in  manufactures  and  in  many  other  articles  in  the 
prices  of  which  transportation  forms  an  important  factor,  much 
lower  at  the  present  time  than  in  1880  or  1890.  While  it  is 
doubtless  a  fact  that  prices  of  certain  articles  are  higher  at  the 
present  time  than  in  the  depressed  period  of  1893-96,  when  labor 
was  unemployed  and  consequently  purchasers  were  few  and 
money  scarce,  it  is  also  a  fact  that  a  study  of  price  conditions 
month  by  month  and  year  by  year  from  1880  to  the  present 
time,  shows  a  steady  reduction,  under  normal  conditions,  and 
that  in  nearly  all  articles  of  importance  prices  to-day  are  below 
those  of  1880  or  1890.  In  certain  natural  products,  however, 
such  as  timber  and  the  lumber  produced  therefrom,  meats,  and 
grains,  the  increased  home  demand  through  the  growth  of  popu- 
lation, and  in  the  case  of  timber,  the  reduced  area  of  supply,  and 
the  movement  of  population  from  the  producing  area  to  the  manu- 
facturing centers,  tend  to  maintain  and  in  some  cases  increase 
prices.  In  practically  all  manufactured  articles,  however,  a 
reduction  is  shown,  except  in  those  cases  in  which  they 
are  produced  from  natural  products  whose  area  of  produc- 
tion is  being  reduced  at  least  in  proportion  to  the  num- 
ber of  domestic  consumers.  Population  in  the  United  States 
has  increased  60  per  cent,  since  1880,  while  the  area 
capable  of  producing  meats  and  grain  has  not  increased  mean- 
time, and  the  area  of  available  timber  has  been  greatly  re- 
duced. These  facts  account  for  the  upward  tendency  of  pro- 
visions, meats,  and  lumber,  while  the  multiplication  of  manu- 
facturing establishments  and  the  improvement  in  their  methods 
have  during  the  same  time  decreased  prices  of  manufactures,  ex- 
cept those  in  which  the  raw  material  has  so  greatly  advanced 
in  price. 

The  figures  presented  in  this  table  are  the  annual  average 
wholesale  price  of  each  article  in  each  year  named.  They  are 
based,  for  the  earlier  years,  upon  the  Aldrich  tables,  and  in  the 
later  years  upon  the  quotations  of  the  Labor  Bureau  of  the 
Department  of  Commerce  and  Labor,  and  the  annua!  averages 
are  the  result  of  the  combination  of  a  large  number  of  quota- 
tions made  at  various  periods  during  the  years  in  question. 

Annual  average  of  wholesale  prices  during  calendar  years. 


Articles. 


1890. 


1900. 


1903. 


Food,  etc.: 

Butter.  Elgin  creamery lb. . 

Coffee, Rio,  fairandNo.7 lb.. 

Flour,  wheat bbl. . 

Flour,  rye bbl. . 

Fruit: 

Apples,  evaporated « lb. 

Currants lb. , 

Raisins,  California,  London  layers box. 

Lard,  prime lb. 

Meat: 

Beef,  fresh,  native  sides lb. 

Salt,  extra  mess bbl. 

Ham lb. 

Pork,  salt  mess bbl. 

Bacon lb. 

Molasses,  New  Orleans,  prime gal. 

Rice lb, 

Salt bbl. 

Spices: 

Nutmeg's lb. 

Pepper lb. 

Starch,  pure lb. 

Sugar: 

96°  centrifugal lb. 

Refined,  granulated lb. 

Tallow lb. 

Farm  products: 

Wheat,  cash bush. 

Wheat,  No.  2,  red  winter bush. 

Wheat,  contract  grades,  cash bush. 


Dollars. 
.2925 
.1513 

8.9000 
4.9880 

.1433 
.0593 

2.2875 
.0750 


13.3100 


.5500 
.0725 
.7500 

.8850 
.1417 
.0613 

.0876 

.0988 
.0672 


Dollars 

.2276 

.1793 

5.1856 


.1136 

.0478 


.0633 


6.9596 
.0995 
12.1502 
.0603 
.3542 
.0605 
.7921 

.6317 
.1151 
.0546 

.0546 
.06168 


Dollars. 

.2245 

.0822 

3.8423 

3.4250 

.0615 
.0720 
1.5208 


.0804 
9.7538 
.1025 
12.5072 
.0752 
.4775 
.0548 

1.0010 

.2601 
.1291 
.0500 


.04572 
.05332 
.0485 


Dollars. 

.2348 

.0559 

4.3303 

3.1479 

.0611 
.0476 
1.4458 
.0877 

.0784 
9.0673 
.1271 
16.6514 
.0959 
.3546 
.0566 
.6140 

.2877 


.03720 
.04641 
.0510 


.804 
.7040 


.853 


Articles. 


Corn,  No.  2.  cash bush. 

Oats,  cash bush 

Rye,  No.  2,  cash hush. 

Barley,  by  sample bush. 

Flaxseed,  No.  1 bush. 

Cattle: 

Steers,  choice  to  extra 100  lbs. 

Steers,  good  to  choice  .  .• 100  lbs. 

Hogs: 

Heavy 100  lbs. 

Light 100  lbs. 

Sheep: 

Native 100  lbs. , 

Western 100  lbs. , 

Hides,  green,  salted,  packers'  heavy 

native  steers lb. . 

Hay,  timothy.  No.  1 ton. 

Hops.  New  York  State,  choice lb. . 

Cotton,  upland,  middling lb. . 

Wool: 

Ohio  medium  fleece,  scoured lb. . 

Ohio  fine  fleece,  scoured lb. . 

Cloths  and  clothing: 

Bags,  2-bushel,  Amoskeag each.. 

Boots  and  shoes: 

Men's  brogans pair. . 

Men's  split  boots doz.  pairs. . 

Women's  solid  grain  shoes pair. . 

Calico,  Cocheco  prints yd. . 

Carpets: 

Ingrain  2-ply.  Lowell yd. . 

Wilton,  five-frame  Bigelow yd. . 

Cotton  thread,  6-cord.  200  yards,  J.  & 

P.  Coats spool. . 

Denims,  Amoskeag yd. . 

Drillings,  Stark  A yd. . 

Ginghams,  Amoskeag yd. . 

Print  cloths,  28-inch,  64  by  64 yd. . 

Shirtings,  bleached.  4-4,  Fruit  of  loom. . .  yd. . 

Shirtings,  bleached,  4-4,  Lonsdale yd. . 

Tickings,  Amoskeag,  A.  C.  A yd. . 

Women's  dress  goods: 
Cotton  warp  alpaca,  22  in.  Hamilton. .  .yd. . 
Cotton  warp  cashmere.  22  in.  Hamilton  yd. . 
Cotton  warp  cashmere,  27  in.  Hamilton  yd. . 
Fuel  and  lighting: 

Coal,  anthracite  stove ton. . 

Bituminous ton. . 

Metals  and  implements: 

Nails,  cut 100  lbs. . 

Wire 100  lbs. . 

Barbed  wire,  galvanized .100  lbs. . 

Pig  iron.  No.  1,  foundry ton. . 

Steel  rails ton. . 

Bar  iron,  best  refined lb. . 

Copper,  sheet lb. . 

Quicksilver lb. . 

Lead,  pig lb. . 

Lead  pipe 100  lbs. . 

Saws,  hand.  Disston's doz. . 

Shovels,  Ames'  No.  2 doz. . 

Spelter,  domestic lb. . 

Lumber  and  building  materials: 

Oak  boards,  white,  plain M.  feet. . 

Pine  boards,  white M.  feet. . 

Shingles,  white  pine M. . 

Doors,  pine each. . 

Lime,  common bbl. . 

Brick,  common  domestic M. . 

Cement  Rosendale bbl. . 

Rope,  manila lb. . 

Putty lb. . 

Carbonate  of  lead  in  oil lb.. 

Turpentine,  spirits  of gal. . 

Drugs  and  chemicals: 

Alcohol gal. . 

Brimstone. crude ton. . 

Glycerin,  refined lb. . 

Linseed  oil,  domestic,  raw gal. . 

Opium,  natural,  (cases) lb. . 

Quinine  oz. . 

Sulphuric  acid lb. . 

Furniture: 

Chairs,  bedroom,  maple doz. . 

Chairs,  kitchen doz. . 

Tables,  kitchen doz. . 

Glassware: 

Tumblers.  %  pint doz.., 

Pails,  wooden doz. . . 

Tubs,  wooden nest  of  3 . . 

Miscellaneous: 
Rubber,  Para lb. . 


Dollars. 


.i2267 

.&375 
1.0275 

.1931 

uooo 

21.500 
.0500 
.0762 

.8767 
2.6750 

.041250 


.0431 
.1621 
.0950 

.1588 

.1067 
.1142 
.1450 

3.9625 
5.1125 


1890. 


28.500 

67.5000 

.0260 

.2900 

.4138 

.0472 

6.5825 

14.040 

10.0300 

.0575 

33.0000 

37.0000 

2.3750 

1.8750 

.8875 

7.0000 

1.0500 

.1250 

.0306 

.0770 

.38000 

2.1025 

27.7500 

.1925 

.7025 

6.6875 

2.9500 

.0100 

8.000 
4.5000 
15.000 


1.4500 
1.4000 


.8500 


Dollars 
.3950 
,8108 
.5117 
.5062 


4.8697 
4.1375 


8.9584 


4.5284 
4.6644 

.0933 
9.9952 
.2621 
.11089 

.6143 
.7156 

.1594 

1.0500 

17.000 

.8500 

.0650 

.5160 
1.9200 

.0315 
.1175 
.0640 
.0625 
.0334 
.0845 
.0845 
.1200 

.0735 


3.7108 
2.9875 

2.2875 

2.9646 

3.5665 

18.4083 

31.7792 

.0184 

.2275 

.7300 

.0440 

5.4000 

14.400 

7.8700 

.0554 

37.8750 

44.0833 

3.8417 

1.3750 

.9792 

6.5625 

1.0542 

.1494 

.0175 

.0638 

.4080 

2.0717 

21.1458 

.1767 

.6158 

2.6208 
.3275 
.0088 

7.000 
4.2000 
15.000 

.1800 
1.5917 
1.6500 

.8379 


1900. 


Dollars 
.8811 
.2271 
.5177 
.4815 
1 JBM8 

5.7887 

5.3938 

5.0815 
5.1135 

4.1236 
4.5207 

.1194 

11.5673 

.1483 


.5296 
.6594 

.1575 

.9375 

18.000 
.9042 
.0525 

.4920 
1.8720 

.0372 
.1073 
.0542 
.0515 
.0308 
.0753 
.0731 
.1084 

.0711 
.0760 
.0882 

3.9451 
2.9083 

2.2500 

2.6333 

3.3942 

19.9800 

32.2875 

.0215 

.2067 

.6769 

.0445 

5.1208 

12.600 

9.1200 

.0442 

40.8333 

57.5000 

4.0000 

1.5900 

.6833 

5.2500 

1.0167 

.1320 

.0190 

.0625 

.4771 

2.3867 

21.1458 

.1515 

.6292 

3.2000 
.3325 
.0120 

8.000 
5.2080 
15.600 

.1800 
1.4917 
1.4417 

.9817 


a  Michigan  white  pine  16  inches  long,  XXXX.     b  7-16  inch. 


ADVANCE  IN  PRICES.  247 

Advance     Occurs     Chiefly    in    Natural    Products — The    Advance    In 

Manufactured  Articles  is    Less   Than   That   of  the   Material 

from  Which  They  are  Produced. 

One  important  fact  in  considering  the  advance  in  prices  is 
that  the  chief  increase  occurs  in  products  of  the  farm,  forest,  and 
mine — articles  ivJiich  are  not  controlled  by  trusts,  and  for  which 
advance  the  trusts  or  corporations  cannot  possibly  be  held  respon- 
sible. Equally  important  with  this  is  the  fact  that  finished  arti- 
cles produced  from  these  natural  products,  whether  foodstuffs, 
articles  of  clothing,  articles  of  household  use,  machinery  for  the 
farm,  or  shop,  have  not  advanced  in  any  such  proportion  as  have 
the  raw  materials  of  which  they  are  composed. 

Official  tables  published  in  various  parts  of  this  volume  show 
prices  of  various  classes  of  productions  of  agriculture,  the  mine, 
the  forest,  and  those  of  manufactured  articles  of  various  classes. 
A  comparison  of  the  advance  in  prices  of  these  articles  not  con- 
trolled by  corporations  with  the  advance  in  the  price  of  the  finished 
article  shows  in  practically  every  case  a  much  greater  percentage 
of  increase  in  the  raw  material,  not  controlled  by  trusts  or  cor- 
porations, than  in  the  finished  article,  produced,  in  many  cases,  by 
the  class  of  corporations  which  are  charged  with  excessively  and 
arbitrarily  advancing  prices.  Attention  is  especially  called  to  a 
table  on  page  entitled  "Comparative  Advance  in  Prices  of  Cer- 

tain Related  Commodities,  1903,  Compared  with  1896."  This 
table  is  compiled  from  an  official  bulletin  of  the  United  States  Bu- 
reau of  Labor.  This  table  compares  prices  in  1903  with  those  of 
1896,  and  is  an  official  statement.  It  shows  an  advance  in  price 
of  cattle  of  19.82  per  cent,  and  in  fresh  beef,  which  may  be  classed 
as  the  manufactured  product,  of  12.38  per  cent.  This  does  not 
sustain  the  assertion  which  has  been  frequently  made  during  the 
past  year  that  the  beef  trust  has  excessively  advanced  prices  to 
the  consumer  and  controlled  to  its  own  advantage  the  prices  of  the 
livestock  from  which  the  beef  is  produced.  In  live  hogs  the  ad- 
vance in  price  amounts  to  75.22  per  cent.,  and  in  hams  34.86  per 
cent.  In  sheep  the  advance  is  25.03  per  cent. ;  in  mutton  19.06  per 
cent.  In  corn  the  advance  is  78.61  per  cent. ;  in  corn  meal  61.11 
per  cent.  In  wheat  the  advance  is  23  per  cent. ;  in  wheat  flour 
6.50  per  cent.  In  cotton  (upland,  middling)  the  advance  is  41.86 
per  cent,  and  in  print  cloths  24.64  per  cent.,  in  ginghams  15.68  per 
cent.,  in  cotton  denims  14.16  per  cent,  in  cotton  bags  13.76  per 
cent,  in  cotton  flannels  13.74  per  cent,  in  cotton  sheetings  13.55  per 
cent,  in  cotton  tickings  8.44  per  cent.,  in  cotton  shirtings  5.41  per 
cent. ;  while  calico  is  4  per  cent,  below  the  price  of  1896  and 
hosiery  is  44  per  cent,  below  that  of  1896.  This  gives  an  average 
advance  of  12.08  per  cent  in  the  corporation-made  articles  as 
against  an  advance  of  41.86  per  cent,  in  the  price  of  the  material 
which  they  used,  and  which  was  not  produced  or  controlled  by 
trusts  and  is  not  protected  by  a  tariff.  In  wool  the  advance  in 
price  is  56.23  per  cent,  and  in  the  articles  manufactured  therefrom 
the  average  advance  is  30.01  per  cent 

A  study  of  other  tables  of  prices  of  natural  and  manufactured 
products  will  show  similar  conditions,  viz.,  that  the  chief  advance 
has  been  in  the  natural  products  and  that  in  practically  every 
case  the  advance  in  the  finished  product  has  been  less  than  that  of 
the  material  from  which  it  is  produced.  The  Statistical  Abstract 
shows  the  average  price  of  raw  sugar  (centrifugals)  in  1896  to  be 
3.62c  per  pound,  and  in  1903  3.72c,  an  advance  of  2.76  per  cent. ; 
and  of  the  finished  product  (granulated  sugar)  in  1896  4.53c,  and 
in  1903  4.64  c,  an  advance  of  2.28  per  cent 

This  more  rapid  advance  in  the  price  of  the  natural  product 
than  of  the  finished  article  is  also  illustrated  by  some  tables  pub- 
lished under  the  title  of  "Market  Value  of  Farm  Products  in  1896 
and  1903,  when  Measured  by  the  Wholesale  Price  of  Staple  Arti- 
cles," which  show  that  10  bushels  of  corn  which  in  1896  was  equal 
in  value  to  20.9  pounds  of  raw  coffee,  was  equal  in  1903  to  82.4 
pounds  of  coffee  of  the  same  grade ;  that  10  bushels  of  corn  in  1896 
would  buy,  in  1903,  56.9  pounds  of  sugar,  and  in  1903,  99.2  pounds ; 
of  calico,  in  1896,  49.1  yards,  and  in  1903,  91.4  yards ;  of  refined 
petroleum,  in  1896,  24.8  gallons,  and  in  1903,  33.8  gallons ;  and  of 
8-penny  wire  nails,  in  1896,  88  pounds,  and  in  1903,  222  pounds; 
while  tables  showing  the  purchasing  power  of  other  natural  prod- 
ucts, also  presented,  give  similar  results  and  are  worthy  of  ex- 
amination.   For  table  see  pages  144  and  145. 


248  THEODOBK  BOOSEVELT. 


THEODORE  ROOSEVELT. 


Theodore  Roosevelt,  unanimously  nominated  for  the  Presidency 
by  the  National  Republican  Convention  at  Chicago  on  June  23, 
L904,  is  without  doubt,  of  all  men  living  in  the  United  States  in 
those  opening  years  of  the  twentieth  century,  the  man  best  quali- 
fied by  training  and  experience  tor  the  high  duties  of  the  othee  of 
Chief  Executive.  Training  for  great  and  varied  responsibilities 
in  life  is  of  two  kinds: — first,  training  in  those  qualities  of  mind, 
character,  and  personality  that  go  to  make  up  the  man  himself; 
and  second,  training  in  the  subjects  and  the  methods  that  relate 
to  the  business  of  the  office  in  question.  In  both  of  these  forms  of 
preparation  Theodore  Roosevelt  meets  every  test  of  fitness.  Meas- 
ured along  the  line  of  the  first  test,  namely,  that  of  personal  quali- 
ties, the  speakers  at  the  Chicago  convention  were  not  wrong  in 
the  tributes  they  paid  to  Mr.  Roosevelt  as — to  quote  from  ex- 
Governor  Black — "the  highest  living  type  of  the  youth,  the  vigor, 
and  the  promise  of  a  great  country  and  a  great  age."  Senator 
Beveridge  was  right  in  characterizing  Theodore  Roosevelt  as  one 
"whose  sympathies  are  as  wide  as  the  Republic ;  whose  courage, 
honesty,  and  vision  meet  all  the  emergencies,  and  the  sum  of 
whose  qualities  makes  him  the  type  of  twentieth  century  Ameri- 
canism." Mr.  Knight,  of  California,  eulogized  President  Roose- 
velt's embodiment  of  American  ideals,  aspiration,  and  character, 
whose  so-called  "impulsiveness"  is  but  the  frank,  decisive  habit 
that  comes  to  be  the  very  essence  of  the  character  of  a  man  in 
whose  make-up  "dishonesty,,  cowardice,  and  duplicity  have  no 
part."  Mr.  Root  closed  his  great  speech  as  temporary  chairman 
of  the  convention  with  a  tribute  to  Mr.  Roosevelt's  personal  quali- 
ties, and  these  are  the  concluding  sentences  of  that  memorable 
address : 

No  people  can  maintain  free  government  who  do  not  in  their 
hearts'  value  the  qualities  which  have  made  the  present  President 
of  the  United  States  conspicuous  among  the  men  of  his  time  as  a 
type  of  noble  manhood.  Come  what  may  here,  come  what  may  in 
November,  God  grant  that  those  qualities  of  brave,  true  manhood, 
shall  have  honor  throughout  America,  shall  be  held  for  an  example 
in  every  home,  and  that  the  youth  of  generations  to  come  may 
grow  up  to  feel  that  it  is  better  than  wealth,  or  office,  or  power  to 
have  the  honesty,  the  purity,  and  the  courage  of  Theodore  Roose- 
velt. 

His  Character  No  Topic    for  Difference  of  Opinion. 

Theodore  Roosevelt's  character  is  no  topic  for  difference  of 
opinion  "or  for  party  controversy.  It  is  without  mystery  or  con- 
cealment. It  has  the  primary  qualities  that  in  all  ages  have  been 
admired  and  respected:  physical  prowess,  great  energy  and  vitality, 
straightforwardness,  and  moral  courage,  promptness  in  action, 
talent  for  leadership.  But  besides  exhibiting  these  bolder  constitu- 
ents of  manhood  that  one  finds  in  the  best  of  Plutarch's  men,  and 
in  the  approved  figures  of  all  historic  periods,  Theodore  Roosevelt 
has  in  his  life  of  forty-six  years, — a  life  lived  openly  and  without 
any  dark  or  hidden  or  regretted  chapters,  in  the  presence  of  a 
host  of  friends  and  fellow-citizens — remained  constant  and  true  in 
the  possession  and  exercise  of  an  added  set  of  virtues,  namely, 
those  that  the  best  American  fathers  and  mothers  must  prize  and 
desire  for  their  own  children.  Thus  Theodore  Roosevelt,  as  a 
typical  personality,  has  wron  the  hearty  confidence  of  the  American 
people ;  and  he  has  not  shrunk  from  recognizing  and  using  his 
influence  as  an  advocate  of  the  best  standards  of  personal,  do- 
mestic, and  civic  life  in  the  country.  He  has  made  these  things 
relating  to  life  and  conduct  a  favorite  theme  in  speech  and  essay, 
and  he  has  diligently  practiced  what  he  has  constantly  preached. 
Thus  he  has  become  a  power  for  wholesomeness  in  every  depart- 
ment of  our  life  as  a  people. 

A  Training  for  High  Public  Duties. 

But  President  Roosevelt  is  not  merely  the  man  of  trained  and 
mature  personality, — with  a  physical  and  mental  capacity  for  con- 
tinuous work,  with  a  power  of  concentration  that  never  fails  or 


THEODORE    ROOSEVELT.  249 

flags,  with  a  vitality  that  never  needs  artificial  stimulant,  and 
with  a  strength  of  will  as  well  as  of  body  that  is  equal  to  any 
emergency.  Another  man  might  have  these  splendid  attributes  of 
personal  manhood,  yet  be  lacking  in  the  kinds  of  knowledge  and 
experience  demanded  by  the  highest  executive  office  in  the  gift  of 
any  nation.  A  locomotive  engineer,  a  soldier,  or  the  captain  of  a 
lake  schooner — all  men,  by  the  way,  whom  Theodore  Roosevelt 
cordially  respects — might  possess  an  equal  measure  of  Theodore 
Roosevelt's  physical  and  moral  courage,  his  native  intelligence 
and  his  tempered  self-control,  but  might  lack  altogether  the  knowl- 
edge of  public  affairs  that  would  be  requisite  for  high  political 
office.  On  the  other  hand,  there  are  men  whose  information  re- 
garding American  history,  public  policy,  and  statecraft  might  in 
some  directions  be  even  wider  than  President  Roosevelt's,  while 
lacking  that  rounded  development  of  personal  character  that  the 
people  of  this  country  earnestly  wish  to  find  in  the  man  who  oc- 
cupies the  White  House  and  stands  before  the  world  as  their  fore- 
most citizen  and  representative.  Mr.  Roosevelt  is  without  question 
the  highest  authority  in  this  country  to-day  upon  the  application 
of  our  laws  and  our  system  of  government  to  the  varied  tasks  of 
the  Chief  Executive. 

He  has  been  before  the  public  for  almost  a  quarter  of  a  cen- 
tury, always  destined  to  great  influence.  Yet  he  has  never  been 
a  conscious  climber  up  the  ladder  of  public  preferment.  He  has 
never  used  one  office  as  if  it  were  a  stepping-stone  on  the  way  to 
another.  He  has  never  taken  up  any  public  task  without  putting 
his  whole  energy  into  its  performance  as  if  it  afforded  the  supreme 
opportunity  for  usefulness  to  his  fellow-citizens. 

As    Boy    and   Man. 

Theodore  Roosevelt  was  born  in  New  York  October  27,  1858. 
His  father  was  a  greatly  respected  citizen  of  New  York  City,  and 
his  mother  was  from  the  State  of  Georgia.  He  graduated  at  Har- 
vard University  in  1880.  His  health  had  not  been  good  as  a  boy, 
but  systematic  physical  training  through  the  school  and  college 
period  brought  him  out  strong  and  well.  He  was  always  inter- 
ested in  American  history  and  politics,  and  entered  almost  imme- 
diately on  leaving  college  upon  the  career  which,  without  the 
slightest  turning  or  deviation,  he  has  pursued  ever  since.  He 
found  himself  a  Republican  by  inheritance  and  tradition,  by  asso- 
ciation, and  by  his  own  independent  study  of  the  course  of  our 
country's  affairs.  He  determined  to  work  within  that  party,  be- 
lieving it  to  be  an  organization  designed  to  promote  the  country's 
good,  within  which  men  might  find  sufficient  freedom  for  the  ad- 
vocacy from  time  to  time  of  their  own  convictions,  as  policies 
might  develop  and  new  questions  might  arise.  His  first  public 
service  was  in  the  New  York  Legislature,  to  which  he  was  elected 
in  1881,  and  where  he  served  for  three  consecutive  terms. 

High  Ideals  in  Regard  to  Public  Service. 

He  attained,  almost  immediately,  a  leading  position  through 
his  frankness  and  courage.  He  saw  dawning  upon  the  horizon  of 
practical  politics  two  new  and  essential  reforms.  One  was  the 
substitution  in  place  of  the  spoils  system  of  a  business-like  and 
efficient  civil  service,  and  the  other,  in  view  of  the  rapid  growth 
of  our  town  life,  was  the  improvement  of  the  methods  and  char- 
acter of  city  government.  With  intelligence,  courage,  and  convic- 
tion he  threw  himself  into  both  of  these  lines  of  active  reform 
work.  Thus  he  wrote  the  original  civil  service  law  of  the  State 
of  New  York,  and  as  a  Republican  carried  it  through  the  Legis- 
lature. He  instituted  an  investigation  into  the  conditions  of 
municipal  government  in  the  metropolis  of  the  country,  and 
headed  the  committee  that  made  the  inquiry. 

Young  Republicans  all  over  the  United  States  took  note  of  this 
resolute  new  leader  in  the  great  Empire  State,  and  said  to  one 
another,  if  he  shows  staying  power  we  shall  some  day  make  him 
President.  In  1884,  young  as  he  was,  he  appeared  at  the  National 
Republican  Convention  as  one  of  the  four  delegates  at  large  from 
his  State.  Some  of  his  most  trusted  and  respected  friends  in  New 
York  and  Massachusetts  who  had  been  prominent  in  the  cause  of 
civil  service  reform  did  not  concur  in  the  Republican  choice  of 
Mr.  Blaine  tot  President,  and  launched  an  independent  move- 


250  THEODORE    BOOSEVELT. 

ment.  Mr.  Roosevelt,  however,  adhered  to  the  Republican  party 
and  supported  the  ticket,  although  Mr.  Edmunds,  rather  than  Mr. 
Blaine,  had  been  his  convention  preference;  and  he  set  forth  his 
position  in  a  statement  so  clear  and  final  upon  the  obligations  and 
duties  of  party  allegiance,  that  he  would  not  to-day  alter  a  single 
word 

Some  Details  of  a  Busy  Life. 

In  the  twenty  years  from  this  conspicuous  appearance  of  his 
at  the  convention  of  1884  to  the  convention  which  nominated  him 
In  1004  his  position  in  the  Republican  party  and  in  the  country 
has  been  one  of  steady  growth,  until  he  lias  now  become  firmly 
established  as  the  highest  authority  in  the  party  and  the  fore- 
most public  man  of  the  Nation.  From  his  early  days  in  college  he 
had  been  a  devoted  student  of  the  history,  the  geography,  the  de- 
velopment, and  the  life  in  all  phases  of  this  great  country.  While 
still  a  member  of  the  New  York  Legislature  he  had  acquired  a 
ranch  near  the  Montana  line  of  North  Dakota,  where  for  several 
years  he  spent  much  of  his  time,  participating  actively  in  pioneer 
life,  and  gaining  in  practical  ways  an  invaluable  knowledge  of  the 
processes  of  evolution  through  which  all  American  commonwealths 
have  had  to  pass.  His  work  as  a  student  of  books,  meanwhile, 
was  never  dropped,  even  while  he  was  most  busily  engaged  in  the 
affairs  of  current  politics  or  in  frontier  activity.  In  188G  he  was 
the  Republican  nominee  for  mayor  of  New  York  City,  but  was 
defeated  by  Mr.  Abram  Hewitt  as  the  Tammany  Democratic 
nominee,  around  whom  certain  conservative  interests  rallied  in  the 
fear  that  otherwise  the  third  candidate,  Mr.  Henry  George,  might 
be  elected. 

It  was  not  until  1889  that  Mr.  Roosevelt  again  held  an  office; 
but  he  was  meanwhile  in  more  than  one  way  an  active  and  influ- 
ential figure  in  the  busy  life  of  the  American  people.  In  1882  he 
had  published  his  work  on  the  second  war  with  Great  Britain, 
entitled  "The  Naval  Operations  of  the  War  Between  Great  Britain 
and  the  United  States,  1812-1815."  This  at  once  gave  him  a  place 
among  writers  on  American  history  and  also  among  students  of 
naval  strategy.  His  next  book,  which  appeared  in  1886,  was 
called  "Hunting  Trips  of  a  Ranchman."  During  the  following 
three  years,  when  he  had  no  official  duties,  he  gave  his  best 
energy  to  the  study  of  the  history  and  development  of  the  United 
States,  and  embodied  that  study  in  a  series  of  volumes.  So  indus- 
trious was  he,  indeed,  that  he  brought  out  in  the  years  1886-1889 
(inclusive)  no  fewer  than  seven  volumes  that  will  stand  perma- 
nently to  his  credit.  It  was  in  this  period  that  he  entered  upon 
those  remarkable  studies  of  the  conquest  and  settlement  of  the 
Mississippi  Valley  which  have  taken  form  in  his  four-volume  work 
entitled  "The  Winning  of  the  West,"  of  which  the  first  two  vol- 
umes were  given  to  the  public  in  1889.  He  had  meanwhile  in  1887 
and  1888  contributed  two  volumes  to  the  "American  Statesman" 
series,  one  a  life  of  Thomas  H.  Benton,  the  other  a  life  of  Gouve- 
neur  Morris.  In  1888,  moreover,  appeared  his  volume  entitled  "Es- 
says on  Practical  Politics,"  which  has  more  recently  been  brought 
out  with  additional  essays  in  the  volume  called  "American  Ideals." 
His  second  book  on  frontier  life  also  appeared  in  1888  under  the 
title  "Ranch  Life  and  Hunting  Trail." 

As   Civil  Service  Commissioner. 

Mr.  Roosevelt  had  always  been  interested  in  our  foreign  rela- 
tions, and  was  proposed  for  Assistant  Secretary  of  State  when 
President  Harrison's  administration  began  in  1889;  but  he  was 
offered  instead  what  seemed  the  less  attractive  position  of  civil 
service  commissioner.  He  took  the  position  cheerfully  and  held 
it  for  six  years.  During  that  period,  serving  under  President 
Cleveland  as  well  as  President  Harrison,  he  saw  the  methods  of 
appointment  in  the  United  States  almost  completely  transformed. 
His  activity  and  energy  in  this  great  work  of  putting  business-like 
method  into  the  detail  of  the  public  services  brought  him  into 
close  contact  with  the  machinery  of  government  in  all  the  depart- 
ments, and  into  relationship  with  cabinet  officers,  senators,  mem- 
bers of  Congress,  and  the  whole  personnel  of  administration.  For 
a  young  man  capable  of  taking  on  training,  there  could  have  been 
*}o  better  school  than  this  for  subsequent  personal  direction  of 


THEODORE    ROOSEVELT.  251 

that  great  administrative  machine.  And  when  Roosevelt  left  the 
office  Commission  he  had  served  his  full  apprenticeship  and  was 
fit  for  any  public  work,  no  matter  what  its  responsibilities,  that 
might  bei  assigned  to  him. 

As  Police  Commissioner  of  New  York. 

He  was  in  his  thirty-seventh  year  when,  early  in  1895,  Mayor 
Strong  called  him  from  Washington  to  take  the  presidency  of  the 
Police  Board  of  New  York  City.  He  will  be  in  his  forty-seventh 
year  when,  early  in  1905,  the  victor  in  the  pending  Presidential 
campaign  will  be  inaugurated  at  Washington.  In  these  ten  years 
his  career  has  led  him  upward  and  onward  by  swift  bounds  almost 
unprecedented  in  our  political  history;  but  the  secret  of  his  ad- 
vancement is  to  be  found  in  the  thorough  ess  of  his  previous 
training.  As  New  York  Police  Commissioner  he  was  called  upon 
to  show  great  strength  of  character  in  the  observance  of  his  oatk 
of  office  by  enforcing  unpopular  laws.  He  left  a  permanent  im- 
press upon  the  administration  of  the  great  metropolis.  He  helped 
to  solve  some  of  the  most  difficult  police  problems  for  all  the 
cities  of  the  country. 

As  Assistant  Secretary  of  the  Navy. 

He  was  one  of  the  first  to  foresee  the  inevitability  of  the  war 
with  Spain.  He  had  done  what  he  could  for  the  Police  Depart- 
ment of  New  York,  and  meanwhile  a  Republican  administration 
was  coming  into  power  at  Washington.  He  was  appointed  by 
Mr.  McKinley  as  Assistant  Secretary  of  the  Navy,  Hon.  John  D. 
Long,  of  Massachusetts,  being  head  of  that  department.  We  were 
wholly  unprepared  for  war  either  on  land  or  by  sea.  Of  all  men 
connected  with  the  administration  Roosevelt  most  clearly  per- 
ceived the  fact  that  although  armies  may  be  made  ready  after  war 
breaks  out,  navies  must  be  prepared  in  advance  or  be  worse  than 
useless.  When  he  began  to  enforce  the  necessity  of  training  in 
marksmanship  upon  the  navy,  our  standing  in  that  regard  was 
below  that  of  all  the  leading  naval  powers.  In  less  than  two 
years,  through  the  efforts  of  Theodore  Roosevelt,  our  naval  gun- 
ners led  the  world  in  skill  and  accuracy. 

His  Service  in  the  War  With   Spain. 

When  the  war  broke  out  Roosevelt  felt  that  his  place  was  at 
the  front,  and  that  there  was  no  longer  need  of  his  services  in 
the  Navy  Department.  He  enlisted  as  a  volunteer,  was  com- 
missioned with  Dr.  Leonard  Wood  to  form  the  First  Regiment  of 
Volunteer  Cavalry,  known  as  "the  Rough  Riders,"  won  honor  at 
Santiago,  and  with  fresh  laurels  returned  from  Cuba  in  the  sum- 
mer of  1898  as  a  colonel,  recommended  by  President  McKinley  for 
a  brevet  brigadier-generalship  for  gallantry  on  the  field  of  action. 
As  Governor  of  New  York. 

The  political  pendulum  was  swinging  strongly  toward  the 
Democratic-  side  in  the  affairs  of  New  York  State.  A  large  sum 
of  money  had  been  spent  to  deepen  the  Erie  Canal  without  effect- 
ive results,  and  public  opinion  had  condemned  the  Republican 
party.  In  this  emergency  Roosevelt  was  the  only  man  in  sight 
who  offered  the  Republicans  any  chance  at  all.  He  was  nomi- 
nated without  conditions,  promised  the  people  to  investigate  the 
canal  situation  thoroughly  and  to  expose  and  punish  whatever 
wrong-doing  he  might  find,  and  carried  the  State  triumphantly 
because  the  people  had  faith  in  him.  His  administration  as  gov- 
ernor was  noteworthy  for  its  efficiency  in  managing  the  affairs  of 
the  Empire  State,  and  for  its  promotion  of  several  needed  reforms. 
He  appointed  the  charter  commission  which  gave  the  metropolis 
its  present  revised  system  of  government;  he  selected  the  tene- 
ment house  commission  which  extended  the  housing  reforms  that 
he  had  begun  as  police  commissioner ;  he  undertook  to  unify  the 
control  of  public  educational  work  in  the  State;  he  secured  the 
passage  of  the  far-reaching  franchise  tax  law;  he  presented  to 
the  Legislature  the  most  statesmanlike  messages  upon  the  regula- 
tion of  trusts  and  corporations  and  various  taxing  reforms  that 
were  produced  in  any  State  during  that  period,— and  he  had  be- 
fore him  the  certain  prospect  of  a  triumphant  reelection  as  gover- 
nor for  a  second- term  in  the  autumn  of  1900. 


252  THEODORE    ROOSI  \  I  I  1 


A»  Vice  President. 


His  victory  of  1898,  however,  had  everywhere  attracted  atten- 
tion to  his  availability  for  the  national  ticket  two  years  later. 
Mr.  Mckinley's  renomination  was  conceded,  ami  the  Republicans 
of  the  country,  especially  in  the  West,  were  already  talking  of 
Theodore  Roosevelt  as  their  probable  candidate  for  1904.  He  ap- 
peared at  the  Philadelphia  convention  at  the  head  of  the  New  York 
delegation  just  as  he  had  appeared  sixteen  years  previously  at 
Chicago.  Not  only  was  he  the  most  popular  personal  figure  in  the 
convention,  but  he  was  regarded  by  a  large  proportion  of  the  dele- 
gates, for  a  series  of  reasons,  as  the  most  desirable  man  to  be 
associated  with  Mr.  MeKinley  on  the  ticket.  Hence  the  nomina- 
tion which  he  Bought  to  avoid,  but  accepted  when  it  came  as  the 
mandate  of  the  party.  He  entered  upon  the  work  of  the  cam- 
paign with  great  enthusiasm,  and  his  work  as  a  speaker  was  more 
effective  than  that  of  any 'other  member  of  his  party.  The  cam- 
paign over,  he  quietly  resumed  his  literary  work  (he  had  already 
written  in  1898  his  famous  book,  "The  Rough  Riders,"  and  while 
governor  wrote  a  characteristic  life  of  Oliver  Cromwell),  visited 
the  Rocky  Mountains  and  wrote  a  remarkable  description  of  the 
hunting  of  the  cougar,  and  so — in  place  of  his  expected  second 
term  in  the  intense  activities  of  the  governorship  of  New  York — 
he  reconciled  himself  to  the  prospects  of  four  years  of  quiet,  self- 
repressed,  observant,  and  studious  life  in  the  dignified  office  of 
Pice-President. 

Taking  Up  the  Work  Laid  Down  by  President  MeKinley. 

A  brief  extra  session  had  given  him  opportunity  in  his  new 
official  capacity  to  preside  over  the  Senate.  The  first  regular 
session  of  Congress  was  not  to  begin  until  December,  1901.  In 
September,  however,  the  bullet  of  the  assassin  made  vacant  the 
great  office  so  ably  and  honorably  filled  by  President  MeKinley, 
and  on  September  14,  1901,  at  Buffalo,  Theodore  Roosevelt  took 
the  oath  of  office  as  President  of  the  United  States,  informing  the 
country  that  it  was  his  purpose  to  take  up  the  work  as  Mr.  Me- 
Kinley had  laid  it  down.  He  has  been  unfailingly  true  to  that 
promise.  No  previous  Vice-President  ever  came  into  power 
through  the  death  of  the  President  without  almost  immediately 
calling  about  him  a  new  cabinet  and  adopting  methods  and  poli- 
cies of  his  own. 

Mr.  Roosevelt,  with  an  individuality  as  strong  as  that  of  any 
other  man  of  his  day,  was  able  to  adjust  himself  at  once  to  the 
personnel  and  to  the  policies  of  the  MeKinley  administration, 
while  sacrificing  not  one  whit  of  his  own  personality,  and  while 
fixing  in  every  direction  the  impress  of  his  own  distinctive  meth- 
ods. Mr.  McKinley's  cabinet  remained  with  him  to  a  man,  one  or 
two  of  them  who  had  expected  to  retire — Mr.  Gage,  Mr.  Long,  and 
Mr.  Smith,  for  example — keeping  their  places  longer  than  they 
otherwise  would  have  done.  Mr.  Root,  Mr.  Hay,  and  Mr.  Knox 
had  the  same  freedom  of  opportunity  to  carry  on  their  great  de- 
partments as  under  Mr.  MeKinley  himself.  Mr.  Hitchcock  and 
Mr.  Wilson  held  steadily  on  their  respective  courses.  There  was 
unity  in  the  cabinet,  there  was  good-will  between  the  Administra- 
tion and  both  Houses  of  Congress,  and  there  was  harmony  and 
enthusiasm  in  the  party  at  large.  Senator  Hanna,  as  chairman 
of  the  National  Committee  and  an  influential  figure  in  Congress, 
remained  in  close  and  confidential  relations  with  the  new  Presi- 
dent to  the  day  of  his  lamented  death. 

His  Nomination  in  1904  a  Foregone  Conclusion. 

Under  these  circumstances,  with  the  unshaken  confidence  of 
the  masses  of  the  people  and  with  the  enthusiastic  support  of  the 
unofficial  rank  and  file  of  the  Republican  voters,  President  Roose- 
velt's nomination  at  Chicago  in  1904  was  a  foregone  conclusion, 
even  though  it  had  never  happened  before  that  a  President  who 
had  come  into  office  to  fill  an  unexpired  term  had  been  his  party's 
choice  for  reelection. 

Some  of  the  Achievements  of  President  Roosevelt's  Administration. 

Under  President  Roosevelt's  administration  a  series  of  great 
achievements  can  be  named,   and  these  will  constitute  a   large 


THEODORE    ROOSEVELT.  253 

part  of  the  claim  that  the  Republican  party  makes  in  this  year's 
campaign  for  another  lease  of  power. 


President  McKinley  had  undertaken  to  create  a  new  and  stable 
republic  in  the  island  of  Cuba,  having  intimate  relations  with  this 
country,  for  our  own  advantage  and  for  the  best  welfare  of  the 
people  of  the  island.  President  Roosevelt  completed  that  task; 
insured  the  prosperity  of  Cuba  by  a  mutually  advantageous  treaty 
of  commercial  reciprocity ;  established  on  the  south  coast  of  Cuba 
a  great  naval  station  commanding  the  Caribbean  Sea,  and  thus 
put  the  stamp  of  completion  upon  one  of  the  most  brilliant  and 
highly  creditable  chapters  in  the  statesmanship  of  any  nation. 
We  had  not  gone  to  Cuba  to  make  war,  but  to  establish  peace ;  and 
it  has  been  Theodore  Roosevelt's  good  fortune  to  play  a  leading 
part  in  the  beginning  and  the  ending  of  that  proud  episode. 

The  Philippines. 

Again,  through  Secretary  Root,  Judge  Taft,  and  their  associ- 
ates and  successors  President  Roosevelt  has  given  permanence  to 
the  lines  of  humane  and  progressive  policy  for  the  Philippines, 
promoting  education  and  self-government  by  every  possible  means, 
and  working  steadily  towards  the  prosperity  of  the  islands.  His 
remarkable  knowledge  of  army  affairs  enabled  him  to  cooperate 
the  more  successfully  with  Secretary  Root  in  the  reorganization 
of  our  military  system.  His  intimate  knowledge  of  naval  affairs 
has  given  the  country  as  well  as  Congress  a  very  general  confi- 
dence in  the  policy  of  naval  enlargement  and  efficiency  that  has 
been  adhered  to  through  his  administration. 

The  Monroe  Doctrine. 

No  one  understands  so  well  as  President  Roosevelt  the  manner 
in  which  a  strong  navy  insures  peace  for  this  country.  It  was  the 
strength  of  our  navy  which  made  it  comparatively  easy  for  the 
President  to  prevail  upon  Germany  and  England  to  withdraw 
from  their  blockade  of  Venezuela  and  to  submit  all  points  in  con- 
troversy to  settlement  by  arbitration.  In  dealing  with  the  various 
aspects  of  this  Venezuela  question  the  principles  of  the  Monroe 
Doctrine  were  accepted  and  strengthened,  and  the  prestige  of  the 
United  States  as  a  just  and  disinterested  arbiter  in  Western  Hemi- 
sphere affairs  was  advanced  to  a  point  never  before  reached. 
President  Roosevelt  was  besought  to  take  upon  himself  the  arbi- 
tration of  certain  phases  of  the  Venezuela  dispute,  but  he  sent  the 
case  to  The  Hague,  thereby  contributing  the  greatest  practical  aid 
to  the  cause  of  a  permanent  tribunal.  The  settlement  of  the 
Alaska  boundary  on  the  basis  of  the  findings  of  an  Anglo-Ameri- 
can commission  was  also  a  great  triumph  of  statesmanship  for 
which  President  Roosevelt  is  entitled  to  the  highest  credit. 

The  Isthmian   Canal. 

The  Venezuela  and  Alaska  situations  exemplified  talent  of  the 
highest  order  in  the  settlement  of  critical  foreign  questions.  But, 
to  many  minds,  the  crowning  achievement  of  Mr.  Roosevelt  and 
his  administration  has  been  the  removal  of  all  the  series  of  vexa- 
tious obstacles  that  lay  in  the  way  of  beginning  the  construction 
of  the  Isthmian  Canal.  No  man  in  the  United  States  has  been 
more  strongly  impressed  for  many  years  than  President  Roosevelt 
himself  with  the  necessity  of  keeping  the  Isthmian  Canal  under 
the  political  sovereignty  and  control  of  the  United  States  Govern- 
ment. His  views  on  this  subject  were  frankly  expressed  and 
highly  influential  in  the  final  shaping  of  the  negotiations  with 
England  for  the  abrogation  of  the  Clayton-Bulwer  Treaty.  When 
it  seemed  best  to  give  up  the  Nicaragua  route,  President  Roosevelt 
stood  firmly  for  a  proper  measure  of  American  jurisdiction  over 
the  Panama  zene.  At  every  step  of  the  negotiations,  first  with 
Colombia  and  then  with  Panama,  his  course  was  marked  by  good 
faith  in  the  highest  degree  and  disinterested  statesmanship  with- 
out a  flaw  or  stain.  The  final  outcome,  that  of  an  independent 
republic  at  Panama  closely  allied  with  the  United  States,  was  the 
best  solution,  probably,  that  could  have  been  found,  whether  for 
North   America,    South   America,   or  the  commercial   nations   of 


254  THEODORE    ROOSEVELT. 

Kurope ;  and  the  citizens  of  Colombia  itself  are  already  perceiving 
that  this  was  the  best  solution  for  them,  and  that  they  are  now 
certain  to  have  all  the  benefits  of  a  canal  on  the  most  favored 
terms,  without  any  of  the  dangers,  costs,  or  responsibilities.  With 
his  characteristic  foresight  and  intelligence,  the  President  has 
already  provided  for  the  thorough  sanitation  of  the  canal  zone, 
has  appointed  a  splendidly  qualified  board  of  commissioners  to 
construct  the  canal,  and  has  arranged  for  the  effective  policing  and 
government  of  the  ten-mile  strip.  If  reelected,  he  will  astonish 
the  world  by  the  vigor,  efficiency,  and  essential  economy  with 
which  he  will  prosecute  this  greatest  of  all  engineering  tasks. 

Foreign   Relatlonii. 

In  his  proclamations  enjoining  neutrality  in  the  war  between 
Russia  and  Japan,  President  Roosevelt  has  shown  great  tact  as 
well  as  a  correct  sense  of  our  position  under  international  law. 
His  leadership  in  securing  from  all  great  powers,  including  the 
combatants  themselves,  the  territorial  restriction  of  the  war, 
will  go  upon  the  record  as  one  of  the  most  beneficent  services  in 
the  history  of  American  diplomacy.  His  promptness  in  defending 
American  rights,  whether  in  Turkey,  Morocco,  Santo  Domingo,  or 
elsewhere,  has  promoted  peace  and  good-will  rather  than  ani- 
mosity. Under  his  administration  our  relations  with  all  nations, 
foreign  governments,  and  peoples  have  been  advanced  to  the 
highest  point  of  friendliness  and  mutual  respect  ever  attained 
since  the  beginning  of  our  national  life. 

Internal  Administration. 

In  the  work  of  internal  administration  President  Roosevelt 
has  shown  himself,  on  the  one  hand,  thorough  in  routine  and  a 
master  of  detail ;  on  the  other  hand,  strong  and  constructive  in 
policy.  His  whole  training  had  made  him  preeminently  fit  for  the 
direction  of  the  machinery  of  the  immense  executive  business  of 
government.  Under  him  the  departments  have  reached  their 
highest  pitch  of  efficiency.  Never  before  has  the  work  of  skilled 
and  competent  men  been  so  much  in  demand  or  so  heartily  ap- 
preciated. Never  before  have  the  unworthy  and  the  incompetent 
been  so  unsparingly  shut  out  from  the  governmental  services.  In 
the  Post-Offlce  Department  there  had  survived  and  developed  in 
certain  special  parts  of  the  vast  organization  some  favoritism, 
some  fraud,  and  some  flagrant  dishonesty  as  the  bad  fruitage  of  a 
spoils  system  for  which  both  parties  must  share  the  blame.  These 
evil  conditions  had  escaped  the  vigilance  of  two  or  three  Con- 
gressional investigations ;  but  President  Roosevelt  has  brought 
them  to  the  light,  sparing  no  culprit,  however  well  connected  or 
influentially  surrounded.  Thus  the  people  know  that  in  him  they 
have  an  executive  unequalled  in  the  reduction  of  the  public  service 
to  a  basis  of  honesty,  efficiency,  and  intelligent  economy. 

It  is  a  great  thing  to  be  able  to  grasp  details  as  well  as  to 
formulate  principles ;  and  to  know  how  to  select  men  as  well  as 
to  understand  the  tasks  to  which  they  are  assigned.  But  Presi- 
dent Roosevelt,  who  excels  in  acting  as  Uncle  Sam's  foreman  in 
running  every  branch  of  his  great  business,  has  also  shown  a  re- 
markable talent  for  domestic  statesmanship  and  for  the  initiating 
of  new  and  better  methods.  Thus  he  has  thrown  himself  into  the 
task  of  improving  Uncle  Sam's  physical  domain,  and  as  a  result 
we  have  the  new  irrigation  policy  which  is  to  add  to  the  Nation's 
wealth,  population,  and  contentment  more  than  any  man  can  now 
well  estimate.  We  have  also  the  new  forestry  policy,  and  many 
other  matters  of  note  belonging  in  particular  to  the  departments 
of  Secretary  Wilson  and  Secretary  Hitchcock,  having  to  do  with 
the  country's  material  welfare  and  progress. 

The  New  Department  of  Commerce  and  Labor. 

One  of  the  greatest  constructive  achievements  of  President 
Roosevelt's  administration  has  been  the  setting  up  of  a  new  cabi- 
net department,  that  of  Commerce  and  Labor.  This  department 
groups  together  in  a  convenient  way  a  number  of  public  services 
already  existing,  and  in  addition  it  enables  the  Government  to 
utilize  more  effectively  its  constitutional  power  to  regulate  com- 
merce between  the  States  for  the  well-being  of  the  people  and, 


THEODORE    ROOSEVELT.  255 

further,  to  promote  not  only  the  country's  prosperity  in  industry 
and  commerce,  but  also  its  harmony  in  the  relations  between  the 
different  factors  of  production. 

Difficult  Problems  Well  Solved. 

In  everything  let  it  be  said  that,  wherein  it  has  fallen  to  the 
President's  lot  to  deal  with  problems  affecting  the  relations  of 
capital  and  labor,  he  has  not  failed  to  show  the  highest  qualities 
of  courage  and  the  highest  sense  of  justice,  but  he  has  at  all 
times  upheld  the  dignity  and  the  supremacy  of  the  national  Gov- 
ernment. The  anthracite  coal  strike  reached  a  point  where  it 
became  a  grave  national  emergency,  and  the  President  found  a 
way  to  settle  it  which  did  not  strain  in  the  slightest  degree  his 
official  prerogative,  while  it  contributed  greatly  to  the  prestige  of 
the  Government,  reassured  the  public,  and  fixed  a  noble  precedent 
in  favor  of  arbitration  at  a  moment  when  the  strain  between 
labor  and  capital  was  the  greatest  ever  known  in  this  country. 

Enforcement    of  the    Sherman   Anti-Trust    Law. 

The  measures  taken  by  the  President  through  the  Attorney- 
General's  office  for  the  enforcement  of  the  Sherman  anti-trust  law, 
however  important  they  were  as  respects  the  particular  matters  in 
dispute,  found  their  greatest  importance,  after  all,  in  the  assur- 
ance they  gave  that  the  law  is  still  supreme  in  this  land,  that  the 
President  as  Chief  Magistrate  will  enforce  the  law  against  the 
greatest  corporation  as  well  as  against  the  criminal  who  breaks 
open  a  letter-box,  and  that  the  highest  courts,  when  entered  under 
•the  President's  instruction  by  an  energetic  Department  of  Justice, 
will  interpret  the  laws  without  fear  or  favor. 

Unfailing   in   His    Sense   of  Justice. 

President  Roosevelt  has  been  unfailing  in  his  sense  of  public 
dignity  and  justice.  He  has  reposed  the  fullest  confidence  in  his 
associates  in  executive  office,  and  has  gloried  in  their  effective 
devotion  to  their  work,  relying  upon  them  and  leaving  them  un- 
hampered, while  himself  always  in  the  fullest  sense  the  President 
and  the  leader.  His  has  been  an  administration  without  fads, 
without  favorites,  and  without  scandals.  In  army  and  navy  pro- 
motions, as  well  as  in  all  appointments  to  civil  office,  he  has  per- 
formed his  duty  with  sole  regard  to  the  country's  welfare,  and 
with  a  freedom  from  bias  or  mere  personal  leaning  that  has  never 
been  surpassed  if  ever  before  equalled  in  the  administration  of 
any  American  President. 

He  Knows  the  Country  and  Its  People. 

He  knows  the  country  and  all  its  interests  and  resources  from 
North  to  South  and  from  East  to  West.  He  knows  the  plain  peo- 
ple, in  person  and  in  type,  as  well  as  he  knows  their  leaders  in 
industry  and  education,  in  church  and  state.  He  has  no  quarrels ; 
he  bears  no  grudges ;  he  is  willing  and  anxious  to  work  with  all 
men  who  will  deal  honorably  and  faithfully.  He  knows  the  his- 
tory of  labor,  recognizes  the  services  that  have  been  rendered  by 
associations  of  working  men  for  mutual  benefit,  and  is  so  confident 
in  his  sense  of  good  faith  in  all  his  dealing  with  the  problems  of 
labor  and  capital,  that  he  has  no  fear  of  being  misunderstood  when 
he  speaks  with  perfect  frankness  upon  questions  as  they  arise. 
He  knows  the  Indians  and  sees  that  they  have  justice.  He  knows 
the  difficulties  that  beset  the  race  problem  in  the  South,  but  he 
also  holds  that  in  ethics,  as  under  the  Constitution  and  laws  of  the 
United  States,  a  man  is  a  man,  no  matter  what  the  color  of  his 
skin. 

He  Holds  the  Man  Higher  than  the  Dollar. 

While  believing  that  the  rights  of  property  must  be  regarded 
and  conserved,  he  holds  the  man  higher  than  the  dollar.  He  sees 
that  in  a  country  like  ours,  the  radical  and  the  conservative  alike 
must  demand  of. their  chief  executive  that  he  maintain  the  law  as 
first  and  supreme  over  rich  and  poor  alike. 


256  THEODORE    ROOSEVELT. 

An  Example  to  the  Yonng  Men  of  the  Country. 

To  the  young  men  of  the  country,  President  Roosevelt  sets  an 
example  of  the  value  of  a  sound  mind  in  a  sound  body.  His 
career  helps  them  to  see  the  practical  worth  of  industry,  of  sys- 
tem, of  temperate  living;  and  helps  them  to  perceive  that  faith 
in  the  highest  public  and  private  ideals  still  holds  sway  in  our 
places  of  highest  honor  and  power. 

IN  BEHALF  OF  RAILWAY   EHPLOYES— 7    ^E  SAFETY   AP- 
PLIANCE LAW. 

President  Roosevelt  has  been  especially  active  in  his  efforts 
to  preserve  the  integrity  of  laws  passed  for  the  protection  of 
wage  workers,  and  has  insisted  that  such  laws  be  impartially  and 
effectively  executed.  His  efforts  in  behalf  of  railway  employes 
deserve  special  mention. 

In  1893  the  Safety  Appliance  Law,  Car  Coupler  Bill,  as  it  is 
sometimes  called,  was  passed  by  a  Republican  congress.  This 
legislation  was  persistently  opposed  by  Democrats  at  previous 
sessions  of  Congress,  and  Senator  Gorman  and  other  prominent 
Democrats  worked  and  voted  against  the  bill  as  finally  passed. 
The  main  purpose  of  this  law  was  protection  for  the  lives  and 
limbs  of  railway  employees,  and  it  has  proved  of  great  benefit  to 
this  class  of  wage-workers. 

As  has  been  the  case  with  almost  all  legislation  of  this  char- 
acter, experience  disclosed  certain  defects  in  the  law,  and  showed 
that  it  was  impossible  to  obtain  the  full  benefit  contemplated  by 
its  framers  without  the  enactment  of  certain  amendments,  which 
were  proposed.  President  Roosevelt  took  a  lively  interest  in 
this  law,  and  interested  himself  actively  in  the  passage  of  the 
proposed  amendments,  calling  attention  to  the  matter  in  his 
Message  to  Congress,  under  date  of  December  2,  1902,  as  follows : 

The  safety  appliance  law  for  the  better  protection  of  the  lives 
and  limbs  of  railway  employees,  which  was  passed  in  1893,  went 
into  full  effect  on  August  1,  1901.  It  has  resulted  in  averting 
thousands  of  casualties.  Experience  shows,  however,  the  neces- 
sity of  additional  legislation  to  perfect  this  law.  A  bill  to  provide 
for  this  passed  the  Senate  at  the  last  session.  It  is  to  be  hoped 
that  some  such  measure  may  now  be  enacted  into  law. 

The  friends  of  the  law  were  much  indebted  to  President  Roose- 
velt for  invaluable  assistance  in  furthering  the  passage  of  these 
amendments,  which  finally  passed  both  Houses  of  Congress,  and 
received  the  President's  approval  on  March  2,  1903. 

From  the  standpoint  of  a  proper  administration  of  the  law  the 
passage  of  these  amendments  had  become  a  necessity,  owing  to  a 
decision  of  the  United  States  Circuit  Court  of  Appeals  in  the  case 
of  W.  O.  Johnson  vs.  The  Southern  Pacific  Company.  This  case 
was  an  action  in  which  the  plaintiff,  Johnson,  a  freight  brakeman 
in  the  employ  of  the  railroad  company,  sought  to  recover  for  the 
loss  of  an  arm.  He  was  injured  while  attempting  to  couple  a 
locomotive  onto  a  dining  car  with  an  ordinary  link  and  pin,  con- 
trary to  the  spirit  and  letter  of  the  safety  appliance  law,  and  his 
case  involved  a  construction  of  that  law,  particularly  the  second 
section  of  it,  which  makes  it  unlawful  for  any  common  carrier  "to 
haul  or  permit  to  be  hauled  or  used  on  its  line  any  car  used  in 
moving  interstate  traffic  not  equipped  with  couplers  coupling  auto- 
matically by  impact,  and  which  can  be  uncoupled  without  the 
necessity  of  men  going  between  the  ends  of  the  cars." 

In  the  trial  court  the  case  was  taken  from  the  jury  and  a  ver- 
dict ordered  for  the  defendant  company,  whereupon  Johnson,  rely- 
ing on  the  justice  of  his  cause  and  with  confidence  in  the  law 
that  had  been  enacted  for  his  protection,  collected  all  of  his  scanty 
resources  and  took  the  case  to  the  United  States  Circuit  Court  of 
Appeals,  on  appeal  from  the  action  of  the  trial  judge.  In  its  dis- 
position of  the  case  the  Circuit  Court  of  Appeals  sustained  the 
action  of  the  court  below,  and  in  an  elaborately  written  opinion 
placed  such  a  construction  upon  the  law  as  to  nullify  it  in  impor- 
tant particulars  and  render  it  useless  for  the  purpose  intended  by 
its  framers,  namely,  protection  for  the  lives  and  limbs  of  railway 
employees. 

Ordinarily  this  decision  would  have  ended  the  case,  as  the 
decisions  of  the  Circuit  Court  of  Appeals  are  final  in  such  cases, 
and  Johnson,  being  penniless  and  without  influence,  seemed  to 
have  no  alternative  but  submission.    As  a  last  resort,  however,  a 


THEODORE    ROOSEVELT.  257 

petition  for  a  writ  of  certiorari  was  submitted  to  the  Supreme 
Court  of  the  United  States  in  his  behalf.  Because  of  the  interest 
of  the  Government  in  the  construction  given  by  the  Circuit  Court 
of  Appeals  to  the  car  coupler  act,  the  Attorney-General,  by  direc- 
tion of  the  President,  intervened  in  the  case  before  the  Supreme 
Court  and  submitted  reasons  of  a  public  nature  why  the  case 
should  be  reviewed  by  that  court.  The  Supreme  Court  granted 
the  writ,  and  the  case  will  be  heard  early  in  October  next. 

It  is  believed  that  this  is  the  first  instance  in  the  history  of 
the  country  wherein  a  court  has  construed  a  public  statute  in  a 
private  case  in  such  a  way  as  to  nullify  the  statute,  and  in  which 
the  Government  has  intervened  to  protect  the  integrity  of  the  law. 
The  plaintiff  in  this  case  is  a  poor  brakeman.  He  had  used  all  his 
money  in  litigation,  and  was  without  means  to  carry  the  case  fur- 
ther even  had  he  been  granted  the  right  to  do  so;  and  had  the 
Government  not  become  interested  in  his  case  through  the  action 
of  the  President  he  must  have  submitted  to  the  decision  of  the 
court  and  given  up  all  hope  of  securing  redress  of  his  injury. 
But  through  the  action  of  the  President  and  his  able  Attorney- 
General  he  is  given  an  opportunity  to  have  his  case  heard  by  the 
highest  tribunal  in  the  land,  and  it  will  be  so  ably  and  fully  pre- 
sented to  the  court  by  the  officers  of  the  Government  that  he  will 
be  assured  of  a  proper  disposition  of  his  case. 

Another  important  case  under  this  law  in  which  the  President 
has  demonstrated  his  sympathy  for  wage-workers  and  his  interest 
in  the  laws  that  have  been  passed  for  their  protection,  is  that  of 
Voelker  vs.  The  Chicago,  Milwaukee  &  St.  Paul  Railway  Co.,  re- 
cently decided  by  the  Circuit  Court  of  Appeals  for  the  eighth  cir- 
cuit. Voelker  was  a  switchman  in  the  employ  of  the  railroad  com- 
pany, and  in  the  discharge  of  his  duties  he  was  crushed  to  death 
between  the  drawbars  of  two  cars  while  endeavoring  to  adjust  a 
defective  coupler  so  that  it  would  operate  as  the  law  directs.  His 
widow  brought  suit  against  the  railroad  company  to  recover  for 
his  death,  and  a  jury  in  the  trial  court  rendered  a  verdict  in  her 
favor  on  which  judgment  was  rendered. 

The  railroad  company  carried  the  case  to  the  United  States 
Circuit  Court  of  Appeals  in  an  effort  to  set  aside  the  judgment  of 
the  lower  court,  and  as  a  construction  of  the  law  in  vital  particu- 
lars was  involved  it  became  important  that  the  case  should  be 
properly  presented  to  the  court.  For  the  protection  of  railway 
employees  it  was  necessary  that  the  integrity  of  the  law  should  be 
sustained,  and  by  direction  of  the  President  the  Attorney-General 
asked  leave  to  intervene  and  file  a  brief  in  the  case,  in  order  that 
the  court  should  be  fully  informed  concerning  the  scope  and  intent 
of  the  law.  The  opinion  of  the  Circuit  Court  of  Appeals  sustains 
the  law  completely,  and  places  such  a  construction  upon  its  terms 
that  railway  employees  may  now  feel  that  they  have  a  sound  and 
efficient  law  to  protect  their  interests,  and  that  a  beneficent  gov- 
ernment is  watchful  to  see  that  they  are  not  exposed  to  unneces- 
sary hazard  in  the  pursuit  of  their  dangerous  calling. 

This  has  been  accomplished  by  the  watchful  care  of  the  Presi- 
dent and  his  zeal  in  seeing  that  rich  and  poor  alike  are  given  the 
protection  intended  to  be  accorded  them  by  the  laws  of  their  com- 
mon country. 


The  true  solution  of  the  questions  arising  between  labor  and 
capital  lies  in  an  awakened  public  conscience.-— Hon.  C.  W.  Fair- 
banks, at  Kansas  City,  Mo.,  September  1,  1902. 

There  are  more  than  twenty-five  thousand  local  labor  unions 
in  the  United  States,  with  a  membership  of  more  than  two  millions. 
What  infinite  good  can  he  accomplished  by  this  mighty  army  of 
peace  and  industry  if  held  true  to  its  opportunity. — Hon.  C  W. 
Fairbanks,  at  Kansas  City,  Mo.,  September  1,  1902. 

We  want  no  slave  labor.  Two  million  men,  with  their  blood, 
wiped  away  slavery  forever.  We  want  no  labor,  either  white  or 
black,  in  a  virtual  state  of  serfdom.  Labor  must  be  free,  with  all 
the  prerogatives  which  pertain  to  freedom. — Hon.  C.  W.  Fairbanks, 
at  Kansas  City,  Mo.,  September  1,  1902. 


258  LABOR  RECORD  OF  THEODORE  ROOSEVELT. 


LABOR  RECORD  OF  THEODORE  ROOSEVELT. 

"The  most  vital  problem  with  which  this  country,  and  for  that 
matter  the  whole  civilized  world,  has  to  deal  is  the  problem  which 
has  for  one  side  the  betterment  of  social  conditions,  moral  and 
physical,  in  large  cities  and  for  another  side  the  effort  to  deal  with 
that  tangle  of  far-reaching  questions  which  we  group  together 
when  we  speak  of  labor." — President  Roosevelt's  first  message  to 
Congress. 

Epitome  of  Theodore  Roosevelt's  Favorable  Action  on  Labor 
i    Legislation. 

As  member  of  assembly  in  New  York  he  voted  for  bills — 

Abolishing  tenement-house  cigar  making  in  New  York  City. 

Restricting  child  labor  in  factories  and  workshops. 

Regulating  the  labor  hours  of  minors  and  women  in  manufac- 
turing establishments. 

Safeguarding  the  lives  and  limbs  of  factory  operatives. 

Regulating  wage  rates  of  laborers  employed  by  municipalities. 

Making  employees  preferred  creditors. 

Providing  for  building  mechanics'  liens. 

Prescribing  the  lien  rights  of  working  women. 

Protecting  mechanics  and  laborers  engaged  in  sinking  oil  or 
gas  wells. 

Abolishing  contract  child  labor  in  reformatory  institutions. 

Creating  a  commission  to  examine  into  the  operation  of  the 
contract  system  of  employing  convicts. 

Establishing  the  bureau  of  labor  statistics. 

To  promote  industrial  peace. 

For  a  five-cent  fare  on  the  New  York  City  elevated  railroad. 

Incorporating  the  New  York  City  Free  Circulating  Library. 

For  free  public  baths  in  New  York  City. 
As  governor  of  New  York  he  approved  these  measures: 

Creating  a  tenement- house  commission. 

Regulating  sweat-shop  labor. 

Empowering  the  factory  inspector  to  enforce  the  scaffolding 
law. 

Directing  the  factory  inspector  to  enforce  the  act  regulating 
labor  hours  on  railroads. 

Making  the  eight-hour  and  prevailing-rate-of-wages  laws  ef- 
fective. 

Amending  the  factory  act — 

(1)  Protecting  employees  at  work  on  buildings. 

(2)  Regulating  the  working  time  of  female  employees. 

(3)  Providing  that  stairways  shall  be  properly  lighted. 

(4)  Prohibiting  the  operation  of  dangerous  machinery  by  chil- 
dren. 

(5)  Prohibiting  women  and  minors  working  on  polishing  or 
buffing  wheels. 

(6)  Providing  for  seats  for  waitresses  in  hotels  and  res- 
taurants. 

Shortening  the  working  hours  of  drug  clerks. 

Increasing  the  salaries  of  New  York  City  school-teachers. 

Extending  to  other  engineers  the  law  licensing  New  York  City 
engineers  and  making  it  a  misdemeanor  for  violating  the  same. 

Licensing  stationary  engineers  in  Buffalo. 

Providing  for  the  examination  and  registration  of  horseshoers 
in  cities. 

Registration  of  laborers  for  municipal  employment. 

Relating  to  air  brakes  on  freight  trains. 

Providing  means  for  the  issuance  of  quarterly  bulletins  by  the 
bureau  of  labor  statistics. 

In  addition  to  the  foregoing,  while  governor  of  New  York  he 
recommended  legislation  (which  the  legislature  failed  to  pass)  in 
regard  to — 

Employers'  liability. 

State  control  of  employment  offices. 

State  ownership  of  printing  plant. 


LABOR  RECORD  OF  THEODORE  ROOSEVELT.  259 

Devising  means  whereby  free  mechanics  shall  not  be  brought 
into  competition  with  prison  labor. 
As  President  of  the  United  States  he  has  signed  bills — 

Renewing  the  Chinese-exclusion  act  and  extending  its  pro- 
visions to  the  island  territory  of  the  United  States. 

Prohibiting  the  employment  of  Mongolian  labor  on  irrigation 
works  and  providing  that  eight  hours  shall  constitute  a  day's 
labor  on  such  projects. 

Abolishing  slavery  and  involuntary  servitude  in  the  Philippine 
Islands,  violation  of  the  act  being  punishable  by  forfeiture  of  con- 
tracts and  a  fine  of  not  less  than  $10,000. 

Protecting  the  lives  of  employees  in  coal  mines  in  Territories 
by  regulating  the  amount  of  ventilation  and  providing  that  en- 
tries, etc.,  shall  be  kept  well  dampened  with  water  to  cause  coal 
dust  to  settle. 

Exempting  from  taxation  in  the  District  of  Columbia  house- 
hold belongings  to  the  value  of  $1,000,  wearing  apparel,  libraries, 
school  books,  family  portraits  and  heirlooms. 

Requiring  proprietors  of  employment  offices  in  the  District  of 
Columbia  to  pay  a  license  tax  of  $10  per  year. 

Creating  the  Department  of  Commerce  and  Labor  and  making 
its  head  a  Cabinet  officer. 

Improving  the  act  relating  to  safety  appliances  on  railways. 

Increasing  the  restrictions  upon  the  immigration  of  cheap  for- 
eign labor  and  prohibiting  the  landing  of  alien  anarchists. 

Union  Labor  In  Government  Work. 
In  his  first  message  to  Congress,  in  1901,  President  Roosevelt 
recommended  that  "provision  be  made  to  render  the  enforcement 
of  the  eight-hour  law  easy  and  certain,"  and  also  that  the  Govern- 
ment should  provide  in  its  contracts  that  all  work  for  it  should  be 
done  under  "fair"  conditions. 

By  this  expression  it  is  understood  that  the  President  meant 
that  no  contract  should  be  given  or  no  contractor  employed  by  the 
Government  who  would  not  agree  to  pay  the  union  scale  of  wages ; 
in  other  words,  no  contractor  should,  in  any  way,  be  allowed  to 
obtain  a  contract  from  the  Government  by  lessening  the  price  paid 
the  employees  for  their  labor  to  a  point  less  than  the  "fair"  or 
union  scale  of  wages  or  by  working  more  than  the  usual  number  of 
hours  per  day  which  had  been  fixed  for  the  trade. 

While  thus  favoring  the  union  standard  of  wages  and  hours  in 
Government  work  the  President  recognizes  the  illegality  of  any 
discrimination,  for  or  against  members  of  a  union.  Thus  in  the 
case  of  William  A.  Miller,  who  complained  that  he  was  removed 
from  his  position  of  assistant  foreman  in  the  Government  Printing 
Office,  in  violation  of  the  civil-service  law,  because  he  had  been 
expelled  from  Local  Union  No.  4,  of  the  International  Brother- 
hood of  Bookbinders,  the  President  ordered  Miller's  reinstatement 
and  explained  the  rule  governing  public  employment  in  the  follow- 
ing communication  to  Secretary  Cortelyou,  in  whose  charge  the 
President  placed  the  investigation : 

Oyster  Bay,  N.  Y,  July  13,  1903. 
My  Dear  Secretary  Cortelyou:  In  accordance  with  the  letter  of 
the  Civil  Service  Commission  of  July  6,  the  Public  Printer  will  re- 
instate Mr.  W.  A.  Miller  in  his  position.  Meanwhile  I  will  with- 
hold my  final  decision  of  the  whole  case  until  I  have  received  the 
report  of  the  investigation  on  Miller's  second  communication, 
which  you  notify  me  has  been  begun  to-day,  July  13. 

On  the  face  of  the  papers  presented,  Miller  would  appear  to 
have  been  removed  in  violation  of  law.  There  is  no  objection  to 
the  employees  of  the  'Government  Printing  Office  constituting 
themselves  into  a  union  if  they  so  desire,  but  no  rules  or  resolu- 
tions of  that  union  can  be  permitted  to  override  the  laws  of  the 
United  States,  which  it  is  my  sworn  duty  to  enforce. 

Please  communicate  a  copy  of  this  letter  to  the  Public  Printer 
for  his  information  and  that  of  his  subordinate. 
Very  truly,  yours, 

Theodore  Roosevelt; 
Hon.  George  B.  Cortelyou, 

Secretary  ofCommerce  and  Labor. 


Oyster  Bay,  N.  Y.,  July  14,  1903. 

My  Dear  Mr.  Cortelyott:  In  connection  with  my  letter  of  yes- 
terday, I  call  attention  to  this  judgment  and  award  by  the  Anthra- 
cite Coal  Strike  Commission  to  its  report  to  me  of  March  18  last: 

"It  is  adjudged  and  awarded  that  no  person  shall  be  refused 
employment  or  in  any  way  discriminated  against  on  account  of 


260  LABOR  RECORD   ol-     t'HKOIH>KK    KOOSEVELT. 

membership  or  nonmembership  to  any  labor  organization,  and  that 
tlure  shall  be  no  discrimination  against  or  interference  with  any 
employee  who  is  not  a  member  of  any  Labor  organisation  by  mem- 
bers of  such  organization." 

I  heartily  approve  of  this  award  and  judgment  by  the  Com- 
mission appointed  by  me,  which  itself  included  a  member  of  a 
labor  union.  This  Commission  was  dealing  with  labor  organiza- 
tions working  for  private  employers.  It  is,  of  course,  mere  ele- 
mentary decency  to  require  that  all  the  Government  Departments 
shall  be  handled  in  accordance  with  the  principle  thus  clearly  and 
fearlessly  enunciated.         I 

Please  furnish  a  copy  of  this  letter  both  to  Mr.  Palmer  and  to 
the  Civil  Service  Commission  for  their  guidance. 

Sincerely  yours, 

Theodore  Roosevelt. 
Hon.  George  B.  Cortelyou, 

Secretary  of  Commerce  and  Labor. 

Mr.  Palmer,  the  Public  Printer,  on  Wednesday,  July  1G,  notified 
Mr.  Miller  that  he  had  been  reinstated  and  might  report  for  duty 
any  day. 

On  September  29,  1903,  the  President  gave  a  hearing  to  mem- 
bers of  the  executive  council  of  the  American  Federation  of  Labor 
on  the  subject  of  pending  labor  legislation,  at  which  he  announced 
his  final  decision  in  the  Miller  case  and  at  the  same  time  explained 
his  preference  for  the  "union  shop"  in  private  employment.  The 
president  of  the  American  Federation  of  Labor  in  an  address, 
issued  on  the  succeeding  day,  to  organized  labor  of  America,  thus 
described  President  Roosevelt's  attitude: 

Replying  to  statements  on  the  subject,  President  Roosevelt 
set  forth  that  in  his  decision  he  had  nothing  in  mind  but  a  strict 
compliance  with  Federal,  including  civil  service,  law  and  that  he 
recognized  a  difference  between  employment  by  the  Government, 
circumscribed  by  those  laws,  and  any  other  form  of  employment, 
and  that  his  decision  in  the  Miller  case  should  not  be  understood 
to  have  any  other  effect  or  influence  than  affecting  direct  employ- 
ment by  the  Government  in  accordance  ■  therewith.  He  further- 
more made  plain  that  in  any  form  of  employment  excepting  that 
so  circumscribed  he  believed  the  full  employment  of  union  men 
Was  preferable  either  to  nonunion  or  open  shops. 

Following  is  the  official  account  of  the  hearing : 

September  29,  1903. 

Pursuant  to  the  request  of  Samuel  Gompers,  president  of  the 
American  Federation  of  Labor,  the  President  granted  an  interview 
this  evening  to  the  following  members  of  the  executive  council  of 
that  body:  Mr.  Samuel  Gompers,  Mr.  James  Duncan,  Mr.  John 
Mitchell,  Mr.  James  O'Connell,  and  Mr.  Frank  Morrison,  at  which 
various  subjects  of  legislation  in  the  interests  of  labor,  as  well  as 
Executive  action,  were  discussed.  Concerning  the  case  of  William 
A.  Miller,  the  President  made  the  following  statement: 

"I  thank  you  and  your  committee  for  your  courtesy,  and  I  ap- 
preciate the  opportunity  to  meet  with  you.  It  will  always  be  a 
pleasure  to  see  you  or  any  representatives  of  your  organizations 
or  of  your   federation  as  a  whole. 

"As  regards  the  Miller  case,  I  have  little  to  add  to  what  I 
have  already  said.  In  dealing  with  it  I  ask  you  to  remember  that 
I  am  dealing  purely  with  the  relation  of  the  Government  to  its 
employees.  I  must  govern  my  action  by  the  laws  of  the  land, 
which  I  am  sworn  to  adminster,  and  which  differentiate  any  case 
in  which  the  Government  of  the  United.  States  is  a  party  from  all 
other  cases  whatsoever.  These  laws  are  enacted  for  the  benefit  of 
the  whole  people,  nd  can  not  and  must  not  be  construed  as  per- 
mitting discrimination  against  some  of  the  people.  I  am  President 
of  all  the  people  of  the  United  States,  without  regard  to  creed, 
cclor,  birthplace,  occupation,  or  social  condition.  My  aim  is  to  do 
equal  and  exact  justice  as  among  them  all.  In  the  employment 
and  dismissal  of  men  in  the  Government  service  I  can  no  more 
recognize  the  fact  that  a  man  does  or  does  not  belong  to  a  union, 
as  being  for  or  against  him,  than  I  can  recognize  the  fact  that 
he  is  a  Protestant  or  a  Catholic,  a  Jew  or  a  Gentile,  as  being  for 
or  against  him. 

"In  the  communications  sent  me  by  various  labor  organiza- 
tions protesting  against  the  retention  of  Miller  in  the  Government 
Printing  Office  the  grounds  alleged  are  twofold:  First,  that  he  is  a 
nonunion  man;  second,  that  he  is  not  personally  fit.  The  question 
of  his  personal  fitness  is  one  to  be  settled  in  the  routine  of  ad- 
ministrative detail,  and  can  not  be  allowed  to  conflict  with  or  to 
complicate  the  larger  question  of  governmental  discrimination  for 
or  against  him  or  any  other  man  because  he  is  or  is  not  a  member 
of  a  union.  This  is  the  only  question  now  before  me  for  decision, 
and  as  to  this  my  decision  is  final." 

In  the  foregoing  statement  of  policy  President  Roosevelt  merely 
reiterated  his  well-known  conviction  that  the  law  must  be  admin- 
istered with  absolutely  no  discrimination. 


LABOB  EECOED  OF  THEODOBE  BOOSEVELT.  261 


The  President  and  the  Coal  Strike  of  1902. 


The  President  has  frequently  emphasized  the  need  of  more  sym- 
pathy between  employers  and  employees  and  deprecated  the  culti- 
vation of  class  feeling  with  its  resulting  antagonisms. 

The  appointment  of  the  commission,  which  resulted  in  the  ter- 
mination of  the  great  coal  strike  of  1902,  is  perhaps  President 
Roosevelt's  most  widely  known  and  generally  appreciated  contri- 
bution toward  the  improvement  of  industrial  relations.  When  the 
efforts  of  all  other  peacemakers  had  come  to  naught  and  the  coal 
famine  remained  unbroken  at  the  near  approach  of  winter,  Mr. 
Roosevelt,  as  a  representative  American  citizen,  pleaded  with  the 
operators  and  miners  to  terminate  their  dispute  and  resume  the 
raining  of  coal.  Public  opinion  supported  his  action  so  strongly 
that  both  sides  to  the  dispute  agreed  to  resume  work  and  leave  to 
a  commission  to  be  appointed  by  the  President  the  determination 
of  the  conditions  of  employment  concerning  which  they  had  been 
unable  to  agree.  The  President's  commission  not  only  adjusted 
the  dispute  in  the  coal  regions,  but  in  so  doing  formulated  prin- 
ciples of  very  general  application  to  the  organization  of  industry 
at  the  present  time.  The  immediate  effect  of  the  commission's 
appointment  was,  as  the  President  has  himself  stated,  "of  vast  and 
incalculable  benefit  to  the  nation,  but  the  ultimate  effect  will  be 
even  better  if  capitalist,  wage- worker,  and  lawmaker  alike  will 
take  to  heart  and  act  upon  the  lessons  set  forth  in  the  report"  of 
the  commission.  The  coal  industry  is  typical  of  all  the  great  in- 
dustries of  to-day  that  are  organized  on  the  principle  of  large-scale 
production,  and  its  treatment  of  the  labor  problem  is  therefore 
highly  illuminative. 

Under  the  influence  of  a  vast  stream  of  immigration  of  Poles, 
Hungarians,  and  Slavs  into  the  coal  regions  during  the  last  two 
or  three  decades  wages  had  steadily  declined.  The  American 
miners  saw  their  own  standard  of  living  threatened  by  the  lower 
standards  brought  from  central  Europe  unless  they  could  induce 
these  newcomers  to  unite  with  them  in  an  effort  to  put  an  end  to 
the  incessant  underbidding  for  employment.  In  1897  they  brought 
their  organization,  the  United  Mine  Workers,  to  such  a  state  of 
perfection  that  it  dominated  the  labor  situation  in  the  bitumin- 
ous regions  and  met  the  employers'  associations  on  an  equality  in 
the  annual  settlement  of  the  terms  of  employment.  In  1899  the 
organization  spread  to  the  anthracite  regions  and  the  next  year 
was  able  to  secure  a  10  per  cent,  advance  in  wages,  after  a  com- 
paratively short  strike  that  was  supported  as  heartily  by  the 
miners  outside  the  union  as  by  the  minority  at  that  time  in  the 
union. 

As  a  consequence  of  this  triumph  a  vast  majority  of  the  miners 
joined  the  organization,  which  thereupon  sought  to  represent  the 
miners  in  making  terms  with  the  employers'  agents  at  annual  con- 
ferences such  as  were  held  with  the  bituminous  operators.  The 
denial  of  this  request  by  the  officers  of  the  mining  corporations 
nearly  brought  on  another  strike  in  1901,  and  when  early  in  1902 
a  similar  request,  accompanied  with  a  demand  for  an  advance  in 
wages,  etc.,  was  once  more  denied,  industrial  peace  could  no  longer 
be  preserved.  The  operators  even  refused  the  union's  offer  to  sub- 
mit its  demands  to  the  arbitration  of  the  National  Civic  Federa- 
tion or  other  arbitrators,  and  a  week  later  a  delegate  convention 
of  the  anthracite  mine  workers  voted  to  continue  the  strike  ordered 
on  May  12.  In  obedience  to  this  decision,  says  the  commission, 
"nearly  the  entire  body  of  mine  workers,  which  numbers  about 
147,000,  abandoned  their  employment  and  remained  idle  until  the 
strike  was  called  off  by  another  convention,"  that  is,  until  Octo- 
ber 23,  1902. 

With  the  progress  of  summer  and  the  failure  of  all  mediatory 
efforts  to  adjust  the  differences  between  the  miners  and  the  oper- 
ators the  scarcity  of  fuel  made  itself  felt.  Many  factories  that 
were  dependent  upon  anthracite  had  to  shut  down,  throwing  large 
numbers  of  working  people  out  of  employment,  and  the  famine 
prices  at  which  coal  was  sold  almost  prohibited  its  use  for  domes- 
tic purposes  by  the  poorer  families.  As  cold  weather  approached 
the  President  felt  himself  virtually  compelled  to  act  in  order  to 
avert  unexampled  distress  throughout  all  eastern  communities 
that  depended  upon  anthracite  coal  for  domestic  heating  purposes. 
On  October  1  he  telegraphed  an  invitation  to  the  presidents  of  the 


262  I  Aiiou   KKCOBD  OP  THEODORE  ROOSEVELT. 

Ave  coal  railroad  companies,  a  prominent  individual  operator,  and 
the  president  of  the  miners'  organization  to  confer  with  him  "in 
regard  to  the  failure  of  the  coal  supply,  which  had  become  a  mat- 
ter of  vital  concern  to  the  whole  nation."  To  these  seven  persons, 
who  met  the  President  at  the  White  House  on  October  3,  Mr. 
Roosevelt  said: 

I  wish  to  call  your  attention  to  the  fact  that  there  are  three 
parties  affected  by  the  situation  in  the  anthracite  trade — the  oper- 
ators, the  miners,  and  the  general  public.  I  speak  for  neither  the 
operators  nor  the  miners,  but  for  the  general  public.  The  ques- 
tions at  issue  which  led  to  the  situation  affect  immediately  the 
parties  concerned — the  operators  and  the  miners — but  the  situa- 
tion itself  vitally  affects  the  public.  As  long  as  there  seemed  to 
be  a  reasonable  hope  that  these  matters  could  be  adjusted  between 
the  parties,  it  did  not  seem  proper  to  me  to  intervene  in  any  way. 
I  disclaim  any  right  or  duty  to  intervene  in  this  way  upon  legal  I 
grounds  or  upon  any  official  relation  that  I  bear  to  the  situation, 
but  the  urgency  and  the  terrible  nature  of  the  catastrophe  impend- 
ing over  a  large  portion  of  our  people  in  the  shape  of  a  winter/ 
fuel  famine  impel  me,  after  much  anxious  thought,  to  believe  that 
my  duty  requires  me  to  use  whatever  influence  I  personally  can  to 
bring  to  an  end  a  situation  which  has  become  literally  intolerable! 
I  wish  to  emphasize  the  character  of  the  situation  and  to  say  that 
its  gravity  is  such  that  I  am  constrained  urgently  to  insist  that 
each  one  of  you  realize  the  heavy  burden  or  responsibility  upon 
you.     *     *     * 

I  do  not  invite  a  discussion  of  your  respective  claims  and  posi- 
tions. T  appeal  to  your  patriotism,  to  the  spirit  that  sinks  per- 
sonal considerations  and  makes  individual  sacrifices  for  the  gen- 
eral good. 

At  the  conclusion  of  the  President's  remarks  Mr.  Mitchell  re- 
plied  as   follows: 

Mr.  President,  I  am  much  impressed  with  what  you  say.  I  am 
impressed  with  the  gravity  of  the  situation.  We  feel  that  we  are 
not  responsible  for  this  terrible  state  of  affairs.  We  are  willing 
to  meet  the  gentlemen  representing  the  coal  operators  to  try  to 
adjust  our  differences  among  ourselves.  If  we  cannot  adjust  them 
that  way,  Mr.  President,  we  are  willing  that  you  shall  name  a 
tribunal  who  shall  determine  the  issues  that  have  resulted  in  this 
strike;  and  if  the  gentlemen  representing  the  operators  will  accept 
the  award  or  decision  of  such  a  tribunal,  the  miners  will  willingly 
accept  it,  even  if  it  is  against  their  claims. 

The  President  then  put  an  end  to  the  interview  and  asked  both 
parties  to  think  over  what  he  had  stated  and  return  in  the  after- 
noon. Upon  reassembling  the  operators  made  long  statements  of 
their  side  of  the  case ;  but  in  reply  to  the  President's  inquiry 
whether  they  would  accept  Mr.  Mitchell's  proposition  they  an- 
swered "No."  In  response  to  a  further  question  from  the  Presi- 
dent they  stated  that  they  would  have  no  dealings  whatever  with 
Mr.  Mitchell  looking  toward  a  settlement  of  the  question  at  issue 
and  .that  they  had  no  other  proposition  to  make,  save  what  was 
contained  in  the  statement  of  Mr.  Baer,  which,  in  effect,  was  that 
if  any  man  chose  to  resume  work  and  had  a  difficulty  with  his 
employer,  both  should  leave  the  settlement  of  the  question  to  the 
judge  of  the  court  of  common  pleas  of  the  district  in  which  the 
mine-  was  located. 

In  view  of  the  growing  public  demand  for  the  resumption  of 
coal  mining,  however,  the  operators  reconsidered  their  refusal  to 
arbitrate  their  dispute  with  the  miners,  and  a  few  days  later  pro- 
posed that  it  be  settled  by  a  commission  of  five,  to  be  appointed 
by  the  President,  and  to  be  composed  of  an  officer  of  the  Army 
or  Navy,  an  expert  mining  engineer,  a  United  States  circuit  court 
judge  from  Pennsylvania,  a  sociologist,  and  a  man  who  had  been 
in  the  coal  business.  As  the  last-mentioned  member  would  come 
from  the  ranks  of  the  employers,  the  miners  naturally  demanded 
a  modification  of  the  operators'  proposition,  which  should  allow 
them  a  representative  on  the  Commission. 

When  the  Commission  was  appointed  on  October  16  it  therefore 
consisted  of  six  members,  and  by  the  subsequent  addition  of  the 
United  States  Commissioner  of  Labor  its  final  composition  was  as 
follows:  Brig.  Gen.  John  M.  Wilson;  Edward  M.  Parker,  of  the 
United  States  Geological  Survey;  Judge  George  Gray,  of  the 
United  States  circuit  court  of  the  eastern  district  of  Pennsylvania ; 
Bishop  John  L.  Spaulding,  of  the  Catholic  Church;  Thomas  H. 
Watkins,  a  retired  coal  operator;  Edgar  E.  Clark,  chief  of  the 
Order  of  Railway  Conductors,  and  Hon.  Carroll  D.  Wright  On 
October  21  a  convention  of  the  miners  voted  to  submit  all  the 
questions  at  issue  to  this  commission  and  to  resume  work  on  Oc- 
tober 23.    The  presidents  of  the  anthracite  coal  roads  agreed  to 


LABOR  RECORD  OF  THEODORE  ROOSEVELT.  263 

abide  by  the  decision  of  the  commission,  and  in  the  course  of  its 
proceedings  the  leading  independent  operators  and  the  nonunion 
miners  also  became  parties  to  the  arbitration  agreement,  so  that 
the  board's  awards,  when  announced  on  March  18,  1903,  covered 
virtually  the  entire  anthracite  mining  industry. 

The  four  demands  of  the  miners  were  for  an  increase  of  20  per 
cent,  in  the  piece  rates  paid  to  contract  miners,  the  rates  to  be 
based  on  weight  of  the  coal  instead  of  the  carload,  a  reduction  of 
20  per  cent,  (from  ten  to  eight  hours  a  day)  in  the  hours  of  labor 
of  workmen  employed  by  the  day,  and  the  recognition  of  the  union 
^y  the  establishment  of  a  joint  trade  agreement  between  the  rep- 
resentatives of  the  employers  and  employed.  The  commission  com- 
)romised  on  the  matter  of  wages  by  awarding  an  increase  of  10 
par  cent,  with  additional  increases  under  a  sliding-scale  system 
vhen  the  market  price  of  coal  rose  above  the  existing  level ;  a  re- 
duction in  hours  from  ten  to  nine;  the  establishment  of  a  joint 
b:>ard  of  conciliation,  representing  employers  and  employed,  to 
decide  disputed  questions  during  the  life  of  the  award  (to  March 
31  1906).     The  advance  in  wages  took  effect  November  1,  1902. 

Notwithstanding  the  importance  of  the  wages  question,  the 
reilly  fundamental  point  at  issue  was  the  recognition  of  the  right 
of  collective  bargaining— that  is,  the  right  of  the  workingmen  to 
combine  and  choose  representatives  to  make  an  annual  bargain 
or  contract  with  the  company  officials  (the  representatives  of  the 
stockholders  or  employers)  concerning  the  conditions  of  employ- 
ment, as  is  the  practice  in  the  bituminous  trade,  on  the  great 
'.•ailway  systems,  and  in  large-scale  manufacturing.  While  deny- 
ing in  terms  the  miners'  demand  for  "the  incorporation  in  an 
agreement  between  the  United  Mine  Workers  and  the  anthracite 
coal  companies  of  the  wages  which  shall  be  paid  and  the  condi- 
tions of  employment  which  shall  obtain,  together  with  satisfac- 
tory methods  for  the  adjustment  of  grievances,"  the  commission 
ir  effect  sustained  the  miners  by  upholding  the  principle  of  col- 
lective bargaining  and  by  establishing  a  joint  board  of  arbitration, 
on  which  the  representatives  of  the  employees  must  inevitably  be 
officers  of  the  union. 

Having  thus  vindicated  the  principles  of  unionism,  the  commis- 
sion ruled  that  no  operator  should  discriminate  against  union  men 
in  the  matter  of  employment.  It  likewise  ruled  that  union  men 
saould  not  discriminate  against  or  interfere  with  nonunionists, 
pointing  out  that  such  discrimination  on  the  part  of  either  em- 
ployer or  employed  constitutes  a  serious  menace  to  the  discipline 
of  the  miner,  which,  on  account  of  the  hazardous  nature  of  the 
work,  should  be  as  nearly  perfect  as  possible. 

The  right  to  strike  the  commission  firmly  upholds,  but  this  does 
not  include  the  right  to  persecute  men  who  choose  to  work. 

Judge  Gray  on  President  Roosevelt  in  the  Coal  Strike. 

President  Roosevelt's  successful  intervention  in  the  coal  strike 
met  with  the  almost  unanimous  approval  of  the  people,  irrespec- 
tive of  their  political  affiliations.  It  was  not  until  the  commis- 
sion's award  had  been  made,  and  thought  of  the  great  disturbance 
nearly  banished  from  the  minds  of  the  people,  that  criticism  of 
his  conduct,  arising  out  of  the  resentment  of  the  coal  mine  presi- 
dents and  the  desire  to  make  political  capital,  began  to  appear, 
based  on  the  allegation  that  his  interference  amounted  to  a  modi- 
fication of  property  rights.  But  the  criticism  was  hushed  almost 
as  soon  as  it  appeared  by  the  declaration  of  Judge  Gray,  a  mem- 
ber o:  the  political  party  opposed  to  the  President,  that  "the 
President's  action,  so  far  from  interfering  with  or  infringing 
upon  property  rights,  tended  to  conserve  them."  Judge  Gray's 
statement,  which  appeared  in  a  New  York  City  newspaper  Sep- 
tember 1,  1903,  was  as  follows : 

I  have  no  hesitation  in  saying  that  the  President  of  the  United 
States  was  confronted  in  October,  1902,  by  the  existence  of  a  crisis 
more  grave  and  threatening-  than  any  that  had  occurred  since  the 
civil  war.  I  mean  that  the  cessation  of  mining  in  the  anthracite 
coal  country,  brought  about  by  the  dispute  between  the  miners 
and  those  who  controlled  the  greatest  natural  monopoly  in  this 
country  and  perhaps  in  the  world,  had  brought  upon  more  than 
one-ha]f  of  the  American  people  a  condition  of  deprivation  of  one 
of  the  necessaries  of  life,  and  the  probable  continuance  of  the  dis- 
pute threatened  not  only  the  comfort  and  health,  but  the  safety 
and  good  order  of  the  nation.  He  was  without  legal  or  constitu- 
tional power  to  interfere,  but  his  position  as  President  of  the  United 


264  LABOR  RECORD  OF  THEODORE   ROOSEVELT. 

States  gave  him  an  influence,  a  lorulership,  as  first  citizen  of  th< 
Republic,  that  enabled  him  to  appeal  to  the  patriotism  and  gooc 
sense  of  the  parties  to  the  controversy  and  to  place  upon  them  th< 
moral  coercion  of  public  opinion  to  agree  to  an  arbitrament  of  th< 
strike  then  existing  and  threatening  consequences  so  direful  to  th< 
whole  country.  He  acted  promptly  and  courageously,  and  in  S( 
doing  averted  the  dangers  to  which  I  have  alluded. 

So  far  from  interfering  or  infringing  upon  property  rights,  th< 
President's  action  tended  to  conserve  them.  The  peculiar  situatioi 
as  regards  the  anthracite  coal  interest  was  that  they  controllec 
a  natural  monopoly  of  a  product  necessary  to  the  comfort  and  t< 
the  very  life  of  a  large  portion  of  the  people.  A  prolonged  de 
privation  of  the  enjoyment  of  this  necessary  of  life  would  havt 
tended  to  precipitate  an  attack  upon  these  property  rights  a 
which  you  speak,  for,  after  all,  it  is  vain  to  deny  that  this  prop- 
erty, so  peculiar  in  its  conditions,  and  which  is  properly  spoken  ff 
as  "a  natural  monopoly,"  is  affected  with  a  public  interest. 

I  do  not  think  that  any  President  ever  acted  more  wisely, 
courageously,  or  promptly  in  a  national  crisis.  Mr.  Roosevelt  de- 
serves unstinted  praise  for  what  he  did. 


In  the  yearn  that  have  gone  by  we  have  made  the  deed  squire 
with  the  woril.— President  Roosevelt's  speech  accepting  1904  nomi- 
nation. 

The  credit  of  the  Government,  the  integrity  of  its  currency, 
and  the  inviolability  of  its  obligations  must  be  preserved. — Presi- 
dent McKinley's  inaugural. 

It  is  better  for  this  country  to  feed,  clothe,  and  house  our  owl 
labor  In  this  country  than  to  support  foreign  labor  in  other  coun- 
tries with  our  money.-— H.  K.  Thurber. 

/ 

You  cannot  aiford  to  have  the  question  raised  every  four  years 
whether  the  nation  will  pay  or  repudiate  its  debts  In  whole  or  In 
part. — Hon.  Wm.  McKinley  to  delegation  of  farmers  at  Cant«n, 
September  22,  1896. 

Abating  none  of  our  interest  in  the  home  market,  let  us  m<jve 
out  to  new  fields  steadily  and  increase  the  sale  for  our  products 
in  foreign  markets. — President  McKinley  to  Commercial  Club,  Cin- 
cinnati, Oct.  30,  1897. 


... 


The  success  of  the  United  States  in  material  development  is 
the  most  illustrious  of  modern  times.  It  is  my  deliberate  judg- 
ment that  the  prosperity  of  America  is  due  mainly  to  its  system 
of  protective  laws. — Prince   Bismarck. 

We  have  established  In  the  islands  a  government  by  Americans 
assisted  by  Filipinos.  We  are  steadily  striving  to  transform  this 
Into  self-government  by  the  Filipinos  assisted  by  Americans*— 
President  Roosevelt's  speech  accepting  1904  nomination. 

A  nation  should  never  fight  unless  forced  to;  but  it  should 
always  be  ready  to  fight.  The  mere  fact  that  it  Is  ready  will  gen- 
erally spare  it  the  necessity  of  fighting. — From  President  Roose- 
velt's "Washington's  forgotten  maxim,"  American  Ideals,  p.  284. 

We  ask  for  a  great  navy,  we  ask  for  an  armament  fit  ffr  the 
nation's  needs,  not  primarily  to  fight,  but  to  avert  fightng.  Pre- 
paredness deters  the  foe  and  maintains  right  by  the  show  of  ready 
might  without  the  use  ,of  violence. — From  President  Roosevelt's 
"Washington's   forgotten  maxim,"  American  Ideals,  p.  288. 

Many  of  our  great  industries,  including  the  silk  industry,  the 
pottery  industry,  the  carpet  industry,  and  the  steel-rail  industry, 
had  only  a  nominal  existence  until  adequately  protective  duties 
were  imposed  on  competing  foreign  products.— James  M.  Swank, 
in  the  American  Economist. 

We  should  no  sooner  debase  our  currency  than  w«  should 
weaken  our  coast  defenses.  We  should  no  more  think  of  introduc- 
ing unsund  currency  into  our  money  system  than  we  should  think 
of  weakening  the  steel  armor  plates  upon  our  great  battleships 
which  are  gallantly  withstanding  the  storm  of  Spanish  shot.— 
Hon.  C.   W.   Fairbanks,   in   U.   S.   Senate,  June  3,   1898. 


CHARLES    WARREN   FAIRBANKS.  265 

CHARLES  WARREN  FAIRBANKS. 

Charles  Warren  Fairbanks,  Senator  from  Indiana,  is  eighth 
in  descent  from  Jonathan  Fayerbanke,  who  settled  at  Dedham, 
Mass.,  in  1G3G.  The  Senator's  father,  Loriston  Monroe  Fairbanks, 
was  a  native  of  Vermont,  but  before  reaching  manhood,  emi- 
grated to  Massachusetts.  At  Ware,  in  the  Bay  State,  he  worked 
in  the  woolen  mills,  but  later  he  learned  the  wagon-maker's  trade, 
and  when  he  emigrated  from  Massachusetts  to  Union  county, 
Ohio,  it  was  to  set  up  in  the  wagon-making  business  and  farming. 

EARLY   LIFE. 

Senator  Fairbanks'  earliest  recollections  date  from  the  log 
house  in  which  he  was  born,  on  a  farm  in  Union  county,  Ohio. 

The  Senator's  boyhood  life  was  such  as  fell  to  the  average 
farmer  boy.  He  was  early  taught  the  value  of  industry  and 
frugality.  He  worked  at  farm  work  and  attended  the  country 
schools  during  the  brief  terms  until  he  reached  the  age  of  fifteen, 
when  he  went  to  the  Ohio  Wesleyan  College.  He  learned  his 
earliest  lessons  in  Republican  party  principles  under  inspiring  con- 
ditions. His  father  was  an  intense  anti-slavery  man,  and  gave 
employment  and  food  and  shelter  to  fugitive  slaves.  Charles  was 
only  eight  years  old  when  the  Presidential  campaign  which 
resulted  in  the  election  of  Abraham  Lincoln  occurred.  A  year 
later  he  witnessed  the  uprising  of  volunteers  from  among  the 
farmers  of  the  neighborhood  in  response  to  impassioned  orations 
and  the  roll  of  the  muster  drum.  With  boyish  wonder  he  saw 
the  great  panorama  of  war  unfold.  He  heard  the  enthusiasm 
attending  the  enrollment  of  volunteers.  He  saw  neighbor  after 
neighbor  step  forward  and  subscribe  his  name  to  the  scroll  of 
immortal  fame.  He  followed  the  crowd  of  enthusiastic  advocates 
of  the  Union  as  they  marched  to  the  railroad  station,  and  he 
heard  the  last  farewell  shouts  which  inspired  the  raw  volunteers 
as  they  were  borne  away  to  the  battlefields. 

After  leaving  college,  young  Fairbanks  went  to  Pittsburg,  Pa., 
where  for  a  time  he  acted,  as  agent  of  the  Associated  Press,  then 
in  its  infancy  as  a  news  collecting  and  distributing  agency.  In 
the  campaign  of  1872  he  reported  the  great  Democratic  and  liberal 
Republican  rally  at  Pittsburg,  at  which  Horace  Greely  made  a 
remarkable  speech.  After  remaining  in  Pittsburg  for  a  year  he 
went  to  Cleveland,  Ohio,  completed  his  law  studies,  and  was  ad- 
mitted to  the  bar. 

Having  secured  his  admission  to  the  bar,  Mr.  Fairbanks  was 
married  to  Miss  Cornelia  Cole,  of  Marysville,  O.,  and  decided 
to  locate  in  Indianapolis  for  the  practice  of  law.  He  hung  out 
his  shingle  in  1874. 

HIS   PROFESSIONAL   CAREER. 

The  early  professional  career  of  Charles  W.  Fairbanks  was 
much  the  same  as  that  of  the  average  young  lawyer.  His  first 
clients  were  some  of  his  Ohio  neighbors.  He  had  no  money 
except  what  came  to  him  from  his  profession  and  it  came  slowly 
at  first.  He  and  his  young  wife  began  life  in  a  boarding  house. 
As  the  young  lawyer's  practice  grew  they  furnished  a  modest 
home,  and  later  moved  into  one  of  more  pretentious  architecture 
and  costlier  furnishings. 

The  years  from  1874,  when  he  first  commenced  the  practice 
in  Indianapolis,  until  he  was  elected  to  the  Senate,  were  devoted 
by  Mr.  Fairbanks  to  law.  His  law  library  grew  with  his  practice 
until  it  became  one  of  the  most  extensive,  best  selected  and 
most  used  of  any  in  the  middle  West.  Mr.  Fairbanks'  clientage 
grew  proportionately.  It  included  some  of  the  leading  business 
men  of  Boston,  New  York,  and  the  large  Eastern  cities.  His 
fees  were  unusually  large  for  the  lawyer  of  that  day.  Always  a 
zealous  Republican,  Mr.  Fairbanks  found  time  from  a  busy  pro- 
>  fessional  career  to  take  active  part  in  every  Republican  campaign 
in  Indiana.  His  counsel  and  assistance  were  sought  by  party 
leaders.  Before  he  ever  held  office  he  had  spoken  in  every  county 
in  Indiana,  and  was  known  personally  to  the  voters  throughout 
the  State.  He  contributed  freely  of  his  time  and  money  to  the 
Republican  cause.  His  speeches,  like  his  other  political  services, 
were  much  in  demand.    Among  the  strong  political  friendships  he 


266  CHARLES   WARBEN   FAIRBANKS. 

made  in  his  early  career  in  Indiana  and  which  continued  un- 
broken, was  that  with  the  Hon.  Walter  Q.  Gresham. 

IN    NATIONAL    POLITICS. 

Senator  Fairbanks'  entry  as  a  positive  force  in  national 
Republican  politics  may  be  said  to  date  from  the  St.  Louis  Repub- 
lican convention  of  1896.  Mr.  Fairbanks  and  Major  McKinley  had 
been  friends  of  many  years'  standing.  Roth  were  Ohio  born,  both 
ardent  members  of  the  Methodist  Episcopal  Church,  and  in  exact 
accord  in  their  political  views.  In  temperament  their  mutual 
friends  believe  they  were  much  alike.  Mr.  Fairbanks  was  chosen 
as  a  delegate-at-large  to  the  St.  Louis  convention,  and  soon  after- 
ward it  was  announced  that  Major  McKinley,  whose  nomination 
was  then  a  foregone  conclusion,  had  invited  Mr.  Fairbanks  to  be 
temporary  chairman  of  the  convention.  His  speech  as  temporary 
chairman  attracted  wide  attention. 

The  State  of  Indiana  which  in  recent  years  had  developed  great 
industrial  activity,  particularly  in  the  natural  gas  belt,  showed 
an  interest  in  the  restoration  of  the  protective  tariff.  The  State 
was  the  center,  also,  of  a  strong  gold  Democratic  propaganda. 
"Sound  money  and  protection"  were  the  watchwords  employed 
by  the  Republicans  that  year  to  wrest  the  State,  which  had  a 
Democratic  Governor  and  two  Democratic  United  States  Senators, 
from  the  Democratic  party.  In  this  fight,  which  was  made  on 
the  basis  of  a  thorough  political  organization  of  the  State,  Mr. 
Fairbanks  was  easily  leader.  He  returned  from  the  St.  Louis 
convention  with  additional  political  prestige,  if  possible,  and  his 
friends  began  the  work  of  organizing  the  State  in  behalf  of  his 
Senatorial  candidacy.  The  Republicans  carried  Indiana  on 
national  and  State  tickets  that  year  by  about  20,000.  In  the 
Republican  caucus  which  followed  in  January,  1897,  Mr.  Fair- 
banks was  nominated  for  United  States  Senator  on  the  first  ballot. 

Senator  Fairbanks  went  at  once  to  the  head  of  the  Senate 
committee  on  immigration.  The  subject  was  one  which  had  inter- 
ested him  for  years.  He  felt  there  could  be  no  more  profitable 
study  than  that  which  concerned  the  character  of  immigration 
yearly  pouring  into  this  country  to  enter  into  the  national  life 
and  be  assimilated  with  its  customs  and  habits  into  the  nation's 
citizenship.  To  the  study  of  this  subject  he  gave  the  most  earnest 
consideration,  visiting  the  immigration  stations  of  the  country, 
and  putting  himself  in  daily  touch  with  the  officers  charged  with 
the  responsibility  of  administering  the  immigration  laws.  The 
results  of  his  research  and  labors  took  the  form  of  a  speech  which 
was  widely  read  and  commended. 

Although  Senator  Fairbanks  afterward  took  a  step  higher  to 
the  chairmanship  of  the  Committee  on  Public  Ruildings  and 
Grounds,  his  interest  in  the  immigration  question  has  never 
abated. 

In  the  agitation  which  preceded  the  declaration  of  war  with 
Spain,  Senator  Fairbanks  was  one  of  the  President's  closest  ad- 
visers. He  was  at  the  White  House  almost  daily,  participating, 
with  other  members  of  the  administration,  in  conferences  that 
lasted  not  infrequently  far  into  the  night,  the  purpose  of  which 
was,  if  possible,  to  devise  some  way  to  secure  the  amelioration  of 
conditions  in  Cuba  without  bloodshed. 

Senator  Fairbanks  was  named  by  President  McKinley  as  one 
of  the  American  Commissioners  of  the  United  States  and  British 
Joint  High  Commission,  and  was  Chairman  of  the  American 
Commissioners.  His  service  on  that  Commission  is  regarded  by 
many  as  one  of  the  most  important  and  useful  of  his  public  acts. 

The  principal  questions  before  the  United  States  and  British 
Joint  High  Commission,  aside  from  the  Alaska  boundary  question, 
were  the  proposed  abrogation  of  the  Rush-Bagot  treaty  of  1817, 
which  prohibited  the  building  or  maintaining  of  war  vessels  above 
a  certain  tonnage,  on  the  Great  Lakes,  the  lake  fisheries  question 
and  Canadian  reciprocity. 

Senator  Fairbanks  was  invited  by  President  McKinley  at  one 
time  to  become  a  member  of  his  Cabinet. 

Senator  and  Mrs.  Fairbanks  have  always  retained  a  lively 
interest  in  the  prosperity  of  their  alma  mater,  and  the  Senator 
has  been  for  a  number  of  years  one  of  the  trustees.  Senator  and 
Mrs.  Fairbanks  are  members  of  the  Meridian  Street  M.  E.  Church, 
of  Indianapolis,  and  the  Senator  is  a  Trustee  in  the  Church. 


THE    PANAMA    CANAL.  267 


THE  PANAHA  CANAL. 


The  Course  of  the  Administration  Fully  Justified — It  Has  Rendered 

Possible  the  World's  Ambition    of  Centuries — A  Record  in 

Which  Every  American  May  Take  Pride. 

Ever  since  the  geographic  formation  of  the  connection  be- 
tween the  two  Americas  became  known,  early  in  the  sixteenth 
century,  the  merchants,  statesmen,  and  intelligent  people  of  the 
maritime  nations  of  the  world  have  dreamed  of  an  interoceanic 
canal  across  Central  America.  Beginning  in  1527  far-seeing  men 
in  Portugal,  Spain,  England,  and  other  countries  have  proposed 
plans  for  a  canal  across  some  part  of  the  Isthmus. 

Early  in  the  history  of  our  own  nation  it  was  the  subject  of 
instructions  to  our  delegates  to  the  Panama  Congress  which  was 
held  in  1826.  John  Quincy  Adams  and  Henry  Clay  were  enthusi- 
astic advocates  of  a  "canal  *  *  *  somewhere  through  the 
isthmus  that  connects  the  two  Americas,  to  unite  the  Pacific  and 
Atlantic  oceans."  It  was  the  subject  of  a  resolution  of  the  Sen- 
ate in  1835  asking  the  President  to  open  negotiations  with  other 
nations  looking  to  the  protection  of  parties  who  might  under- 
take to  construct  a  ship  canal  across  the  Isthmus. 

It  was  not,  however,  until  December  12,  1846,  that  any  effect- 
ive action  was  taken  on  the  subject.  On  that  date  was  con- 
cluded at  the  solicitation  of  New  Granada  (now  the  Republic 
of  Colombia)  a  treaty  between  the  United  States  and  that  Repub- 
lic, which  is  still  in  force.  Article  XXXV  of  that  treaty  is  in 
part  as  follows: 

"*  *  *  The  Government  of  New  Granada  guarantees  to  the 
Government  of  the  United  States,  that  the  right  of  way  or  transit 
across  the  Isthmus  of  Panama  upon  any  modes  of  communication 
that  now  exist,  or  that  may  be  hereafter  constructed,  shall  be 
open  and  free  to  the  Government  and  citizens  of  the  United  States, 
and  for  the  transportation  of  any  articles  of  produce,  manufac- 
tures, or  merchandise,  of  lawful  commerce  belonging  to  the  citi- 
zens of  the  United  States.  *  *  *  And,  in  order  to  secure  to  them- 
selves the  tranquil  and  constant  enjoyment  of  these  advantages, 
and  as  an  especial  compensation  for  the  said  advantages  and  for 
the  favors  they  have  acquired  by  the  4th,  5th  and  6th  articles  of 
this  treaty,  the  United  States  guarantees  positively  and  efficacious- 
ly to  New  Granada,  by  the  present  stipulation,  the  perfect  neutral- 
ity of  the  before-mentioned  isthmus,  with  the  view  that  the  free 
transit  from  the  one  to  the  other  sea,  may  not  be  interrupted  or 
embarrassed  in  any  future  time  while  this  treaty  exists;  and  in 
consequence,  the  United  States  also  guarantee,  in  the  same  manner, 
the  rights  of  sovereignty  and  property  which  New  Granada  has 
and  possesses  over  the  said  territory." 

THE    CLAYTON-BULWER    STATUS. 

At  this  time  (1846)  the  canal  was  regarded  as  an  enterprise 
to  be  undertaken  by  two  or  more  governments.  The  idea  of 
a  canal  under  the  exclusive  control  of  the  United  States  was  not 
thought  of,  but  it  has  been  a  gradual  evolution  corresponding 
to  our  growth  as  a  nation.  Indeed,  when  the  treaty  known  as 
the  Clayton-Bulwer  treaty  was  concluded,  April  19,  1850,  it  was 
stipulated  therein  that  neither  government  would  "ever  obtain 
or  maintain  for  itself  any  exclusive  control  over  the  said  ship 
canal."  And  by  the  treaty  all  the  other  powers  were  invited  to 
join  in  the  agreements  it  contained.  Feeling  itself  too  weak  as 
a  nation  to  act  alone,  our  Government  sought  by  the  said  stipu- 
lation to  prevent  any  scheme  for  a  canal  under  the  exclusive  con- 
trol  of   Great  Britain. 

It  was  not  until  long  after  our  civil  war — a  struggle  which 
strengthened  and  developed  our  national  sinews  and  brought  us 
to  full  political  maturity — that  the  policy  of  exclusive  American 
control  was  first  adopted  and  was  somewhat  indefinitely  out- 
lined by  President  Hayes  in  his  message  to  Congress. 

It  has  taken  years  to  remove  the  obstacles  in  the  way  of 
a  realization  of  that  policy.  The  two  chief  obstacles  were,  first, 
the  treaty  of  1850,  which  as  a  subsisting  engagement  the  Gov- 
ernment of  the  United  States  regarded  itself  in  all  good  con- 
science and  international  honor  bound  to  observe  until  it  was 


268  THE    PANAMA    CANAL. 

lawfully  abrogated  or  superseded ;  and  second,  the  fact  that 
the  French  Panama  ('anal  Company  had  secured  a  right  of  way, 
and  in  1SS3  had  begun  to  dig  ;i  canal.  This  obstacle  was  prac- 
tically removed  by  the  Irretrievable  financial  collapse  of  that 
company  In  1889,  before  the  completion  of  the  work.  But  the 
removal  of  the  first-mentioned  obstacle,  the  treaty  of  1850,  re- 
quired the  employment  of  diplomatic  skill  ami  ability,  and  it  was 
voiy  successfully  accomplished  by  the  negotiation  of  the  treaty 
known  as  the  Hay-Pauncefote  treaty,  signed  November  18,  1901, 
by  Mr.  Hay  and  Lord  Pauncefote,  and  ratified  by  the  senate 
December  10,  1901,  which  stipulates  in  terms  that  it  chad  super- 
sede the  convention  of  the  19th  of  April,  1850,  and  agrees  to 
the  construction  of  the  canal  under  the  exclusive  auspices  of  the 
Government  of  the  United  States. 

CJOLOMBIA  WHOLLY  TO  BLAME  FOR  HER  LOSS. 

The  great  obstacles  to  the  construction  of  an  interoceanic 
canal  by  the  United  States  having  been  thus  practically  removed, 
through  the  medium  of  our  diplomacy,  and  the  Isthmian  Canal 
Commission  having  reported  in  favor  of  the  Panama  route,  our 
Government  promptly  entered  into  negotiations  with  the  Repub- 
lic of  Colombia  for  the  purpose  of  securing  a  right  of  way  across 
the  isthmus,  and  Colombia  joined  in  the  negotiation  of  such  a 
treaty  which  was  signed  on  January  22,  1903,  and  is  known  as  the 
Hay-Herran  treaty.  It  was  promptly  ratified  by  our  Senate,  and 
with  every  expectation  that  it  would  meet  with  similar  action 
on  the  part  of  the  Congress  of  Columbia,  "the  dream  of  the 
ages"  seemed  about  to  become  potentially  an  accomplished  fact. 
In  this  treaty  the  Government  of  the  United  States  went  to  the 
limit  of  generosity  and  consideration  for  Colombia  in  agreeing  to 
pay  her  $10,000,000  down  and  $250,000  per  annum  in  perpetuity, 
since  the  payment  of  anything  seemed  an  unjust  exaction  in  view 
of  the  unmeasured  benefits  Colombia  was  to  derive  from  the  exist- 
ence of  a  canal  upon  a  small  tract  of  otherwise  worthless  land,  and 
in  view  of  the  countless  millions  the  Government  of  the  United 
States  obligated  itself  to  spend  in  building  the  canal,  millions 
which  would  be  permanently  invested  in  that  country.  Colombia 
would  have  benefited  more  by  the  building  of  the  canal  than  any 
other  nation  upon  the  earth.  It  would  have  afforded  her  incalcu- 
lable opportunities  for  development  and  wealth. 

She  had  already  acknowledged  the  world's  right  of  way  to 
the  United  States  by  the  treaty  of  1846.  But  when  the  long-de- 
sired object  was  about  to  be  definitely  provided  for,  the  Congress 
of  Colombia  in  a  spirit  of  greed  made  still  larger  demands  of  the 
United  States,  and,  on  refusal,  adjourned  October  31,  without 
ratifying  the  treaty,  though  repeatedly  warned  of  the  probable 
course  of  Panama  as  the  result  of  such  action.  A  condition  of 
affairs  was  thereby  precipitated  fraught  with  momentous  conse- 
quences to  Colombia  and  the  world. 

The  State  of  Panama,  whose  future  prosperity  and  develop- 
ment was  vitally  involved,  faced  the  prospect  of  practical  ruin. 
It  was  a  matter  of  life  and  death.  She  had  watched  the  course 
of  the  arrangements  with  eager  interest.  She  was  aware  of  the 
provisions  of  the  Spooner  Act,  and  that  a  failure  on  the  part  of 
the  Colombian  Government  to  ratify  the  treaty  might  necessitate 
a  change  to  the  Nicaragua  route.  The  leaders  in  Panama  with 
admirable  foresight  had  provided  for  the  possible  contingency 
of  a  failure  of  the  Colombian  Congress  to  ratify  the  treaty,  and 
the  people  of  Panama,  realizing  what  was  at  stake,  by  unan- 
imous action  arose  on  November  3,  1903,  in  revolt  against  the 
Government  of  Colombia,  declared  their  independence,  and  estab- 
lished a  de  facto  government.  On  the  13th  of  November  the 
United  States  recognized  the  independence  of  the  Republic  of 
Panama,  by  receiving  a  minister  from  the  new  Government. 

Negotiations  were  promptly  entered  into  between  Mr.  Hay 
and  Mr.  Bunau-Varilla,  the  new  minister,  for  a  treaty  with  the 
Republic  of  Panama.  A  treaty  was  drawn  up  on  lines  corre- 
sponding very  closely  to  those  in  the  Hay-Herran  treaty,  and 
was  signed  November  18,  1903,  and  ratified  by  the  Senate  Feb- 
ruary 23,  1904. 

In  the  meantime  the  revolutionary  leaders  submitted  their 
action   to  the  people  of  Panama,  who  by  a  popular  vote  unan- 


THE    PANAMA    CANAL.  269 

imously  approved  it,  and  by  orderly  procedure  established  a  re- 
publican government. 

KECOGNITION   OF   PANAMA. 

Our  recognition  of  the  Republic  of  Panama  was  followed  by 
that  of  France  five  days  later,  by  China  nine  days  later,  and 
recognition  by  Austria,  Germany,  Denmark,  Russia,  Sweden  and 
Norway,  Belgium,  Nicaragua,  Peru,  Cuba,  Great  Britain,  Italy, 
Switzerland,  Costa  Rica,  Japan,  Guatemala.  The  Netherlands, 
Venezuela,  and  Portugal  followed  soon  after  ,in  the  order  named. 

In  this  way  has  been  accomplished  what  would  otherwise 
have  been  brought  about,  but  for  the  obstinacy  and  greed  of  Col- 
ombia, in  the  ordinary  course  by  the  ratification  of  the  Hay-Her- 
ran  treaty  by  the  Colombian  Congress. 

The  course  pursued  by  our  Government  in  this  matter  has 
been  the  subject  of  criticism  on  the  part  of  some  of  our  citizens. 
The  principal  objections  raised  may  be  summarized  as  follows: 

1st.  That  our  Government  was  a  party  to  the  revolt  of  Pan- 
ama against  Colombia  and  incited  or  abetted  it. 

2d.  That  our  Government  showed  undue  haste  in  recogniz- 
ing the  independence  of  Panama  and  in  entering  into  diplomatic 
relations  with  that  republic. 

3d.  That  the  action  of  our  Government  was  contrary  to  the 
fundamental  principle  regarding  the  right  of  a  state  to  secede. 

4th.  That  our  Government  took  advantage  of  a  weak  state  and 
that  its  action  was  contrary  to  international  law  and  justice. 

With  regard  to  the  first  objection  it  seems  sufficient  to  say 
that  in  view  of  the  high  and  unsullied  reputation  of  President 
Roosevelt  and  Secretary  Hay,  both  in  public  and  private  life, 
for  absolute  integrity,  straightforwardness,  and  veracity,  the 
frank  statement  of  the  President  in  his  message  to  Congress  of 
January  4,  1904,  that 

"No  one  connected  with  this  Government  had  any  part  in  pre- 
paring, inciting,  or  encouraging  the  late  revolution  on  the  Isthmus 
of  Panama,  and  that  save  from  the  reports  of  our  military  and 
naval  officers  given  above,  no  one  connected  with  this  Government 
had  any  previous  knowledge  of  the  revolution  except  such  as  was 
accessible  to  any  person  of  ordinary  intelligence  who  read  the 
newspapers  and  kept  up  a  current  acquaintance  with  public  af- 
fairs," 

is  entitled  to  full  acceptance  as  answer  to  that  objection. 

To  the  second  objection  as  to  haste  in  recognizing  the  inde- 
pendence of  Panama,  it  may  be  said  that  while  the  President's 
action  was  not  without  authoritative  precedent,  yet  a  state  of 
facts  existed  which  was  so  out  of  the  ordinary  as  not  to  make 
it  depend  fully  for  justification  upon  precedent. 

As  to  the  principle  of  recognition  it  may  be  said  generally 
that— 

"1.  Definitive  independence  cannot  be  held  to  be  established, 
and  recognition  is  consequently  not  legitimate  so  long  as  a  sub- 
stantial struggle  is  being  maintained  by  the  former  sovereign  state 
for  the  recovery  of  its  authority;  and  that 

"2.  A  mere  pretension  on  the  part  of  the  formerly  sovereign 
state,  or  a  struggle  so  inadequate  as  to  offer  no  reasonable  ground 
for  supposing  that  success  may  ultimately  be  obtained,  is  not 
enough  to  keep  alive  the  rights  of  a  state,  and  so  to  prevent  for- 
eign countries  from  falling  under  an  obligation  to  recognize  as  a 
state  a  community   claiming  to  have  become  one." 

By  the  terms  of  the  treaty  of  1846  with  New  Granada  the 
United  States  secured  the  right  to  a  free  and  open  transit  across 
the  Isthmus  of  Panama  and  assumed  the  responsibility  of  guar- 

I  anteeing  to  New  Granada  the  rights  of  sovereignty  and  property 
over  that  territory.  This  guaranty  did  not  include  protection 
against  domestic  revolution,  but  had  reference  to  foreign  powers. 
The  real  design  was  to  assure  the  dedication  of  the  Isthmus 
to  the  purposes  of  free  and  unobstructed  interoceanic  transit  by 
means  of  a  canal.  The  Government  of  Colombia  had  by  its  de- 
liberate and  willful  action  giVen  Panama  (originally  an  inde- 
pendent State  and  since  1855  an  involuntary  constituent  of  a 
loose  confederation)  just  and  lawful  ground  for  revolt.  The 
revolution  was  successful ;  the  Government  of  Panama  was  in  full 
possession  and  control  of  the  Isthmus ;  the  rights  and  responsibil- 
ities attaching  to  Colombia  by  the  treaty  of  1846  devolved  upon 
the  new  Republic,  and  with  no  effective  or  adequate  attempt  on 

|  the  part  of  Colombia  to  reassert  its  authority  over  Panama,  the 


270  THE   PANAMA    CANAL. 

question  of  allowing  a  longer  or  a  shorter  space  of  time  to  elapse 
before  recognition  was  not  of  great  importance.  In  the  case 
of  the  Republic  of  Brazil  recognition  was  accorded  by  Secretary 
Blaine  two  days  after  the  abdication  of  the  royal  family. 

THE  CANAL  MUST  BE  BUILT. 

In  considering  his  course  of  action  the  President  was  con- 
fronted by  these  three  great  facts:  1.  That  a  canal  was  to  be 
built.  2.  That  the  United  States  was  to  build  it  3.  That  it  was 
to  be  built  across  the  Isthmus  of  Panama,  according  to  the  de- 
clared preference  of  Congress.  Colombia  had  in  effect  deliber- 
ately closed  her  eyes  to  these  facts.  A  new  State  had  sprung  into 
existence  prepared  to  carry  out  what  Colombia  refused  to  do, 
and  every  consideration,  of  national  interest  and  safety  justified 
the  prompt  recognition  by  our  Government  of  this  new  Republic, 
for  nothing  is  of  greater  importance  or  more  essential  to  our 
commercial  development  than  the  construction  of  an  interoceanic 
canal.  Indeed  it  is  a  positive  and  vital  necessity,  not  admitting 
of  indefinite  delay.  Delay  was  inevitable  if  further  negotia- 
tions were  to  be  entered  into  with  Colombia,  in  view  of  the 
revelations  as  to  Colombia's  intentions,  made  since  the  rejection 
of  the  Hay-Herran  treaty.  Her  declared  design  was  to  delay 
further  action  until  the  expiration  of  the  franchise  of  the  New 
Panama  Canal  Company,  October  31,  1904,  to  declare  the  same 
forfeited,  and  then  to  negotiate  with  the  United  States  on  a  basis 
of  complete  ownership.  Such  a  nefarious  scheme  could  but 
result  in  indefinite  delay,  and  would  doubtless  involve  the  United 
States  in  serious  complications  with  Prance. 

But  recognition  of  Panama  was  above  all  justified  by  the 
undoubted  interests  of  collective  civilization.  The  nations  have 
universally  recognized  the  mandate  laid  upon  our  Government 
to  build  the  canal,  and  this  is  evidenced  by  the  promptness  with 
which  the  powers  have  followed  our  example  in  recognizing 
Panama. 

THE  'QUESTION  OF   SECESSION. 

Those  who  see  in  the  approval  by  this  administration  of  the 
action  of  the  State  of  Panama  in  withdrawing  from  the  Colom- 
bian Federal  Union  a  reversal  of  the  attitude  of  our  Government 
with  regard  to  the  secession  of  the  Southern  States,  failed  to  dis- 
criminate between  the  two  cases.  They  are  in  no  wise  parallel, 
for  in  the  case  of  the  Confederate  States  they  claimed  the  right 
to  secede  for  the  purpose  of  maintaining  human  slavery,  a  prac- 
tice which  was  almost  universally  repugnant  to  the  moral  sense 
of  every  civilized  nation,  while  in  the  case  of  Panama  she  has 
suffered  from  oppression  and  spoliation  to  an  extent  almost  be- 
yond belief.  The  Government  of  Colombia  cut  off  her  rights  and 
suppressed  her  liberties,  robbed  her  of  the  privilege  of  electing 
her  local  officers,  legislators,  and  judges ;  restricted  the  right  of 
suffrage;  falsified  the  count  of  votes;  took  away  her  right  of 
law  making;  suppressed  the  liberty  of  thought  and  speech  by 
violent,  punitive  measures,  and  put  over  her  officers  who  sold 
justice  and  robbed  her  treasury.  With  such  a  state  of  affairs, 
who  will  question  the  right  of  Panama  to  revolt  and  assert  her 
independence,  especially  in  view  of  the  fact  that  she  had  origi- 
nally been  independent  and  but  for  the  treachery  and  superior 
force  employed  by  the  President  of  Colombia  in  1885  she  would 
still  have  been  so? 

By  all  the  principles  of  justice  among  men  and  among  nations 
that  all  governments  should  maintain,  the  revolutionists  in  Pan- 
ama were  right;  the  people  of  Panama  were  entitled  to  be  free 
again ;  the  Isthmus  was  theirs  and  they  were  entitled  to  govern 
it,  and  it  would  have  been  a  shameful  thing  for  the  Government 
of  the  United  States  to  return  them  again  to  servitude. 

Certainly,  therefore,  this  exception  to  the  President's  course  is 
not  well  taken. 

Was  undue  advantage  taken  of  Colombia,  and  were  the  rules 
of  international  law  and  justice  disregarded? 

The  history  of  our  relations  with  that  country  for  fifty  years 
should  be  a  sufficient  answer  to  that  question.  Throughout  this 
period  the  United  States  has  repeatedly  shown  herself  faithful 
to  her  obligations  under  the  treaty  of  1846;  she  has,  sometimes 
at  the  request  of  Colombia  and  sometimes  without  it,  enforced 


THE    PANAMA    CANAL.  271 

peace  upon  the  line  of  transit  across  the  Isthmus  at  great  cost 
and  risk,  and,  by  the  distinct  announcement  of  her  protection 
and  constantly  increasing  power,  has  formed  an  adequate  bar- 
rier against  foreign  aggression  upon  the  Isthmus.  The  unusual 
generosity  shown  Colombia  in  the  matter  of  the  proposed  com- 
pensation to  be  given  her  by  the  Hay-Herran  treaty  and  the 
ample  guaranty  given  her  for  anything  which  she  could  by 
any  color  of  title  demand  in  that  convention — all  these  things 
go  to  show  that  the  United  States  has  gone  to  the  extreme  limit 
of  fairness  and  justice  in  its  treatment  of  that  Republic.  The 
truth  is  that  Colombia  was  in  nominal  possession  of  a  tract  of 
land  which  the  Creator  had  designed  as  a  natural  passage  for 
a  world  waterway.  Her  sovereignty  over  it  was  qualified  by  the 
world's  easement  and  all  the  rights  necessary  to  make  the  ease- 
ment effective,  and  was  subject  to  limitations  in  its  exercise  by 
reason  of  the  just  interests  of  other  nations.  Colombia,  or  her 
predecessor,  New  Granada,  had  in  effect  recognized  this  fact  in 
her  treaty  with  the  United  States  in  1846,  and  by  that  treaty 
the  United  States  had  become  a  guarantor  of  that  right  of  way 
for  the  equal  benefit  of  all  nations ;  she  had  received  a  grant  of 
power  and  assumed  a  duty  herself  to  keep  the  transit  free  and 
uninterrupted.  She  also  assumed  the  burden  of  protecting  New 
Granada  against  an  unjust  exercise  of  the  world's  right  of 
passage. 

There  is  no  doubt,  therefore,  that  the  United  States  would 
have  been  justified  in  proceeding  to  exercise  the  right  which  she 
possessed  by  reason  of  this  treaty  without  regard,  to  the  accept- 
ance or  rejection  of  the  Hay-Herran  treaty,  for  Secretary  Cass 
very  clearly  enunciated  the  principle  governing  in  such  cases 
when  he  said: 

"Sovereignty  has  its  duties  as  well  as  its  rights,  and  none  of  these 
local  governments,  even  if  administered  with  more  regard  to  the  just 
demands  of  other  nations  than  they  have  been,  would  be  permitted,  in  a 
spirit  of  eastern  isolation,  to  close  the  gates  of  intercourse  on  the  great 
highways  of  the  world,  and  justify  the  act  by  the  pretension  that  these 
avenues  of  trade  and  travel  belong  to  them  and  that  they  choose  to  shut 
them,  or,  what  is  almost  equivalent,  to  encumber  them  with  such 
unjust  relations  as  would  prevent  their  g-eneral  use." 

That  principle  is  sound,  and  this  Government  was  required  to 
take  a  stand  upon  it  or  abandon  the  canal.  Colombia  had  will- 
fully disregarded  the  principle  and  stood  as  a  bar  to  the  world's 
progress  and  the  exercise  of  our  just  rights. 

PANAMA  THE  TRUE  OWNER  OF  THE  ISTHMUS. 

The  State  of  Panama  by  the  exercise  of  an  undoubted  right 
had  by  a  peaceful  and  successful  revolution  become  the  real 
owners  of  the  canal  route,  which  was  theirs  originally,  and  was 
in  a  position  to  afford  to  the  United  States  an  opportunity  to 
carry  out  the  mandate  of  the  nations  and  fulfill  the  trust  she 
held.  The  vital  question,  then,  for  our  Government  to  decide  was 
whether  it  should  treat  with  the  true  owner  of  the  Isthmus — for 
the  State  of  Panama  in  confederating  with  the  Republic  of  Col- 
ombia under  the  constitution  of  1863  had  not  parted  with  its  title 
or  its  substantial  rights,  and  she  had  said  to  the  United  States, 
"Recognize  our  independence,  and  the  treaty  follows,  of  course, 
for  the  building  of  the  canal  is  our  dearest  hope" — or  whether 
we  should  continue  to  treat  indefinitely  with  the  Republic  of 
Colombia,  which  was  only  a  trustee  for  the  people  of  the  Isthmus 
and  had  proved  faithless  to  its  trust. 

Our  Government  did  not  hesitate  in  making  its  decision.  Its 
course  was  plain  and  the  American  people  have  already  come  to 
the  conclusion  that  the  decision  of  our  President  and  the  Secre- 
tary of  State  and  the  Senate  was  a  righteous  decision. 

By  the  exercise  of  foresight,  prompt  decision,  and  an  undoubt- 
ed public  duty  the  administration  has  brought  to  the  point  of 
actual  commencement  a  project  which  the  world  has  anticipated 
for  four  hundred  years  and  which  is  of  the  most  stupendous  im- 
portance to  our  country  as  well  as  to  the  nations  of  the  earth. 
It  marks  a  new  era  in  the  world's  history  and  will  eventually 
revolutionize  the  commerce  of  the  world. 

THE  GREAT  ADVANTAGES  OF  THE  CANAL. 

The  advantages  to  flow  from  it  are  too  numerous  to  enumer- 
ate, but  a  few  of  them  may  be  outlined  as  follows : 


272  ti  1 1:    r  an  am  a    canal. 

The  most  obvious  advantage  of  the  Panama  Canal  is,  c 
course,  the  immense  saving  of  distances  for  sea-borne  traffl 
from  Atlantic  ports  of  the  United  States  and  from  the  wester 
const  oi  the  Eastern  Hemisphere  to  the  Pacific  Ocean.  At  pivsn 
such  traffic  has  to  reach  the  Pacific  by  w;iy  of  the  Suez  Oanj 
or  the  Cape  of  Good  Hope,  or  by  the  long  and  dangerous  journe 
around  Cape  Horn,  or  by  transshipment  to  railroad  system 
crossing  Canada,  the  United  States,  and  the  Isthmus  of  Panami 
While  points  in  the  Pacific  most  distant  from  the  United  State 
would  still  be  reached  more  expeditiously  from  Europe  via  Sue; 
the  whole  Pacific  coast  from  Alaska  to  Patagonia  would  h 
brought  much  nearer  for  an  all-sea  route  to  Europe  as  well  a 
the  Atlantic  and  Gulf  seaboards  of  the  United  States.  The  ei 
tire  region  of  the  Gulf  of  Mexico  would  be  supplied  for  the  fin 
time  with  a  direct,  unbroken  carriage  by  sea  by  the  shortes 
line  with  the  whole  Pacific  coast  of  South  and  Central  Americj 
Mexico,  and  the  United  States. 

The  Hawaiian  and  Philippine  Islands,  our  possessions  in  th 
Pacific,  would  be  accessible  to  the  eastern  and  southern  portion 
of  the  United  States  by  a  continuous  sea  route,  the  connectin 
link  of  which  across  the  Isthmus  of  Panama  would  be  in  Amer 
can  hands  and  controlled  by  American  influences,  without  th 
danger  of  interruption  by  a  conflict  of  interest  that  might  aris 
in  relation  to  a  canal  like  that  of  Suez,  which  is  located  in  th 
Old  World  and  therefore  inevitably  exposed  to  the  play  of  01 
World  rivalries.  The  canal  would  promote  an  enormous  deve 
opment  of  our  industries — agricultural,  mineral,  lumbering,  an 
manufacturing — in  all  sections.  It  would  help  to  develop  an 
make  available  the  extensive  natural  resources  of  the  Pacifl 
States  and  increase  our  trade  with  the  Orient.  Its  advantag 
from  a  military  point  of  view  cannot  be  overestimated.  Fo 
table  giving  distances  between  United  States  ports  and  those  c 
Asia  by  Panama  and  Suez,  respectively,  see  index. 

This  subject  of  the  Panama  matter  in  all  its  forms  is  full; 
discussed  in  the  speeches  delivered  in  Congress  printed  in  th 
document  "Pages  from  the  Congressional  Record,"  which  als 
contains  President  Roosevelt's  messages  on  this  subject.  Thi 
document  can  be  obtained  by  application  to  the  Republican  Na 
tional  Committee  and  should  be  examined  by  those  desiring  t 
thoroughly  study  this  and  other  subjects  likely  to  be  discusse 
in  the  present  campaign. 

MANY  DEMOCRATIC  VOTES  CAST  IN  SUPPORT  OF  THE  TREATY. 

While  the  Democrats  under  the  lead  of  Senator  Gorman  criti 
cised  the  treaty  in  the  beginning  they  were  unable  to  withstani 
the  overwhelming  public  sentiment  in  its  favor,  and  practically  one 
half  of  the  Democratic  Senators  are  understood  to  have  vote< 
for  its  ratification.  The  vote  on  ratification  was  in  Executiv 
Session,  but  the  result  and  the  details  soon  became  known,  an< 
were  reported  in  the  New  York  Tribune  of  February  24  ai 
follows : 

"Fourteen  Democrats  voted  for  ratification  and  fourteei 
against.  Two  Democrats — Clark,  of  Montana,  and  Stone,  of  Mis 
souri — were  paired  in  favor  of  the  treaty,  and  three  Democrats- 
Overman,  McLaurin  and  Martin — were  paired  against  it,  so  in  th< 
total  vote  sixteen  Democrats  were  for  the  treaty  and  seventeei 
against  it.  The  Democrats  who  were  present  and  voted  for  th< 
treaty  were  Bacon,  Berry,  Clarke,  of  Arkansas;  Clay,  Cockrell 
Foster,  of  Louisiana;  Gibson,  Latimer,  McCreary,  McEnery,  Mai' 
lory,  Money,  Simmons  and  Taliaferro." 

"President  Roosevelt  Could  Take  no  Other  Course  Than  to  Recog- 
nize the   New   Government   of  Panama." 

[Extracts  from  the  remarks  of  Hon.  Shelby  M.  Cullom  of  Illinois,  ir 
dally  Congressional  Record,  February  22,  1904.] 

Mr.  Cullom.  Mr.  President,  I  do  not  feel  like  allowing  the  dis- 
cussion in  the  Senate  on  the  general  question  of  a  treaty  with  th< 
Republic  of  Panama  and  the  conditions,  history,  and  law,  nationaJ 
and  international,  involved,  to  pass  without  asking  the  attentior 
of  the  Senate  for  a  little  while  on  this  general  subject. 

The  Tsthmian  Canal  Commission,  authorized  by  Congress  tc 
make  the  investigation,  reported  in  favor  of  the  Panama  route, 
The  Spooner  Act  was  passed,  and  the  President  under  authority  oi 
that  act  negotiated  a  treaty  with  Colombia.  That  treaty  was 
promptly  and  almost  unanimously  ratified  by  the  United  States 
Senate,  sent  to  Colombia  March  18,  1903,  where  it  was  unanimously 


THE    PANAMA   CANAL.  273 

rejected  by  the  Colombian  Congress  with  very  little  consideration 
on  October  18,  1903,  and  on  October  31  the  Columbian  Congress 
adjourned.  *  *  *  On  November  3,  three  days  after  the  Colom- 
bian Congress  adjourned,  Panama  seceded  and  peaceably  regained 
her   independence. 

The  secession  of  Panama  could  not  have  been  a  surprise  to 
either  the  Colombian  Government  or  to  the  United  States.  The 
correspondence  shows  that  Senator  Obaldia,  a  prominent  Senator 
from  the  State  of  Panama,  openly  declared  that  should  the  canal 
treaty  be  rejected  Panama  would  secede  and  would  be  right  in 
doing  so.     *     *      * 

All  of  the  correspondence  in  possession  of  the  Executive  De- 
partments has  been  laid  before  the  Senate,  either  in  open  or  execu- 
tive session.  There  has  been  no  concealment  on  the  part  of  the 
Executive.  That  correspondence  has  been  gone  into  in  consider- 
able detail  here,  and  there  is  not  one  particle  of  evidence  to  show 
that  any  officer  of  the  United  States  encouraged  or  instigated  the 
revolution.     *     *     * 

There  was  no  resistance  to  the  revolution  by  Colombia,  and  on 
November  4  the  three  consuls,  constituting  the  provisional  govern- 
ment of  Panama,  notified  the  Secretary  of  State  officially  that  in 
consequence  of  a  popular  and  spontaneous  movement  of  the  people 
of  Panama,  the  independence  of  the  Isthmus  was  proclaimed  and 
the  Republic  of  Panama  instituted  and  a  provisional  government 
organized.  An  envoy  extraordinary  and  minister  plenipotentiary 
was  later  appointed  by  the  new  Government  of  Panama  to  the 
United  States.  On  November  6  our  consul  at  Panama  notified  the 
State  Department  that  the  situation  was  peaceful,  that  the  move- 
men  was  a  success,  and  that  no  Colombian  soldiers  were  on  Isth- 
mian soil.  After  receiving  that  message  on  November  6,  our  con- 
suls at  Panama  and  Colon  were  instructed  to  recognize  the  new 
Government  of  Panama. 

I  will  not  go  into  the  correspondence  pertaining  to  this  revo- 
lution further  at  this  time;  but,  in  my  judgment,  that  correspond- 
ence shows  that  President  Roosevelt  could  take  no  other  course, 
under  the  circumstances,  than  to  recognize  the  new  Republic. 

There  were  no  Colombian  officials  in  charge  on  the  Isthmus, 
and  if  we  did  not  recognize  the  new  government  there  would  have 
been  no  government  at  all  on  the  Isthmus  to  which  we  could  look 
for  the  protection  of  our  citizens  and  their  property.      *      *     * 

Every  act  of  our  Executive,  every  order  given  to  the  com- 
manders of  our  vessels  of  war  during  and  after  this  revolution,  has 
been  justified  by  our  treaty  of  1846. 

The  treaty,  entered  into  in  1846  with  the  end  in  view  of  the 
construction  of  a  canal  or  railroad  across  the  Isthmus,  as  is  shown 
in  President  Polk's  message,  in  artcle  35  provides: 

"The  United  States  guarantee  positively  and  efficaciously  to 
New  Granada  the  perfect  neutrality  of  the  before-mentioned  Isth- 
mus with  the  view  that  the  free  transit  from  one  to  the  other  sea 
may  not  be  interrupted  or  embarrassed  in  any  future  time  while 
this  treaty  exists." 

This  treaty  was  made  in  1846  and  still  continues  in  full  force. 
It  has  survived  a  number  of  revolutions.  New  Granada  has  be- 
come the  Republic  of  Columbia.  One  revolution  has  succeeded 
another,  placing  different  parties  in  control,  but  the  treaty  has  re- 
mained and  has  been  recognized  by  every  succeeding  government, 
and  the  United  States  has  a  number  of  times  exercised  its  right 
under  Article  XXXV  to  keep  the  Isthmus  open. 

The  treaty  of  1846  continues  in  force  even  though  the  State 
of  Panama  has  seceded  from  the  Republic  of  Colombia.  No  longer 
binding  upon  Colombia,  after  she  lost  her  sovereignty  over  the 
territory  to  which  Article  XXXV  refers,  it  is  now  binding  and  its 
rights  and  obligations  have  succeeded  to  the  new  Republic  of 
Panama.  In  other  words,  the  thirty-fifth  article  of  the  treaty  of 
1846  is  binding  and  descends  to  any  government  which  exercises 
sovereignty  over  the  Isthmus  of  Panama.      *      *      * 

Without  our  aid  the  people  of  the  Isthmus  have  declared  and 
regained  their  independence  and  have  set  up  a  government  of  their 
own;  no  warfare  exists,  and  peace  prevails.  Under  these  circum- 
stances it  could  not  be  expected  that  the  United  States  would 
forcibly  overthrow  this  new  Republic  or  would  permit  a  civil  war 
to  be  waged  on  the  Isthmus. 


"The  President  Would  Have  Been  Censurable  if  He  Had  Not  Taken 
Every  Precaution  on  the  Isthmus." 

[Extracts  from  remarks  of  Hon.  Henry  Cabot  Lodge  of  Massachu- 
setts, in  daily  Congressional  Record,  January  5,   1904.] 

All  the  world  knew  last  summer  that  there  was  revolution 
impending.  The  correspondent  of  the  New  York  Evening  Post  for 
December  8  says  that  they  were  planning  revolution  in  Panama 
early  in  May.  I  happened  to  be  out  of  the  country,  seeing  only 
foreign  newspapers  in  London  and  elsewhere,  but  it  was  a  matter 
of  common  knowledge  there  in  Europe  and  England  that  revolu- 
tion was  impending  in  Panama  if  the  treaty  was  not  agreed  to. 

That  knowledge,  of  course,  came  to  the  Executive.  He  had 
information  also  from  our  naval  and  military  officers,  which  has 
been  cited  in  his  message.  It  was  his  business  to  keep  informed, 
but  the  fact  of  information  does  not  imply  assurances  or  conniv- 
ance, and  the  insinuations  of  connivance  and  incitement  have  al- 
ready been  denied  in  a  manner  which  requires  neither  repetition  nor 
support  from  me  or  anyone  else.     The  President  would  have  been 


274  THE   PANAMA    CANAL. 

In  the  highest  degree  censurable  If  he  had  not  taken  every  proper 
precaution  to  prepare  for  the  event  which  the  reports  of  the  dis- 
turbance on  the  Isthmus  suggested.  He  was  bound  to  carry  out 
the  provisions  of  the  treaty  of  1846.  We  have  always  construed 
that  treaty  to  mean  that  we  were  charged  with  the  responsibility 
of  keeping  open  the  transit  across  the  Isthmus;  that  we  were  not 
charged  with  the  duty  of  enforcing  the  power  of  Colombia  if  there 
was  a  revolt;  that  we  were  there  to  protect  It  against  foreign 
aggression,  but  that  our  primary  duty  was  to  keep  it  open  and 
uninterrupted. 

All  this  information  had  come  in  upon  the  President,  and  he 
had  as  in  duty  bound  considered  it  and  watched  events.  Finally 
there  came  what  constitutes  the  first  act  of  our  Government. 
There  came  news  that  Colombia  was  about  to  land  a  force  of  6,000 
men  at  Colon,  and  the  Acting  Secretary  of  the  Navy  on  November 
2  sent  this  dispatch: 

"Maintain  free  and  uninterrupted  transit.  If  interruption 
threatened  by  armed  force,  occupy  the  line  of  railroad.  Prevent 
landing  of  any  armed  force  with  hostile  Intent,  either  Government 
or  insurgent,  either  at  Colon,  Porto  Bello,  or  other  point.  Send 
copy  of  instructions  to  the  senior  officer  present  at  Panama  upon 
arrival  of  Boston.  Have  sent  copy  of  instructions  and  have  tele- 
graphed Dixie  to  proceed  with  all  possible  dispatch  from  Kingston 
to  Colon.  Government  force  reported  approaching  the  Isthmus  In 
vessels.  Prevent  their  landing  if  in  your  judgment  this  would 
precipitate  a  conflict.     Acknowledgment  is  required." 

That  was  the  first  step.  The  next  day  November  3,  a  pressi 
bulletin  having  announced  an  outbreak  on  the  Isthmus,  the  Acting 
Secretary  of  State  telegraphed  to  the  consul  at  Panama: 

"Uprising  on  Isthmus  reported.  'Keep  Department  promptly 
and  fully  informed." 

The  reply  goes  back  that  there  was  no  uprising,  that  it  was 
expected  that  night.  Within  a  short  time,  a  little  more  than  an 
hour,  came  the  dispatch: 

"Uprising  occurred  to-night,  6;  no  bloodshed,"  etc. 

Mr.  President,  the  preparations  that  have  been  very  largely 
talked  about,  and  which  I  have  no  doubt  were  adequately  made, 
really  resulted  in  the  presence  of  one  vessel  of  war  at  Colon.  We 
landed  from  that  vessel  forty-two  sailors  and  marines.  The  land- 
ing party  was  commanded  with  judgment.  The  captain  of  the 
Nashville  showed  the  utmost  discretion  and  firmness.  He  pre- 
vented with  an  even  hand  either  party  from  using  the  railroad. 
He  prevented  bloodshed.     He  kept  peace  on  the  Isthmus. 

Now,  Mr.  President,  the  President  has  been  assailed  for  land- 
ing troops.  He  has  landed  no  troops.  Some  sailors  and  some 
marines  have  been  landed,  and  he  has  been  charged  with  having 
made  war  by  that  act  of  recognition  and  by  the  landing  of  the 
forces  of  the  United  States. 

It  is  perfectly  certain,  Mr.  President,  that  the  aet  of  recog- 
nition by  all  the  best  authorities  is  held  not  to  be  in  itself  an  act 
of  war.  As  for  the  landing  of  those  sailors  and  marines  to  keep 
order,  we  have  done  it  over  and  over  again.  We  did  it  in  1900;  we 
did  it  in  1901;  we  did  it  in  1902.     *     *     * 

The  United  States  recognized  Panama  on  November  13,  then 
France,  China,  Austria-Hungary,  Germany,  Denmark,  Russia,  Swe- 
den and  Norway,  Belgium,  Nicaragua,  Peru,  Cuba,  Great  Britain, 
Italy,  Japan,  Costa  Rica,  and  Switzerland. 

List  of  Governments  which  have  recognized  the  independence 
of  Panama  with  dates  of  recognition: 


United  States   Nov.  13,  1903 

France    Nov.  16,  1903 

China    Nov.  26,  1903 

Austria-Hungary    .  .Nov.  27,  1903 

Germany    Nov.  30,  1903 

Denmark   Dec.    3,1903 

Russia    Dec.    6,1903 

Sweden  and  Norway.Dec.    7,  1903 
Belgium Dec.    9,  1903 

Those  recognitions  indicate  that  the  rest  of  the  civilized  world 
do  not  think  it  was  a  very  unreasonable  thing  for  us  to  have 
recognized  that  new  Republic  quickly. 


Nicaragua    Dec.  15,  1903 

Peru    Dec.  19,  1903 

Cuba    Dec.  23,1903 

Great   Britain Dec.  24,  1903 

Italy    Dec.  24,  1903 

Japan    Dec.  28,  1903 

Costa   Rica Dec.  28,  1903 

Switzerland    Dec.  28,  1903 


"The   Panama   Canal." 

[Extracts  from  an  address  by  Hon.  Elihu  Root,  at  Chicago,  Febru- 
ary 22,  1904,  printed  in  Congressional  Record,  June,  1904.] 

Reluctantly,  and  with  a  sense  that  it  was  unjust  exaction,  the 
United  States  agreed  to  pay  $10,000,000  down,  and  $250,000  per 
annum  in  perpetuity — substantially  the  entire  amount  exacted  by 
Columbia.  We  were  not  going  into  the  enterprise  to  make  money, 
but  for  the  common  good.  We  did  not  expect  the  revenues  of  the 
canal  to  repay  its  cost,  or  to  receive  any  benefit  from  it,  except 
that  which  Colombia  would  share  to  a  higher  degree  than  our- 
selves.    *     *     * 

">  The  concessions  made  in  the  treaty  to  the  Government  of  Co- 
lombia, however,  seemed  merely  to  inspire  in  that  Government  a 
belief  that  there  was  no  limit  to  the  exactions  which  they  could 
successfully  impose.  They  demanded  a  further  $10,000,000  from 
the  Panama  Canal  Company,  and  upon  its  refusal  they  rejected 
the  treaty. 


THE   PANAMA   CANAU  275 

This  rejection  was  a  substantial  refusal  to  permit  the  canal 
to  be  built.  It  appears  that  the  refusal  contemplated  not  merely 
further  exactions  from  us,  but  the  spoliation  of  the  canal  company. 
That  company's  current  franchise  was  limited  by  its  terms  to  the 
31st  day  of  October,  1904.  There  was  an  extension  for  six  years 
granted  by  the  President  and  for  which  the  company  had  paid 
5,000,000  francs.  These  patriots  proposed  to  declare  the  extension 
void  and  the  franchise  ended  and  to  confiscate  the  $40,000,000  worth 
of  property  of  the  company  and  take  from  the  United  States  for 
themselves,  in  payment  for  it,  the  $40,000,000  we  had  agreed  to  pay 
the  company.     *     *     * 

By  becoming  a  party  to  this  scheme  we  might  indeed  have 
looked  forward  to  the  time  when,  the  appetite  of  Columbia  being 
satisfied  at  the  expense  of  the  unfortunate  stockholders  of  the 
French  company,  we  could  proceed  with  the  work,  but  such  a 
course  was  too  repugnant  to  the  sense  of  justice  that  obtains  in 
every  civilized  community  to  be  for  a  moment  contemplated.  We 
had  yielded  to  the  last  point  beyond  reason  and  justice  in  agreeing 
to  pay  for  a  privilege  to  which  we  were  already  entitled,  and  we 
could  not  with  self-respect  submit  to  be  mulcted  further.  We 
could  negotiate  no  further.  Rejection  of  the  treaty  was  practi- 
cally  a   veto   of   the  canal.     *     *     * 

These  were  the  conditions  existing  when  the  revolution  of 
November  3  happened.  To  an  understanding  of  that  revolution 
a  knowledge  of  the  character  and  history  of  Panama  is  essential. 
Some  uninformed  persons  have  assumed  that  it  was  merely  a  num- 
ber of  individual  citizens  of  Colombia  living  in  the  neighborhood 
of  the  proposed  canal  who  combined  to  take  possession  of  that 
part  of  Colombian  territory  and  set  up  a  government  of  their  own. 
No  conception  could  be  more  inadequate.  The  sovereign  State  of 
Panama  was  an  organized  civil  society  possessed  of  a  territory  ex- 
tending over  400  miles  in  length,  from  Costa  Rica  on  the  west  to 
the  mainland  of  South  America  on  the  east.  It  had  a  population 
of    over    300,000.      *      *      * 

The  people  of  Panama  were  the  real  owners  of  the  canal 
route;  it  was  because  their  fathers  dwelt  in  the  land,  because  they 
won  their  independence  from  Spain,  because  they  organized  a  civil 
society  there,  that  it  was  not  to  be  treated  as  one  of  the  waste 
places  of  the  earth.  They  owned  that  part  of  the  earth's  surface 
just  as  much  as  the  State  of  New  York  owns  the  Erie  Canal.  When 
the  sovereign  State  of  Panama  confederated  itself  with  the  other 
States  of  Colombia  under  the  constitution  of  1863  it  did  not  part 
with  its  title  or  its  substantial  rights,  but  constituted  the  Federal 
Government  its  trustee  for  the  representation  of  its  rights  in  all 
foreign  relations  and  imposed  upon  that  Government  the  duty  of 
protecting  them.  The  trustee  was  faithless  to  its  trust;  it  repudi- 
ated its  obligations  without  the  consent  of  the  true  owner;  it 
seized  by  the  strong  hand  of  military  power  the  rights  which  it 
was  bound  to  protect;  Colombia  itself  broke  the  bonds  of  union 
and  destroyed  the  compact  upon  which  alone  depended  its  right  to 
represent  the  owner  of  the  soil. 

The  question  for  the  United  States  was,  Shall  we  take  this 
treaty  from  the  true  owner  or  shall  we  take  it  from  the  faithless 
trustee,  and  for  that  purpose  a  third  time  put  back  the  yoke  of 
foreign  domination  upon  the  neck  of  Panama,  by  the  request  of 
that  Government  which  has  tried  to  play  toward  us  the  part  of 
the  highwayman?  There  was  no  provision  of  our  treaty  with  Co- 
lumbia which  required  us  to  answer  to  her  call,  for  our  guaranty 
of  her  sovereignty  in  that  treaty  relates  solely  to  foreign  aggres- 
sion. There  was  no  rule  of  international  law  which  required  us 
to  recognize  the  wrongs  of  Panama  or  the  justice  of  her  cause,  for 
international  law  does  not  concern  itself  with  the  internal  affairs 
of  state.  But  I  put  it  to  the  conscience  of  the  American  people, 
who  are  passing  judgment  upon  the  action  of  their  government, 
whether  the  decision  of  our  President  and  Secretary  of  State  and 
Senate  was  not  a  righteous  decision. 

By  all  the  principles  of  justice  among  men  and  among  nations 
that  we  have  learned  from  our  fathers,  and  all  peoples  and  all 
governments  should  maintain,  the  revolutionists  in  Panama  were 
right,  the  people  of  Panama  were  entitled  to  be  free  again,  the 
Isthmus  was  theirs,  and  they  were  entitled  to  govern  it;  and  it 
would  have  been  a  shameful  thing  for  the  Government  of  the 
United  States  to  return  them  again  to  servitude. 

It  is  hardly  necessary  to  say  now  that  our  Government  had  no 
part  in  divising,  fomenting,  or  bringing  about  the  revolution  on 
the  Isthmus  of  Panama.  President  Roosevelt  said  in  his  message 
to  Congress  of  January  4,  1904: 

"I  hesitate  to  refer  to  the  injurious  insinuations  which  have 
been  made  of  complicity  by  this  Government  in  the  revolutionary 
movement  in  Panama.  They  are  as  destitute  of  foundation  as  of 
propriety.  The  only  excuse  for  my  mentioning  them  is  the  fear 
lest  unthinking  persons  might  mistake  for  acquiescence  the  silence 
of  mere  self-respect.  I  think  proper  to  say,  therefore,  that  no  one 
connected  with  this  Government  had  any  part  in  preparing,  incit- 
ing, or  encouraging  the  late  revolution  on  the  Isthmus  of  Panama, 
and  that,  save  from  the  reports  of  our  naval  and  military  officers, 
given  above,  no  one  connected  with  this  Government  had  any 
previous  knowledge  of  the  revolution  except  such  as  was  accessible 
to  any  person  of  ordinary  intelligence  who  read  the  newspapers 
and  kept  up  a  current  acquaintance  with  public  affairs." 

-    The  people  of  the  United  States,  without  distinction  of  party, 
will  give  to  that  statement  their  unquestioning  belief. 


276  THE     1WN  \\l  \     (    \\  \l  . 

"The  Pauamn  Question  Transcend*   tin*    Nnrrow    Hounds  of  Party." 

[Extract    from    remarks    of    Hon.    C.    W.    Fairbanks    of   Indiana,    in 
daily  Congressional  Record,  February  2,   1904.] 

There  are  several  conclusions  which  the  record  seems  to  estab- 
lish.    They  may  be  summarized  thus: 

The  revolution  of  the  people  of  Panama  was  due  to  a  long 
series  of  wrongs  inflicted  upon  them  by  the  Government  at  Bogota, 
and  more  particularly  to  the  rejection  of  the  Hay-llerran   treaty. 

The  revolution  was  initiated  by  the  people  of  Panama  and  was 
not  inspired  by  the  United  States. 

It  was  the  duty  of  the  President  to  adopt  such  measures  as  he 
deemed  necessary  to  preserve  the  freedom  of  transit  across  the 
Isthmus  and  to  protect  the  lives  and  property  of  American  citizens, 
and  of  citizens  of  other  countries  upon  the  line  of  transit. 

The  independence  of  Panama  was  accomplished  by  the  people 
of  the  Isthmus. 

There  was  no  vessel  or  armed  force  of  the  United  States  at  the 
city  of  Panama,  and  only  one  vessel,  the  Nashville,  third  rate,  at 
Colon;  only  42  marines  were  landed  at  Colon.  They  were  landed 
to  protect  the  lives  of  American  citizens  who  were  in  serious 
and  imminent  peril  and  were  returned  to  the  ship  after  accom- 
plishing their  purpose. 

The  President  recognized  the  fact  that  Panama  had  secured 
her  independence  three  days  after  the  revolution. 

In  recognizing  the  independence  of  the  new  Republic  the  Pres- 
ident acted  solely  within  his  constitutional  rights.  The  duty  of 
recognition  rested  upon  him,  and  having  exercised  it  his  act  be- 
came binding  upon  the  United  States. 

The  independence  of  the  Republic  of  Panama  was  recognized 
by  France  and  many  other  powers  soon  after  recognition  by  the 
United  States. 

Within  eight  days  after  the  recognition  of  the  new  Republic 
she  signed  a  treaty  with  the  United  States,  through  here  accred- 
ited minister  to  Washington,  granting  to  the  United  States  the 
requisite  concessions  for  an  isthmian  canal. 

When  the  Republic  of  Panama  concluded  the  treaty  with  the 
United  States'  she  was  in  the  exercise  of  sovereign  power.  She 
was  discharging  fully  her  domestic  and  international  functions 
and  had  full  capacity  to  enter  into  a  valid  convention  with  the 
United  States. 

Under  the  treaty  of  1846  the  United  States  obtained  rights 
and  incurred  obligations  in  Panama.  She  obtained  the  right  of 
free  transit  across  the  Isthmus  and  the  right  to  preserve  the  free- 
dom of  such  transit.  She  also  guaranteed  in  consideration  of  this 
right  and  other  privileges  the  sovereignty  of  the  government  in 
Panama.  By  the  transfer  of  sovereignty  upon  the  Isthmus  to  the 
Republic  of  Panama,  the  obligation  to  guarantee  her  sovereignty 
ugainst  foreign  aggression  rests  upon  the  United  States. 

If  the  new  treaty  with  the  Republic  of  Panama  is  ratified  by 
the  Senate,  the  United  States  will  obtain  adequate  concessions, 
rights,  and  privileges  for  the  construction  and  perpetual  main- 
tenance of  an  isthmian  canal. 

Mr.  President,  I  have  endeavored  to  consider  only  the  more 
salient  features  of  the  Panama  question,  and  those  which  appear 
to  me  to  be  controlling.  Much  more  might  be  said,  but  there 
would  appear  to  be  little  profit  in  unduly  prolonging  the  discus- 
sion. In  one  form  or  another  the  isthmian  canal  question  has  been 
under  consideration  for  several  centuries.  The  time  for  decisive 
action  has  come.  We  have  but  to  call  the  roll  of  the  Senate  upon 
the  treaty  with  Panama  and  we  will  instantly  set  in  motion  the 
machinery  which  will  soon  accomplish  the  great  desire. 

Others  have  said  that  this  is  an  American  question,  and  so  it 
is.  It  transcends  the  narrow  bounds  of  party.  It  is  as  wide  as 
the  ample   limits   of  the  Republic. 

Who  doubts  in  the  present  condition  of  affairs  that  the 
Panama  Canal  will  be  built?  It  will  have  back  of  it  the  best 
pledge  any  vast  undertaking  can  have,  for  it  will  have  the  assur- 
ance of  the  United  States.  What  we  say  for  and  against  it  will 
swiftly  fade  away  and  be  gone  forever,  but  the  canal — the  rich 
fruit  of  four  centuries  of  hope  and  human  effort,  the  colossal 
tribute  of  our  people  to  the  commerce  of  the  world — will  stand. 
Yes,  we  can  well  believe  that  it  will  survive  the  pyramids. 


"Panama— The   Insinuations  of   Complicity  are   Destitute  of  Foun- 
dation/' 

[Extract  from   message  of  President  Roosevelt,  in  daily  Congres- 
sional Record,  January  4,  1904.] 

To  the  Senate  and  House  of  Representatives: 

I  lay  before  the  Congress  for  its  information  a  statement  of 
my  action  up  to  this  time  in  executing  the  act  entitled  "An  act  to 
provide  for  the  construction  of  a  canal  connecting  the  waters  of 
the  Atlantic  and  Pacific  oceans,"  approved  June  28,  1902. 

By  the  said  act  the  President  was  authorized  to  secure  for  the 
United  States  the  property  of  the  Panama  Canal  Company  and 
the  perpetual  control  of  a  strip  six  miles  wide  across  the  Isthmus 
of  Panama.     It  was  further  provided  that  "should  the  President  be 


THE    PANAMA    CANAL.  277 

unable  to  obtain  for  the  United  States  a  satisfactory  title  to  the 
property  of  the  New  Panama  Canal  Company  and  the  control  of 
the  necessary  territory  of  the  Republic  of  Colombia  *  *  * 
within  a  reasonable  time  and  upon  reasonable  terms,  then  the 
President"  should  endeavor  to  provide  for  a  canal  by  the  Nica- 
ragua route.     *      *      * 

When  this  Government  submitted  to  Colombia  the  Hay-Herran 
treaty  three  things  were,  therefore,  already  settled.  One  was  that 
the  canal  should  be  built.  *  *  *  Second.  While  it  was  settled 
that  the  canal  should  be  built  without  unnecessary  or  improper 
delay,  it  was  no  less  clearly  shown  to  be  our  purpose  to  deal  not 
merely  in  a  spirit  of  justice  but  in  a  spirit  of  generosity  with  the 
people  through  whose  land  we  might  build  it.  *  *  *  Third. 
Finally  the  Congress  definitely  settled  where  the  canal  was  to  be 
built.  It  was  provided  that  a  treaty  should  be  made  for  building 
the  canal  across  the  Isthmus  of  Panama;  and  if,  after  reasonable 
time,  it  proved  impossible  to  secure  such  treaty,  that  then  we 
should   go   to   Nicaragua.      *      *      * 

When  in  August  it  began  to  appear  probable  that  the  Colum- 
bian Legislature  would  not  ratify  the  treaty,  it  became  incumbent 
upon  me  to  consider  well  what  the  situation  was  and  to  be  ready 
to  advise  the  Congress  as  to  what  were  the  various  alternatives  of 
action  open  to  us.  There  were  several  possibilities.  One  was  that 
Colombia  would  at  the  last  moment  see  the  unwisdom  of  her  posi- 
tion. *  *  *  A  second  alternative  was  that  by  the  close  of  the 
session  on  the  last  day  of  October,  without  the  ratification  of  the 
treaty  by  Colombia  and  without  any  steps  taken  by  Panama,  the 
American  Congress  on  assembling  early  in  November  would  be 
confronted  with  a  situation  in  which  there  had  been  a  failure  to 
come  to  terms  as  to  building  the  canal  along  the  Panama  route, 
and  yet  there  had  not  been  a  lapse  of  a  reasonable  time — using 
the  word  reasonable  in  any  proper  sense — such  as  would  justify 
the  Administration  going  to  the  Nicaragua  route.  *  *  *  A 
third  possibility  was  that  the  people  of  the  Isthmus,  who  had 
formerly  constituted  an  independent  state,  and  who  until  recently 
were  united  to  Colombia  only  by  a  loose  tie  of  federal  relationship, 
might  take  the  protection  of  their  own  vital  interests  into  their 
own  hands,  reassert  their  former  rights,  declare  their  independence 
upon  just  grounds,  and  establish  a  government  competent  and 
willing  to  do  its  share  in  this  great  work  for  civilization.  This 
third  possibility  is  what  actually  occurred.  Everyone  knew  that 
it  was  a  possibility,  but.it  was  not  until  towards  the  end  of  Octo- 
ber that  it  appeared  to  be  an  imminent  probability.  Although  the 
Administration,  of  course,  had  special  means  of  knowledge,  no 
such  means  were  necessary  in  order  to  appreciate  the  possibility, 
and  toward  the  end  of  the  likelihood,  of  such  a  revolutionary 
outbreak  and  of  its  success.  It  was  a  matter  of  common  notoriety. 
Quotations  from  the  daily  papers  could  be  indefinitely  multiplied  to 
show  this  state  of  affairs.      *      *      * 

In  view  of  all  these  facts  I  directed  the  Navy  Department  to 
issue  instructions  such  as  would  insure  our  having  ships  within 
easy  reach  of  the  Isthmus  in  the  event  of  need  arising.  *  *  * 
On  November  2  when,  the  Colombian  Congress  having  adjourned, 
it  was  evident  that  the  outbreak  was  imminent,  and  when  it  was 
announced  that  both  sides  were  making  ready  forces  whose  meet- 
ing would  mean  bloodshed  and  disorder,  the  Colombian  troops 
having  been  embarked  on  vessels,  the  following  instructions  were 
sent  to  the  commanders  of  the  Boston,  Nashville,  and  Dixie: 

"Maintain  free  and  uninterrupted  transit.  If  interruption  is 
threatened  by  armed  force,  occupy  the  line  of  railroad.  Prevent 
landing  of  any  armed  force  with  hostile  intent,  either  Government 
or  insurgent,  at  any  point  within  50  miles  of  Panama.  Govern- 
ment force  reported  approaching  the  Isthmus  in  vessels.  Prevent 
their  landing  if,  in  your  judgment,  the  landing  would  precipitate 
a  conflict." 

These  orders  were  delivered  in  pursuance  of  the  policy  on 
which  our  Government  had  repeatedly  acted.     *     *     * 

On  November  3  Commander  Hubbard  responded  to  the  above- 
quoted  telegram  of  November  2,  1903,  saying  that  before  the  tele- 
gram had  been  received  400  Columbian  troops  from  Cartagena  had 
landed  at  Colon;  that  there  had  been  no  revolution  on  the  Isthmus, 
but  that  the  situation  was  most  critical  if  the  revolutionary  leaders 
should  act.  On  this  same  date  the  Associated  Press  in  Washington 
received  a  bulletin  stating  that  a  revolutionary  outbreak  had  oc- 
curred. When  this  was  brought  to  the  attention  of  the  Assistant 
Secretary  of  State,  Mr.  Loomis,  he  prepared  the  following  cable- 
gram to  the  consul-general  at  Panama  and  the  consul  at  Colon: 

"Uprising  on  Isthmus  reported.  Keep  Department  promptly 
and  fully  informed." 

Before  this  telegram  was  sent,  however,   one  was  received  from 
Consul  Malmros  at  Colon,  running  as  follows: 

"Revolution  imminent.  Government  force  on  the  Isthmus 
about  500  men.  Their  official  promised  to  support  revolution.  Fire 
department,  Panama,  441,  are  well  organized  and  favor  revolution. 
Government  vessel  Cartagena,  with  about  400  men,  arrived  early 
to-day  with  new  commander-in-chief,  Tobar.  Was  not  expected 
until  November  10.  Tobar's  arrival  is  not  probable  to  stop  revo- 
lution." 

This  cablegram  was  received  at  2:35  p.  m.,  and  at  3:40  p.  m. 
Mr.  Loomis  sent  the  telegram  which  he  had  already  prepared  to 
both  Panama  and  Colon.  Apparently,  however,  the  consul-general 
at  Panama  had  not  received  the  information  embodied  in  the  Asso- 
ciated Press  bulletin,  upon  which  the  Assistant  Secretary  of  State 
based  his  dispatch;  for  his  answer  was  that  there  was  no  uprising, 


278  THE    PANAMA    CANAL. 

although  the  situation  was  critical,  this  answer  being:  received  at 
8:16  p.  m.  Immediately  afterwards  he  sent  another  dispatch, 
which  was  received  at  9.50  p.  m.,  saying  that  the  uprising  had  oc- 
curred, and  had  been  successful,  with  no  bloodshed.  The  Colum- 
bian gunboat  Bogota  next  day  began  to  shell  the  city  of  Panama, 
with  the  result  of  killing  one  Chinaman.  The  consul-general  was 
directed  to  notify  her  to  stop  firing.  Meanwhile,  on  November  4, 
Commander  Hubbard  notified  the  Department  that  he  had  landed  a 
force  to  protect  the  lives  and  property  of  American  citizens  against 
the  threats  of  the  Colombian  soldiery. 

Before  any  step  whatever  had  been  taken  by  the  United  States 
troops  to  restore  order,  the  commander  of  the  newly  landed  Colom- 
bian troops  had  indulged  in  wanton  and  violent  threats  against 
American  citizens,  which  created  serious  apprehension.  As  com- 
mander Hubbard  reported  in  his  letter  of  November  5,  this  officer 
and  his  troops  practically  began  war  against  the  United  States, 
and  only  the  forbearance  and  coolness  of  our  officers  and  men 
prevented  bloodshed.     *     *     * 

This  plain  official  account  of  the  occurrences  of  November  4, 
shows  that,  instead  of  there  having  been  too  much  provision  by 
the  American  Government  for  the  maintenance  of  order  and  the 
protection  of  life  and  property  on  the  Isthmus,  the  orders  for  the 
movement  of  the  American  war  ships  had  been  too  long  delayed; 
so  long,  in  fact,  that  there  were  but  forty-two  marines  and  sailors 
available  to  land  and  protect  the  lives  of  American  men  and 
women.  It  was  only  the  coolness  and  gallantry  with  which  this 
little  band  of  men  wearing  the  American  uniform  faced  ten  times 
their  number  of  armed  foes,  bent  on  carrying  out  the  atrocious 
threat  of  the  Colombian  commander,  that  prevented  a  murderous 
catastrophe.  At  Panama,  when  the  revolution  broke  out,  there 
was  no  American  man-of-war  and  no  American  troops  or  sailors. 
At  Colon,  Commander  Hubbard  acted  with  entire  impartialty  to- 
ward both  sides,  preventing  any  movement,  whether  by  the  Co- 
lombians or  the  Panamans,  which  would  tend  to  produce  bloodshed. 
On  November  9  he  prevented  a  body  of  the  revolutionists  from 
landing  at  Colon.  Throughout  he  behaved  in  the  most  creditable 
manner.     *     *     * 

I  hesitate  to  refer  to  the  injurious  insinuations  which  have 
been  made  of  complicity  by  this  Government  in  the  revolutionary 
movement  in  Panama.  They  are  as  desitute  of  foundation  as  of 
propriety.  The  only  excuse  for  my  mentioning  them  is  the  fear 
lest  unthinking  persons  might  mistake  for  acquiescence  the  silence 
of  mere  self-respect.  I  think  proper  to  say,  therefore,  that  no  one 
connected  with  this  Government  had  any  part  in  preparing,  incit- 
ing, or  encouraging  the  late  revolution  on  the  Isthmus  of  Panama, 
and  that  save  from  the  reports  of  our  military  and  naval  officers 
given  above  no  one  connected  with  this  Government  had  any  pre- 
vious knowledge  of  the  revolution  except  such  as  was  accessible 
to  any  person  of  ordinary  intelligence  who  read  the  newspapers 
and  kept  up  a  current  acquaintance  with  public  affairs. 

By  the  unanimous  action  of  its  people,  without  the  firing  of  a 
shot — with  a  unanimity  hardly  before  recorded  in  any  similar  case 
— the  people  of  Panama  declared  themselves  an  independent  Re- 
public. Their  recognition  by  this  Government  was  based  upon  a 
state  of  facts  in  no  way  dependent  for  its  justification  upon  our 
action  in  ordinary  cases.  I  have  not  denied,  nor  do  I  wish  to  deny, 
either  the  validity  or  the  propriety  of  the  general  rule  that  a  new 
state  should  not  be  recognized  as  independent  till  it  has  shown  its 
ability  to  maintain  its  independence.  This  rule  is  derived  from 
the  prnciple  of  non-intervention,  and  as  a  corollary  of  that  prin- 
ciple has  generally  been  observed  by  the  United  States.  But,  like 
the  principle  from  which  it  is  deduced,  the  rule  is  subject  to  ex- 
ceptions; and  there  are  in  my  opinion  clear  and  imperative  rea- 
sons why  a  departure  from  it  was  justified  and  even  required  in 
the  present  instance.  These  reasons  embrace,  first,  our  treaty 
rights;  second,  our  national  interests  and  safety;  and,  third,  the 
interests  of  collective  civilization.         *         *         * 

That  our  position  as  the  mandatary  of  civilization  has  been  by 
no  means  misconceived  is  shown  by  the  promptitude  with  which 
the  powers  have,  one  after  another,  followed  our  lead  in  recogniz- 
ing Panama  as  an  independent  State.  Our  action  in  recognizing 
the  new  Republic  has  been  followed  by  like  recognition  on  the 
part  of  France,  Germany,  Denmark,  Russia,  Sweden  and  Norway, 
Nicaragua,  Peru,  China,  Cuba,  Great  Britain,  Italy,  Costa  Rica, 
Japan,  and  Austria-Hungary. 


The  man  who  tills  his  own  farm,  -whether  on  the  prairie  or  in 
the  woodland,  the  man  -who  grows  what  we  eat  and  the  raw  mate- 
rial -which  is  worked  up  into  what  -we  wear,  still  exists  more  nearly 
under  the  conditions  which  obtained  when  the  "embattled  farmers" 
of  '76  made  this  country  a  nation  than  is  true  of  any  others  of  our 
people President  Roosevelt  at  Sioux  Falls,  S.  Dak.,  April  6,  1903. 

We  are  not  disposed  to  disturb  the  international  peace,  and 
we  do  not  seek  to  interfere  with  the  domestic  affairs  of  other 
powers.  While  we  are  obliged  to  play  a  greater  part  In  the  af- 
fairs of  the  -world  than  when  Washington  spoke,  there  is  the  same 
good  reason  for  avoiding  entangling  alliances  as  then. — Hon.  C.  W. 
Fairbanks,  at  anniversary  of  Battle  of  Monmouth,  Freehold,  N.  J., 
June  27,  1903. 


THE   PANAMA   CANAL.  279 

Letter  of  the   President   Placing:  the   Isthmian  Canal  Comm.ssion  Under  the 
Supervision  and  Direction  of  the  Secretary  of  War  Etc. 

White  House, 
Washington  ,D.  C,  May  9, 1904. 

Sir:  By  the  act  of  Congress  approved  June  28,  1902,  the  President 
of  the  United  States  is  authorized  to  acquire  for  and  on  behalf  of 
the  United  States  all  the  rights,  privileges,  franchises,  concessions, 
grants  of  lands,  rights  of  way,  unfinished  work,  plants,  shares  of 
the  capital  stock  of  the  Panama  Railway,  owned  by  or  held  for  the 
use  of  the  new  Panama  Canal  Company,  and  any  other  property, 
real,  personal,  and  mixed  of  any  name  or  nature  owned  by  the  said 
new  Panama  Canal  Company  situated  on  the  Isthmus  of  Panama. 
The  President  is  by  the  same  act  also  authorized  to  acquire  for 
and  on  behalf  of  the  United  States,  perpetual  control  of  a  strip  of 
land  on  the  Isthmus  of  Panama,  not  less  than  six  miles  in  width, 
extending  from  the  Caribbean  Sea  to  the  Pacific  Ocean,  and  the 
right  to  excavate,  construct,  and  maintain  perpetually,  operate  and 
protect  thereon,  a  ship  canal  of  certain  specified  capacity,  and  also 
the  right  to  perpetually  operate  the  Panama  Railroad.  Having 
acquired  such  rights,  franchises,  property,  and  control,,  the  Presi- 
dent is  by  the  same  act  required  to  excavate,  construct,  and  com- 
plete a  ship  canal  from  the  Caribbean  Sea  to  the  Pacific  Ocean,  and 
to  enable  him  to  carry  forward  and  complete  this  work,  he  is 
authorized  to  appoint,  by  and  with  the  consent  of  the  Senate,  an 
Isthmian  Canal  Commission  of  seven  members,  who  are  to  be  in 
all  matters  subject  to  his  direction  and  control. 

By  the  terms  of  the  canal  convention  between  the  United 
States  and  the  Republic  of  Panama,  entered  into  in  pursuance  of  the 
said  act  of  Congress  approved  June  28,  1902,  the  ratifications  of 
which  were  exchanged  on  the  26th  day  of  February,  1904,  the 
Republic  of  Panama  granted  to  the  United  States: 

First,  the  perpetual  use,  occupation,  and  control  of  a*  certain 
zone  of  land,  land  under  water  including  islands  within  said  zone, 
at  the  Isthmus  of  Panama,  all  to  be  utilized  in  the  construction, 
maintenance  and  operation,  sanitation  and  protection  of  the  ship 
canal,  of  the  width  of  ten  miles,  extending  to  the  distance  of  five 
miles  on  each  side  of  the  central  line  of  the  route  of  the  canal,  and 
the  use,  occupation,  and  control  of  other  lands  and  waters  outside 
of  the  zone  above  described  which  may  be  necessary  and  con- 
venient for  the  construction,  maintenance,  operation,  sanitation, 
and  protection  of  said  canal  or  of  any  auxiliary  canals  or  other 
works  necessary  and  convenient  for  the  same  purpose;  also  the 
islands  of  Perico,  Naos,  Culebra,  and  Flamenico,  situated  in  the 
Bay  of  Panama;   and 

Second,  all  the  rights,  powers,  and  authority  within  the  zone, 
auxiliary  lands  and  lands  under  water,  which  the  United  States 
would  possess  and  exercise  if  it  were  the  sovereign  of  the  territory 
gr Anted,  to  the  entire  exclusion  of  the  exercise  by  the  Republic 
of  Panama  of  any  such  sovereign  rights,  power,  and  authority. 

By  the  act  of  Congress  approved  April  28,  1904,  the  President 
is  authorized,  upon  acquisition  of  the  property  of  the  new  Panama 
Canal  Company,  and  the  payment  to  the  Republic  of  Panama  of 
the  price  for  the  compensation  agreed  upon  in  the  said  canal  con- 
vention, to  take  possession  of  and  occupy  on  behalf  of  the  United 
States  the  zone  of  land,  and  land  under  water  including  islands 
within  said  zone,  at  the  Isthmus  of  Panama  of  the  width  of  ten 
miles,  extending  to  the  distance  of  five  miles  on  each  side  of  the 
central  line  of  the  route  of  the  canal  to  be  constructed  thereon, 
including  the  islands  of  Perico,  Naos,  Culebra,  and  Flamenico,  and 
from  time  to  time  as  may  be  necessary  and  convenient  certain 
auxiliary  lands  and  waters  outside  the  said  zone  for  the  purpose 
of  constructing,  maintaining,  operating,  sanitating,  and  protecting 
the  ship  canal,  the  use,  occupation,  and  control  whereof  were 
granted  to  the  United  States  by  the  Republic  of  Panama  in  the 
said  canal  convention. 

By  the  same  act,  the  President  is  authorized,  for  the  purpose 
of  providing  temporarily  for  the  maintenance  of  order  in  the  canal 
zone  and  for  maintaining  and  protecting  the  inhabitants  thereof 
in  the  free  enjoyment  of  their  liberty,  property,  and  religion,  to 
delegate  such  person  or  persons  as  he  may  designate  and  to  con- 
trol the  manner  of  their  exercise,  all  the  military,  civil,  and  judicial 
powers,  as  well  as  the  power  to  make  all  needful  rules  and  regula- 
tions for  the  government  of  the  canal  zone  and  all  the  rights, 
powers  and  authority  granted  by  the  said  Canal  Convention  to 
the  United  States,  until  the  close  of  the  Fifty-eighth  Congress. 

Payments  of  the  authorized  purchase  price  of  $40,000,000  to 
the  new  Panama  Canal  Company  for  the  property  of  that  corpora- 
tion on  the  Isthmus,  including  the  shares  of  railway  stock  and  for 
the  records  in  Paris,  and  of  the  sum  of  $10,000,000,  as  stipulated 
in  the  canal  convention,  to  the  Republic  of  Panama  for  the  rights, 
powers  and  privileges  granted  to  the  United  States  by  the  terms 
of  the  said  convention,  have  been  made  and  proper  instruments  of 
transfer  have  been  executed  by  the  Panama  Canal  Company.  The 
members  of  the  Isthmian  Canal  Commission  have  been  appointed. 
They  have  organized  the  commission  and  entered  upon  their 
duties.  I  have  taken  possession  of  and  now  occupy,  on  behalf  of 
the  United  States,  the  canal  zone  and  public  land  ceded  by  the 
Republic  of  Panama. 

It  becomes  my  duty,  under  the  statutes  above  referred  to,  to 
secure  the  active  prosecution  of  the  work  of  construction  of  the 
canal  and  its  auxiliary  works,  through  the  Isthmian  Canal  Com- 
mission, and  in  connection  with  such  work  and  in  aid  thereof  to 
organize  and  conduct  a  temporary  government  of  the  zone,  so  as  to 


280  THE  PANAMA  CANAL. 

maintain  and  protect  the  inhabitants  thereof  in  the  free  enjoyment 
of  their  liberty,  property,  and  religion. 

Inasmuch  as  it  is  impracticable  for  the  President,  with  his 
other  public  dutes,  to  give  to  the  work  of  supervising  the  commis- 
sion's construction  of  the  canal  and  government  of  the  zone  the  per- 
sonal attention  which  seems  proper  and  necessary,  and  inasmuch 
as  the  War  Department  is  the  department  which  has  always  super- 
vised the  construction  of  the  great  civil  works  for  improving  the 
rivers  and  harbors  of  the  country  and  the  extended  military  works 
of  public  defense,  and  as  the  said  department  has  from  time  to 
time  been  charged  with  the  supervision  of  the  government  of  all 
the  island  possessions  of  the  United  States,  and  continues  to  super- 
vise the  government  of  the  Philippine  Islands,  I  direct  that  all  the 
work  of  the  commission  done  by  virtue  of  powers  vested  in  me 
by  the  act  of  Congress  approved  June  28,  1902,  in  the  digging,  con- 
struction, and  completion  of  the  canal,  and  all  the  governmental 
power  in  and  over  said  canal  zone  and  its  appurtenant  territory, 
which  by  virtue  of  the  act  of  Congress  approved  April  28,  1904, 
and  these  instructions  shall  be  vested  in  said  Isthmian  Canal 
Commission,  shall  be  carried  on  or  exercised  under  your  super- 
vision and  direction  as  Secretary  of  War. 

Subject  to  the  limitations  of  law  and  the  conditions  herein 
contained,  the  Isthmian  Canal  Commission  are  authorized  and 
directed: 

*  1,  To  make  all  needful  rules  and  regulations  for  the  govern- 
ment of  the  zone  and  for  the  correct  administration  of  the  military, 
civil,  and  judicial  affairs  of  its  possessions  until  the  close  of  the 
Fifty-eighth  Congress. 

2.  To  establish  a  civil  service  for  the  government  of  the  strip 
and  construction  of  the  canal,  appointments  to  which  shall  be 
secured  as  nearly  as  practicable  by  a  merit  system. 

3.  To  make  or  cause  to  be  made  all  needful  surveys,  borings, 
designs,  plans,  and  specifications  of  the  engineering,  hydraulic, 
and  sanitary  works  required,  and  to  supervise  the  execution  of  the 
same. 

4.  To  make  and  cause  to  be  executed  after  due  advertisement 
all  necessary  contracts  for  any  and  all  kinds  of  engineering  and 
construction  works. 

5.  To  acquire  by  purchase  or  through  proper  and  uniform 
expropriation  proceedings,  to  be  prescribed  by  the  commission,  any 
private  lands  or  other  real  property  whose  ownership  by  the  United 
States  is  essential  to  the  excavation  and  completion  of  the  canal. 

6.  To  make  all  needful  rules  and  regulations  respecting  an 
economical  and  correct  disbursement  and  an  acounting  for  all 
funds  that  may  be  appropriated  by  Congress  for  the  construction  of 
the  canal,  its  auxiliary  works,  and  the  government  of  the  canal 
zone;  and  also  to  establish  a  proper  and  comprehensive  system  of 
bookkeeping,  showing  the  state  of  the  work,  the  expenditures  r-v 
classes,  and  the  amounts  still  available. 

7.  To  make  requisition  on  the  Secretary  of  War  for  fui.ls 
needed  from  time  to  time  in  the  proper  prosecution  of  the  work 
and  to  designate  the  disbursing  officers  authorized  to  receipt  for 
the  same. 

The  inhabitants  of  the  Isthmian  Canal  Zone  are  entitled  to 
security  in  their  persons,  property,  and  religion,  and  in  all  their 
private  rights  and  relations.  They  should  be  so  informed  by 
public  announcement.  The  people  should  be  disturbed  as  little  as 
possible  in  their  customs  and  avocations  that  are  in  harmony  with 
principles  of  well  ordered  and  decent  living. 

The  municipal  laws  of  the  Canal  Zone  are  to  be  administered 
by  the  ordinary  tribunals  substantially  as  they  were  before  the 
change.  Police  magistrates  and  justices  of  the  peace  and  other 
officers  discharging  duties  usually  devolving  upon  these  officers  of 
the  law  will  be  continued  in  office  if  they  are  suitable  persons. 
The  governor  of  the  zone,  subject  to  approval  of  the  commission, 
is  authorized  to  appoint  temporarily  a  judge  for  the  Canal  Zone, 
who  shall  have  the  authority  equivalent  to  that  usually  exercised 
in  Latin  countries  by  a  judge  of  a  court  of  first  instance,  but  the 
Isthmian  Canal  Commisson  shall  fix  his  salary  and  may  legislate 
respecting  his  powers  and  authority,  increasing  or  diminishing 
them  in  their  discretion,  and  also  making  provision  for  additional 
or  appellate  judges,  should  the  public  interest  require. 

The  laws  of  the  land,  with  which  the  inhabitants  are  familiar, 
and  which  were  in  force  on  February  26,  1904,  will  continue  in 
force  in  the  Canal  Zone  and  in  other  places  on  the  Isthmus  over 
which  the  United  States  has  jurisdiction  until  altered  or  annulled 
by  the  said  commission,  but  there  are  certain  great  principles  of 
government  which  have  been  made  the  basis  of  an  existence  as  a 
nation  which  we  deem  essential  to  the  rule  of  law  and  the  main- 
tenance of  order,  and  which  shall  have  force  in  said  zone.  The 
principles  referred  to  may  be  generally  stated  as  follows: 

That  no  person  shall  be  deprived  of  life,  liberty,  or  property 
without  due  process  of  law;  that  private  property  shall  not  be 
taken  for  public  use  without  just  compensation;  that  in  all 
criminal  prosecutions  the  accused  shall  enjoy  the  right  of  a  speedy 
and  public  trial,  to  be  informed  of  the  nature  and  cause  of  the 
accusation,  to  be  confronted  with  witnesses  against  him,  to  have 
compulsory  process  for  obtaining  witnesses  in  his  favor,  and  to 
have  the  assistance  of  counsel  for  his  defense;  that  excessive  bail 
shall  not  be  required  nor  excessive  fines  imposed,  nor  cruel  or 
unusual  punishment  inflicted;  that  no  person  shall  be  put  twice  in 
jeopardy  for  the  same  offense,  or  be  compelled  in  any  criminal  case 
to  be  a  witness  against  himself;  that  the  right  to  be  secure  against 
unreasonable  searches  and  seizures  shall  not  be  violated;  that 
neither  slavery  nor  involuntary  servitude  shall  exist  except  as  a 


THE  PANAMA  CANAL.  281 

punishment  for  crime;  that  no  bill  of  attainder  or  ex  post  facto 
law  shall  be  passed;  that  no  law  shall  be  passed  abridging  the 
freedom  of  speech  or  of  the  press,  or  of  the  rights  of  the  people  to 
peaceably  assemble  and  petition  the  government  for  a  redress  of 
grievances;  that  no  law  shall  be  made  respecting  the  establishment 
of  religion  or  prohibiting  the  free  exercise  thereof:  Provided,  how- 
ever, that  the  commission  shall  have  power  to  exclude  from  time 
to  time  from  the  Canal  Zone  and  other  places  on  the  Isthmus  over 
which  the  United  States  has  jurisdiction  persons  of  the  following 
classes  who  were  not  actually  domiciled  within  the  zone  on  the 
2Gth  day  of  February,  1904,  viz:  Idiots,  the  insane,  epileptics, 
paupers,  criminals,  professional  beggars,  persons  afflicted  with 
loathsome  or  dangerous  contagious  diseases,  those  who  have  been 
convicted  of  felony,  anarchists,  those  whose  purpose  it  it  is  to 
incite  insurrection,  and  others  whose  presence  it  is  believed  by  the 
commission  would  tend  to  create  public  disorder,  endanger  the 
public  health,  or  in  any  manner  impede  the  prosecution  of  the 
work  of  opening  the  canal;  and  may  cause  any  and  all  such  newly 
arrived  persons  or  those  alien  to  the  zone  to  be  expelled  and  de- 
ported from  the  territory  controlled  by  the  United  States,  and  the 
commission  may  defray  from  the  canal  appropriation  the  cost  of 
such  deportation  as  necessary  expenses  of  the  sanitation,  the  police 
protection  of  the  canal  route,  and  the  preservation  of  good  order 
among  the  inhabitants. 

The  commission  may  legislate  on  all  rightful  subjects  of  legis- 
lation not  inconsistent  with  the  laws  and  treaties  of  the  United 
States  so  far  as  they  apply  to  said  zone  and  other  places,  and  the 
said  power  shall  include  the  enactment  of  the  sanitary  ordinances 
of  a  preventive  or  curative  character  to  be  enforced  in  the  cities 
of  Colon  and  Panama  and  which  are  contemplated  and  authorized 
by  article  7  of  said  canal  convention.  Such  legislative  power 
shall  also  include  the  power  to  raise  and  appropriate  revenues  in 
said  zone;  and  all  taxes,  judicial  fines,  customs  duties,  and  other 
revenues  levied  and  collected  in  said  zone  by  or  under  the  au- 
thority of  said  commission  shall  be  retained,  accounted  for,  and 
disbursed  by  said  commission  for  its  proper  purposes.  The  mem- 
bers of  said  commission  to  the  number  of  four  or  more  shall  con- 
stitute a  legislative  quorum,  and  all  rules  and  regulations  passed 
and  enacted  by  said  commission  shall  have  set  forth  as  a  caption 
that  they  are  enacted  by  the  Isthmian  Canal  Commission  "By  au- 
thority of  the  President  of  the  United  States." 

The  commission  shall  hold  its  regular  quarterly  meetings  at 
the  office  of  the  commission  either  in  Panama  or  at  a  branch  office 
in  Washington,  and  special  meetings  may  be  held  at  the  pleasure 
of  the  commission. 

All  laws,  rules,  and  regulations  of  a  governmental  character 
enacted  by  the  commission  hereunder  shall  be  submitted  to  you 
for  your  approval,  and  should  your  approval  be  withheld  from  any 
such  law,  rule,  or  regulation,  then  from  that  time  the  law,  rule, 
or  regulation  shall  thereafter  have  no  force  or  effect. 

Major-General  George  W.  Davis,  U.  S.  Army  (retired),  a  mem- 
ber of  the  Canal  Commission  is  hereby  appointed  governor  of  the 
Isthmian  Canal  Zone.  He  will  proceed  at  once  to  the  Isthmus  of 
Panama.  He  will  in  my  name,  as  the  chief  executive  in  the  Canal 
Zone,  for  and  on  behalf  of  the  United  States,  see  that  the  laws  are 
faithfully  executed,  and  will  maintain  possession  of  said  territory, 
including  the  public  lands  therein  and  the  property  real  and  mova- 
ble on  the  Isthmus  of  Panama,  except  that  of  the  Panama  Rail- 
road, that  has  recently  been  acquired  from  the  Republic  of  Pana- 
ma. He  is  hereby  vested  with  the  power  to  grant  reprieves  and 
pardons  for  offenses  against  the  rules,  regulations,  and  laws  in 
force  by  virtue  of  action  of  the  commission  or  by  virtue  of  the 
clause  hereof  continuing  in  force  the  laws  of  Panama.  In  case  of 
his  disability  or  absence  from  the  Canal  Zone  at  any  time,  the 
Isthmian  Canal  Commission  is  empowered  to  designate  the  person 
or  persons  to  act  as  governor  during  such  absence  or  disability. 
Except  as  herein  prescribed  the  duties  of  the  governor  shall  be 
fixed  by  legislation  of  the  Canal  Commission. 

For  the  preservation  of  order  and  protecting  the  property  of 
the  United  States,  within  or  without  said  zone  as  provided  by 
article  7  of  the  canal  convention,  an  adequate  police  force  shall 
be  maintained.  If  at  any  time  there  shall  arise  necessity  for  mili- 
tary or  naval  assistance  the  governor  shall,  if  possible,  promptly 
notify  you,  and  in  the  event  of  a  sudden  exigency  the  governor 
may  call  upon  any  available  military  or  naval  force  of  the  United 
States  to  render  assistance,  and  the  same  shall  be  immediately 
furnished. 

It  is  a  matter  of  first  importance  that  the  most  approved  and 
effective  methods  and  measures  known  to  sanitary  science  be 
adopted  in  order  that  the  health  conditions  on  the  Isthmus  may 
be  improved.  It  is  the  belief  of  those  who  have  noted  the  success- 
ful results  secured  by  our  army  in  Cuba  in  the  obliteration  of 
yellow  fever  in  that  island  that  it  is  entirely  feasible  to  banish  the 
diseases  that  have  heretofore  caused  most  mortality  on  the  Isth- 
mus, or  at  least  to  improve  as  greatly  the  health  conditions  there 
as  in  Cuba  and  Porto  Rico.  I  desire  that  every  possible  effort  be 
made  to  protect  our  officers  and  workmen  from  the  dangers  of 
tropical  and  other  diseases,  which  in  the  past  have  been  so  preva- 
lent and  destructive  in  Panama. 

RearTAdmiral  John  G.  Walker,  U.  S.  Navy  (retired),  and 
Colonel  Frank  J.  Hecker,  members  of  the  Isthmian  Canal  Commis- 
sion, are  hereby  designated  as  members  of  the  joint  commission 
provided  for  by  articles  6  and  15  of  the  canal  conven- 
tion. The  moiety  of  the  necessary  expenses  of  the  commission 
to  be  created  in  pursuance  of  articles  6  and  15  of  the  above-cited 


282  THE  PANAMA  CANAL. 

canal  convention  will  be  defrayed  from  the  appropriation  applica- 
ble to  the  ship  canal  to  connect  the  waters  of  the  Atlantic  and 
Pacific  oceans. 

The  Isthmian  Canal  Commission  will  prepare  for  Congress  and 
place  in  your  hands  on  or  before  December  1  of  each  year  a  full 
and  complete  report  of  all  their  acts  and  of  the  operations  con- 
ducted by  them  in  respect  to  the  canal  construction  and  the  gov- 
ernment of  the  Canal  Zone.  These  reports  will  contain  a  detailed 
account  of  all  moneys  received  and  disbursed  in  the  performance 
of  their  duties  and  of  the  progress  made  in  the  construction  of 
the  canal. 

The  necessary  expenses  incurred  by  the  commission  in  carry- 
ing on  the  government  of  the  Canal  Zone  will  be  defrayed  from 
the  local  revenues  so  far  as  the  said  revenues  may  be  sufficient, 
and  the  remainder  will  be  met  from  the  appropriation  made  by 
the  fifth  section  of  the  act  of  Congress  approved  June  28,  1902. 
An  estimate  of  the  proposed  expenditures  and  revenues  for  each 
year  in  carrying  on  the  government  of  the  zone  will  be  submitted 
to  Congress  at  the  beginning  of  each  annual  session. 

By  virtue  of  the  ownership  by  the  United  States  of  about 
sixty-nine  seventieths  of  the  shares  of  the  capital  stock  of  the 
Panama  Railroad  the  general  policy  of  the  managers  of  said  road 
will  be  controlled  by  the  United  States.  As  soon  as  practicable  I 
desire  that  all  the  members  of  the  Isthmian  Canal  Commission  be 
elected*  to  the  board  of  directors  of  the  road,  and  that  the  policy 
of  the  road  be  completely  harmonized  with  the  policy  of  the  Gov- 
ernment of  making  it  an  adjunct  to  the  construction  of  the  canal, 
at  the  same  time  fulfilling  the  purpose  for  which  it  was  con- 
structed as  a  route  of  commercial  movement  across  the  Isthmus  of 
Panama  If  any  contracts  or  other  obligations  now  subsist  be- 
tween the  railway  company  and  other  transportation  companies 
that  are  not  in  accord  with  sound  public  policy,  then  such  con- 
tracts must  be  terminated  as  soon  as  it  is  possible  to  effect  that 
object. 

No  salary  or  per  diem  allowance  of  compensation  in  addition 
to  the  stated  salary  and  per  diem  allowance  of  the  members  of  the 
Isthmian  Canal  Commission  will  be  allowed  to  any  member  of  the 
commission  by  reason  of  his  services  in  connection  with  the  civil 
government  of  the  canal  zone,  or  his  membership  of  any  board  or 
commission  concerned  in  or  connected  with  the  construction  of  the 
canal,  or  by  reason  of  his  services  as  an  officer  or  director  of  the 
Panama  Railroad. 

If  there  now  be  in  force  within  the  Canal  Zone  any  franchise 
granting  to  any  person  or  persons  a  privilege  to  maintain  lotteries 
or  hold  lottery  drawings  or  other  gambling  methods  and  devices 
of  a  character  forbidden  by  the  laws  of  the  United  States,  or  if 
the  grantee  of  any  such  privilege  has  now  the  right  to  sell  lottery 
tickets  or  similar  devices  to  facilitate  the  business  of  the  conces- 
sionaire, the  commission  shall  enact  laws  annulling  the  privileges 
or  concessions  and  punishing  future  exercise  of  the  same  by  im- 
prisonment or  fine,  or  both. 

These  instructions  may  be  modified  and  supplemented  as  oc- 
casion shall   arise. 

Very   respectfully, 

THEODORE  ROOSEVELT. 
Hon.  William  H.  Taft, 

Secretary  of  War. 


We  shall  send  our  flag  Into  all  ports  of  trade,  not  as  a  menace, 
but  as  the  harbinger  of  peace  and  good-will. — Hon.  C.  W.  Fair- 
banks, at  Freehold,  N.  J.,  June  27,  1903. 

This  is  an  era  of  great  combinations  both  of  labor  and  of  capi- 
tal. In  many  ways,  these  combinations  have  worked  for  good;  but 
they  must  work  under  the  law. — President  Roosevelt  at  Charleston, 
April  9,  1902. 

It  is  almost  as  necessary  that  our  policy  should  be  stable  as 
that  it  should  be  wise.  A  nation  like  ours  could  not  long  stand  the 
runious  policy  of  readjusting  its  business  to  radical  changes  in  the 
tariff  at  short  Intervals,  especially  when,  as  now,  owing  to  the 
immense  extent  and  variety  of  our  products,  the  tariff  schedules 
carry  rates  of  duty  on  thousands  of  different  articles.— President 
Roosevelt  at  Minneapolis,  April  4,  1903. 

The  man  on  the  farm,  more  than  any  other  of  our  citizens  to- 
day, is  called  upon  continually  to  exercise  the  qualities  which  we 
like  to  think  of  as  typical  of  the  United  States  throughout  its  his- 
tory—the qualities  of  rugged  independence,  masterful  resolution, 
and  individual  energy  and  resourcefulness.  He  works  hard 
(for  which  no  man  is  to  be  pitied),  and  often  he  lives  hard  (which 
may  not  be  pleasant);  but  his  life  is  passed  In  healthy  surround- 
ings which  tend  to  develop  a  fine  type  of  citizenship.— President 
Roosevelt  at  Rangor,  Me.,  Aug.  27,  1902. 


THE    PANAMA    CANAL. 


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284  cuba. 


CUBA. 


The  Generous  and   Honorable   Course  of  the   I  felted   States  Toward 
That  Island  the  Work  of  the  Iteiuihliean  Party. 

The  record  of  the  United  States  in  respect  to  its  dealings 
with  Cuba  during  the  Last  seven  years  constitutes  one  of  the 
brightest  and  most  honorable  chapters  in  the  history  of  the 
human  race.  This  is  now  the  unanimous  verdict  of  the  nations 
of  the  earth. 

The  people  of  Cuba,  driven  to  revolution  by  long-continued 
oppression  and  abuses  on  the  part  of  Spain,  had  proved  unequal 
to  the  task  of  throwing  off  the  yoke  and  achieving  independence 
unassisted.  Finally  the  contest  became  marked  by  such  cruel- 
ties and  barbarities  that  the  United  States  in  the  interest  of  com- 
mon humanity  felt  compelled  to  interfere  and  to  demand  of 
Spain  independence  for  Cuba.  This  demand  led  to  the  war  be- 
tween the  United  States  and  Spain,  the  details  of  which  are  so 
well  known. 

As  the  grand  result  of  that  interference  on  the  part  of  the 
United  States  and  of  the  subsequent  temporary  government  of 
the  island  by  the  United  States,  Cuba  has  become  a  free  Repub- 
lic, the  terrible  wounds  of  the  revolution  have  been  healed,  the 
immense  property  losses,  estimated  at  a  billion  dollars,  have  been 
mainly  recouped,  the  stricken  industries  of  the  people  have  been 
rehabilitated,  the  burden  of  the  old  public  debt  has  been  cast 
off,  the  courts  and  laws  have  been  reformed,  the  former  illit- 
eracy and  ignorance  of  the  mass  of  the  people  have  been  rem- 
edied by  an  admirable  system  of  public  education,  the  serious 
epidemics  of  yellow  fever,  etc.,  have  been  stamped  out  and  the 
old  unsanitary  conditions  removed,  great  improvements  have 
been  instituted  in  all  the  public  departments  and  works,  includ- 
ing the  police  force  and  rural  guard,  the  fire  department,  the 
water  supply,  the  roads,  the  pavements,  the  sewers,  the  harbor 
channels,  the  light-houses,  etc.,  and  a  modern  system  of  repub- 
lican governmental  machinery  established,  including  national  ex- 
ecutive and  legislative  departments,  subordinate  provincial  and 
municipal  governments,  and  a  thoroughly  up-to-date  tariff  and 
customs  service  of  such  efficiency  that  from  the  very  start  the 
revenues  of  the  new  Republic  have  far  exceeded  its  expenditures 
and  there  has  been  a  handsome  surplus  in  the  treasury. 

CLEAN  RECORD  OF  UNITED  STATES. 

In  a  word,  the  United  States  first  enabled  Cuba  to  win  her 
independence,  then  took  Cuba  in  charge  for  three  years  and 
taught  her  how  to  administer  a  successful  Republic,  and  then 
handed  the  reins  of  government  over  to  the  Cubans  and  re- 
tired from  the  island.  The  United  States  did  all  this  simply  as 
a  manifestation  of  brotherly  kindness,  entirely  at  its  own  ex- 
pense; and  since  resigning  authority  in  Cuba  in  1902  the  United 
States  has  given  another  practical  proof  of  genuine  friendship 
for  the  new  Republic  by  enacting  a  reciprocity  treaty,  or  com- 
mercial convention,  giving  to  the  Cubans  the  advantage  of 
20  per  cent  rebate  on  our  tariff  duties  for  all  Cuban  products 
subject  to  duty  at  United  States  ports. 

All  these  grand  results  were  accomplished  by  the  power  and 
will  of  the  Republican  party  of  the  United  States,  under  the 
responsible  management  of  the  two  Republican  administrations 
of  McKinley  and  Roosevelt,  and  in  spite  of  the  almost  undeviat- 
ing  opposition  of  the  Democratic  party.  This  is  not  a  mere 
party  claim  or  boast.     It  is  a  simple  fact  of  political  history. 

Although,  when  brought  face  to  face  with  the  main  questions 
at  issue,  the  majority  of  the  Democratic  Congressmen  generally 
voted  for  the  various  war  and  Cuban  measures,  the  leaders 
of  that  party,  in  and  out  of  Congress,  from  the  very  outset, 
•strove  persistently  to  obstruct  the  legislation  proposed  by  the 
Republicans,  and  to  hinder  and  embarrass  the  Government  in 
the  execution  of  its  Cuban  policy. 


CUBA.  285 


STUBBORN  DEMOCRATIC  OPPOSITION. 

In  1896,  in  the  Fifty-fourth  Congress,  resolutions  were  passed 
recommending  the  friendly  intervention  of  this  government  in 
behalf  of  the  Cubans.  The  Democratic  President  and  admin- 
istration took  no  notice  of  the  resolutions. 

In  1898,  in  the  Fifty-fifth  Congress,  the  Democrats  endeavored 
to  delay  action  on.  the  war  resolutions,  but  were  prevented  by 
a  ruling  of  Speaker  Reed.  They  finally  all  voted  for  these  reso- 
lutions; but  on  the  appearance  of  the  war  revenue  bill,  for  pro- 
viding ways  and  means  for  carrying  on  the  war,  they  raised 
all  sorts  of  objection  and  opposition  to  it,  and  seventy-eight  of 
them  actually  voted  against  it. 

During  the  war  the  Democrats  omitted  no  opportunity  to 
criticise  President  McKinley  and  his  associated  high  officials  in 
the  War  and  Navy  Departments  for  their  conduct  of  the  war,  and 
they  eagerly  seized  upon  every  piece  of  scandal,  reported  or 
rumored,  in  their  keen  desire  to  bring  discredit  upon  the  author- 
ities wrho  were  bearing  the  burden  of  the  struggle  and  striving 
to  preserve  the  honor  of  the  country. 

When  the  war  was  over  and  the  treaty  of  peace  was  under 
consideration  the  Democrats  bitterly  opposed  ratification,  and 
barely  a  sufficient  number  of  them  voted  "with  the  Republicans 
to  secure  that  result.  Even  this  faint-hearted  support  of  the 
treaty  by  a  few  of  their  number  was,  in  part  at  least,  for  the 
purpose  of  merely  assuring  completion  of  the  Republican  policy, 
upon  which  they  believed  they  could  successfully  attack  the 
party  in  the  campaign  of  1900,  then  at  hand.  Ten  Democrats 
and.  three  Populists  and  three  members  of  the  Silver  party  and 
one  independent  voted  for  the  ratification  of  the  treaty. 

During  the  temporary  government  of  Cuba  by  the  United 
States  authorities  the  Democrats  kept  up  the  same  system  of 
opposition  and  criticism  to  all  features  of  the  Republican  policy 
toward  the  island,  including  the  eminently  wise  and  necessary 
"Piatt  Amendment."  They  imputed  blame  to  all  the  leading 
United  States  officials  temporarily  in  charge  of  Cuban  affairs 
and  threw  suspicions  on  all  their  motives. 

A   CHRONOLOGICAL   COMPILATION. 

Under  the  title  of  "The  Establishment  of  Free  Government  in 
Cuba,"  a  very  complete  and  lucid  compilation  from  the  records 
of  the  War  Department  has  recently  been  made  by  the  Bureau 
of  Insular  Affairs,  giving  the  details,  in  chronological  order,  of 
all  the  important  developments  between  the  United  States  and 
Cuba  since  April  20,  1898.  The  compilation  may  be  summarized 
as  follows : 

On  April  20,  1898,  Congress  adopted  a  joint  resolution  stating 
that  the  conditions  in  Cuba  had  become  intolerable,  that  Cuba 
had  a  right  to  be  free,  that  the  United  States  therefore  demanded 
of  Spain  the  relinquishment  of  the  island,  that  in  enforcing  this 
demand  the  President  be  empowered  to  make  full  use  of  the 
land  and  naval  forces  of  the  United  States  and  the  militia  of  the 
several  States,  and  that  the  United  States  expressly  disclaimed 
"any  disposition  or  intention  to  exercise  sovereignty,  jurisdiction, 
or  control  over  said  island,  except  for  the  pacification  thereof," 
and  asserted  its  determination,  when  that  was  accomplished,  to 
"leave  the  government  and  control  of  the  island  to  its  people." 
On  April  25,  1898,  Congress  passed  an  act  formally  declaring 
war  against  Spain. 

On  August  12,  1898,  the  United  States  and  Spain  agreed  upon 
a  protocol,  by  the  terms  of  "which  Spain  promised,  among  other 
things,  to  relinquish  all  sovereignty  over  Cuba,  and  to  evacuate 
the  island,  which  protocol  was  followed  by  a  suspension  of  hos- 
tilities. 

On  September  10,  1898,  the  treaty  of  Paris  was  signed,  by 
which,  among  other  things,  it  was  agreed  that  Spain  relinquished 
all  claim  and  title  to  Cuba,  and  that  during  the  period  of  the 
occupation  of  the  island  by  the  United  States  the  United  States 
should  discharge  all  obligations  resulting  from  such  occupation, 
under  international  law. 


THE    GOVERNMENT    OF    INTERVENTION. 

On  January  1,  1899,  the  Spanish  evacuated  Habana  and  re- 
linquished sovereignty  of  the  island,  and  the  government  was 
transferred  to  the  military  governor  as  the  representative  of  the 
President  of  the  United  States.  Measures  were  then  at  once 
Initiated  by  this  temporary  authority  to  establish  a  permanent 
ami  stable  republican  government  to  be  administered  by  the 
Cubans  themselves,  and  from  that  hour  until  the  Cuban  Republic 
was  proclaimed  on  May  20,  1902,  this  idea  was  kept  steadily  in 
v  iew  by  the  "government  of  intervention,"  with  the  determination 
U>  accomplish  the  object  as  speedily  as  possible. 

The  iirst  step  was  to  provide  for  taking  a  census,  in  order  to 
ascertain  the  population  and  the  age  and  other  qualifications 
for  citizenship  and  suffr  ge.  Spa?  ish  citizens  remaining  in 
Cuba  were  given  the  option  of  becoming  Cuban  citizens,  and 
large  numbers  of  them  did  so.  A  basis  for  suffrage  was  agreed 
upon  by  a  conference  of  leading  Cubans,  an  election  law  was 
promulgated,  and  on  June  16,  1900,  an  election  was  held 
throughout  the  island  for  municipal  officers.  This  election  was 
managed  and  participated  in  solely  by  Cubans,  not  a  United 
States  official  or  soldier  being  at  or  near  any  polling  place,  and  it 
was  completely  successful  in  all  respects. 

The  next  step  was  the  calling  of  an  election  for  the  choice 
of  delegates  to  a  constitutional  convention.  This  election  was 
held  on  September  15,  1900,  and  was  also  entirely  under  the 
charge  of  Cubans.  The  thirty-one  members  of  the  constitutional 
convention  were  duly  elected,  and  the  convention  began  its 
sessions  at  Habana  on  November  5,  1900,  for  the  purpose  of 
framing  a  national  constitution,  agreeing  upon  the  future  rela- 
tions of  Cuba  with  the  United  States,  and  providing  for  the 
popular  election  of  officers  of  the  Cuban  Government  under  that 
constitution. 

THE   PLATT    AMENDMENT. 

In  regard  to  the  point  concerning  the  future  United  States- 
Cuban  relations,  it  was  settled  satisfactorily  to  both  nations  by 
the  adoption,  by  both,  of  what  has  come  to  be  permanently 
designated  as  the  "Piatt  Amendment."  This  consisted  of  a  series 
of  propositions  offered  by  Senator  Piatt  of  Connecticut  as  an 
amendment  to  the  pending  army  appropriation  bill  in  the  last 
hours  of  the  Fifty-sixth  Congress,  and  passed  by  that  Congress  on 
March  2,  1901.  By  this  amendment  it  was  provided  that  the 
recognition  of  the  full  independence  of  Cuba  by  the  United 
States  should  be  conditioned  upon  the  Cubans  agreeing  (1)  never 
to  permit  any  foreign  power,  by  treaty,  colonization,  or  other- 
wise, to  obtain  any  control  over  Cuba  or  its  territory  tending  to 
impair  its  independence;  (2)  never  to  contract  any  public  debt 
beyond  the  capacity  of  the  ordinary  revenues  of  the  island  to 
take  care  of;  (3)  that  the  United  States  may  intervene  in  Cuba 
for  the  preservation  of  Cuban  independence  and  for  the  main- 
tenance of  a  government  adequate  for  the  proper  discharge  of  its 
constitutional  functions  and  Obligations;  (4)  that  the  acts  of  the 
United  States  in  Cuba  during  the  temporary  government  be 
ratified  and  validated  and  all  rights  thereunder  honored  and 
protected;  (5)  that  the  new  sanitary  system  in  the  Cuban  cities 
be  faithfully  continued,  and  (6)  that  two  naval  stations  in  Cuba 
be  sold  or  leased  to  the  United  States. 

On  June  12,  1901,  these  conditions  were  accepted  and  adopted 
by  the  Cuban  constitutional  convention,  and  their  text  grafted 
upon  the  new*  Cuban  constitution. 

This  being  deemed  satisfactory  and  conclusive  by  the  United 
States,  nothing  remained  except  to  elect  the  new  Cuban  general 
officials  under  the  constitution.  The  election  for  governors,  mem- 
bers of  the  house  of  representatives,  presidential  and  senatorial 
electors,  etc.,  was  held  on  December  31,  1901,  and  on  February 
24,  1902,  the  electors  met  and  elected  a  president,  vice-president, 
and  senators. 

May  20,  1902,  was  agreed  upon  for  inauguration  day,  and  on 
that  day  the  Republic  of  Cuba  was  formally  put  into  action  as  a 
"going  concern"  by  the  preceding  government  of  intervention. 
In  the  morning  all  the  general  offices  and  national  affairs  of  the 


CUBA.  28? 

land  were  in  the  hands  of  United  States  officials;  in  the  afternoon 
they  were  all  in  the  hands  of  the  corresponding  Cuban  officials, 
and  that,  too,  without  the  slightest  friction  or  confusion.  The 
evacuation  of  Cuba  by  the  United  States  officials  and  forces  took 
place  at  once,  a  few  troops  being  temporarily  retained  in  the 
important  fortifications,  by  mutual  consent  and  in  the. interest  of 
the  public  safety,  until  the  new  government  could  replace  them 
by  an  adequate  force  of  Cuban  ^roops.  The  transfer  was  made 
the  occasion  of  a  national  holiday,  the  representatives  and  citi- 
zens of  the  United  States  joining  heartily  with  the  Cubans  in 
the  general  jubilation.  Congratulatory  messages  were  exchanged 
by  President  Roosevelt  and  President  Palma,  and  by  Secretary 
Root  and  President  Palma.  The  Cuban  President  officially  ex- 
pressed the  gratitude  of  the  Cuban  people  for  the  services 
rendered  to  them  by  the  United  States,  and  pledged  the  Republic 
to  the  performance  of  all  the  duties  and  obligations  imposed 
by  the  treaty  of  Paris  and  the  "Piatt  Amendment" 

GENERAL   RESULTS. 

In  recapitulating  the  principal  features  of  the  civil  adminis- 
tration of  the  temporary  government,  the  report  of  the  Bureau  of 
Insular  Affairs  states  that  the  first  thing  in  order  after  assuming 
control  in  1899  was  the  maintenance  of  domestic  peace,  the 
relief  of  physical  distress  among  the  suffering  inhabitants,  the 
sanitation  of  the  towns,  and  the  rebuilding  of  the  industries 
of  the  island.  The  maintenance  of  public  order  was  easily  ac- 
complished. The  relief  from  hunger  and  illness  involved  a 
thorough  house-to-house  inspection  and  the  distribution  of  large 
quantities  of  food  and  medicines.  More  than  5,000,000  rations 
were  thus  distributed  during  the  first  six  months  of  1899,  without 
the  cost  of  a  penny  to  the  Cubans.  The  claims  of  the  Cuban 
isoldiers  were  satisfied  by  the  payment  to  them  by  the  United 
States  of  about  $2,500,000  on  account  of  or  in  lieu  of  salaries 
and  wages  for  military  service.  The  sanitary  reform  instituted 
in  the  island  was  on  the  most  elaborate  scale.  Sanitary  corps 
were  organized,  systematic  inspections  were  made,  streets 
cleaned,  sewers  introduced,  buildings  disinfected,  water  supplies 
rigidly  investigated  and  improved,  and,  above  all,  the  cause  of 
yellow  fever  scientifically  ascertained,  with  the  result  of  bringing 
that  disease  under  control  and  expelling  it  from  the  island. 
Equally  careful  attention  was  given  to  the  cause  of  education. 
Before  the  war  the  Cuban  school  system  was  very  deficient. 
In  such  public  schools  as  existed,  poorly  taught,  poorly  furnished, 
poorly  equipped,  there  was  a  nominal  enrollment  in  1897  of  about 
30,000  pupils.  In  less  than  six  months  after  the  occupation  of 
the  island  by  the  United  States  authorities  the  public  school  en- 
rollment numbered  143,000,  and  the  school  premises  and  equip- 
ments had  been  greatly  improved.  Modern  text-books  and  ap- 
paratus were  introduced,  and  several  hundred  Cubrjn  teachers 
were  taken  to  the  United  States  and  given  special  instruction 
there  in  their  calling.  Thousands  of  others  received  similar  in- 
struction in  teachers'  institutes  in  Cuba,  established  by  the 
United  States  authorities.  Besides  all  this  extensive  reforms  and 
improvements  were  introduced  in  the  prisons,  asylums,  hospitals, 
dispensaries,  etc.,  and  a  radical  change  for  the  better  was  effect- 
ed in  regard  to  the  management  of  the  railways  of  the  island. 
In  order  to  hasten  the  work  of  rehabilitating  the  industries  of 
Cuba  the  government  of  intervention  furnished  to  needy  planters 
and  farmers  more  than  $100,000  worth  of  farm  animals,  as  a  free 
gift.  The  report  of  the  Bureau  of  Insular  Affairs  concludes  by 
presenting  the  balance  sheet  showing  the  revenues  and  ex- 
penditures of  Cuba  under  the  temporary  government,  with  the 
former  amounting  in  round  numbers  to  $57,000,000  and  the  lat- 
ter to  $55,000;000,  thus  leaving  a  surplus  of  about  $2,000,000  in 
the  gross.  In  view  of  all  these  gratifying  results,  the  order  of 
Secretary  Root  to  the  Army  of  the  United  States,  of  date  July 
4,  1902,  thanking  the  officers  and  enlisted  men  recently  on  duty 
in  Cuba  for  their  very  successful  efforts  and  achievements  in  the 
island,  must  surely  receive  the  hearty  indorsement  of  the  people 
of  the  United  States. 


288  cuba. 

Utfipniciij    with   Cuba. 

After  the  inception  of  the  Cuban  Republic  the  first  question  of 
importance  to  claim  the  attention  of  the  United  Suites  with 
regard  to  Cuba  was  the  question  of  reciprocity.  As  a  rule,  reci- 
proeity,  or  reciprocal  commercial  conventions,  between  nations  is 
a  simple  business  proposition,  to  be  decided  on  simple  business 
principles.  In  the  case  of  Cuba,  however,  the  great  majority  of 
the  honorable,  right-thinking  citizens  of  the  United  States  have 
acknowledged  from  the  first  that  the  moral  element  pertained  to 
the  reciprocity  proposition.  In  the  first  place,  the  United  States 
was  in  large  part,  responsible  for  the  fact  of  Cuban  independence, 
and  it  would  therefore  seem  obvious  that  the  United  States  was 
morally  bound  to  see  that  this  independence  did  not  prove 
Cuba's  undoing,  and  that  the  Infant  nation  should  have  at  least 
a  fair  chance  of  life.  Furthermore,  it  was  evident  that  without 
practical  assistance  of  material  proportions  from  the  outside 
Cuba  could  hardly  recover  from  the  fearful  losses  of  the  war. 
The  great  industries  of  Cuba  had  been  sugar  and  tobacco.  These 
had  been  almost  ruined  by  the  war.  The  plantations  had  been 
ravaged,  the  crops  destroyed,  the  animals  confiscated,  the  build- 
ings, machinery,  and  utensils  burned  up.  Besides,  in  the  case  of 
sugar,  the  cane-sugar  producers  were  confronted  with  a  ruinous 
beet-sugar  competition,  and  during  the  war  prices  of  sugar  had 
gone  below  pay  level  from  a  Cuban  point  of  view. 

Both  President  McKinley  and  President  Roosevelt  repeatedly 
in  their  messages  to  Congress  urged  the  adoption  of  reciprocity 
with  Cuba,  and  both  called  attention  to  the  moral  aspect  of  the 
question.  In  his  special  message  of  June  13,  1902,  on  the  subject 
President  Roosevelt  argued  that  Cuba's  very  life  would  for  many 
years  dejoend  upon  her  treatment  by  the,  United  States,  and  that 
Cuba  had  at  our  request  and  dictation'  assumed  special  obliga- 
tions toward  the  United  States,  which,  as  a  matter  of  dionor, 
placed  the  United  States  under  special  moral  obligations  toward 
Cuba.  We  had  already  helped  her  ;  we  should  continue  to  help  her, 
and  "are  bound  by  every  consideration  of  honor  and  expediency  to 
pass  commercial  measures  in  the  interest  of  her  material  well- 
being."  The  President  also  adduced  other  arguments  of  a  more 
practical  nature.  President  Roosevelt's  message  on  this  subject 
is  printed  in  the  document  "Pages  from  the  Congressional  Rec- 
ord," as  are  also  numerous  speeches  in  Congress  on  the  reciproc- 
ity measure.  These  should  be  examined  by  those  desiring  a  de- 
tailed study  of  this  subject. 

OPPOSITION   BY   DEMOCRATS    ONLY. 

The  matter  came  up  in  the  Fifty-seventh  Congress,  but  nothing 
decisive  was  done  until  the  Fifty-eighth.  A  reciprocity  treaty  or 
commercial  convention  was  prepared  by  accredited  repre- 
sentatives of  both  nations  in  December,  1902.  In  March,  1903, 
the  United  States  Senate  met  in  special  session  and  ratified  the 
convention  with  certain  amendments,  one  of  which  made  it 
requisite  for  the  House  of  Representatives  to  agree  to  the  rati- 
fication. Accordingly,  President  Roosevelt  called  a  special  ses- 
sion of  both  Houses  in  November.  1903,  to  further  consider  the 
matter.  The  House  passed  a  bill  to  carry  into  effect  the  proposed 
convention  on  November  19,  1903,  by  a  vote  of  335  to  21;  and 
the  Senate  passed  the  same  bill  on  December  16,  1903,  by  a  vote 
of  57  to  18.  In  both  Houses  the  negative  vote  was  cast  entirely 
by  Democrats,  and  practically  all  the  opposition  in  the  debates 
teas  voiced  by  Democrats. 

The  new  treaty  went  into  effect  on  December  27,  1903,  and, 
unless  denounced,  will  continue  in  force  for  five  years  from  that 
date.  Aside  from  the  articles  on  the  free  lists  of  both  countries 
the  treaty  admits  into  the  United  States  all  the  products  of  Cuba 
at  a  reduction  of  20  per  cent,  of  the  United  States  tariff  duties 
thereon,  and  admits  into  Cuba  all  the  products  of  the  United 
States  (except  tobacco)  at  various  reductions  of  20,  25.  30,  and  40 
per  cent,  of  the  Cuban  tariff  duties  thereon,  the  articles  pertain- 
ing to  the  different  rates  of  reduction  being  carefully  specified 
in  the  text  of  the  instrument 


CUBA.  389 

GBBAT  INCREASE  OP  TRADE  UNDEB  THE  TREATY, 

The  Cuban  reciprocity  treaty  has  been  in  operation  practically 

!  since;  January  1,  1904,  and  the  official  figures  of  the  commerce 

and  trade  between  the  two  countries  this  year  thus  far  prove 

.'  very  satisfactory  to  the  friends  of  the  reciprocity  proposition 

!  and  to  those  who  argued  and  prophesied  that  the  results  of  the 

i  new  arrangement  would  be  of  much  benefit  to  the  people  of 

!  both  communities  and  would  injure  no  industry  in  either  country. 

!  According  to  statistics  compiled  by  the  Department  of  Commerce 

and  Labor  through  its  Bureau  of  Statistics  the  United   States 

'  exports   to   Cuba   during   the   first  three   months   of   this  year 

;  amounted  in  value  to  $6,495,149,  as  against  $5,211,063  during  the 

first  three  months  of  1903.    This  is  an  increase  of  nearly  25  per 

;  cent.    The  percentage  of  increase  of  the  imports  into  the  United 

States  from  Cuba  for  tfie  same  period  is  still  greater,  amounting 

to  nearly   100  per   cent,    and  the   increase   in   the   whole   trade 

amounts  to  more  than  70  per  cent    The  figures  show,  moreover, 

,  that  while  there  has  been  a  gradual  increase  in  our  trade  with 

Cuba  during  the  whole  of  the  fiscal  year  ending  June  30,  1904, 

as  compared  with  the  previous  fiscal  year,  the  increase  was  far 

greater  during  the  last  half  of  the  year  (the  reciprocity  period) 

than  during  the  first  half. 

The  bulk  of  the  United  States  imports  from  Cuba  during  the 
I  first  three  months  of  1904  consisted  of  sugar.     The  very  large 
total  of  imports  for  the  period  ($23,217,180,  as  compared  with 
$11,948,597  for  the  first  three  months  of  1903)  was  caused,  to 
j  a  great  extent,  of  course,  by  the  action  of  the   Cuban   sugar 
:  exporters  in  holding  back  shipments  during  the  latter  part  of 
|  1903  so  as  to  take  advantage  of  the  expected  tariff  reductions 
j  offered   by  the  reciprocity  treaty.     It  is   noteworthy  that   the 
|  recent  very  large  imports  of  cane  sugar  have  not  had  a  tendency 
|  to  lower  the  price  of  sugar  in  this  country,  so  that  our  beet- 
i  sugar  interests  have  not  suffered,  while  the  Cuban  producers 
!  have  reaped  a  great  benefit  from  the  reduction  of  our  tariff 
I  rate  on  their  sugar.      (The  question  of  the  effect  on  our  beet- 
!  sugar  industry  of  this  and  other  reductions  is  discussed  on  an- 
other page.    See  index.) 

The  25  per  cent,  increase  in  our  exports  to  Cuba  during  the 
first  three  months  of  1904,  as  compared  with  the  first  three 
months  of  1903,  applied  principally  to  agricultural  implements, 
wheat  flour,  cotton  cloths,  sewing  machines,  leather,  naval  stores, 
oils,  lumber,  and  furniture.  In  some  of  these  articles  the  recent 
increase  of  our  exports  to  Cuba  has  been  50  per  cent,  and  in 
some  even  100  per  cent,  as  compared  with  corresponding  periods 
of  1903.  The  treaty  is  published  in  full  in  the  document  "Pages 
from  the  Congressional  Record." 

The  mints  will  not  furnish  the  farmer  with  more  consumers. 
The  only  market  that  he  can  rely  upon  every  day  of  the  year  is 
the  American  market. — Maj.  McKinley  to  Indiana  delegation,  at 
Canton,  September  29,  1896. 

We  believe  in  reciprocity  with  foreign  nations  on  the  terms  out- 
lined in  President  McKinley's  last  speech,  -which  urged  the  exten- 
sion of  our  foreign  markets  by  reciprocal  agreements  whenever 
they  could  be  made  without  injury  to  American  industry  and  labor. 
—President  Roosevelt's  speech  accepting  1904  nomination. 

"We  each  and  all  owe  a  duty  to  the  community  and  to  the  State. 
It  is  a  positive  duty,  and  that  is  to  aid  in  securing  good  laws  and 
their  faithful  enforcement.  We  are  not  menaced  by  foreign  foes. 
We  have  no  fear  of  alien  attack.  We  have  nothing  within  to  dread 
except  the  indifference  of  the  intelligent  citizen  to  the  discharge  of 
his  civic  obligations. — Hon.  C.  W.  Fairbanks,  at  Freehold,  N.  J., 
June  27,  1903. 

I  am  a  protectionist  because  I  can  see  very  clearly  that  the 
political  independence  -which  every  patriot  would  sacrifice  his  life 
to  preserve  to  his  country  can  only  be  safely  assured  when  we  are 
Industrially  Independent,  and  I  am  glad,  if  it  requires  that  lesser 
sacrifice,  to  forego  a  few  pennies  of  my  savings  to  do  my  part  to 
secure  that  assurance. — Prof.  R.  H.  Thurston*  of  Cornell  Univer- 
sity, in  the  American  Economist. 


290  THE  PACIFIC. 


THE  PACIFIC. 


The  Republican  Policy  of  Development  of  its  Commerce. 

One  distinctive  feature  of  the  Republican  policy  in  recent 
years  has  been  the  enlargement  of  our  trade  with  the  Orient  and 
a  strengthening  of  our  relations  with  the  Pacific.  This  policy 
was  clearly  developed  during  the  administration  of  President 
Harrison,  who  in  his  speeches  on  the  Pacific  coast,  in  his  urgency 
for  the  construction  of  an  isthmian  canal,  and  in  his  favorable 
action  on  the  application  of  the  Hawaiian  Islands  for  annexation 
to  the  United  States,  indicated  a  desire  for  the  development  of 
our  Pacific  and  Oriental  trade. 

The  contrast  between  Republican  and  Democratic  policies  with 
reference  to  the  Pacific  is  shown  in  the  fact  that  the  treaty  of 
annexation  of  the  Hawaiian  Islands  which  President  Harrison 
had  sent  to  Congress  during  the  closing  period  of  his  administra- 
tion was  immediately  withdrawn  by  President  Cleveland  and  an 
order  given  to  haul  down  the  American  flag  which  had  been 
hoisted  in  those  islands.  A  still  further  evidence  of  the  contrast 
between  the  policies  of  the  two  parties  is  found  in  the  fact  that 
immediately  upon  the  inauguration  of  President  McKinley  the 
application  Of  Hawaii  for  admission  to  the  Union  was  renewed, 
favorable  action  recommended  by  President  McKinley,  and  an 
act  admitting  Hawaii  passed  a  Republican  Congress. 

It  was  also  under  President  McKinley  that  the  island  of 
Tutuila,  a  part  of  the  Samoan  group,  in  which  is  located  the 
most  valuable  harbor  in  the  entire  South  Pacific,  was  annexed 
to  the  United  States. 

President  McKinley  also  recommended  the  construction  of 
a  Pacific  cable,  and  a  Republican  Congress  subsequently  enacted 
a  law  under  which  a  cable  was  constructed  across  the  Pacific 
by  private  enterprise,  but  assuring  a  marked  reduction  in  rates, 
and  a  Republican  President,  Roosevelt,  inaugurated  it  for  busi- 
ness with  his  opening  message  to  the  Philippines,  sent  thither 
and  around  the  world  on  July  4,  1903. 

COMMERCIAL   PROGRESS    IN    THE   EAST. 

The  various  steps  taken  in  behalf  of  improved  commercial 
relations  with  the  Orient  and  especially  with  China  are  detailed 
in  the  chapter  discussing  the  work  of  the  State  Department. 
These  include  the  insistence  upon  the  "open  door"  for  trade,  the 
negotiation  of  a  new  commercial  treaty  with  China,  the  estab- 
lishment of  new  treaty  ports  in  China  and  Japrn,  the  active 
work  of  our  consuls  in  those  countries  in  behalf  of  commerce, 
and  in  addition  to  these  the  annexation  of  the  Philippine  Islands, 
an  important  strategic  point  commercially  as  well  as  otherwise 
in  the  Orient.  Regarding  this  important  step  and  its  relation  to 
our  commerce  in  the  Orient,  Archibald  Colquhoun,  that  distin- 
guished British  student  and  traveler,  whose  writings  on  trade 
conditions  in  the  Orient  mark  him  as  an  authority,  says  in  his 
"Mastery  of  the  Pacific:"  "The  presence  of  America  in  the  Phil- 
ippines opens  a  grave  possibility,  since  it  is  obvious  that  Hong- 
kong will  in  the  future  be  out  of  the  direct  trade  routes  between 
Australasia  and  the  Malay  Archipelago  and  the  great  markets 
of  America.  *  *  *  There  are  evident  signs  that  the  United 
States  mean  to  make  an  important  center  of  the  capital  of  the 
Philippines.  Among  the  most  significant  factors  in  the  Pacific 
situation  is  the  advent  of  Russia  coming  overland  to  the  Pacific 
littoral  an.d  the  sudden  appearance  of  the  United  States  coming 
over-sea  and  establishing  herself  in  a  large,  populous  and  im-, 
portant  archipelago  on  our  borders  of  Asia.  *  *  *  The, 
United  States,  in  the  opinion  of  the  writer,  will  be  the  dominant] 
factor  in  the  mastery  of  the  Pacific.  She  has  all  the  advantages, 
qualifications,  and  some  of  the  ambitions  necessary  for  the  role, 
and  her  unrivaled  resources  and  vast,  increasing  population  pro- 
vide the  material  for  future  greatness." 


THE   PACIFIC.  291 

The  last  step  in  the  work  in  behalf  of  the  development  of 
American  commerce  on  the  Pacific  and  with  the  Orient  is  found 
in  the  developments  of  the  past  year  with  reference  to  the  Pan- 
ama Oanal,  fully  discussed  elsewhere,  which  have  resulted  in  the 
absolute  ownership  by  the  United  States  of  that  canal  cession 
and  the  perpetual  control  of  r.  strip  of  land  five  miles  wide  on 
each  side  of  the  canal  route,  an  area  nearly  one-half  that  of 
the  State  of  Rhode  Island,  and  giving  assurance  of  the  right  to 
construct  and  operate  that  canal.  All  of  this  work  with  refer- 
ence to  the  Panama  Canal,  as  well  aa  all  the  other  work  above 
outlined  with  reference  to  the  Pacific,  has  been  accomplished 
under  Republican  Presidents  and  in  the  face  of  continuous  criti- 
cism and  opposition  by  the  Democratic  party  in  and  out  of  Con- 
gress. Not  a  single  one  of  the  measures  and  steps  above  outlined 
has  escaped  criticism  and  opposition  by  that  party. 

IMPORTANCE  OF  THE  COMMERCE  OF  THE  ORIENT. 

That  the  commerce  of  the  Orient  is  of  sufficient  value 
to  justify  the  efforts  which  have  been  made  to  obtain  our  proper 
share  in  it  is  evidenced  not  alone  by  the  continuous  efforts  which 
the  European  nations  are  making  for  its  control,  but  by  the  fact 
that  the  annual  importations  of  the  semicircle  of  countries  of 
which  Manila  forms  a  central  point  aggregate  about  1,250  mil- 
lion dollars,  or  an  average  of  100  million  dollars  per  month,  a 
sum  nearly  equal  to  the  total  value  of  our  present  domestic  ex- 
ports. That  the  United  States  has  made  a  marked  gain  in  the 
share  which  products  from  the  United  States  form  in  the  total 
imports  of  the  countries  in  question— Japan,  China,  India, 
Ceylon,  Dutch  and  French  East  Indies,  Australasia,  the 
Hawaiian  Islands,  etc.— is  shown  by  the  fact  that  such  shipments 
from  the  United  States  to  Asia  and  Oceania  amounted  in  1896 
to  but  about  6  per  cent,  of  the  total  imports  of  those  countries, 
while  to-day  they  amount  to  about  10  per  cent  of  their  imports. 
A  table  on  page  ....  shows  the  growth  in  exports  of  the 
United  States  to  each  of  the  grand  divisions  of  the  world  in  each 
year  from  1896  to  1903.  It  will  be  seen  that  while  our  exports 
to  South  America  increased  only  10.6  per  cent,  those  to  Europe 
52.9  per  cent,  and  those  to  North  America  84.8  per  cent,  those  to 
Asia  and  Oceania,  including  shipments  from  the  United  States 
to  the  ^Hawaiian  Islands,  increased  149  per  cent  The  increase 
in  total  exports  to  all  parts  of  the  world  during  the  period  from 
1896  to  1903  was,  in  round  terms,  61  per  cent.,  while  that  in 
exports  to  Asia  and  Oceania,  as  above  indicated,  was  149  per 
cent.,  the  percentage  of  increase  to  Asia  and  Oceania  therefore 
being  more  than  twice  as  great  as  the  increase  in  total  exports, 
and  greater  than  to  any  other  section  of  the  world  except  Africa, 
while  the  actual  increase  was  far  greater  than  that  in  exports  to 
Africa  or  South  America.  To  Asia  and  Oceania  the  actual  in- 
crease in  the  seven  years  from  1896  to  1903  was  practically  64 
million  dollars,  while  in  the  seven  years  immediately  preceding 
1896  the  increase  in  exports  to  Asia  and  Oceania  had  been  but 
eight  million  dollars.  Our  total  exports  to  Asia  and  Oceania  in 
1889  were  $34,679,029,  and  in  1896  $42,827,258,  an  increase  of 
$8,148,229  during,  a  seven-year  period  in  most  of  which  a  Demo- 
cratic administration  was  discouraging  commerce  with  the 
Pacific  countries  through  its  attitude  regarding  Hawaii  and  other 
questions  of  that  character.  In  the  seven  years  following  1896, 
however,  under  the  encouragement  of  Republican  Presidents,  the 

i  increase  in  our  shipments  to  Asia  and  Oceania  was  from  $42,827,- 

|  258  in  1896  to  $106,770,591  in  1903,  a  gain  of  $63,918,333,  or  nearly 
eight  times  as  much  as  in  the  seven  years  from  1889  to  1896. 
Shipments  of  merchandise  from  the  United  States  to  Hawaii, 
which  have  not  been  included  in  the  official  statements  of  our 
exports  to  foreign  countries  since  their  annexation  in  1900,  are 
included  in  the  above  statements  of  exports  to  Asia  and  Oceania 

Pin  order  to  furnish  a  proper  basis  of  comparison  of  growth  in 
that  commerce,  in  view  of  the  fact  that  they  were  so  included  in 
1900. 

j  A  very  large  proportion  of  the  commerce  of  the  islands  and 
Alaska  is  with  the  United  States.    The  total  merchandise  entering 

j  Porto  Rico  from  all  countries,  including  the  United  States,  in  the 
year  ending  December  31,  1903,  was  $13,939,218,  of  which  $11,- 


292  the  rAffwrtO. 

819,695  was  from  the  United  States.  The  total  merchandise  sent 
out  of  Porto  Rico  In  the  year  ending  December  31,  1903,  was  $14,- 
548,765,  of  which  $10,152,923  went  to  the  United  States.  The  total 
merchandise  entering  the  Hawaiian  Islands  in  the  12  months  end- 
ing June  30,  1903,  was  $13,982,480,  of  which  $10,N4<),472  was 
from  the  United  States.  The  total  value  of  merchandise  leaving 
the  Hawaiian  Islands  in  the  same  period  was  $26,274,938,  of 
which  $26,242,869  was  sent  to  the  United  States. 

In  the  case  of  the  Philippine  Islands  the  proportion  of  imports 
drawn  from  the  United  States  is  naturally  much  smaller,  owing 
to  the  fact  that  much  of  the  materials  which  they  require  are 
drawn  from  contiguous  countries— China,  the  British  East  Indies, 
the  French  East  Indies,  and  Hongkong— and  that  much  of  their 
former  trade  with  the  United  Kingdom,  Spain,  Germany,  and 
France  is  still  retained  by  those  countries  in  the  absence  of  any 
reduction  on  imports  from  the  United  States,  which  cannot  be 
made,  as  above  explained,  during  the  ten  years  covered  by  the 
agreement  with  Spain  bearing  upon  this  subject 

With  reference  to  the  commerce  of  Alaska,  it  may  be  said  that 
practically  all  of  it  is  with  the  United  States.  The  commerce  of 
Guam,  which  was  taken  possession  of  during  the  war  with  Spain, 
is  small  and  practically  all  of  it  with  the  United  States.  That  of 
the  island  of  Tutuila,  one  of  the  Samoan  Islands  which  was  an- 
nexed at  the  termination  of  the  protectorate  which  the  United 
States  in  conjunction  with  the  United  Kingdom  and  Germany 
exercised  over  the  Samoan  Islands,  is  small,  but  chiefly  with  the 
United  States.  The  importance  of  this  island  lies  not  in  its  com- 
merce, but  in  the  splendid  harbor  which  its  possession  gives  to 
the  United  States,  being  by  far  the  best  harbor  in  the  South 
Pacific.  This,  with  the  control  of  the  harbors  in  the  Hawaiian 
and  Philippine  Islands,  gives  the  United  States  the  control  of  the 
best  and  chief  island  harbors  of  the  Pacific  Ocean. 

COMMERCIAL    RELATIONS    WITH    OUR    ISLAND    POSSESSIONS. 

The  class  of  articles  forming  the  commerce  between  the 
United  States  and  its  island  possessions  are,  in  the  case  of  mer- 
chandise coming  from  those  islands,  almost  exclusively  tropical 
products.  Of  the  merchandise  received  from  Porto  Rico  in  the 
calendar  year  1903,  amounting  in  value  to  $10,152,923,  sugar 
amounted  to  $6,813,854;  cigars,  $1,441,196;  coffee,  $610,982,  and 
fruits,  $378,210.  The  domestic  merchandise  shipped  from  the 
United  States  to  Porto  Rico  during  the  same  period,  amounting 
to  $11,424,313,  included  practically  all  classes  of  goods;  bread- 
stuffs,  $1,199,052;  cotton  manufactures,  $1,950,803;  iron  and  steel 
manufactures,  $1,156,273;  provisions,  $1,403,634,  and  rice,  $2,213,- 
031.  Of  the  merchandise  received  in  the  United  States  from  the 
Hawaiian  Islands  during  the  year  ending  June  30,  1903,  amounting 
to  $26,242,869,  $25,310,684  was  sugar.  The  domestic  merchandise 
sent  from  the  United  States  to  the  Hawaiian  Islands  in  the  same 
period,  amounting  to  $10,787,666,  included  practically  all  classes  of 
articles;  breadstuffs,  $1,466,571;  cotton  manufactures,  $1,022,116; 
iron  and  steel  manufactures,  $1,149,505;  manufactures  of  wood, 
$815,290;  mineral  oils,  $580,823;  provisions,  $579,334,  and  fertil- 
izers, $495,724.  The  merchandise  received  in  the  United  States 
from  the  Philippine  Islands  in  the  year  ending  June  30,  1903, 
amounting  to  $11,372,584,  consisted  chiefly  of  manila  hemp,  $10,- 
931,186,  and  sugar,  $270,729.  Of  the  shipments  to  the  Philippine 
Islands  from  the  United  States  in  the  same  year,  amounting  to 
$4,028,677,  manufactures  of  iron  and  steel  formed  the  largest  single 
item,  $657,354 ;  wood  and  its  manufactures,  $499,563 ;  cotton  manu- 
factures, $316,570;  breadstuffs,  $278,891;  malt  liquors,  $310,495; 
spirits,  $124,875,  and  wines,  $8,397. 

TROPICAL  PRODUCTS   IN   GREAT   DEMAND. 

It  will  be  noted  that  tropical  products  form  the  bulk  of  the  4 
merchandise  received  into  the  United  States  from  its  tropical 
possessions.  This  is  an  important  feature  of  the  contributions 
of  those  islands  to  the  United  States  and  suggestive  of  their 
power  to  supply  the  tropical  requirements  of  this  country.  The 
total  value  of  tropical  and  subtropical  products  brought  into  the 
United  States  from  various  parts  of  the  world  now  average* 
more  than  400  million  dollars  per  annum.    The  total  value  of  , 


THE   PACIFIC.  293 

tropical  and  subtropical  products  brought  into  the  United  States 
during  the  fiscal  year  1903  from  foreign  countries  amounted  to 
372  million  dollars,  and  to  this  was  added  over  25  millions  from 
the  Hawaiian  Islands  and  11  millions  from  Porto  Rico,  thus  mak- 
ing the  grand  total  of  tropical  and  subtropical  products  brought 
into  the  United  States  during  that  year  over  400  million  dollars. 
Of  this  grand  total  of  over  400  million  dollars,  sugar  formed  100 
millions;  coffee,  60  millions;  silk,  50  millions;  fibers,  31  millions; 
India  rubber,  30  millions;  fruits  and  nuts,  23  millions;  tobacco, 
20  millions;  cotton,  vegetable  oils,  and  gums,  11  millions  each, 
and  cocoa  and  chocolate,  8  millions.  The  fact  that  practically  all 
of  these  articles  can  be  produced  in  the  islands  in  question  and 
that  large  cultivable  areas  still  exist  in  the  Philippines  which 
may  be  utilized  in  supplying  this  enormous  demand  of  the  United 
States  for  tropical  products  suggests  that  they  may  become  ex- 
tremely valuable  in  supplying  our  rapidly  growing  requirements 
for  tropical  products.  The  value  of  tropical  products  brought  into 
the  United  States  has  increased  from  141  million  dollars  in  1870 
to  over  400  millions  at  the  present  time,  and  is  still  growing.  Our 
experience  with  the  Hawaiian  Islands  shows  that  following  a 
reduction  of  tariff  rates  on  merchandise  passing  between  those 
islands  and  the  United  States,  they  increased  their  purchases  of 
our  products  at  about  the  same  rate  that  we  increased  our  pur- 
chases from  them.  Should  this  follow  in  the  case  of  the  Philip- 
pine Islands,  and  should  those  islands  prove  capable  of  supplying 
a  large  part  of  the  400  million  dollars'  worth  of  tropical  products 
which  we  now  purchase  in  foreign  countries,  they  would  in  turn 
supply  to  our  producers  and  manufacturers  very  large  markets 
for  our  products,  just  as  Porto  Rico  and  Hawaii  have  done  fol- 
lovlng  the  increase  in  our  purchases  from  those  islands.  Tables 
showing  the  shipments  of  merchandise  from  these  islands  into  the 
United  States  and  from  the  United  States  into  these  islands  dur- 
ing a  term  of  years  are  shown  elsewhere,  also  a  table  showing  the 
imports  into  the  United  States  of  tropical  productions  during  a 
term  of  years,  and  the  principal  articles  included  therein. 

Another  advantage  in  the  new  relations  of  the  United  States 
to  these  islands  is  developed  in  the  large  investments  which  are 
already  being  made  in  those  islands  by  citizens  of  the  United 
States  and  the  benefits  resulting  both  to  the  islands,  to  the  in- 
vestors themselves,  and  to  the  people  of  the  United  States  whose 
sales  to  the  islands  are  stimulated  by  the  development  caused  by 
such  investments.  In  the  case  of  the  Hawaiian  Islands  the  total 
amount  of  American  capital  there  invested  at  the  present  time  is 
about  100  million  dollars.  This  statement  is  based  upon  figures 
supplied  to  the  Bureau  of  Statistics  from  a  reliable  authority  in 
those  islands.  In  the  case  of  Porto  Rico  about  10  millions  of 
American  capital  has  been  there  invested  up  to  this  time.  In  the 
case  of  the  Philippines,  the  investments  up  to  the  present  time 
amount  to  several  millions,  and  it  is  expected  will  rapidly  increase 
now  that  order  and  stability  are  assured. 

Details  of  conditions  in  those  islands  and  of  the  benefit  which 
government  by  the  United  States  has  been  to  their  people  are  dis- 
cussed elsewhere  in  the  chapters  especially  devoted  to  those 
islands.  The  above  discussion  is  intended  to  relate  only  to  the 
commercial  aspect  of  the  control  of  the  islands,  and  their  rela- 
tion to  our  commerce. 

•    The  Pacific  Cable. 

The  credit  of  rendering  practicable  the  construction  of  a  Pa- 
cific cable  is  due  to  the  policy  of  the  Republican  party.  As 
[already  pointed  out  in  the  discussion  of  conditions  in  the  Orient 
and  the  Pacific,  the  policy  of  the  Democratic  party  has  been  con- 
istantly  averse  to  the  development  of  trade  with  the  Orient  and  to 
the  control  of  islands  in  the  Pacific.  True,  President  Pierce  and 
bis  Secretary  of  State  did  attempt  to  annex  the  Hawaiian  Islands, 
but  a  later  Democratic  President,  Grover  Cleveland,  not  only  op- 
posed annexation,  but  prevented  it  during  his  administration,  in 
ppite  of  the  fact  that  the  people  of  the  islands  were  anxious  for 
such  relationship.'  So  long  as  the  Islands  which  are  now  utilized 
for  the  landing  places  of  the  cable-  were  controlled  by  various 
nations  with  varied  interests,  nobody  was  willing  to  construct  a 
Itrans-Pacific  cable.    Cables  can  only  be  worked  over  the  compara- 


294 


THE    PACIFIC. 


lively  limited  distance  of  about  3,000  miles  without  opportunity 
for  relay.  Tudor  these  conditions  it  was  not  until  a  single  nation 
came  to  control  a  line  of  islands  which  would  serve  as  landing 
places  or  relay  stations  for  such  a  cable  that  any  individual  or 
group  of  capitalists  wore  willing  to  undertake  the  building  of  a 
Pacific  cable.  When  the  United  States  came  in  possession  of  these 
islands.  President  McKinley  recommended  to  Congress  the  con- 
struction of  a  Pacific  cable  by  the  United  States,  or  such  other 
legislation  as  would  render  the  construction  of  such  cable  prac- 
ticable. Congress  subsequently  passed  an  act  authorizing  the 
landing  of  a  Pacific  cable  on  the  shores  of  the  United  States  and 
its  various  islands — Hawaii,  Wake  Island,  Guam,  and  the  Philip- 
pines— and  in  the  latter  part  of  1002  the  construction  of  this  cable 
line  was  begun  by  The  Commercial  Cable  Company,  with  Mr. 
Mackay  at  its  head.  By  the  end  of  the  year  it  had  been  com- 
pleted as  far  as  the  Hawaiian  Islands,  and  on  July  4,  1003,  it  was 
opened  to  Manila  with  appropriate  ceremonies,  including  a  mes- 
sage by  President  Roosevelt  to  Governor  Taft  and  the  people  of 
the  Philippine  Islands,  and  another  brief  message  sent  literally 
round  the  world,  passing  from  New  York  across  the  continent, 
under  the  Pacific,  thence  across  Asia  and  Europe  to  the  Atlantic, 
and  under  that  ocean  again  to  New  York,  in  an  incredibly  brief 
space  of  time.  Thus  the  Republican  party  in  obtaining  control  of 
this  line  of  islands,  in  conjunction  with  its  favorable  legislation, 
rendered  possible  this  great  service  not  only  to  the  nation  but  to 
the  world — a  direct  cable  connecting  America  with  Europe  and 
Asia  across  the  Pacific  Ocean. 

Rapid  Growth  in  Our  Sales  to  Asia  and  Oceania. 


Exports. 

ending 
June  30— 

Europe. 

North 
America. 

South 
America. 

Asia  and 
Oceania. 

Africa 
and  other 
countries 

Total. 

1896 

$673,043,753 

813,385,644 

973,806,245 

936,602.093 

1,040,167,703 

1,136,504,605 

1,008,033,981 

1.029,256,657 

$116,567,496 
124,958,461 
139,627,841 
157,931,707 
187.394,625 
196,534,460 
203,971,080 
215,482.769 

$36,297,671 
33,768,646 
33,821,701 
35,659.902 
38.945,763 
44,400,195 
38,043,617 
41,127,872 

$42,827,258 
61,927,678 
66,710,813 
78,235,176 

108,305,082 
98,783,113 

110,202,118 

106,770,591 

$13,870,760 
16,953,127 
17,515,730 
18,594,424 
19,469.849 
25.542,618 
33,468,605 
38,436,853 

1897 

$882,606,938 

1898 

1,050,993,556 

1899 

1,231,482,330 

1900 

1,227,023,302 

1901 

1.394,483,082 

1902 

1,487,764,991 

1903 

1,381,719,401 

1,420,141,679 

Increase.  1896 
~-1903.  per 
cent 

52.9 

84.8 

10. 

149.1 

176.5 

60.9 

Our  Exports  to  the  Orient  in  1903  Compared  with  1890. 

The  following  table  shows  the  exportation  of  leading  articles 
from  the  United  States  to  China,  Hongkong,  Japan,  Asiatic  Rus- 
sia, Australasia,  Hawaii  and  the  Philippine  Islands  in  the  fiscal 
years  1890  and  1903,  respectively : 


Articles. 


Iron  and  steel  and  manufactures  of 

Cotton  cloth 

Mineral  oils.  

Breadstuffs 

Cotton,  unmanufactured 

Tobacco  and  manufactures  of 

Wood  and  manufactures  of — ...... 

Chemicals 

Leather  and  manufactures  of 

Paper  and  manufactures  of 

Provisions 

Carriages  and  cars 

Agricultural  implements 

Fertilizers 

Fruits  and  vegetables 


62,928,971 

$11,705,055 

1.532,181 

14,764,403 

7,246,111 

10,438,001 

3,521,936 

16,965.291 

85,211 

7,557,498 

2,017,508 

3,851,712 

2.117,058 

4,260,455 

1,070,462 

2,058,444 

732,260 

2,494,460 

128,277 

2,044,790 

518,190 

1,864.517 

424,952 

1.737,803 

575,254 

1,438,474 

114,988 

568,460 

441,430 

983,788 

I  have  not  heen  for  either  peace  at  any  price  or  war  at  any- 
cost.  I  have  been  steadfastly  for  peace  if  it  eould  be  maintained , 
honorably  and  for  war  if  the  national  dignity  and  honor  required! 
It, — Hon.  C.  W.  Fairbanks,  in  V,  S,  Senate,  April  14,  1898, 


THE    PACIFIC. 


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296  EXPANSION    AND    ITS    RESULTS. 


EXPANSION  AND  ITS  RESULTS. 

The  opposition  to  the  control  by  the  United  States  of  non- 
contiguous territory,  which  was  such  an  important  feature  of 
the  campaign  waged  against  the  Republican  party  in  1000,  has 
practically  disappeared.  Commerce  between  the  United  States 
and  its  noncontiguous  territory  already  aggregates,  an  the  brief 
time  since  the  additions  of  those  territories,  100  million  dollars 
per  annum.  Of  this  sum  about  40  millions  is  in  the  form  of  ship- 
ments to  those  various  noncontiguous  territories  under  the  flag 
and  government  of  the  United  States. 

HAWAII. 

In  the  case  of  the  Hawaiian  Islands,  which  a  Democratic 
President,  Franklin  Pierce,  and  his  Secretary  of  State,  Mr. 
Marcy,  attempted  to  annex  in  1853-54,  and  in  which  President 
Cleveland  caused  the  American  flag  to  be  hauled  down  in  1893, 
the  annexation  completed  in  the  early  part  of  President  McKin- 
ley's  Administration  has  been  fully  justified.  Not  only  have 
conditions  in  the  islands  improved,  increased  sums  of  American 
capital  been  invested  there,  and  new  areas  brought  under  culti- 
vation, but  markets  for  increased  quantities  of  products  from  the 
United  States  have  been  made  in  the  islands  in  exchange  for  the 
increased  contributions  of  these  islands  to  our  tropical  require- 
ments. The  commerce  between  the  Hawaiian  Islands  and  the 
United  States  has  more  than  doubled  in  the  brief  period  since 
the  inauguration  of  a  Republican  President,  McKinley,  assured 
the  people  of  those  islands  that  their  long-deferred  hopes  for  an- 
nexation to  the  United  States  were  to  be  realized.  In  1896  they 
supplied  the  United  States  with  $11,575,704  worth  of  tropical 
products  required  by  our  people,  and  took  in  exchange  $2,985,707 
worth  of  our  merchandise.  In  1903  they  contributed  $26,242,869 
worth  of  tropical  products  (chiefly  sugar)  to  our  requirements 
and  took  $10,840,472  worth  of  the  products  of  our  ■  farms  and 
factories.  Thus  in  this  brief  period,  from  1896  to  1903,  we  have 
increased  our  purchases  from  the  Hawaiian  Islands  127  per  cent, 
and  have  increased  our  sales  to  them  175  per  cent, 
while  the  figures  of  1904  will  exceed  those  of  1903  both  as  to  pur- 
chases from  and  sales  to  the  islands.  Investments  of  capital 
from  the  United  States  in  the  Hawaiian  Islands  now  aggregate 
nearly  or  quite  100  million  dollars. 

PORTO   RICO. 

In  the  case  of  Porto  Rico  the  growth  has  been  even  more 
striking.  In  1897,  the  year  prior  to  annexation,  Porto  Rico  con- 
tributed to  the  tropical  requirements  of  the  United  States 
$2,181,024  worth  of  her  products,  and  in  1903  $11,057,195,  or 
more  than  five  times  as  much  in  1903  as  in  1897.  In  exchange 
she  took  in  1897  $1,988,888  worth  of  products  of  the  United 
States  and  in  1903  $12,246,225  worth,  or  more  than  six  times  as 
much  as  in  1897.  Money  from  the  United  States  aggregating 
from  10  to  15  millions  of  dollars  has  been  invested  in  the  island, 
and  general  conditions  not  only  as  to  commerce  but  in  education, 
government,  legislation,  road  making,  and  general  prosperity  of 
the  people  have  greatly  improved. 

THE  PHILIPPINES. 

With  the  Philippine  Islands  commerce  has  also  grown  rapidly 
and  gives  promise  of  further  great  development.  The  total  im- 
ports into  the  United  States  from  those  islands  have  grown 
from  $4,383,740  in  the  fiscal  year  1897,  that  which  immediately 
preceded  their  control  by  the  United  States,  to  $11,373,584  in 
1903.  Exports  from  the  United  States  to  the  islands  in  1897 
were  $94,597  and  in  1903  were  $4,039,909,  and  in  the  fiscal  year 
1904  will  considerably  exceed  those  of  1903. 

The  question  of  applying  the  coastwise  laws  of  the  United 

States  to  commerce  between  the  Philippine  Islands  and  the  ports 

of  the  United  States  was  further  considered  at  the  last  session 

of  Congress,  and  an  act  passed  which  extends  to  July  1,  1906, 

r 


EXPANSION   AJNI)  ITS  RESULTS.  3f>7 

the  provision  of  the  act  requiring  all  commerce  between  the 
United  States  and  the  islands  to  be  carried  in  American  vessels. 
The  determination  of  the  class  of  vessels  which  shall  be  used  in 
the  commerce  between  the  islands  themselves  was  left  to  the 
Philippine  Commission. 


Alaska,  a  noncontiguous  area  whose  purchase  was  severely 
criticised  by  the  Democrats  when  it  occurred  under  an  earlier 
Republican  administration,  is  becoming  an  important  factor  both 
in  its  gold  supply,  which  amounts  to  about  $5,000,000  annually, 
and  in  its  contributions  of  fish,  furs,  and  other  merchandise 
amounting  to  $10,228,009  in  1903,  while  in  return  it  has  made  a 
market  for  $9,479,721  of  merchandise  from  the  United  States. 
Large  sums  of  capital  from  the  United  States  are  being  invested 
in  Alaska  in  the  opening  of  mines,  in  the  fisheries,  in  building 
railroads  to  the  interior  by  which  the  mining  facilities  will  be 
greatly  improved,  and  the  Department  of  Agriculture  gives  assur- 
ance that  considerable  sections  will  in  time  prove  valuable  for 
agricultural  purposes  to  such  an  extent  as  to  supply  a  consider- 
able share  of  the  local  requirements  of  what  promises  to  be  a 
large  and  industrious  population.  The  explorations  thus  far 
justify  the  belief  that  the  gold-producing  area  and  possibilities 
of  Alaska  are  very  great,  and  that  it  will  not  only  supply  large 
quantities  of  the  precious  metals  to  the  United  States,  but  in  turn 
increase  its  takings  of  the  products  of  our  farms  and  factories 
for  the  people  employed  in  the  mines  and  in  the  other  industries 
now  growing  up  in  that  section. 

TARIFF    RELATIONS    BETWEEN    THE    ISLANBS    AND    THE    UNITED    STATES. 

Regarding  the  collection  of  duties  on  merchandise  passing  be- 
tween the  "United  States  and  its  noncontiguous  territories,  it  is 
proper  to  say  that  no  customs  duties  exist  except  with  refer- 
ence to  the  commerce  between  the  Philippine  Islands  and  the 
United  States.  Alaska  has  been  for  many  years  a  customs  district 
of  the  United  States,  and  therefore  merchandise  passing  between 
that  territory  and  the  various  ports  of  the  United  States  is  con- 
sidered as  coastwise  commerce  anr!.  pays  no  duty  on  entering  the 
ports,  whether  it  be  merchandise  from  Alaska  to  the  United 
States  or  from  the  ports  of  the  United  States  to  Alaska.  This  is 
also  true  of  the  Hawaiian  Islands  and  Porto  Rico.  For  many 
years  under  the  reciprocity  treaty  practically  all  of  the  products 
of  Hawaii  seeking  a  market  were  admitted  free  of  duty  into 
the  United  States  and  a  large  share  of  the  products  of  the  United 
States  were  admitted  free  of  duty  into  the  Hawaiian  Islands,  but 
on  the  admission  of  the  Hawaiian  Islands  as  a  Territory  of  the 
United  States  our  coastwise  laws  were  extended  to  the  islands, 
and  the  same  freedom  of  intercourse  between  the  islands  and  the 
various  ports  of  the  United  States  now  exists  as  is  the  case  in 
ocean  transportation  between  New  York  and  New  Orleans  or  be- 
tween any  of  the  coast  or  interior  cities  of  the  country.  This  is 
also  true  at  the  present  time  of  Porto  Rico.  Originally  the  rate 
of  duty  on  merchandise  passing  between  Porto  Rico  and  the 
United  States  was  reduced  to  15  per  cent,  of  the  regular  Ding- 
ley  law  rates.  The  duties  thus  collected  on  merchandise  entering 
the  United  States  from  Porto  Rico  were  refunded  (less  the  cost 
of  collecting  the  same)  to  the  Porto  Rican  Government,  while,  of 
course,  the  tariff  collected  in  Porto  Rico  from  articles  entering 
that  island  from  the  United  States  also  went  to  the  support  of 
that  government.  The  act  provided  that  "whenever  the  legis- 
lative body  of  Porto  Rico  should  enact  and  put  into  operation  a 
system  of  local  taxation  sufficient  to  meet  the  necessities  of  the 
government  of  the  island,  the  President  might  terminate  the  col- 
lection of  all  duties  on  merchandise  passing  between  the  island 
and  the  United  States  in  either  direction  and  that  in  no  event 
should  such  duties  be  collected  after  March  1,  1902.  The  Porto 
Rican  legislature  on  assembling  immediately  passed  an 
act  providing  for  the  collection  of  sufficient  funds  for  the  support 
of  the  local  government,  and  the  President,  having  been  notified 
of  this  fact,  terminated  on  July  4,  1901,  by  proclamation  the  col- 
lection of  duties  on  merchandise  passing  between  the  island  and 
the  United  States. 


298 


EXPANSION    AND    ITS    RESULTS. 


The  tariff  relations  with  the  Philippine  Islands  are  at  present 
as  follows:  A  reduction  of  25  per  cent  in  the  rates  of  duty  has 
been  nuulm  on  all  merchandise  entering  The  United  States  from 
the  Philippine  Islands,  and  a  bill  is  now  pending  in  Congress 
increasing  that  reduction  to  75  per  cent,  of  the  regular  Dingley 
law  rates.  All  of  the  duties  collected  in  the  United  States  on 
merchandise  coming  from  the  Philippines,  as  well  as  the  tonnage 
dues,  are  turned  over  by  the  United  States  Government  to  the 
Philippine  treasury  for  the  benefit  of  the  islands;  also  the  Philip- 
pine government  is  required  to  refund  the  export  duties  upon 
hemp  and  any  other  products  of  those  islands  bearing  an  export 
duty  in  the  event  the  same  are  exported  to  the  United  States. 

The  tariff  of  the  Philippine  Islands  is  described  in  the  chapter 
upon  the  islands  and  their  present  condition.  Under  it  merchan- 
dise from  the  United  States  entering  the  Philippine  Islands  pays 
the  same  rates  of  duty  as  merchandise  from  any  other  country. 
This  insistence  upon  full  rates  of  duty  on  merchandise  from  the 
United  States  entering  the  Philippine  Islands  is  necessary  under 
the  provisions  of  the  treaty  with  Spain  by  which  the  Philippines 
were  transferred  to  the  United  States.  That  treaty  provided 
that  "The  United  States  will  for  ten  years  from  the  date  of  ex- 
change of  ratifications  of  the  present  treaty  admit  Spanish  ships 
and  merchandise  to  the  ports  of  the  Philippine  Islands  on  the 
same  terms  as  ships  and  merchandise  of  the  United  States." 
This,  therefore,  prevents  a  reduction  or  removal  of  duties  on 
merchandise  from  the  United  States  entering  the  Philippine 
Islands  until  1909,  the  exchange  of  ratifications  having  occurred 
April  11,  1899.  This  does  not,  however,  prevent  a  further  re- 
duction or  removal  of  the  rates  of  duty  on  articles  from  the 
Philippines  entering  the  United  States  and,  as  above  indicated, 
a  bill  reducing  the  rates  of  duty  on  such  articles  to  25  per  cent, 
of  the  Dingley  law  rates  is  now  pending  in  Congress.  • 

Western  Coast  Brought  Much  Nearer  to  European  Markets. 

The  following  table  shows  the  distances  between  the  various 
great  centers  of  Europe  and  the  Pacific  coast  cities  of  the  United 
States  by  the  Panama  and  Cape  Horn  routes,  respectively,  and 
suggests  the  value  which  thk'  canal  will  be  to  the  great  Pacific 
coast  in  bringing  it  into  direct  touch  with  European  markets : 


St.  Petersburg. 

Stockholm 

Copenhagen . . . 

Bergen 

Glasgow — 

Dublin 

London 

Liverpool 

Hamburg 

Amsterdam.... 

Antwerp 

Havre 

Marseille 

Lisbon 

Gibraltar 

Naples 

Triest 

Constantinople 

Odessa 

Alexandria 

Tripoli 

Algiers 

Tangier 

Funchal 

Habana 


Victoria.       Seattle.        Tacoma 


P.  . 
cs  a 


15.842 
15.544 
15.107 
15.002 
14.506 
14,328 
14,514 
14,397 
14.805 
14.571 
14,541 
14,346 
14,179 
13,510 
13,489 
14,475 
15,170 
15.326 
15,673 
15,294 
14.582 
13,898 
13,489 
13,001 
13,858 


cs  a 


9,958 
9,657 
9,220 
8,863 
8,597 
8,543 
8,862 
8,624 
9,143 
8,919 
8, 
8,676 
9,084 
8,224 
8,394 
9,380 
10,075 
10.231 
10.578 
10,199 
9,487 
8, 
8.: 
7,803 
5,082 


.2  a 
> 


15,912 

15,614 

15,177 

15,072 

14,576 

14,398 

14,584 

14,467 

14.875 

14,641 

14,611 

14,416 

14.249 

13.580 

13,559 

14,545 

15,240 

15,396 

15,743 

15,364 

14,652 

13, 

13,559 

13.071 

13,928 


a  c3 
cs  a 

(L  e3 


10, 
9,727 
9,290 

8; 

8,667 
8,613 
8,932 
8,694 
9,213 
8.989 
8,959 
8.746 
9,154 
8,294 
8,464 
9,450 
10,145 
10.301 
10.648 
10. 
9,557 
8,873 
8,464 
7,873 
5,152 


P.  . 

> 


15,930 
15,632 
15,195 
15,090 
14,594 
14,416 
14,602 
14,485 
14,893 
14,659 
14,629 
14,434 
14.267 
13,598 
13,577 
14,563 
15,258 
15.414 
15,761 
15.382 
14,670 
13,986 
13,577 
13,089 
13,946 


13  cS 

cs  a 

(L  cS 


10,046 
9,745 
9,308 
8.951 
8,685 
8,631 
8,950 
8,712 
9.231 
9,007 
8,977 
8.764 
9,172 
8,312 
8,482 
9.468 
10,163 
10.319 
10,666 
10.287 
9.575 
8,891 
8,482 
7,891 
5,170 


Sitka. 


> 


16,388 

16,090 

15,653 

15,548 

15.052 

14,874 

15,060 

14.943 

15,351 

15,117 

15,087 

14,892 

14,725 

14,056 

14,035 

15,02 

15,716 

15,872 

16.219 

15.840 

15,128 

14,444 

14,035 

13,547 

14,404 


Honolulu. 


cs  a 


10,504 
10.203 
9,766 
9,409 
9.143 
9,099 
9,408 
9,170 
9.689 
9.465 
9,435 
9.222 
9.630 
8.770 
8,940 
9.926 
10.621 
10,777 
11,124 
10,745 
10,033 
9,349 
8,940 
8.349 
5,628 


S. 


•2W 
> 


15.243 
14,945 
14,508 
14.403 
13,907 
13.729 
13,915 
13.798 
14,206 
13,972 
13,942 
13,747 
13,580 
12.911 
12,890 
13.876 
14,571 
14,727 
15.074 
14.695 
13.983 
13.299 
12.890 
12,402 
13,259 


a  cs 
cs  a 

P_C  cS 


10.662 
10,361 
9,924 
9,567 
9.301 
9,247 
9,566 
9,328 
9,847 
9,623 
9.593 
9.380 
9,788 
8,928 
9,098 
10,084 
10.779 
10,935 
11,282 
10.903 
10,191 
9,507 
9,098 
8.507 
5.786 


Note. — The   distance   through   the   Straits  of  Magellan   is   from 
400  to  500  miles  shorter  than  around  Cape  Horn. 


A  full  day's  work  must  be  paid  In  full  dollars. — Maj.  McKiuley 
at  Canton.  189G. 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  299 


THE   NONCONTIGUOUS   TERRITORY  OF 
THE  UNITED  STATES. 


The  Philippines,  the  Hawaiian  Islands,  Porto  Rieo— The  Conditions 
in  These  Islands — Their  Growing  Contributions  to  Our  Tropical 
Requirements  and  Growing  Importance  as  Customers  for  Our 
Products. 

The  fact  that  the  policy  of  the  administration  in  bringing  the 
noncontiguous  and  tropical  territory  of  the  Philippine  and  Ha- 
waiian islands  and  Porto  Rico  under  the  control  of  the  United 
States  continues  to  be  the  subject  of  more  or  less  criticism,  seems 
to  justify  a  somewhat  elaborate  review  of  conditions  in  those 
islands,  and  this  is  given  in  the  following  pages,  beginning  with 
the  Philippine  Islands  and  following  with  the  Hawaiian  Islands 
and  Porto  Rico. 

To  this  general  presentation  of  conditions  in  these  islands  are 
added  some  facts  about  the  great  growth  of  our  trade  with  them 
and  the  rapidity  with  which  they  are  coming  to  supply,  our  re- 
quirements in  tropical  productions.  The  fact  that  the  United 
States  expends  annually  more  than  400  millions  of  dollars  for 
tropical  and  subtropical  products  from  other  parts  of  the  world, 
and  that  these  islands  are  already  rapidly  increasing  their  contri- 
butions to  that  requirement,  is  important,  and  especially  so  be- 
cause of  the  fact  that  the  islands  in  Uirn  buy  of  our  products  prac- 
tically as  much  in  value  as  they  sell  to  us.  This  feature,  and  that 
of  the  growth  of  our  demand  for  tropical  products,  is  discussed 
in  extracts  from  the  Annual  Review  of  the  Foreign  Commerce  of 
the  United  States,  issued  by  the  Department  of  Commerce  and 
Labor  through  its  Bureau  of  Statistics,  which  follow  the  discussion 
of  conditions  in  the  islands. 

THE  PHILIPPINES. 


The  Restoration  of  Peace. 

The  sovereignty  of  the  United  States  is  established  in  the 
Philippine  Islands,  is  accepted  by  the  inhabitants,  and  is  accept- 
able to  them. 

Tranquillity  prevails  throughout  the  islands  to  a  greater  degree 
and  over  a  larger  area  than  at  any  period  during  the  centuries  the 
archipelago  was  subject  to  the  sovereignty  of  Spain.  Such  resist- 
ance to  governmental  authority  as  exists  to-day  does  not  result 
from  efforts  to  expel  the  sovereignty  of  the  United  States;  it  re- 
sults from  the  action  of  turbulent  violators  of  the  civil  and  crim- 
inal laws — bands  of  ladrones,  highwaymen,  robbers,  etc. 

The   Central   Government   and  Legislative  Authority. 

Civil  government  in  the  Philippine  Islands  under  American 
sovereignty,  as  distinguished  from  military  administration,  dates 
from  the  appointment  by  President  McKinley,  in  March,  1900,  of 
the  Taft  Philippine  Commission.  In  creating  this  Commission 
and  authorizing  it  to  assume  and  discharge  the  functions  of  gov- 
ernment the  President  exercised  the  war  powers  of  the  nation,  and 
the  Commission  thus  created  was  an  instrumentality  for  the  exer- 
cise of  the  authority  of  the  President  as  Commander  in  Chief  of- 
the  Army  and  Navy  of  the  United  States  to  administer  the  affairs 
of  civil  government  in  territory  subject  to  military  occupation. 
The  Commission  was  a  civilian  agency  foT  the  exercise  of  the 
powers  of  a  military  government ;  it  consisted  of  Hon.  William  H. 
Taft,  of  Ohio;  Prof.  Dean  C.  Worcester,  of  Michigan;  Hon.  Luke 
E.  Wright,  of  Tennessee;  Hon.  Henry  C.  Ide,  of  Vermont;  and 
Prof.  Bernard  Moses,  of  California.  The  general  purpose  of  the 
Commission  was,  as  stated  by  the  President — 

to  continue  and  perfect  the  work  of  organizing'  and  establishing 
civil  government  already  commenced  by  the  military  authorities, 
subject  in  all  respects  to  any  laws  which  Congress  may  hereafter 
enact. 


800        mi'  \<>\<h\  i  icrors  TERBITOBI  Of   nil'  r  \  rn:n  s  i  \  t  J  :s. 

As  the  fundamental  step  in  giving  civil  government  to  the  peo- 
ple of  the  Philippines,  it  was  determined  that  there  should  he  a 
separation  of  the  executive,  the  legislative,  and  judicial  branches, 
and  that  the  powers  of  these  several  branches  should  be  exercised 
by  different  persons.  The  legislative  powers  were  conferred  upon 
the  Commission,  the  judicial  powers  were  to  he  exercised  by  the 
courts  to  be  established  through  legislative  action  of  the  Com- 
mission, and  the  authority  to  exercise  the  executive  powers  was 
Continued  in  the  commander  of  the  military  forces  of  the  United 
States  maintaining  the  occupation  of  the  islands. 

The  scope  of  the  legislative  authority  conferred  upon  the  Com- 
mission was  declared  in  the  instructions  as  follows: 

Exercise  of  this  legislative  authority  will  include  the  making: 
of  rules  and  orders,  having-  the  effect  of  law,  for  the  raising;  of 
revenue  by  taxes,  customs,  and  duties,  and  imposts;  the  appropri- 
ation and  expenditure  of  public  funds  of  the  islands;  the  establish- 
ment of  an  educational  system  throughout  the  Islands;  the  estab- 
lishment of  a  system  to  secure  an  efficient  civil  service;  the  or- 
ganization and  establishment  of  courts;  the  organization  and  es- 
tablishment of  municipal  and  departmental  governments,  and  all 
other  matters  of  a  civil  nature  for  which  the  military  governor  is 
now  competent  to  provide  by  rules  or  orders  of  a  legislative  char- 
acter. 

The  sessions  of  the  Commission,  wherein  they  have  exercised 
legislative  power,  have  been  stated  and  public.  Their  legislative 
enactments  have  been  publicly  introduced  and  printed  in  the  form 
of  bills. ,  When  of  general  public  interest  they  have  been  made  the 
subject  of  public  hearings  before  committees,  which  the  people  of 
the  island  have  freely  attended,  and  at  which  their  views  have 
been  freely  expressed. 

In  June,  1901,  the  President  issued  an  order  transferring  from 
the  military  governor  to  the  president  of  the  Philippine  Commission 
the  authority  to  exercise  the  powers  of  the  executive  branch  of 
government  in  all  the  pacified  provinces  of  the  islands,  but  continu- 
ing the  authority  of  the  military  governor  to  exercise  executive  au- 
thority in  those  districts  in  which  the  insurrection  continued  to 
exist.  The  order  also  appointed  the  Hon.  William  H.  Taft  civil 
governor  of  the  Philippine  Islands. 

On  the  1st  of  September,  1901,  a  further  step  toward  civil  ex- 
ecutive, organization  was  made  by  the  establishment  of  separate 
executive  departments,  to  which  members  of  the  Commission  were 
assigned  as  follows :  Department  of  the  interior,  Dean  C.  Worces- 
ter ;  department  of  commerce  and  police,  Luke  E.  Wright ;  depart- 
ment of  finance  and  justice,  Henry  C.  Ide;  department  of  public 
instruction,  Bernard  Moses. 

The  administrative  affairs  of  the  government  are  apportioned 
among  the  several  departments  as  follows : 

The  department  of  the  interior  has  under  its  executive  control 
a  bureau  of  health,  the  quarantine  service  of  the  marine-hospital 
corps,  a  bureau  of  forestry,  a  bureau  of  mining,  a  bureau  of  agri- 
culture, a  bureau  of  fisheries,  a  weather  bureau,  a  bureau  of  eth- 
nology (Pagan  and  Mohammedan  tribes),  a  bureau  of  public  lands, 
a  bureau  of  government  laboratories,  a  bureau  of  patents  and 
copyrights. 

The  department  of  commerce  and  police  has  under  its  execu- 
tive control  a  bureau  of  island  and  interisland  transportation,  a 
bureau  of  post-offices,  a  bureau  of  telegraphs,  a  bureau  of  coast 
and  geodetic  survey,  a  bureau  of  engineering  and  construction  of 
public  works  other  than  public  buildings,  a  bureau  of  insular  con- 
stabulary, a  bureau  of  prisons,  a  bureau  of  light-houses,  a  bureau 
of  commercial  and  street  railroad  corporations,  and  all  corpora- 
tions except  banking. 

The  department  of  finance  and  justice  embraces  the  bureau  of 
the  insular  treasury,  the  bureau  of  the  insular  auditor,  a  bureau 
of  customs  and  immigration,  a  bureau  of  internal  revenue,  the 
insular  cold-storage  and  ice  plant,  a  bureau  of  banks,  banking, 
coinage,  and  currency,  and  the  bureau  of  justice. 

The  department  of  public  instruction  embraces  a  bureau  of 
public  instruction,  a  bureau  of  public  charities,  public  libraries,  and 
museums,  a  bureau  of  statistics,  a  bureau  of  public  records,  a 
bureau  of  public  printing,  and  a  bureau  of  architecture  and  con- 
struction of  public  buildings. 

At  the  same  time,  by  appointment  by  the  President,  three 
distinguished  Filipinos,  Sefior  Trinidad  H.   Pardo  de  Tavera,  of 


TBBfl  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  30l 

Manila,  Seiior  Benito  Legarda,  of  Manila,  and  Sefior  Jose  Luzuri- 
aga,  of  Negros,  were  added  to  the  Commission. 

On  the  29th  of  October,  1901,  in  order  to  relieve  somewhat  the 
great  pressure  of  official  duties  devolving  upon  Governor  Taft,  the 
President  created  the  office  of  vice-governor,  and  appointed  Hon. 
Luke  E.  Wright  to  that  position. 

Mr.  Wright  became  president  of  the  Commission  in  1903,  suc- 
ceeding Judge  Taft,  who  resigned  to  accept  the  position  of  Secre- 
tary of  War. 

Pursuant  to  the  instructions  of  the  President,  the  Commission, 
by  appropriate  legislation,  made  provision  for  municipal  govern- 
ments to  be  established  throughout  the  islands  as  rapidly  as  con- 
ditions permitted.  They  also  passed  a  general  act  for  the  organ- 
ization of  provincial  governments  in  the  Philippine  Islands.  A 
judicial  system  was  created  under  which  civil  courts  assumed  the 
exercise  of  judicial  powers.  An  insular  constabulary  and  munici- 
pal police  were  created  and  installed,  a  civil-service  law  was 
enacted  and  put  into  successful  and  satisfactory  operation.  A  sys- 
tem of  account  and  audit  was  adopted  and  rigorously  enforced. 
A  system  of  education  was  adopted  and  installed.  Forestry  laws 
providing  for  the  preservation  and  utilization  of  the  public  forests 
were  adopted  and  enforced,  and  an  extensive  system  of  public  im- 
provements and  repairs  adopted  and  entered  upon.  Adequate 
means  of  securing  revenue  by  the  levy  of  duties  and  taxes  were 
devised  and  put  in  force. 

When  the  Fifty-seventh  Congress  of  the  United  States  as- 
sembled in  its  first  session  on  December  2,  1901,  that  body  en- 
tered upon  the  work  of  formulating  legislation  to  provide  for  the 
administration  of  the  affairs  of  civil  government  in  the.  Philippine 
Islands.  Upon  investigation  Congress  found  that  there  existed  in 
said  islands  a  government  formulated  with  fidelity  to  the  prin- 
ciples of  liberty,  equality,  and  justice  prevailing  in  the  United 
States,  and  administered  with  due  regard  for  the  welfare  of  the 
interests  involved ;  whereupon  Congress,  by  appropriate  legislation, 
continued  the  existence  of  that  government  and  placed  the  seal 
of  legislative  approval  upon  the  governmental  organization  and 
ratified,  approved,  and  confirmed  each  and  every  one  of  the  acts 
theretofore  done  and  performed  in  connection  therewith,  and  in 
addition  conferred  upon  said  government  additional  authority  and 
rights  which  the  President  had  not  authority  to  bestow. 

Pursuant  to  this  legislation  of  Congress,  there  has  been  estab- 
lished in  the  Philippines  and  extended  throughout  the  civilized 
portions  of  those  islands  a  civil  government  which  in  certain 
respects  is  more  extensive  in  its  local  and  independent  character 
than  that  which  exists  in  any  of  the  States  or  Territories.  Not 
being  limited  by  the  Constitution  in  its  legislation  on  this  subject, 
as  in  matters  relating  to  the  States,  Congress  was  able  to  dele- 
gate to  the  local  government  of  the  Philippines  certain  valuable 
powers  which  can  not  be  given  to  the  several  States.  For  in- 
stance, Congress  authorized  the  government  of  the  Philippine 
Islands,  in  time  of  peace,  to  impose  tariff  duties  on  goods  coming 
from  ports  of  the  Union  into  ports  of  the  Philippine  Islands. 
Congress  also  conveyed  to  that  local  government  all  the  public 
property  in  the  archipelago  which  by  reason  of  the  conquest  of 
the  islands  and  the  treaty  of  Paris  has  passed  from  the  Crown 
j  of  Spain  to  the  United  States.  This  property  included  public 
buildings  and  improvements,  streets,  parks,  highways,  the  beds  of 
streams,  the  submerged  soil  of  the  coast,  and  also  the  mineral 
wealth  and  the  vast  tropical  forests  of  valuable  woods  throughout 
[the  islands.  Furthermore,  Congress  allowed  the  government  of 
the  Philippines  to  issue  its  own  currency  and  assume  direction 
and  control  of  its  postal  service.  These  are  all  subjects  regard- 
ing which  no  State  of  the  Union  possesses  separate  and  indi- 
fvidual  power  of  management. 

No  integral  or  segregated  portion  of  the  territory  subject  to  the 
sovereignty  of  the  United  States  is  to-day  exercising  by  itself  and 
jfor  itself  so  many  of  the  powers  of  sovereignty  as  is  the  Philip- 
pine Archipelago. 

The  powers  of  the  legislative  branch  of  the  Philippine  govern- 
ent  are  exercised  by  the  Philippine  Commission,  composed  of 

e  Americans  and  three  Filipinos,  appointed  by  the  President 
y  the  existing  law  of  Congress  provision  is  made  whereby  two 


302         THE  NONCONTIGUOUS  TEKEITOBY  OF  THE  UNITED  STATES. 

years  after  the  completion  and  publication  of  the  census  now 
being  compiled  the  legislative  power  is  to  be  vested  in  a  legisla- 
ture, consisting  of  two  houses — the  Philippine  Commission  and  the 
Philippine  Assembly,  the  latter  house  to  be  elected  by  the  in- 
habitants of  the  islands. 

The  powers  of  the  judicial  branch  are  exercised  by  a  supreme 
court  composed  of  seven  members,  appointed  by  the  President, 
three  of  whom  are  natives  of  the  islands.  The  courts  of  first 
instance  and  inferior  courts  are  presided  over  by  judges  appointed 
by  the  Commission.  Of  the  present  judges  of  the  courts  of  first 
instance  15  are  Americans  and  6  are  natives.  Of  the  minor 
courts  nearly  all  of  the  judges  are  natives. 

The  powers  of  the  administrative  branch  of  the  government  are 
exercised  by  the  governor  and  four  executive  departments  hereto- 
fore referred  to,  namely,  interior,  commerce  and  police,  finance 
and  justice,  and  public  instruction,  resembling  in  character  the 
administrative  departments  at  Washington. 

The  municipal  governments  and  the  provincial  governments 
are  administered  by  officials  selected  by  the  popular  votes  of  the 
inhabitants. 

Municipal  Governments. 

After  investigation  and  deliberation,  there  was  enacted  by  the 
Philippine  Commission  a  general  act  for  the  organization  of 
municipal  government  in  the  Philippine  Islands,  which  act  was 
carried  into  effect  throughout  the  islands  as  rapidly  as  condi- 
tions warranted. 

The  municipality  was  made  the  political  unit,  and  the  entire 
territory  of  the  islands  is  divided  into  such  units.  The  municipal 
subdivisions  in  the  Philippines  correspond  to  the  towns  of  New 
England  and  the  townships  in  other  portions  of  the  United  States, 
and  taken  together  include  all  the  territory  of  the  islands.  At 
the  present  time  this  municipal  code  or  charter  has  been  applied 
to  all  the  municipalities  in  the  thirty-four  Christian  provinces 
hereinafter  mentioned,  except  that  the  city  of  Manila  has  been 
incorporated  under  a  special  charter. 

This  general  law  of  municipalities  provides  that  the  powers  of 
the  municipality  are  to  be  exercised  by  a  president,  a  vice-presi- 
dent, and  a  municipal  council,  to  be  chosen  by  the  qualified  elec- 
tors of  the  municipality,  to  serve  for  two  years  and  until  their 
successors  are  chosen  and  qualified.  The  law  provides  that  the 
electors  charged  with  the  duty  of  choosing  elective  municipal 
officers  shall  be  male  persons  above  the  age  of  23,  and  to  have  a 
legal  residence  in  the  municipality  in  which  they  exercise  the 
suffrage  for  a  period  of  six  months  immediately  preceding  the 
election,  and  who  are  not  citizens  or  subjects  of  any  foreign  power, 
and  who  are  comprised  within  one  of* the  following  three  classes: 

(a)  Those  who,  prior  to  the  thirteenth  of  August,  eighteen 
hundred    and    ninety-eight,    held    the    office    of    municipal    captain, 

.gobernadorcillo,  alcalde,  lieutenant,  cabeza  de  barangay,  or  mem- 
ber of  any  ayuntamiento. 

(b)  Those  who  own  real  property  to  the  value  of  five  hundred 
pesos,  or  who  annually  pay  thirty  pesos  or  more  of  the  estab- 
lished taxes. 

(c)  Those  who  speak,  read,  and  write  English  or  Spanish. 

There  are  982  presidents  or  mayors  of  municipalities,  2,906 
secretaries,  treasurers,  etc.,  of  municipalities,  and  8,159  coun- 
selors of  municipalities,  all  Filipinos,  duly  elected  and  serving 
under  the  provisions  of  this  municipal  code. 

The  organization  of  the  34  Christian  provinces. — The  general 
provincial  law  under  which  the  34  Christian  provinces  are  gov- 
erned provides  for  a  provincial  government  of  five  officers — the 
governor,  the  treasurer,  the  supervisor  (who  must  be  a  vil 
engineer),  the  secretary,  and  the  fiscal  or  prosecuting  attorney. 
The  governing  board  is  called  the  provincial  board,  and  includes 
as  members  the  governor,  the  treasurer,  and  the  supervisor.  T;.e 
prosecuting  attorney  is  the  legal  advisor  of  the  board  and  the 
secretary  of  the  province  is  its  secretary.  The  provincial  govt*-- 
ment  collects,  through  the  provincial  treasurer,  the  taxes,  with 
few  exceptions,  belonging  to  the  towns  or  the  province ;  constructs 
highways,  bridges,  and  public  buildings,  and  supervises,  through 
the  governor  and  the  provincial  treasurer,  the  municipal  officers 
in  the  discharge  of  their  duties.  Within  certain  limitations  tne 
provincial  board  fixes  the  rate  of  levy  for  provincial  taxation. 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  303 

The  provincial  governor  is  elected  biennially,  on  the  first 
Monday  in  February,  by  a  convention  consisting  of  counselors 
of  every  duly  organized  municipality  in  the  province,  which,  after 
selecting  a  presiding  officer  and  secretary,  is  to  proceed  by  a 
secret  ballot  to  choose  a  person  to  be  the  provincial  governor, 
subject  to  confirmation  by  the  Philippine  Commission. 

An  election  was  held  in  32  of  the  34  Christian  provinces  on  the 
first  Monday  in  February,  1904,  and  at  this  time  all  the  governors 
in  these  Christian  provinces  were  elected  to  office  in  the  manner 
above  set  forth,  and  for  the  first  time  all  are  Filipinos.  The  re- 
maining provincial  officers,  including  clerks  of  courts,  members 
of  boards  of  tax  revision,  etc.,  with  the  right  of  exercise  of 
authority  of  government  (but  not  including  subordinate  clerk- 
ships), are  filled  by  86  Americans  and  238  Filipinos. 

The  organization  of  the  Moro  Province. — The  Moro  Province 
is  divided  into  five  districts  and  consists  of  all  the  island  of 
Mindanao  and  its  adjacent  islands,  except  the  provinces  of  Misa- 
mis  and  Surigao  (which  are  within  the  34  already  mentioned), 
also  the  island  of  Isabela  de  Basilan,  and  the  islands  to  the 
south  of  Mindanao  in  the  archipelago.  It  embraces  within  its 
boundaries,  therefore,  all  the  Moros  in  the  archipelago  except  a 
small  number  resident  in  the  southern  half  of  the  island  of 
Paragua  and  a  possible  few  on  the  borders  of  the  province  of 
Misamis. 

The  executive  head  of  the  province  is  the  governor,  who  has 
as  his  assistants  the  provincial  secretary,  the  provincial  attorney, 
the  provincial  engineer,  the  provincial  superintendent  of  schools, 
and  the  provincial  treasurer.  These  officers  constitute  the  legis- 
lative council  for  the  government,  and  in  case  of  an  even  division, 
the  proposition  having  the  vote  of  the  governor  prevails. 

Administration  of  Justice. 

A  complete  judicial  system  has  been  provided  for  by  legis- 
lative enactment  of  the  Commission  and  inaugurated  throughout 
the  archipelago.  A  code  of  procedure,  adapted  from  American 
usage,  has  been  enacted,  which  has  tended  to  remove  many  of 
the  annoying  delays  and  perplexing  technicalities  prevailing  under 
the  Spanish  system,  and,  supplemented  by  such  of  the  locally 
familiar  Spanish  laws  as  were  continued  in  force,  affords  complete 
and  practical  means  of  exercising  the  powers  of  the  judicial 
branch  of  government. 

A  new  criminal  code  and  code  of  criminal  procedure  are  well 
under  way  and  will  soon  be  enacted  into  law,  the  effect  of  which 
will  be  in  the  direction  of  simplifying  procedure  and  eliminating 
those  provisions  of  the  existing  codes  which  pertain  to  the  sov- 
ereignty of  Spain,  the  union  of  church  and  state,  the  rigid  re- 
strictions on  the  exercise  of  discretion  by  the  judges,  the  giving 
to  private  individuals  the  right  to  control  and  compromise  crim- 
inal prosecution  or  to  use  such  prosecutions  for  the  purpose  of 
blackmail  and  extortion,  and  the  authority  of  the  executive 
branch  to  control  the  action  of  the  courts. 

The  judicial  powers  of  the  government  of  the  islands  are  ex- 
ercised by  the  following  tribunals : 

There  is  a  justice  of  the  peace  and  an  auxiliary  justice  of  the 
peace  in  each  municipality,  and  in  the  city  of  Manila  provision  is 
also  made  for  municipal  courts. 

The  territory  of  the  archipelago  is  divided  into  15  judicial 
districts,  in  each  of  which  there  is  a  court  of  first  instance. 
There  is  one  judge  assigned  to  each  of  these  districts  except  that 
of  the  district  of  Manila,  wherein  the  volume  of  business  requires 
that  the  court  be  divided  into  four  parts,  each  presided  over  by  a 
judge.  In  addition  there  are  three  judges  at  large  to  fill  vacancies 
caused  by  sickness  or  leave  of  absence. 

The  appellate  jurisdiction  is ,  vested  in  the  supreme  court  of 
the  islands,  which  consists  of  seven  members,  three  of  whom  are 
Filipinos. 

An  enactment  of  Congress  provides  that  appeal  may  be  made 
from  the  supreme  court  of  the  islands  to  that  of  the  United  States 
in  matters  in  which  the  constitution  or  the  rights  and  privileges 
of  the  United  States  are  involved,  or  in  causes  in  which  the  value 
in  controversy  exceeds  $25,000,  or  in  which  the  title  or  possession 


304  THIS  NONOONTIUUUUH  TERRITORY   t>l      I'HK    I'NITEU   STATEH. 

of  real  estate  exceeding  in  value  the  sum  of  $25,000,  to  be  ascer- 
tained by  the  oath  of  either  party  or  of  other  competent  witnesses, 
is  involved. 

Civil  Service  In  the  Philippine*. 

One  of  the  first  laws  adopted  by  the  Philippine  Commission 
upon  its  assumption  of  legislative  powers  was  an  act  providing 
for  the  organization  of  the  civil  service  on  the  basis  of  merit 

It  was  the  purpose  of  the  Commission  in  passing  the  civil- 
service  bill  to  provide  a  system  which  would  secure  the  selection 
and  promotion  of  civilian  officials  solely  on  the  ground  of  merit; 
and  would  permit  anyone,  by  a  successful  competitive  examina- 
tion, to  enter  the  service  and  by  the  efficient  discharge  of  his 
duties  reach  the  head  of  any  important  department  of  the  gov- 
ernment. 

This  civil-service  act  provides  that  preference  in  appointment 
shall  be  given,  first,  to  natives  of  the  Philippine  Islands,  and,, 
second,  to  honorably  discharged  soldiers,  sailors,  and  marines; 
of  the  United  States. 

At  first,  by  reason  of  their  lack  of  knowledge  of  the  English 
language  and  of  American  methods,  few  Filipinos  could  be  used 
to  advantage  in  the  administration  of  the  central  government  at 
Manila ;  but  with  the  progress  they  have  made  in  acquiring  a 
knowledge  of  the  English  language  and  of  American  methods,  a 
large  number  now  fulfill  the  civil-service  requirements,  and  the 
proportion  of  places  given  to  Filipinos  in  the  general  govern- 
ment is  becoming  much  greater. 

The  education  of  the  Filipino. 

The  work  of  providing  educational  facilities  for  the  Filipinos 
is  assumed  by  the  general  government  of  the  islands;  and  to 
promote  that  endeavor  there  has  been  established  a  department 
of  public  instruction. 

There  are  employed  in  this  department  between  2,500  and 
3,000  Filipino  teachers  and  nearly  1,000  American  teachers,  the 
latter  engaged,  primarily,  in  teaching  English  to  the  Filipino 
teachers  in  addition  to  the  classes  of  children  instructed  by  them. 
On  the  date  of  the  last  report  of  this  department  there  were 
maintained  in  the  archipelago  about  2,000  primary  schools  and 
38  secondary  schools. 

In.  addition  to  these  primary  classes  the  government  main- 
tains a  number  of  technological  schools,  including  a  trade  school 
and  an  agricultural  school ;  normal  institutes  for  the  improvement 
of  the  native  teachers  are  held  during  each  school  vacation. 
There  is  also  maintained  a  well-equipped  nautical  school,  de- 
veloping persons  qualified  to  become  officers  in  the  interisland. 
merchant  marine,  and  with  the  enlargement  of  this  school  it  is 
hoped  that  ultimately  many  of  these  positions  can  be  filled  by 
natives  of  the  islands.  In  this  connection  attention  is  called  to 
the  fact  that  apprentices  are  taken  on  in  the  government  print- 
ing office  at  Manila,  with  the  gratifying  result  that  many  Fili- 
pinos are  now  learning  the  useful  trades  to  be  acquired  in  that 
establishment. 

Night  schools  are  maintained  in  the  city  of  Manila  and  in 
other  places  for  the  education  of  adults  and  others  who  are  not 
at  liberty  to  attend  day  school,  and  there  was  at  the  time  of  the 
last  report  an  average  daily  attendance  of  10,000. 

The  Monetary  System. 

Under  Congressional  authority  there  has  been  inaugurated  a 
complete  currency  system,  which  affords  a  fixed  medium  of  ex- 
change and  does  away  with  the  fluctuation  in  value  which  was 
such  a  menace  to  trade  in  the  old  days. 

The  coinage  of  the  islands  is  distinctive,  showing  that  it  is  a 
coin  of  the  Philippine  Islands,  and  also  showing  such  islands  to 
be  under  the  sovereignty  of  the  United  States.  The  silver  coinage 
is  based  upon  the  decimal  system,  ranging  in  value  from  the  ten- 
centavo  piece  to  the  one-peso  piece.  There  is  also  a  nickel  coin 
of  5  centavos,  and  bronze  coins  of  one  and  also  one-half  centavo. 
These  coins  have  a  fixed  convertible  value  in  United  States  cur- 
rency in  the  ratio  of  2  to  1.  A  gold  reserve  is  maintained  for 
the  purpose  of  preserving  this  parity. 


THE  NONCONTIGUOUS  TEEEITOET  OF  THE  UNITED  STATES.  305 

The  islands  have  also  a  distinctive  paper  money,  which  shows 
that  it  is  an  issue  of  the  Philippine  government  under  the  sov- 
ereignty of  the  United  States.  These  silver  certificates  are  issued 
in  the  denomination  of  2,  5,  and  10  pesos,  and  bear  the  vignettes, 
respectively,  of  Jose  Rizal  (a  Filipino),  McKinley,  and  Wash- 
ington. 

Merchants  in  the  islands  can  buy  exchange  on  New  York  by 
depositing  with  the  insular  government  Philippine  currency  and 
paying  a  premium  of  three-fourths  of  one  per  cent,  for  demand 
drafts  and  of  1%  per  cent,  for  telegraphic  transfers.  During  the 
Spanish  regime,  as  well  as  during  the  first  years  of  American 
Occupation,  the  currency  of  the  Philippines  was  subject  to  the 
fluctuations  of  the  silver  bullion  market,  and  trade  was  at  the 
mercy  of  an  ever-changing  currency  as  well  as  an  ever-changing 
rate  of  exchange.  This  great  obstacle  to  commercial  develop- 
ment and  stability  has  been  removed  by  the  establishment  of  a 
fixed  standard  of  value. 

Banks. 

In  addition  to  the  banks  existing  in  Manila  prior  to  American 
occupation,  branch  banks  have  been  established  by  the  Guaranty 
Trust  Company  of  New  York  and  the  International  Banking 
Corporation^  and  one  private  American  bank  has  been  established. 

The  inauguration  of  these  banks  is  a  great  step  forward  in 
connecting  the  trade  and  financial  affairs  of  the  Philippines  with 
those  of  the  United  States. 

Means  of  Communication. 

Postal  and  telegraph  service. — Post-offices  have  been  estab- 
lished throughout  the  entire  archipelago,  and  mail  matter  is 
promptly  forwarded  from  point  to  point  with  safety  and  rea- 
sonable regularity.  The  postal  facilities  include  the  issuance  of 
money  orders,  which  is  an  important  factor,  for  commercial  banks 
do  not  exist  in  the  islands  outside  of  Manila,  Iloilo,  and  Cebu. 
Free-delivery  service  has  been  established  in  the  city  of  Manila, 
the  entire  force  of  letter  carriers  being  natives  of  the  Philippine 
Islands.  In  the  smaller  towns  of  the  archipelago,  where  the  busi- 
ness does  not  justify  the  salary  of  a  postmaster,  teachers,  officers 
of  the  constabulary,  provincial  and  'municipal  officials,  are  ap- 
pointed postmasters  in  addition  to  their  other  duties,  with  slight 
extra  compensation.  At  the  present  time  there  are  established  in 
the  Philippine  Islands  more  than  two  hundred  post-offices.  The 
rates  of  postage  are  the  same  as  in  the  United  States. 

Telegraph  lines. — During  military  operation  it  was  found  neces- 
sary to  construct  telegraph  and  telephone  lines  connecting  Manila 
with  nearly  every  municipality  in  the  islands,  and  in  this  man- 
ner some  8,000  miles  of  overland*  telegraph  lines  and  cables  were 
constructed.  The  withdrawal  of  garrisons  necessitated  the  aban- 
donment of  many  of  the  stations  by  the  military,  and  these  sta- 
tions are  being  taken  over  by  the  civil  government  as  fast  as 
skilled  operators  can  be  secured.  At  the  present  time  the  archi- 
pelago is  gridironed  with  8,000  miles  of  land  and  sea  telegraph 
and  cable  lines,  and  commercial  messages  can  be  sent  to  practi- 
cally all  points  throughout  the  archipelago  at  rates  considerably 
less  than  prevail  in  the  United  States. 

The  new  Pacific  cable. — The  opening  of  the  new  Pacific  cable 
on  July  4,  1903,  furnishes  a  direct  means  of  communication  be- 
tween the  United  States  and  the  Philippine  Islands,  and  reduces 
the  cost  of  messages  not  only  to  the  Government  but  to  private 
individuals. 

Highivays.— The  general  subject  of  improved  transportation  has 
been  given  primary  consideration,  especially  in  so  far  as  it  re- 
lates to  highways.  Extensive  repairs  and  improvements  to  exist- 
ing highways  have  been  carried  on  throughout  the  provinces.  For 
the  general  supervision  of  this  work  a  bureau  of  engineering  has 
been  established  and  has  for  its  representatives  in  the  provinces 
the  provincial  supervisors.  Although  handicapped  by  losses  of 
draft  animals,  the  unsettled  condition  of  labor,  and  *  remoteness 
from  an  adequate  base  of  supplies,  excellent  progress  has  been 
!  made  in  the  work  of  building  new  roads.  This  work  has  gen- 
erally been  performed  under  the  direction  of  army  engineers. 

Nearly  $3,000,000  have  been  expended  in  the  construction  of 
what  might  be  termed  trunk  line  wagon  roads,  which,  primarily 


306         THK  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES. 

designed  for  military  purposes,  nevertheless  are  open  to  and  affori 
facilities  for  the  farmer  and  producer  in  civil  life. 

Eminent   Domain. 

I'ttblw  lands. — The  total  amount  of  land  in  the  Philippines  h 
approximated  al  74,000,000  acres.  Of  this  amount  it  is  estimate 
that  about  5,000.000  acres  are  owned  by  individuals,  leaving  ii 
public  lands  about  r>:u MHt.OOO.  The  land  has  never  been  surveyec 
and  these  amounts  are  estimates. 

The  military  government  had  no  power  to  part  with  the  publh 
land,  as  that  power  belonged  to  Congress.  In  the  Philippim 
government  act  of  July  1,  1902,  Congress  conveyed  to  the  govern 
inent  of  the  Philippine  Islands  all  public  property,  including  tin 
public  lands  ceded  to  the  United  States  under  the  treaty  of  Paris 
and  directed  that  government  to  classify  according  to  its  agri 
cultural  character  and  productiveness,  and  immediately  to  make 
rules  and  regulations  for  the  lease,  sale,  or  other  disposition  o: 
the  public  lands  other  than  timber  and  mineral  lands,  with  th< 
proviso,  however,  that  such  rules  and  regulations  were  not  to  g( 
into  effect  or  have  the  force  of  law  until  they  should  have  re 
ceived  the  approval  of  the  President  and  been  submitted  by  hin 
to  Congress. 

The  bureau  of  public  lands,  with  a  competent  personnel,  was 
immediately  established,  charged  with  the  duty  of  making  th< 
necessary  preliminary  investigation  and  drafting  the  rules  anc 
regulations,  which  have  been  enacted  into  law  by  the  government 

Agriculture. — The  inhabitants  of  the  Philippine  Islands  are  es 
sentially  an  agricultural  people.  Agriculture  had,  nevertheless 
up  to  the  time  of  the  American  occupation,  been  carried  on  in  i 
very  primitive  fashion,  with  rude  implements  and  antiquated  ma 
chinery,  and  without  the  employment  of  suitable  methods  of  cul 
tivation.  The  results  obtained,  even  under  such  conditions,  af 
forded  proof  of  the  favorable  character  of  the  climate  and  th< 
natural  richness  of  the  soil. 

The  insular  government  has  created  a  bureau  of  agricultur< 
to  conduct  investigations  and  disseminate  useful  information  witl 
reference  to  the  agricultural  resources  of  the  Philippine  Islands 
the  methods  of  cultivation  at  present  in  vogue  and  their  im 
provement,  the  practicability  of  introducing  new  and  valuable 
agricultural  products,  the  introduction  of  new  domesticated  ani 
mals,  and  the  improvement  of  the  breeds  of  domesticated  animals 
n^w  in  the  islands,  and,  in  general,  to  promote  the  developmen 
of  the  agricultural  resources  of  the  country. 

The  purchase  of  the  friar  lands. — At  the  time  of  the  transfei 
of  sovereignty  three  religious  orders,  the  Dominicans,  Augustin 
ians,  and  Recoletos,  held  about  420,000  acres  of  agricultural  lands 
These  lands  were  occupied  by  native  tenants  intensely  hostile  t< 
the  friars,  and  that  hostility  was  unquestionably  shared  by  the 
vast  majority  of  the  people  of  the  islands.  The  relation  of  thes( 
landlords  to  their  tenants  and  to  the  entire  people  was  one  ol 
the  chief  causes  of  irritation  and  rebellion  under  Spanish  rule. 

The  new  conditions  made  it  manifest  that  the  interest  of  the 
religious  orders  required  that  they  should  convert  into  money  this 
property,  which  they  could  no  longer  peacefully  enjoy  or  prac 
tically  make  useful.  At  the  same  time  the  peace  and  order  of  the 
community,  the  good  will  of  the  people  toward  the  Governmem 
of  the  United  States,  and  the  interest  of  an  effective  settlement  anc 
disposition  of  all  questions  arising  between  the  church  and  state 
in  the  islands  made  it  equally  desirable  that  these  lands  should 
be  purchased  by  the  state  and  that  opportunity  to  secure  title  upon 
reasonable  terms  should  be  offered  to  the  tenants  and  to  other 
inhabitants  of  the  islands. 

The  act  of  Congress  approved  July  1,  1902,  commonly  known 
as  the  "Philippine  government  act,"  authorized  the  Commission 
to  acquire  title  to  the  lands  of  religious  orders  held  in  such  large 
tracts  as  to  affect  injuriously  the  peace  and  welfare  of  the  people 
of  the  islands ;  to  issue  bonds  in  payment  for  such  land ;  to  sell  the 
land,  with  a  preference  to  actual  settlers  and  occupants ;  and  to  ap- 
ply the  proceeds  to  paying  the  principal  and  interest  of  the  bonds. 
After  numerous  propositions  and  counter  propositions  had  been 
rejected  an  agreement  was  reached  whereby  was  closed  the  pur- 
chase of  410,000  acres  at  a  price  of  $7,239,000  in  gold. 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  307 

This  amount  was  paid  in  cash  from  funds  realized  from  the 
sale  of  bonds  of  the  Philippine  government  bearing  interest  at 
the  rate  of  4  per  cent,  per  annum,  which  bonds  were  sold  in  the 
United  States  at  the  rate  of  $107,577. 

The  Philippines  Customs  Tariff. 

The  revision  of  the  tariff  was  commenced  by  a  board  of  offi- 
cers at  Manila,  then  turned  over  to  the  Philippine  Commission, 
whose  preliminary  draft  was  forwarded  to  Washington  and  op- 
portunity given  to  the  exporters  and  importers  of  the  United 
States  to  express  their  opinions.  This  privilege  was  also  ex- 
tended to  the  merchants  and  exporters  and  importers  in  Manila, 
in  public  hearings,  before  the  Philippine  tariff  was  formally  en- 
acted into  law.  The  tariff  law  was  finally  enacted  by  the  Philip- 
pine government,  and  subsequently  received  the  approval  of  the 
Congress  of  the  United  States. 

The  rates  in  no  case,  except  on  articles  of  luxury,  such  as 
sparkling  wines  and  fine  china,  are  high.  Articles  of  necessity 
have  been  taxed  lightly ;  those  needed  in  the  development  of  agri- 
culture and  for  the  improvement  of  roads  and  transportation  are 
also  low.  Prohibitive  rates  have  been  avoided,  and  the  rapid 
progress  and  development  of  the  islands  have  been  kept  steadily 
in  view,  together  with  the  other  side  of  the  question,  that  the 
insular  government  must  have  revenue  for  current  expenses  and 
for  needed  improvements.  The  duties,  on  the  whole,  are  lower 
than  the  old  Spanish  tariff  or  the  tariff  at  present  in  force 'in 
the  United  States.  The  present  tariff  will  average  about  18  *£ 
per  cent,  ad  valorem. 

The  enactment  of  Congress  approving  the  Philippine  tariff  also 
provided  for  a  reduction  of  25  per  cent,  of  the  Dingley  tariff 
upon  imports  into  the  United  States  from  the  Philippines,  and, 
further,  that  all  duties  collected  in  the  United  States  on  articles 
coming  from  the  Philippines,  as  well  as  tonnage  dues,  should  be 
held  as  a  separate  fund  to  be  paid  into  the  Philippine  treasury 
for  the  benefit  of  the  islands ;  also  that  the  Philippine  govern- 
ment should  refund  the  export  duties  imposed  upon  hemp'  and 
other  products  of  those  islands  in  the  event  the  same  were  ex- 
ported to  the  United  States. 

Foreign  Commerce. 

Complete  Philippine  trade  statistics  during  Spanish  administra- 
tion are  not  available,  except  those  for  an  occasional  year  or  two, 
though  enough  reliable  data  warrant  the  statement  that,  based 
on  an  annual  average  valuation  of  $35,000,000  worth  of  imports 
and  exports,  the  United  Kingdom,  United  States,  Spain,  and  China 
have  been  the  chief  beneficiaries  of  that  trade  in  the  past,  enjoy- 
ing practically  80  per  cent,  of  the  total  commerce.  While  these 
countries  continue  to  hold  a  large  portion  of  the  trade,  the  busi- 
ness transacted  since  American  occupation  indicates  a  wider  dis- 
tribution as  well  as  a  relative  change  in  the  amount  credited  for 
recent  years. 

During  the  five  years  of  American  administration  the  islands' 
commerce  has  increased  more  than  150  per  cent.,  advancing  from 
$25,000,000  in  1899  to  $40,350,000  in  1900,  to  $53,490,000  during  the 
next  year,  then  to  $56,000,000  in  1902,  and  at  the  close  of  the 
year  ending  June  30,  1903,  the  commerce  had  reached  a  value 
of  more  than  $66,000,000. 

In  the  exports  we  find  a  showing  that  is  remarkable,  though 
adverse  agricultural  conditions  have  limited  development  along 
some  lines.  With  but  $12,000,000  worth  of  products  in  1899,  the 
trade  has  steadily  increased  each  year  until  in  1903  it  amounted 
to  over  $33,000,000,  or  sufficient  to  bring  about  a  slight  balance 
of  trade  in  favor  of  the  islands. 

Until  1902  trade  *with  the  United  Kingdom,  aside  from  its 
colonial  possessions,  ranked  first  in  importance,  taking  about  one- 
third  of  the  total,  always  receiving  more  of  the  island's  products 
than  her  exports  there  would  pay  for. 

The  United  States  was  second  in  importance  up  to  the  time 
of  the  enormous. increase  in  direct  shipments  of  Manila  hemp,  the 
legislation  passed  by  Congress  on  March  8,  "1902,  enabling  this 
country  to  take  front  rank  almost  immediately. 


308         THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  ST.\ 

The  significance  of  these  facts  may  be  appreciated  when  it  is 
understood  that  two-fifths  of  the  Philippine  exports  consist  of 
hemp,  and  by  reason  of  the  $21,000,000  worth  sold  last  .war  a 
balance  of  trade  in  favor  of  the  islands  is  shown  for  the  first 
time  since  1896.  Practically  two-thirds  of  this  amount  came  to 
the  United  States,  which  is  unparalleled  in  the  history  of  the 
trade.  Details  of  the  commerce  between  the  Philippine  Islands 
and  the  United  States  are  stated  elsewhere  in  this  work. 

The  Philippine  government  has  made  purchase  in  the  United 
States  of  supplies  and  other  materials  for  public  improvements 
and  other  purposes  to  a  value  exceeding  $12,000,000  out  of  the 
revenues  of  the  islands.  These  figures  are  not  included  in  the 
volume  of  trade  hereinbefore  outlined. 

Sources  of  Revenue. 

The  Philippine  government  is  authorized  by  Congress  to  levy 
its  own  taxes  and  disburse  its  own  revenues,  and,  with  the  ex- 
ception of  an  appropriation  of  a  $3,000,000  relief  fund  by  Con- 
gress, all  the  expense  of  the  administration  of  the  government 
has  been  met  by  the  revenues  of  those  islands.  The  municipal 
corporations,  under  the  direction  of  the  provincial  governments, 
collect  and  disburse  their  own  revenues,  and  with  the  exception 
of  loans  made  to  these  provinces  by  the  general  Philippine  gov- 
ernment from  time  to  time,  which  ultimately  are  repaid,  these 
subgovernments  are  self-supporting  and  meet  all  expense  of  ad- 
ministration. 

Philippine  Bonded  Indebtedness. 

The  funded  debt  of  the  Philippine  Islands  imposed  by  the 
American  Government  has  been  small.  So  far  from  imposing  a 
burden  on  the  resources  of  the  islands,  its  borrowings  have  thus 
far  been  an  actual  source  of  profit  to  the  Philippine  treasury. 
The  debt  of  the  islands  under  Spanish  authority,  amounting  to 
about  $40,000,000,  was  gotten  rid  of  by  the  transfer  of  sovereignty 
and  the  payment  by  the  United  States  of  $20,000,000.  The  present 
interest-bearing  obligations  of  the  Philippine  government  are  as 
follows : 

One-year  certificates  of  indebtedness,  under  authority 

of  the  coinage  act $3,000,000 

Second  series  of  such  certificates 3,000,000 

Bonds  for  taking  up  the  lands  of  the  iriars 7,000,000 

Total 13,000,000 

A  third  series  of  one-year  certificates  paying  4  per  cent,  has 
just  been  awarded  at  a  premium  of  1.181  per  cent.,  or  $35,430; 
but  as  they  take  the  place  of  the  first  issue  which  is  about  ma- 
turing, they  do  not  add  to  the  total  debt  or  the  permanent  in- 
terest charge.  The  permanent  interest  account  of  the  Philippine 
government  upon  its  present  obligations  stands  thus : 

GROSS    EXPENDITURES. 

Interest  on  $6,000,000  one-year  certificates,  at  4  per  cent     $240,000 
Interest  on  $7,000,000  of  bonds,  at  4  per  cent 280,000 


DEDUCTIONS. 

Average  premiums  on  sale  of  one-year  cer- 
tificates .  .  $142,590 

Average  annual  premium  on  ten-year  bonds  63,000 

Interest  on  gold-reserve  funds 90,000 


520,000 


295,590 


i    Net  annual  charge  upon  the  Philippine  revenues.  .        224.41  <> 

The  customs  receipts,  which  constitute  the  principal  revenue  of  i 
the  islands,  are  about  $10,000,000.  The  net  burden,  therefore, 
for  interest  on  the  existing  debt  is  $224,410,  or  at  the  rate  of  a 
little  less  than  2*4  per  cent  of  the  customs  receipts.  There  is 
probably  no  civilized  state  in  the  world  to-day— unless  itns  the' 
little  principality  of  Monaco,  whose  revenue  is  derived  from  the 
gaming  table — -whfch  is  not  compelled  to  devote  a  larger  part  of  its 
revenues  than  2^4  per  cent,  to  the  interest  on  its  public  debt.     The 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES. 


309 


present  debt  of  the  Philippine  Islands  being  $15,000,000,  amounts 
to  about  $1.62  per  capita  for  a  population  of  8,000,000,  and  the 
annual  net  interest  charge  to  less  than  four  cents  per  capita. 
The  United  States  has  a  per  capita  debt  of  at  least  $12  and  annual 
charges  of  more  than  30  cents.  Great  Britain  has  a  debt  in 
excess  of  $90  per  capita  and  interest  charges  of  $3.  France  has 
a  debt  of  nearly  $150  for  each  of  her  people  and  an  annual  in- 
terest burden  of  $6. 

It  is  true  that  these  are  richer  countries  than  the  Philip- 
pines and  that  their  gross  revenue  is  larger.  The  true  test  of 
interest  burdens  should  perhaps  be  the  ratio  which  they  bear  to 
gross  revenue.  But  here  also  the  test  is  in  favor  of  our  island 
dependencies.  In  France  30  per  cent,  of  the  revenue  goes  to  meet 
the  charges  on  the  debt ;  in  Great  Britain  19  per  cent. ;  even  in 
the  United  States  about  5  per  cent,  without  counting  State  and 
local  indebtedness.  In  the  Philippines  the  proportion  is  about 
2%  per  cent.  Tried  by  every  test,  therefore,  the  burden  on  the 
people  of  the  Philippines  for  their  bonded  debt  is  among  the  light- 
est imposed  by  modern  states,  and  they  are  well  able  to  make  a 
further  appropriation  from  revenue  to  provide  for  railways  and 
other  public  improvements. 

There  are  few,  if  any,  civilized  states,  moreover,  which  have 
so  much  to  show  as  the  Philippines  for  the  debt  which  they  have 
incurred. 

Expenses  In  the   Philippines. 

The  Secretary  of  War  reported  to  the  Senate  June  19,  1902, 
that  "the  amount  of  money  expended,  and  the  amount,"  so  far  as 
practicable  to  state  it,  "for*  which  the  Government  of  the  United 
States  is  liable,  remaining  unpaid  for  equipment,  supplies,  and 
military  operations  in  the  Philippine  Islands  each  year  from  May 
1,  1898,  to  the  present  time,"  aggregate  $170,326,586.11,  as  follows : 


Expenditures.    Liabilities. 


Adjutant-General's  Department 

Quartermaster's  Department 

Subsistence  Department 

Pay  Department 

Medical  Department 

Engineer- Department 

Ordnance  Department 

Signal  Office 

Secretary's  Office: 

Disbursing  clerk 

Requisitions  and  Accounts  Division 

Total 


$555.21 
74.344,395.17 
21.252.272.93 
63,926,262.11 

3,878,756.58 

148,022.15 

4,802,033.82 

1,322,712.88 

7,183.30 
171,318.67 


$462,158.92 


4.251.14 
2.000.00 


4.663.23 


169,853,512.82 


473.073,29 


In  his  official  report  the  Secretary  said: 

"Attention  is  invited  to  the  fact  that  large  quantities  of  valu- 
able property,  such  as  ships,  lighters,  etc.,  horses  and  mules, 
wagons,  harness,  clothing,  equipage  and  ordnance,  medical,  signal, 
and  engineer  supplies,  the  cost  of  which  is  included  in  the  forego- 
ing statement,  still  remains  on  hand  in  the  Philippine  Islands  for 
use.  Parts  of  these  supplies  are  already  being  reshipped  to  this 
country.  It  should  also  be  observed  that  a  large  part  of  the  ex- 
pense during  the  past  year  should  not  properly  be  treated  as  oc- 
casioned by  military  operations  in  the  Philippine  Islands,  for  the 
reason  that  it  consists  of  pay  and  maintenance  of  troops  whom  we 
would  have  had  to  pay  and  maintain  whether  they  were  in  the 
Philippines  or  not,  in  order  to  keep  up  the  minimum  number  of 
regular  troops  required  by  law  as  a  safeguard  against  future  con- 
tingencies. The  minimum  at  which  the  Regular  Army  is  required 
to  be  maintained  by  the  act  of  February  2,  1901,  is  59,657  men, 
and  the  maximum  is  100,000." 


The  Problem  Which  We  Have  on  Our  Hands  in  the  Philippines. 

Extract  from  address  of  Hon.  Wm.  H.  Taft,  Secretary  of  War, 
before  the  Chamber  of  Commerce  of  New  York  City,  April  21, 
1904: 

*The  people  of  the  United  States  have  under  their  guidance  and 
control  in  the  Philippines  an  archipelago  of  3,000  islands,  the 
population  of  which  is  about  7,600,000  souls.  Of  these,  7,000,000 
are  Christians  and  600,000  are  Moros  or  other  pagan  tribes.  The 
problem  of  the  government  of  the  Moros  is  the  same  as  that  which 
England  has  had  in  the  government  of  the  Straits  Settlements  or 
India.  The  government  of  7,000,000  Christian  Filipinos  is  a  very 
different . problem,  and  one  which  it  has  fallen  to  the  lot  of  the 
United  States  only  to  solve. 


310         THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES. 

The  attitude  of  the  American  people  toward  the  Philippine 
Islands  may  be  described  as  follows:  There  are  those  who  think 
that  the  Declaration  of  Independence  forbids  our  accepting  or 
maintaining-  sovereignty  .over  them;  there  are  those  who,  without 
respect  to  the  Declaration  of  Independence,  believe  that  colonial 
possessions  are  likely  to  lead  to  expense  and  corruption  and  de- 
moralization, have  little  faith  in  the  solution  of  the  problem  by 
teaching  the  Filipino  the  art  of  self-government,  and  are  anxious 
to  get  rid  of  the  islands  before  they  have  done  any  harm  to  the 
United    States. 

Then  there  are  those  who  hold  that  fate  brought  these  islands 
under  our  control,  and  that  thus  a  duty  was  imposed  upon  us  of 
seeing  to  it  that  they  were  not  injured  by  the  transfer.  As  a 
friend  of  the  Filipinos  it  is  my  anxious  desire  to  enlarge  that  class 
of  Americans  who  have  a  real  Interest  In  the  welfare  of  the 
islands,  and  who  believe  that  the  United  States  can  have  no  higher 
duty  or  function  than  to  assist  the  people  of  the  islands  to  pros- 
perity and  a  political  development  which  shall  enable  them  to 
secure  to  themselves  the  enjoyment  of  civil   liberty.      [Applause.] 

Tn  the  Philippine  Islands  90  per  cent,  of  the  inhabitants  are 
still  in  a  hopeless  condition  of  ignorance  and  utterly  unable  in- 
telligently to  wield  political  control.  They  are  subject,  like  the 
waves  of  the  sea,  to  the  influence  of  the  moment,  and  any  educated 
Filipino  can  carry  them  in  one  direction  or  the  other,  as  the  oppor- 
tunity and  the  occasion  shall  permit.  The  10  per  cent,  of  the 
Filipinos  who  are  educated  have  shown  by  what  they  have  done 
and  what  they  have  aspired  to  and  what  they  are  that  they  may 
be  taught  the  lesson  of  self-government  and  that  their  fellows  by 
further  education  may  be  brought  up  to  a  condition  of  discrimi- 
nating intelligence  which  shall  enable  them  to  make  a  forceful  and 
useful  public  opinion.  But  that  it  will  take  more  than  one  gener- 
ation to  accomplish  this  everyone  familiar  with  the  facts  must 
concede.     *     *     * 

My  own  idea  of  the  mission  of  the  United  States  in  the  Philip- 
pine Islands  is  that  it  ought  to  be  maintained  and  encouraged  by 
the  people  of  t-  e  United  States  without  regard  to  the  question  of 
is  cost  or  its  profitable  results  from  a  commercial  or  financial 
point  of  view. 

The  islands  themselves  give  every  indication  of  furnishing 
revenue  sufficient  to  carry  out  the  plans  which  the  United  States 
may  properly  carry  out  in  the  material  and  intellectual  develop- 
ment of  the  country  and  its  people.  The  taxpaying  capacity  of 
the  country  is,  of  course,  determined  by  that  which  it  produces 
for  domestic  and  foreign  use.     *     *     * 

The  Philippine  Archipelago  is  the  only  country  in  which  can 
be  produced  what  is  known  as  "manila  hemp,"  or  what  is  called 
in  the  Spanish  language  "abaca."  This  is  a  fiber  of  enormous 
strength,  of  from  6  to  15  feet  in  length,  which  is  stripped  from 
the  stalk  of  a  banana  plant — not  the  ordinary  banana  plant,  but 
""a  plant  of  the  same  family  which  does  not  produce  fruit. 

Many  parts  of  the  islands  are  very  rich  in  cocoanuts.  The 
cocoanut  grove  is  planted  200  to  a  hectare;  that  is,  200  to  2y9 
acres.  It  takes  four  or  five  years  for  cocoanut  trees  to  bear.  After 
that  they  will  bear  for  100  years,  and  a  low  price  for  annual  rent 
is  $40  gold  a  year  an  acre. 

The  sugar  and  tobacco  industries  in  the  islands  are  capable 
of  a  considerable  increase.  The  island  of  Negros  contains  sugar 
land  as  rich  as  any  in  the  world,  and  the  provinces  of  Cagayan, 
Isabela,  and  Union  contain  tobacco  lands  which,  next  to  Cuba, 
produce  the  best  tobacco  in  the  world,  but  the  trouble  is  that  the 
markets  for  such  sugar  and  tobacco  have  been,  by  tariffs  imposed 
in  various  countries,  very  much  reduced.  Should  the  markets  of 
the  United  States  be  opened  to  the  Philippines  it  is  certain  that 
both  the  sugar  and  the  tobacco  industry  would  become  thriving, 
and  although  the  total  amount  of  the  product  in  each  would  prob- 
ably not  affect  the  American  market  at  all,  so  extensive  is  the 
demand  here  for  both  tobacco  and  sugar,  it  would  mean  the  differ- 
ence between  poverty  and  prosperity  in  the  islands. 

I  know  that  the  reduction  of  the  tariff  for  this  purpose  is 
much  opposed  by  the  interests  which  represent  beet  sugar  and 
tobacco;  but  I  believe  that  a  great  majority  of  the  people  of  the 
United  States  are  in  favor  of  opening  the  markets  to  the  Philippine 
Islands,  conscious  that  it  will  not  destroy  either  the  beet-sugar 
or  the  tobacco  industry  of  this  country,  and  feeling  that  as  long 
as  we  maintain  the  association  which  we  now  have  with  the  Phil- 
ippine Islands  it  is  our  duty  to  give  them  the  benefit  of  the  mar- 
kets of  the  United  States  and  bring  them  as  close  to  our  people 
and  our  trade  as  possible.     *     *     * 

There  are  7,600,000  Filipinos.  Of  these,  the  7,000,000  Christian 
Filipinos  are  imitative,  anxious  for  new  ideas,  willing  to  accept 
them,  willing  to  follow  American  styles,  American  sports,  Ameri- 
can dress,  and  American  customs.  A  large  amount  of  cotton  goods 
is  imported  into  the  islands  each  year,  but  this  is  nearly  all  from 
England  and  Germany.  There  is  no  reason  why  these  cotton 
goods  should  not  come  from  America.      *     *     * 

The  first  requisite  of  prosperity  in  the  Philippine  IslanHs  is 
tranquillity,  and  this  should  be  evidenced  by  a  well  ordered  govern- 
ment. The  Filipinos  must  be  taught  the  advantage  of  such  a  gov- 
ernment, and  they  should  learn  from  the  government  which  is 
given  them  the  disadvantages  that  arise  to  everybody  in  the 
country  from  political  agitation  for  a  change  in  the  form  of  gov- 
ernment in  the  immediate  future.  Hence  it  is  that  I  have  ven- 
tured to  oppose  with  all  the  argument  that  I  could  bring  to  bear 
the  petition  to  the  two  political  conventions  asking  that  independ- 
ence be  promised  to  the  Filipinos. 


THE  NONCONTIGUOUS  TEBBITOBY  OF  THE  UNITED  STATES.  311 

It  is  not  that  1  am  opposed  to  independence  in  the  islands, 
should  the  people  of  the  Philippines  desire  independence  when 
they  are  fitted  for  it,  but  it  is  that  the  great  present  need  in  the 
islands  is  tranquillity. 

The  Prevailing  Sentiment  in  the  Philippines  Regarding  the  United 
States   and  Its   Treatment  of  the  People   of  Those  Islands. 

The  following  are  extracts  from  remarks  of  Dr.  N.  Pardo  de 
Tavera,  the  head  of  the  delegation  of  Filipinos  visiting  the 
United  States  in  1904.  The  remarks  were  delivered  in  Wash- 
ington, D.  C,  during  the  visit  of  the  delegation  to  that  city : 

"In  the  Philippines  we  knew  nothing  of  you.  We  lived  un- 
der a  government  which  ruled  through  fear  and  imposed  upon  us 
civil  and  religious  tyranny.  To  the  extent  that  we  were  accus- 
tomed to  that  kind  of  tyranny,  we  feared  it  would  be  continued 
under  the  American  rule  and  be  far  worse.  We  did  not  know  at 
the  time  of  the  beneficent  purposes'  which  animated  you,  and  no 
man  can  condemn  us  for  fighting  when  we  were  under  that  er- 
roneous impression.  But  so  soon  as  we  learned  what  these  pur- 
poses were  we  were  glad  to  accept  these  conditions.  None  of  you 
can  appreciate  the  emotions  which  welled  up  within  us  when  our 
eyes  rested  upon  the  White  House,  within  whose  walls'  your  be- 
loved President  McKinley  evolved  the  intention  of  stretching  out 
his  beneficent  hand  to  us  to  raise  us  up  to  the  ane  upon  which 
you  now  stand  and  place  us  within  the  same  beliefs  that  you  now 
have  in  this'  great  country.  You  have  done  something  unique  in 
the  history  of  the  world.  Some  nations  have  colonized  for  the 
purpose  of  extending  their  religious  beliefs;  others  with  the  in- 
tention of  extending  their  commercial  and  industral  interests,  but 
you  have  carred  these  principles  of  liberty  and  democracy  to  the 
peoples  of  the  countries  where  you  have  placed  your  foot  and  your 
flag." 

THE  HAWAIIAN  ISLANDS. 


Development  Since  Annexation. 

General  conditions  in  the  Hawaiian  Islands  show  a  marked 
improvement  since  annexation.  Owing  to  wise  administration 
there  is  a  closer  touch  evident  between  the  executive  and  the 
people,  and  political  differences  arising  from  local  conditions  have 
found  a  neutral  ground  in  the  common  cause  of  Hawaii's  welfare 
and  future  status.  There  is  a  growing  sense  of  the  responsibility 
on  the  part  of  the  electors  as  they  appreciate  their  accountability 
for  the  use  of  the  ballot.  In  1900  there  was  but  little  interest 
shown  in  the  sending  of  delegates  to  the  national  conventions, 
while  this  year  the  keenest  competition  developed  for  places  on 
the  delegations.  No  single  event  since  annexation  is  more  ex- 
pressive of  the  progress  and  the  future  possibilities  of  Hawaii 
than  the  completion  of  the  cable  connecting  Hawaii  with  the 
mainland  and  the  Orient.  The  Hawaiian  silver  has  been  prac- 
tically retired  from  circulation  and  its  place  taken  by  currency  of 
the  United  States. 

The  successful  growing  of  coffee  and  tobacco,  also  the  growing 
and  canning  of  pineapples  is  no  longer  an  experiment:  four  large 
pineapple  plantations  are  well  started  and  two  of  them  are  al- 
ready sending  their  products  to  the  mainland.  The  sisal  indus- 
try has  also  been  demonstrated.  The  traffic  in  bananas  has  in- 
creased materially,  especially  from  the  port  of  Hilo,  where  in 
six  months'  time  it  is  expected  that  the  monthly  shipment  will 
reach  20,000  bunches.  The  industry  will  grow  with  the  increase 
in  the  number  of  steamers  between  Hawaii  and  the  mainland. 

The  last  seven  years  have  seen  a  large  development  in  sugar, 
the  main  industry.  The  increase  from  251,126  tons  in  1897  to 
437,991  tons  in  1903  does  not  tell  the  whole  story.  There  is  not 
a  plantation  on  the  islands  that  has  not,  during  these  years, 
modernized  its  equipment  in  the  sugar  factories.  During  this 
period  it  is  calculated  that  over  $40,000,000  has  been  spent,  mostly 
on  the  mainland,  for  machinery  and  other  improvements,  all  of 
which  are  now  installed. 

Since  annexation  extensive  improvements  have  been  made  in 
the  capital  city,  especially  in  the  business  districts.  The  wharf 
system  has  been  materially  extended  and  modernized.  A  trolley 
system  has  been  laid  through  the  city  and  its  suburbs.  These 
improvements  have  been  made  with  material  purchased  in  various 
parts  of  the  United  States  and  have  changed  substantially  the 
appearance  of  the  water  front  and  city. 

Perhaps  the  most  remarkable  development  in  Honolulu  since 
annexation  has  been  the  education  of  the  lower  classes  in  sani- 


312         THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  ST  A  U.S. 


tation.  Modern  methods  in  the  prevention  of  diseases  and  the 
precautionary  measures  to  stamp  out  diseases  as  they  appear  are 
now  understood  by  Honolulu's  alien  population.  There  has  been 
established  by  the  Federal  Government  on  Quarantine  Island,  on 
the  edge  of  Honolulu  Harbor,  one  of  the  largest  and  most  efficient 
quarantine  stations  of  the  United  States. 

Hawaii  looks  forward  with  extreme  eagerness  to  the  com- 
pletion of  the  Panama  Canal,  for  the  following  reasons:  Ships 
coming  through  the  canal  from  Europe  to  the  Orient  will  touch 
Hawaii  for  orders,  repairs,  and  for  the  necessary  coal,  fuel,  oil, 
and  provisions.  It  is  reasonable  to  expect  that  the  opening  of 
the  canal,  together  with  the  expected  increase  in  trade  caused 
thereby,  will  result  in  a  large  increase  in  the  American  marine 
and  that  most  of  the  vessels  engaged  therein  will  make  the 
Hawaiian  Islands  a  port  of  call.  The  benefits  to  Hawaii  of  this 
trade,  aside  from  the  greater  facility  of  shipping  the  Territory's 
produce,  will  undoubtedly  be  substantial. 

Since  1897,  the  year  before  the  annexation  of  Hawaii  by  the 
United  States,  the  exports  from  that  island  have  practically 
doubled,  increasing  from  $13,687,799,  during  the  fiscal  year  ending 
June  30,  1897,  up  to  $26,242,869  during  the  year  ending  June  30, 
1903.  Within  the  same  period  the  imports  of  merchandise  from 
the  United  States  have  more  than  doubled,  from  $4,690,075  in 
1897  to  $10,840,472  in  1903.  Last  year  the  balance  of  trade  in 
favor  of  this  Territory  was  $15,400,000. 

A  remarkable  exhibit  is  made  by  comparing  the  trade  growth 
per  capita  of  population  in  Hawaii,  which  shows  an  increase  from 
$131  up  to  $247  under  annexation  for  every  man,  woman,  and 
child  in  the  Territory,  a  total  per  capita  of  trade  that  is  more 
than  eight  times  greater  than  that  of  the  trade  per  capita  for  the 
entire  United  States.    Thus: 

Hawaii's  per  capita  of  trade. 


Fiscal  year— 

Imports. 

Exports. 

Total. 

1897 

$33.50 
42.20 
66.40 
90 

No  data. 

No  data. 
73.27 

$97.77 
122.76 
127.36 
138.05 
186.02 
164.86 
174.95 

$131.27 

1898 

164,96 

1899 

193.82 

1900 

228.05 

1901 

1902  .                          

1903 

247.22 

30.43 

Last  year's  imports  into  Hawaii  from  foreign  countries 
amounted  to  $3,036,583,  as  compared  with  $10,787,666  from  the 
United  States. 

Hawaii's  staple  product  for  export  Js,  of  course,  sugar,  and 
its  output  has  more  than  doubled  in  quantity  and  in  value  within 
the  past  eight  years,  though  there  has  been  but  little  variation 
in  the  average  export  price  for  each  year.  As  this  is  the  prin- 
sipal  commodity  that  affects  the  prosperity  of  the  Territory  its 
importance  will  be  realized  from  the  following  exhibit : 
Quantity  and  value  of  sugar  exported. 


Year  ending  June  30— 

Pounds. 

Value. 

Price. 
Cts.  per 
pound. 

1896               

352,175,269 
431,196,980 
499,766.798 
462,299.880 
504,713,105 
690,877.934 
720,553,357 
774,825,420 

$11,336,796 
13,164,379 
16.660,109 
17.287,683 
20,392,150 
27,093.863 
24,147.884 
25,665,733 

3.22 

1897 

3.05 

1898 

3.33 

1899 

3.72 

1900 

4.05 

1901 

3.92 

1902  . .  .    .              

3.35 

1903 .                            

3.31 

All  of  this  sugar  is  sold  in  New  York  or  San  Francisco  and 
affords  cargoes  for  American  steamers  and  sailing  vessels,  amount- 
ing to  nearly  400,000  short  tons,  besides  the  smaller  shipments  of 
coffee,  sisal,  fruits,  hides,  etc 

Last  year  there  were  61  tamers  and  211  sailing  vessels  that 
entered  at  Hawaiian  ports  from  the  mainland,  and  247  cargoes 
of  399,584  tons  left  this  Territory  for  ports  of  the  mainland  in 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  3l3 

the  same  period,  all  of  these  cargoes  being  carried  in  American 
bottoms.  Only  five  American  vessels,  of  4,288  tons  register,  left 
here  in  ballast,  while  twenty  vessels  of  foreign  nationality,  of 
25,397  tons  register,  had  to  go  elsewhere  in  ballast  seeking 
freights. 

As  a  matter  of  fact,  one  American  vessel  leaves  this  American 
Territory  for  the  mainland  every  one  and  one-half  days  with  a 
cargo  produced  on  American  soil  for  the  consumption  of  the 
American  people. 

While  the  current  receipts  of  the  Territory  of  Hawaii  show  an 
increase  of  only  ,$200,000  for  the  year  1903  as  compared  with 
1897,  the  year  before  annexation,  there  have  been  considerable 
fluctuations  in  the  interval,  the  receipts  aggregating  as  high  as 
$3,345,231.50  for  the  year  1899,  due  mainly  to  a  gain  of  nearly 
50  per  cent,  in  the  receipts  from  customs  in  that  year. 

In  the  year  1900  the  Federal  Government  assumed  control  of 
the  revenues  from  customs,  postoffice  and  internal-revenue  sources 
which  aggregated  $1,600,000  in  1899.  Deprived  of  this  large  pro- 
portion of  income,  it  became  necessary  to  increase  our  system 
of  direct  taxation,  which  shows  a  jump  from  $763,984.84  in  1897 
to  $1,300,347.92  in  1900,  and  up  to  $1,678,362  in  1903— a  gain  of 
more  than  $900,000  per  annum  ($6  per  capita  increase)  within 
the  seven-year  period. 

Expenditures  in  Hawaii  show  an  increase  of  nearly  $900,000 
within  the  same  seven  years,  from  $1,999,024.59  in  1897  up  to  $2,- 
884,563.12  in  1903.  That  this  additional  government  outlay  was 
judiciously  expended  is  shown  by  the  fact  that  there  was  a  gain 
of  $440,000  in  the  outlay  for  public  works  and.  improvements  and 
of  $180,000  in  providing  additional  and  improved  education. 

There  has  been  a  wonderful  growth  in  the  schools  of  Hawaii 
since  annexation.  In  1899,  the  year  after  annexation,  there  were 
in  the  islands  189  schools,  containing  15,490  pupils  taught  by 
544  teachers.  On  December  31,  1903,  there  were  19,022  pupils 
in  204  schools,  taught  by  647  teachers.  No  complete  statistics 
have  been  collected  since  1903,  but  there  must  be  over  20,000 
pupils  in  the  various  schools  of  the  Territory  at  the  present  time. 
Thus,  since  annexation  there  has  been  an  increase  of  3,552  pupils, 
or  about  1,000  per  annum.  To  meet  this,  up  to  December  31st 
of  last  year,  there  was  an  increase  of  15  schools  and  103 
teachers. 

It  has  been  frequently  charged  that  Asiatics  formed  the  bulk 
of  the  pupils.  This  is  one  of  those  careless  statements  bandied 
from  mouth  to  mouth  without  thought,  and  frequently  believed. 
Indeed  there  are  those  who  will  asseverate  that  this  is  a  fact. 
A  little  consultation  of  statistics  will  show  the  utter  fallacy  of 
the  statement.  Of  the  19,022  pupils  in  school  on  December  31, 
there  were  8,199  Hawaiians  and  part  Hawaiians,  the  whites  num- 
bering 5,882,  making  a  total  for  Hawaiians  and  whites  of  14,081. 
The  Japanese  children  in  school  numbered  2,740  and  the  Chinese 
1,585,  while  the  Porto  Ricans  brought  up  the  rear  with  616. 
These  latter,  however,  should  be  counted  with  the  Hawaiians 
and  whites,  being  American  subjects. 

Of  the  647  teachers  reported  at  the  close  of  1903,  there  were 
163  Hawaiians  and  part  Hawaiians,  303  Americans  (or  nearly 
half  the  total  number),  55  British,  13  Germans,  55  Portuguese,  15 
Scandinavians,  9  Japanese,  16  Chinese,  and  17  of  other  nationali- 
ties. All  the  Japanese  and  13  of  the  Chinese  are  employed  by  re- 
ligious or  philanthropical  institutions  sustained  by  private  funds. 

PORTO  RICO. 

Porto  Rico  was-  occupied  by  the  United  States  July  25,  1898. 
On  August  12,  that  same  year,  the  protocol  was  signed  and 
military  operations  ceased.  On  October  18  Spain  withdrew 
from  the  island  and  a  government  by  the  United  States  military 
authorities  followed,  and  this  military  government  was  maintained 
until  May  1,  1900,  when  a  civil  government  was  instituted 
under  an  act  of  Congress  devising  a  special  form  of  government 
for  the  island.  The  organic  act  was  presented  by  Senator  For- 
aker,  and  after  more  than  four  years'  operation  has  been  proved 
by  experience  to  be  a  wise  and  temperate  measure.  It  embodies 
as  much  self-government  as  the  most  thoughtful  and  intelligent 
natives   of   the   island   would   recommend.     It  provided   for  an 


314         THE  NONCONTIGUOUS  TEBB1TORY  OF  THE  UNITED  STATES. 

executive  council,  consisting  of  the  six  administrative  heads  of 
the  departments,  together  with  five  native  Porto  Ricans,  all  of 
whom  ace  appointed  by  the  President  of  the  United  States;  also 
made  provision  for  a  house  of  delegates,  to  consist  of  ;;.">  mem 
hers,  to  be  chosen  by  the  qualified  voters  of  the  island.  These 
two  bodies  constitute  the  legislative  assembly,  with  usual  legis- 
hitive  powers.  The  law  has  worked  admirably,  the  product  of 
the  legislation  thus  far  being  wise  educational  statutes  under 
which  a  system  of  free  public  schools  has  been  built  up;  sound 
revenue  laws  have  been  adopted;  political,  civil,  and  penal  codes, 
together  with  codes  of  civil  and  penal  procedure;  laws  establish- 
ing writs  for  the  protection  of  life  and  property;  creating  modern 
judicial  systems;  establishing  a  bill  of  rights;  providing  for 
liberality  in  the  right  of  appeal  in  judicial  matters;  establishing 
sound  marriage  laws,  and  otherwise  providing  for  the  implanting 
of  American  laws,  customs,  and  institutions. 

By  reason  of  the  ravages  of  war  and  the  ruin  brought  by  the 
cyclone  of  August,  1899,  a  modified  tariff  system  was  provided  by 
Congress  whereby  all  the  duties,  including  those  paid  on  mer- 
chandise going  from  the  United  States  to  Porto  Rico  and  from 
Porto  Rico  to  the  United  States,  should  be  turned  into  the 
treasury  of  the  island.  Through  this  measure  a  large  revenue  was 
provided  for  the  people,  which  gave  immediate  impetus  to  educa- 
tion and  public  works.  This  tariff  measure  was  subject  to  abroga- 
tion, however,  whenever  the  legislative  assembly  might  provide 
a  revenue  system  of  its  own  and  notify  the  President  that,  the 
revenue  system  would  produce  sufficient  income  to  maintain  the 
government  By  prudent  laws  and  good  sanitation,  on  July  4. 
1901,  the  necessary  statute  was  enacted,  and  by  the  wish  of  the 
people  themselves,  on  July  25,  the  anniversary  of  the  landing 
of  the  American  troops  in  the  island,  President  McKinley  issued 
his  proclamation  declaring  free  trade  between  Porto  Rico  and  the 
United  States. 

Congress  provided  that  all  the  duties  on  imports  from  foreign 
countries  collected  at  the  ports  of  Porto  Rico  should  be  turned 
into  the  insular  treasury  for  the  support  of  the  island.  The 
internal-revenue  system  of  the  United  States  was  exclude  1  from 
the  island,  thus  permitting  the  insular  legislature  to  utilize  its 
own  resources  of  taxation  to  establish  an  excise  system.  This 
has  been  done,  and  now  the  income  from  customs  collected  upon 
goods  imported  to  Porto  Rico  from  foreign  countries,  the 
excise  taxes  collected  under  its  own  internal-revenue  system,  and 
its  property  tax,  made  up  the  principal  sources  of  revenue.  It 
costs  approximately  $2,400,000  a  year  to  maintain  the  government 
of  the  island.  The  property  tax  is  one-half  of  one  per  cent,  for 
insular  purposes  and  one-half  of  one  per  cent  for  municipal 
purposes. 

The  civil  government  instituted  was  conservative  and  generous. 
It  made  the  people  of  Porto  Rico  as  free  as  any  in  the  world,  and 
was  a  wonderful  transition  from  the  absolutism  of  Spain,  whore 
guaranties  were  always  in  form  but  never  in  spirit,  and  whose 
promised  autonomy  always  had  nullifying  reservations  to  it.  The 
act  of  Congress  put  every  man  on  an  equality  before  the  law,  and 
gave  to  the  representatives  of  the  people  of  Porto  Rico,  through 
the  house  of  delegates,  a  right  to  say  what  their  laws  should  be. 
Indeed,  it  may  be  counted  as  a  remarkable  document,  and  coming 
as  it  did  to  the  oppressed  people  of  the  island,  was  hailed  as  a 
proclamation  of  sacred  rights,  like  unto  a  declaration  of  inde- 
pendence. Moreover,  under  its  operation  there  have  been  put 
into  actual  and  permanent  execution,  those  methods  of  govern- 
ment which  defend  the  rights  and  promote  the  duties  of  citizen- 
ship. Burdens  of  taxation  are  now  borne  in  accordance  with  the 
ability  of  citizens  to  bear  them.  Education  extends  alike  to  the 
poor  and  to  the  rich.  Public  improvements  are  made  for  the 
general  good  and  not  for  a  special  few. 

Let  it  be  noted,  too,  that  under  the  old  regime,  Spaniards  did 
all  of  the  work  of  government  and  Porto  Ricans  were  excluded, 
while  now  natives  are  employed  in  every  possible  capacity,  being 
judges,  assistant  chiefs  of  departments,  school-teachers,  engineers, 
telegraphers,  clerks  of  courts,  and  filling  other  positions  requiring 
skill  and  honesty. 

No  discussion  of  the  present  condition  of  the  island  of  Porto 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  315 

Rico  should  be  had  without  remembering  that  in  August,  1899,  the 
most  devastating  cyclone  ever  known  in  the  neighborhood  of  Porto 
Rico  swept  over  that  island.  Thousands  of  lives  were  lost,  coffee 
plantations  were  utterly  ruined,  and  incalculable  destruction  of 
property  of  all  kinds  followed  its  devastation.  Coming  just  after 
the  close  of  the  Spanish-American  war  its  effect  was  even  more 
far-reaching,  and  the  task  of  the  American  Government  was  made 
more  difficult  than  it  otherwise  would  have  been.  The  coffee  in- 
dustry, which  has  been  the  greatest  in  the  island  and  wherein 
the  largest  number  of  people  were  employed,  was  practically  an- 
nihilated, and  the  means  of  living  of  half  the  people  gone. 
Poverty,  sickness,  and  almost  despair  followed.  Had  it  not  been 
for  this  natural  calamity  Porto  Rico  to-day  doubtless  would  have 
equaled  any  country  in  the  world  in  prosperity.  Nature  and 
nothing  else  could  restore  the  coffee  plantations.  Gradually  they 
have  been  growing  to  a  normal  state,  and  they  will  in  a  few 
years  be  more  productive  than  ever.  The  coffee  crop  last  year 
was  about  normal,  and  the  financial  condition  of  the  planters  is 
improved.  The  people  are  hopeful  and  helping  themselves  to  a 
better  condition. 

The  sugar  crop  for  1903  is  conservatively  estimated  at  125,000 
tons,  the  largest  known  in  the  history  of  the  island.  All  this 
sugar  is  admitted  to  the  United  States  free  of  duty,  which  gives 
to  the  sugar  planter  of  Porto  Rico  an  incalculable  advantage  over 
the  planter  in  Cuba  and  the  other  West  India  islands.  Tobacco 
fields  are  being  generally  planted  now,  the  value  of  the  crop  In 
1904  being  estimated  at  about  $3,000,000.  Since  the  Americans 
went  to  the  island  orange  groves  have  been  planted,  and  in  a 
few  years  the  crop  will  be  very  large,  it  being  estimated 
that  ten  thousand  acres  are  planted  in  this  fruit.  This  agricul- 
tural development  is  only  a  good  beginning,  but  it  serves  to  prove 
that  under  American  occupation  the  progress  has  been  steady  and 
will  be  fast  in  the  future. 

It  may  seem  incredible,  but  it  is  a  fact  that  at  the  expiration 
of  four  centuries  of  Spanish  rule  there  were  only  284  kilometers 
(a  kilometer  is  about  five-eighths  of  a  mile)  of  roads  under  main- 
tenance in  Porto  Rico.  After  the  military  occupation  of  the 
United  States  in  1898,  road  construction  and  repair  were  pushed, 
and  the  government  of  the  island  has  vigorously  carried  on  the 
work,  with  the  result  that  there  are  now  under  maintenance  707 
kilometers.  Briefly,  in  five  years  American  energy  has  provided 
423  kilometers  of  good  road,  as  against  284  kilometers  built  during 
the  preceding  four  hundred  years.  This  road  extension  means  re- 
duced cost  of  transportation  and  encouragement  to  agriculturists, 
as  is  clearly  visible  by  the  rapidly  developing  sections  adjacent 
to  the  lines  of  the  new  roads.  Again,  the  cost  of  road  maintenance 
has  been  reduced  from  $1,000  per  kilometer  to  $537. 

Since  the  Americans  occupied  the  island  the  government  has 
been  conducting  the  telegraph  system.  In  February,  1901,  there 
were  but  ten  telegraph  stations  in  operation.  The  lines  have  been 
considerably  extended  since  then  and  new  stations  opened,  there 
being  on  July  1  39  offices  established.  Native  telegraphers  are 
employed,  who  have  learned  their  art  in  the  telegraph  school  in- 
stituted in  connection  with  the  offices  in  San  Jaun.  The  system 
is  self-sustaining. 

Wages  are  better  now  than  they  were  during  the  times  of  the 
Spaniards.  Then  the  laborers  were  paid  in  pesos,  which  were 
only  worth  66  2-3  cents,  while  now  all  labor  is  paid  in  gold,  so 
that  the  laborer  obtains  the  difference.  The  wages  of  mechanics 
and  other  employees  are  higher.  The  purchasing  power  of  the 
gold  dollar  for  the  necessaries  of  life  is  about  the  same  as  was 
that  of  the  peso,  although  it  is  true  that  luxuries  are  somewhat 
higher  than  under  the  former  dominion,  and  there  has  been  a 
slight  increase  in  the  cost  of  living.  But  all  employers  of  large 
numbers  of  men  are  practically  unanimous  in  testifying  that  the 
laboring  people  of  the  island  now  buy  more  things  and  of  a  better 
quality  than  formerly.  In  addition  to  this,  their  work  is  more 
steady,  and  they  are  much  more  ambitious  in  bettering  their  homes 
than  they  used  to  be.  They  dress  better  and  generally  are  living 
in  a  more  advanced  manner. 

The  health  reports  show  a  decrease  in  the  death  rate,  and 
bear  witness  to  the  fact  that  under  prevailing  sanitary  methods 


316         THE  NONCONTIGUOUS  TKUHIToin    OF  TBI  INITKD  STATES. 

the  average  death  rate  from  January  1,  1903,  to  May  1,  1904, 
was  23.01  per  1,000.  The  hospital  service  has  been  very  greatly 
improved,  modern  operating  rooms  and  conveniences  having  suc- 
ceeded the  most  primitive  methods  under  the  old  sovereignty. 
There  is  now  a  careful  inspection  of  food,  and  it  is  said  thut 
upon  the  question  of  pure  food  Porto  Rico  stands  in  a  more 
advanced  state  than  many  States  of  the  Union.  Smallpox  has 
been  practically  eradicated,  there  is  no  yellow  fever,  and,  thanks 
to  American  government,  there  is  a  practical  immunity  from 
those  diseases  which  usually  afflict  the  Tropics.  Successful  effort 
is  now  being  made  to  stamp  out  a  form  of  parasitical  anemia 
which  has  existed  in  Porto  Rico  for  many  years,  and  it  is  be- 
lieved that  ere  long  even  further  improvement  will  be  had  in 
the  physical  condition  of  the  people. 

In  the  times  of  the  Spaniards  no  provision  was  made  for  in- 
digent blind,  and  all  charitable  institutions  were  conducted  upon 
standards  abhorrent  to  the  improved  American  ideas.  A  blind 
asylum  has  just  been  established  and  all  charitable  work  has 
been  systematized.  A  boys'  charity  school,  with  three  hundred 
inmates,  is  now  housed  in  a  commodious  building;  these  boys  are 
taught  to  be  self-supporting.  In  the  girls'  charity  school  200 
orphans  are  being  educated,  learning  to  be  useful  and  good  women. 
The  insane  are  looked  after  as  well  as  they  are  in  any  State,  and 
the  few  lepers  that  there  were  in  the  island  have  been  made  com- 
fortable on  an  island  near  San  Juan.  The  management  of  this 
leper  colony  is  said  to  be  equal  to  that  of  the  best  in  the  civil- 
ized world. 

Nothing  is  more  important  than  education,  before  referred  to 
in  this  article.  Spain  never  built  a  schoolhouse  during  her  oc- 
cupation of  Porto  Rico,  and  the  systems  of  education  provided 
under  her  sovereignty  were  inadequate,  lax,  and  bad.  About  1897, 
she  attained  her  maximum  enrollment  of  children,  which  num- 
bered 22,000.  Under  American  occupation  an  excellent  normal 
school  has  been  established,  more  than  40  schoolhouses  have  been 
erected,  and  this  year  the  enrollment  of  children  will  reach  75,- 
000.  Nearly  fourteen  hundred  school-teachers  were  employed 
during  the  school  year,  and  during  the  fiscal  year  enaing  July  1, 
1903,  there  was  actually  spent  in  the  island  $817,814.64  for  edu- 
cation. Industrial  classes  are  being  established  with  a  view  to 
teaching  the  boys  useful  trades  and  at  the  same  time  developing 
their  minds.  The  government  of  the  island  is  also  educating  45 
Porto  Rican  youths  in  the  United  States.  These  boys  are  scat- 
tered in  the  various  States  in  the  Union.  They  are  doing  well 
and  when  their  studies  are  completed  it  is  expected  that  they 
will  return  to  the  island  to  exert  a  strong  influence  among  the 
people. 

The  War  Department  at  Washington  has  withdrawn  nearly 
all  of  the  regular  troops  from  the  island,  their  presence  not  being 
necessary  for  the  maintenance  of  order.  But  there  is  left  the 
Porto  Rico  provisional  regiment,  a  body  of  enlisted  native  Porto 
Ricans  who  are  organized  under  a  special  act  of  Congress  and 
under  command  of  field  officers  from  the  line  of  the  Regular  Army. 
The  Porto  Ricans  make  excellent  soldiers,  are  very  proud  of  their 
uniform,  and  are  looked  upon  by  their  officers  as  brave  and 
loyal  men. 

Porto  Ricans  are  also  admitted  to  the  Military  Academy  at 
West  Point  and  to  the  Naval  Academy  at  Annapolis.  A  number 
of  young  men  are  striving  to  earn  admission,  realizing  the  honor 
the  opportunity  affords. 

One  of  the  defects  of  the  old  civilization  was  the  vast  exient 
to  which  concubinage  existed  among  the  illiterate  country  people. 
This  has  improved  since  the  American  occupation,  and  recently 
legislation  has  been  enacted  by  which  it  is  unnecessary  to  procure 
a  marriage  license  prior  to  marriage,  provided  the  priest  or 
clergyman  or  official  who  performs  the  marriage  service  keeps 
the  necessary  statistical  record  and  files  the  same  with  certain 
designated  official  records.  The  result  of  this  legislation  will  be 
a  very  large  number  of  marriages. 

The  appended  tables  show  the  commerce  of  Porto  Rico  for  the 
years  1893  to  1903,  with  the  exception  of  1898— the  year  of  the 
war — for  which  no  accurate  data  are  obtainable,  and  with  the 
United  States  for  a  like*  period.     From  them  it  will  be  observed 


.     THE  NONCONTIGUOUS  TERRITORY  QF  THE  UNITED  STATES.  317 

that  in  1893  the  total  commerce  of  the  island  amounted  to  $32,- 
873,542,  the  imports  exceeding  the  exports  by  $554,934,  and  that 
the  largest  trade  the  island  ever  enjoyed  was  in  1897,  when  it 
reached  a  total  of  $34,943,232,  and  with  a  balance  in  its  favor.. 
Owing  to  the  war  the  year  ending  June  30,  1899,  showed  a  de- 
cline to  $19,962,460,  and  the  disastrous  hurricane  of  August  of 
that  year,  with  which  the  world  is  familiar,  still  further  reduced 
the  surplus  products,  1900  showing  a  total  trade  of  but  $16,602,- 
004,  of  which  but  $6,612,499  was  exports.  In  spite  of  the  fact  that 
the  hurricane  practically  destroyed  the  coffee  plantations  and  did 
untold  damage  to  sugar,  the  two  principal  products  of  the  island, 
and  financially  wrecked  most  of  the  planters,  under  American 
rule  the  output  has  steadily  and  rapidly  increased  until  in  1903, 
after  four  years,  it  has  reached  $29,395,497,  with  a  balance  of 
trade  in  favor  of  the  island  of  $496,165,  the  greatest  in  its  history. 

While  fostering  the  industries  of  the  island  and  directing  her 
prosperity  the  United  States  has  made  for  herself  a  market  for 
agricultural  products  and  manufact1  _d  articles,  supplying  in 
1903  80  per  cent  of  all  such  go  lis  purchased  by  Porto  Rico, 
against  20  per  cent,  in  1897.  jlii  fiv„e  years  the  consumption  of 
American  breadstuff s  has  increased  50  per  cent,  provisions  and 
agricultural  products  60  per  cent.,  cotton  manufactures  from  $3,- 
723  to  $2,044,470,  leather  manufactures  from  $6,112  to  $309,836, 
coal,  fish,  oils,  paper,  wines  and  liquors,  chemicals  and  drugs,  and 
wood  manufactures  from  practically  nothing  to  a  total  of  a 
million  and  a  half  per  annum. 

Naturally  most  of  this  trade  was  taken  from  Spain,  her  ex- 
ports to  the  island  of  cotton  manufactures  dropping  from  $9,772,- 
699  in  1897,  the  year  before  American  occupation,  to  $53,657  in 
1903;  wood  manufactures  from  $529,554  to  $1,801,  shoes  from 
$5,255,620  to  practically  nothing,  oils  from  $751,681  to  $51,210, 
wines  from  $845,462  to  $29,070,  preserved  meats  from  $791,745  to 
$12,056.  The  United  States  is  also  supplying  most  of  the  articles 
formerly  imported  from  the  United  Kingdom,  Germany,  Cuba,  and 
the  Netherlands.     The  island's  imports  from  the  principal  coun- 


tries  for   1897  and  190 

3  were  as 

follows : 

Country. 

1897. 

1903. 

Spain 

$6,901,695 

1,694.303 

1,268.592 

668,533 

149,925 

207,932 

2,181,024 

$793,061 

United  Kingdom 

318,839 

155  917 

Cuba 

5,482 

Netherlands 

7.120 

France 

259,992 

United  States 

12,246,226 

France  is  the  only  country  that  has  retained  her  trade,  due 
largely  to  the  French  Railroad  Company,  the  only  public  line  in 
operation  on  the  island. 

Naturally  the  United  States  has  opened  her  markets  to  the 
surplus  products  of  the  island.  In  1897,  the  United  States  took 
but  $22,489  worth  of  coffee ;  in  1903,  $718,531 ;  fruits  and  nuts, 
$61  against  $287,583;  sugar,  $1,577,911  against  $7,466,579,  and 
cigars  none  in  1897  against  $1,746,483  in  1903.  As  the  United 
States  produces  no  coffee  nor  .tropical  fruit  the  Porto  Ricans 
do  not  come  into  competition  with  her  agriculturists  in  the  ad- 
mission of  these  articles.  To  supply  home  consumption  the 
United  States  must  import  $75,000,000  worth  of  sugar  annually, 
so  that  the  supplying  of  10  per  cent,  of  this  article  in  a  crude 
state  for  refining  in  the  United  States,  and  an  invasion  by  Porto 
Rico  of  the  United  States'  markets  for  Cuban  cigars,  is  a  very 
small  concession  for  the  markets  opened  to  America  for  $12,000,- 
000  annually  of  agricultural  products  and  manufactured  articles. 
This  trade  with  the  United  States-  is  carried  on  solely  in  Ameri- 
can vessels,  and  has  developed  steamship  lines  from  New  York 
and  New  Orleans.  In  1897  less  than  10  per  cent,  of  the  commerce 
with  the  island  was  carried  in  American  boicoms;  in  1903  it  was 
80  per  cent. 

It  must  be  borne  in  mind  that  the  island  is  self-supporting  and 
that  Congress  appropriates  only  for  the  maintenance  of  one  regi- 
ment of  soldiers,   so  this  already  large  and  steadily  increasing 


818         TIIE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES. 

commerce  is  practically  a  not  gain  to  the  farmers  and  manu- 
facturers of  the  United  States. 

In  addition  to  these  advantages  the  United  States  has  secured 

a   valuable  naval  base.  nnd.   from   8      mitarian  standpoint,  the 

satisfaction  of  uplifting  a  million  people  who  under  Spanish  rule 
were  but  little  better  than  serfs. 

The  island  does  not  owe  a  dollar  and  has  never  cost  Uncle 
Sam  a  cent.  When  the  Americans  came  they  found  $3.80  in  gold 
in  the  treasury.  On  May  1,  1004,  there  was  a  balance  of  $370,883 
in  the  treasury  of  current  revenues  and  $005,070  of  trust  funds, 
or  a  total  of  $984,953  cash  on  hand. 

These  constitute  some  of  the  signs  of  progress  in  the  few 
years  of  American  sovereignty.  The  large  majority  of  the  peo- 
ple are  grateful  for  the  blessings  of  good  government,  where  free 
speech,  a  free  press,  an  independent  judiciary,  a  just  tax  system, 
an  honest  public  service,  a  jury  system,  the  writ  of  habeas  cor- 
pus, free  schools,  and  just  laws  have  superseded  the  scourges  of 
four  centuries  of  oppression. 

Under  such  conditions  it  is  not  to  be  wondered  at  that  the 
names  of  McKinley  and  Roosevelt  mean  to  the  people  confidence 
and  hope. 

Total    commerce    of    the    island    of    Porto    Rico,    1893    to    1903, 

inclusive. 


Year. 

Imports. 

Exports. 

1893 

$!6,714.238 
19.086,336 
16.835,453 
18,282.690 
17,233.030 

$16,159,304 

1894    

16.690,191 

1895  .                

15.245.639 

1896 

19.341,430 

1897 

16,710.202 

1898 

1899 

9,805.919 
9.989.505 
8.366.230 
13,209,610 
14.449,696 

10,156,541 

1900 

6.612.499 

1901 

8.583.967 

1902 

12.352.612 

W03 

14,945.831 

*  The  year  of  the  great  hurricane. 


Total    commerce    of    the    island    of   Porto    Rico,    1893    to    1903, 

inclusive. 


Year. 

Imports  from 
United  States. 

Exports  to 
United  States. 

1893 

$4,008,623 
3.135.634 
1.506.512 
2.296.653 
2.181.024 
2,414,356 
3.179,827 
3,078,648 
7,413.502 
10.882,653 
12.246.225 

$2,510,607 

1894 

2,720.508 

1895 

1,833,544 

1896 

£2.102,094 

1897 

1,988.888 

1898 

1,505.946 

1899"" 

2,685.848 

1900 

4.640.449 

1901 

5.581,288 

1902 

8.297.422 

1903 

10.919.147 

TRADE  RELATIONS    OF    THE    UNITED  STATES  WITH  ITS 
NONCONTIGUOUS  TERRITORY. 

[From  Annual  Review  of  Foreign  Commerce  of  United  States,  1903.] 


The  trade  relations  with  the  noncontiguous  territories  of  the 
United  States  have  been,  during  the  past  year,  for  the  first  time 
fully  and  definitely  recorded.  The  enactment  by  Congress  in  1902, 
upon  the  recommendation  of  the  Bureau  of  Statistics,  of  a  law 
requiring  persons  engaged  in  commerce  with  the  noncontiguous 
territories  of  the  United  States  to  present  reports  similar  to  those 
required  in  commerce  with  foreign  countries,  has  enabled  an  ac- 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES. 


319 


curate  measurement  to  be  made  of  the  quantity  and  value  of  mer- 
chandise being  forwarded  to  and  received  from  each  of  the  terri- 
tories in  question.  These  reports  show  that  the  commerce  with 
the  noncontiguous  territories,  including  in  that  term  Alaska, 
Porto  Rico,  the  Hawaiian  and  Philippine  islands,  Guam,  and 
Tutuila  of  the  Samoan  group,  aggregated  $100,000,000  in  the  fiscal 
year  1903,  including  about  $5,000,000  of«old  produced  from  the 
mines  of  Alaska  and  received  in  the  United  States  from  that  terri- 
tory. To  Alaska  the  total  shipments  of  the  year  were  $9,497,721, 
and  from  Alaska  the  receipts  of  merchandise  were  $10,228,069,  and 
of  domestic  gold  $4,719,579.  This  being  the  first  year  in  which  an 
official  record  of  the  shipments  to  and  receipts  from  Alaska  was 
made,  no  comparison  can  be  had  with  official  statistics  of  earlier 
years.  From  Alaska  the  principal  articles  of  merchandise  received 
were  canned  salmon,  $8,410,931 ;  other  fish,  $674,658,  and  furs  and 
fur  skins,  $423,606 ;  of  the  shipments  to  Alaska  the  principal  items 
were  iron  and  steel  manufactures,  $2,311,678 ;  provisions,  $969,773 ; 
wood  and  manufactures  thereof,  $692,814,  and  tin  and  manufac-. 
tures  thereof,  $420,316. 

To  the  Hawaiian  Islands  the  shipments  of  merchandise  aggre- 
gated $10,840,472,  against  $13,509,148  in  1900,  the  latest  year  in 
which  an  official  record  is  available.  From  the  Hawaiian  Islands 
the  receipts  of  merchandise  were  $26,242,868  in  value,  against 
$24,730,060  in  the  preceding  year.  Sugar  formed  the  principal 
item  in  the  merchandise  received  from  the  Hawaiian  Islands,  be- 
ing $25,310,684,  out  of  a  total  of  $26,242,868.  The  shipments  to  the 
Hawaiian  Islands  included  merchandise  of  all  classes,  the  largest 
items  being  breadstuffs,  $1,456,571 ;  iron  and  steel  manufactures, 
$1,149,505;  cotton  manufactures,  $1,022,116,  and  manufactures  of 
wood,  $815,290. 

To  Porto  Rico  the  shipments  were  larger  than  in  any  preceding 
year,  being  $12,246,225  against  $10,882,653  in  the  preceding  year, 
while  the  receipts  of  merchandise  from  Porto  Rico  weFe  $11,- 
057,195  against  $8,378,766  in  the  preceding  year.  Of  the  mer- 
chandise received  from  Porto  Rico  the  largest  item  was  sugar  and 
molasses,  $7,847,558,  and  tobacco,  $1,890,391.  Of  the  shipments  to 
Porto  Rico  the  principal  items  were  cotton  manufactures,  $2,044,- 
470 ;  provisions,  $1,463,121 ;  breadstuffs,  $1,185,313,  and  iron  and 
steel  manufactures,  $1,434,350. 

To  the  Philippine  Islands  the  exports  of  the  year  amounted  to 
$4,039,909,  of  which  the  largest  items  were  iron  and  steel  manu- 
factures, $657,354;  provisions,  $127,936;  mineral  oils,  $265,624; 
cotton  manufactures,  $316,570,  and  breadstuffs,  $278,891.  From 
the  Philippine  Islands  the  value  of  the  merchandise  received  was 
$11,372,584,  against  $6,612,700  in  1902  (of  which  $10,931,186  was 
manila  hemp,  against  $6,318,470  in  1902). 

The  tables  which  follow  show  the  commerce  of  the  United 
States  with  Porto  Rico  and  the  Hawaiian  and  Philippine  islands 
for  a  term  of  years : 

Commerce  of  the  United  States  with  Porto  Rico  and  the  Hawaiian 
and  Philippine  Islands  from  1897  to  1903. 


Year 

Commerce  with 
Porto  Rico. 

Commerce  with  the 
Hawaiian  Islands. 

Commerce  with  the 
Philippine  Islands. 

ending 
June  30— 

Imports 

into  U.  S. 

from 

Porto 

Rico. 

Exports 
from 

U.  S.  to 
Porto 
Rico. 

Imports 

into  U.  S. 

from 

Hawaii. 

Exports 

from 
U.  S. to 
Hawaii 

Imports 
into  U.  S. 
from 
Phillip- 
pines. 

a  Exports 

from 
U.  S.  to 
Philip- 
pines. 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

$2,181,024 
2.414.356 
3.179.827 
3,078.648 
5,883.892 
8.378.766 
11,057,195 

$1,988,888 
1.505.946 
2,685,848 
4,640.449 
6,861,917 
10,882.653 
12,246,225 

$13,687,799 
17,187.380 
17,831,463 
20,707,903 
27.903,058 
24.730,060 
26,242,869 

$4,690,075 
5,907.155 
9.305,470 
13,509.148 
(b) 
(b) 
10.840,472 

$4,383,740 
3.830,415 
4.409,774 
5,971.208 
4.420.912 
6.612,700 

11,372,584 

$94,597 
127.804 
404.193 
2.640,449 
4.027.064 
5.251.867 
4.039.909 

a  Does  not  include  supplies  sent  by  the  Government, 
b  No  data. 

Importation  of  Tropical  Products. 

The  growing  dependence  of  the  United  States  upon  the  Tropics 
for  a*fciel€W  for  ftfdd  and  for  use  in  manufacturing  is  again  illus- 


320         THE  NONCONTIGUOUS  TERRITORY  (U    THE  UNITED  STATES. 

trated  by  the  fiscal  year  VMrx  A  latger  quantity  of  sugar  was 
brought  into  the  United  States  in  liXKi  than  in  any  year  of  our 
history,  :iiul  an  nnnsnally  large  proportion  was  cane  sn^ar  of 
tropical  production.  The  total  amount  of  Cane  sugar  brought  into 
the  United  States  during  the  year,  including  that  from  the  ll-i 
waiian  and  Philippine  islands,  was  5,076,6o4,049  pounds,  of  which 
the  Hawaiian  Islands  *>ntributod  774,825,420  pounds,  the  Philip- 
pine Islands  1S.773.333  pounds,  and  Porto  Pico  2:M,  143,508  pounds. 
In  many  articles  of  tropical  production  the  imports  of  1903  ex- 
ceeded those  of  earlier  years. 

The  table  which  follows  shows  the  value  of  articles  of  the  im- 
ports of  tropical  and  subtropical  production  in  order  of  magnitude 
in  1903,  compared  with  earlier  years: 


Value  of  principal  imports  of  tropical  and  subtropical  articles  at 
(jiiiiKjuennial  periods  from  1870  to  1900,  and  in  1903. 


Articles. 

Year  ending  June  30— 

1870. 

1890. 

1900. 

1903.  b 

Sugar  and  molasses  a 

$69,802,601 
24.234,879 
3,017,958 
1,376,762 
3,459,665 
7,416,592 
4,181,736 
13,863,273 

331.573 
2.511,334 
1,288,494 

418.064^" 
1,513,126 

670,131 
1.007,612 

$82,915,044 

78,267.432 

24,331.867 

11,011,790 

14.854,512 

20,746,471 

21,710.454 

12,317.493 

1.392,728 

3,221.292 

5,697,280 

2.859,642 

•fe.223.071 

'■"2.546,674' 

1.588,767 

1,741,383 

1,453,298 

794,503 

909,582 

1,943,272 

1,827,937 

559.867 

1.108,726 

282,775 

416.718 

$85,949,891 

52,467,943 

45,329,760 

24,277,262 

31.792,697 

19.263.592 

15.661,360 

10,558.110 

7,960,945 

6,320,711 

6,884,704 

6,210,985 

3.401,265 

2.430,702 

2,279.036 

1,909,483 

1,736,458 

2,189,721 

1,667.256 

1,049,034 

1,083,644 

1,446,490 

1,209,334 

411,029 

563,065 

536.303 

$107,282,112 

Coffee 

63,408.238 

Silk 

50  01 1  050 

Fibers 

31.613.240 

30,659,110 

Fruits  and  nuts 

23,726  636 

22,547  104 

Tea 

15,659  229 

11  998  653 

Vegetable  oils y. 

11.643.691 
10  594  647 

Cocoa,  and  mfrs  of 

8,257.441 

4  815  125 

4  035  300 

3  061  473 

Cork,  and  mfrs  of 

2.567,580 

Feathers 

2,476.659 

1,776,908 

2,340,436 
1,545.167 

Licorice 

1  396  721 

Dyewoods  and  extracts 

Indigo 

1,337,093 
1,203.664 

1,417,770 
1,202.451 

Vanilla  beans 

1,032,654 

Sago,  tapioca,  etc 

388,621 

618,221 

549,753 

540,710 

Total 

$139,800,086 

$297,716,578 

$334,590,780 

$414,696,281 

a  Only  cane  sugar  not  above  No.  16  Dutch  standard  in  color,  and  molasses. 
b  Includes  articles  from  Hawaii  and  Porto  Rico. 


The  figures  in  the  table  do  not  include  articles  received 
from  Hawaii  and  Porto  Rico  during  the  years  1902  and  1903,  those 
islands  being  now  customs  districts  of  the  United  States,  and  there- 
fore merchandise  from  them  is  not  considered  as  imports  into  the 
United  States.  The  principal .  article  of  tropical  production  re- 
ceived from  Porto  Rico  and  the  Hawaiian  Islands  is  sugar,  of 
which  the  quantity  received  from  Porto  Rico  in  1902  was  183,- 
817,049  pounds,  valued  at  $7,999,853;  from  Hawaii,  720,553,357 
pounds,  valued  at  $24,147,884 ;  in  1903,  from  Porto  Rico,  220,143,508 
pounds,  valued  at  $10,741,533;  from  Hawaii,  774,825,420  pounds, 
valued  at  $25,065,738. 

While  the  table  shows  a  large  increase  in  the  value  of  tropical 
and  subtropical  products  imported,  the  actual  growth  can  be  better 
determined  by  an  examination  of  the  quantities  of  the  various 
articles  imported.  In  a  large  proportion  of  the  cases  prices  have 
greatly  decreased,  and  consequently  the  figures  of  values  do  not 
show  the  real  growth.  Sugar,  for  example,  shows  a  comparatively 
small  increase  in  value  during  the  period  from  1870  to  1903,  while 
the  quantity  shows  a  very  large  increase,  and  this  is  true  in  a 
less  degree  of  other  articles. 

The  table  which  follows  shows  the  quantities  of  principal  arti- 
cles of  tropical  and  subtropical  growth  imported  at  quinquennial 
periods  from  1870  to  1900,  and  in  1902  and  1903; 


THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  321 

Quantities  of  principal  articles  of  tropical  and  subtropical  growth 
imported  from  1870  to  1903. 


Year  ending  June  30— 

Articles. 

1870. 

1880. 

1890. 

1900. 

1903. 

1.196.622,049 

1.829.286,030 

2,332.820,896 

3,305,087,796 

5.076.603,529 

235,256,574 

446,850.727 

499,159,120 

787,991,911 

915.086,380 

Silk do. 

583,589 

2,562,236 

5,943,360 

11,259,310 

15.270,859 

India  rubber 

and  gutta 
percha...lbs. 

9,624,098 

16,828,099 

33,842,374 

58,506,569 

55,326.861 

Tobacco,  leaf 
lbs. 

6.256.540 

9.759.355 

28,720,674 

19.619,627 

34,016,956 

Cotton do. 

1,698.133 

3.547.792 

8,606,049 

67,398,521 

98,081,946 

Fibers.. .  tons. 

43,533 

111,751 

195,332 

249,306 

259,121 

Cocoa lbs. 

3,640,845 

7,403.643 

18,266,177 

41,746,872 

63,351,294 

Olive  oil. . .  gal. 

251,727 

383,131 

893,984 

967,702 

1,494,132 

Tea lbs. 

47,408.481 

72.162,936 

83.886,829 

84,845,107 

108,574.905 

Rice do. 

43,123.939 

57.006.255 

124.029,171 

116,679,891 

169,659.284 

a  Cane  sugar  under  No.  16  Dutch  standard  in  color  only;  figures, 
of  1903  include  sugar  from  Hawaii  and  Porto  Rico. 

Commerce  of  the  United  Kingdom  with  Its  Colonies,  1869  to  1902. 

This  table  shows  the  commerce  of  the  United  Kingdom  with  its 
colonies  from  1869  to  1902,  and  is  interesting  by  way  of  its  exhibit 
of  the  value  which  the  British  colonies  have  proved  as  a  market 
for  the  products  of  the  United  Kingdom.  It  will  be  noted  that  the 
exports  to  the  colonies  have  increased  from  252  million  dollars  in 
1869  to  571  millions  in  1902,  or  considerably  more  than  doubled; 
while  the  total  exports  have  increased  from  1,153  million  dollars 
in  1869  to  1,699  millions  in  1902,  an  increase  of  less  than  50  per 
cent. ;  also,  that  the  sales  of  the  Uniteu  Kingdom  to  her  colonies 
during  the  period  in  question  have  amounted  to  more  than  13  bil- 
lions of  dollars. 

Statement  showing  the  total  imports  and  exports  of  the  United 
Kingdom,  and  the  amount  imported  from  and  exports  to  her 
Colonies  during  the  past  thirty  years,  1869  to  1902. 


Year. 

Imports. 

Exports. 

Total  imports. 

Imports  from 
colonies. 

Total  exports. 

Exports  to 
colonies. 

1869 

$1,437,857,131 
1.475.802,590 
1,610.886,833 
1,726.116,521 
1,806.869.996 
1.801.007,465 
1,819.776.951 
1,825,690,362 
1.919.443,383 
*      1,794.622,816 
1.766,499,960 
2,001,248,678 
1,932.109.943 
2,009,959,922 
2,077,467,869 
1,898,025,366 
1,805,315.553 
1,702,610,586 
1.762,780,440 
1,886.429.343 
2.081.098.356 
2.047.297,603 
2,119,074,911 
2.062.392.927 
1,969.415.018 
1.987,210,018 
2.027,820,221 
2,150,063,031 
2.194,932.434 
2.289,905,792 
2.360.425,665 
2.545.545,281 
2.540.265.299 
2.571.416.135 

$342,681,854 
315,506,938 
354,984.010 
386.267.989 
394.235.759 
399.845,456 
410.849.255 
410.404,481 
435.814.531 
379.810.859 
384.174.348 
450.242.765 
445,477,755 
483,880,460 
480,233.544 
466.273.531 
410.741.034 
398,488.695 
407.806,203 
422,975,439 
473,345,335 
467.968.548 
484,045.050 
475.779,718 
;      446,596.048 
457.023.556 
464.897,767 
453,596.873 
457,586.162 
484.815,412 
§19,884.764 
533,030,835 
513.774.440 
519,708,295 

$1,153,433,750 
1.187.818.128 
1.380.016.278 
1,530,946.561 
1,513,504.689 
1.448.515.983 
1.370,466.370 
1,249.603.334 
1,228,041,906 
1,194,647,195 
1,210,704.241 
1,393.835.999- 
1,445,753,324 
1.492.364.365 
1,486.409.501 
1.440.326.242 
1,321.129.720 
1.308.891.227 
1.368.765.830 
1.453,027,603 
1,535,831,773 
1,597,438,932 
1.504,301.909 
1.419.266.868 
1,348,693.391 
1,332,378,922 
1.391.003,409 
1,422.329.445 
1.431.598.345 
1.430.819.072 
1,603.680.413 
1,724.559.874 
1.692.881.460 
1,699.570.518 

$252,531,187 

1870 

269.561.917 

1871 

270.389.037 

1872 

319.287,259 

1873 

346,240,316 

1874 

379,149.151 

1875 

373,041.611 

1876 

341.384.435 

1877 

368,647.838 

1878 

350.352.514 

1879 

323.665.917 

1880 

396,753.915 

1881 

421.834,021 

1882 

449.361.013 

1883 

439.933.016 

1884 

429.729.930 

1885 

416.034.710 

1886.. 

400.184.346 

1887 

400.367,265 

1888. .  . . : 

446.393,791 

1889 

442,053.886 

1890 

459.993,595 

1891 

454,229.956 

1892 

395,215,964 

1893 

382,425,688 

1894 

382,438,613 

1895 

370.205.123 

1896 

441,148.230 

1897 

1898 

1899 

423.212.102 
438.523,897 
458,665.678 

iSoo.. 

496.500.059 

1901 

550.490.518 

1902 

571,869,627 

Total  exports  of  United  Kingdom  to  colonies  from  1869  to  1902, 
$13,661,815,825. 


322 


l  111:  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES. 


Commerce  of  countries  commercially  adjacent  to  the  Philippine 
Islands  in  latest  available  year. 


Countries. 

Imports. 

Per  cent 

from  United 

states. 

Exports. 

Per  cent 

to  United 

States. 

British  East  Indies 

British  Australasia 

China 

$278,054,000 

258.765.000 

204.768.000 

135.322.CXX) 

146,107.000 

72.561.000 

15.782.000 

33.342.000 

13.982.000 

9.647.000 

23,703.000 

35.515.000 

No  Data 

41.964.000 

6.744.000 

1.45 
11.86 

9.26 

17.90 

.57 

1.33 

.67 

12.46 

77.53 

3.29 

$409,535,000 

280.116.000 

134.720.000 

127.326.000 

125.316.000 

95.102.000 

21.103.000 

28.672.000 

26.275.000 

10,430.000 

13,243.000 

32.250.000 

No  Data 

40.677.000 

4.142,000 

6.73 
5.57 
11.64 

Japan 

31.37 

Straits  Settlements 

Dutch  East  Indies 

12.78 

11.28 

.04 

Philippine  Islands 

Hawaiian  Islands 

40.03 
99.88 

1.45 

10.05 

Hong-Kong 

French  East  Indies 

.15 
3.81 

.01 

Total 

$1,276,256,000 

7.49 

$1,348,907,000 

12.34 

Rapid  Growth  of  Our  Commerce  with  Asia  Under  the  Republican 
Policy  of  Expansion — Growth  in  Exports  More  Rapid  Than  the 
Growth  of  Imports. 

This  table  shows  the  growth  in  commerce  of  the  United  States 
with  Asia  since  1889.  That  under  the  expansion  policy  of  the 
Government  since  1897  our  prestige  in  the  Orient  and  our  trade 
with  Asia  has  grown  very  rapidly  and  the  percentage  of  growth 
in  exports  has  been  greater  than  in  imports.  The  total  gain  in 
our  exports  to  Asia  since  1889  has  been  157  per  cent,  while  the 
growth  in  our  total  exports  to  all  parts  of  the  world  since  1889 
has  been  but  91  per  cent.  The  relative  growth  of  trade  with  each 
grand  division  is  shown  in  the  tables  on  pages  . . .  and  .... 

Our  commerce  with   Asia — Increase  in  exports  more  rapid  than 

the  increase  in  imports. 

[Prepared   by  Bureau   of  Statistics.] 


Jap 

an. 

Hongkong. 

Calendar  Year. 

Imports 
into  United 

Exports 

*  from  United 

States  to. 

Imports 
into  United 
States  from. 

Exports 
from  United 

States  from. 

States  to. 

1899 : 

$20,219,385 
17,179,524 
23.914,123 
27.196.026 
19,486,273 
28,100.725 
27,430.678 
18,214.322 
28,085,123 
23,259,486 
34,203,587 
26,315.235 
36,854,692 
40,597,582 
45.510,768 
125.07 

$5,275,501 

6,072,038 

3,889,384 

8.300,745 

8,844.589 

4,901962 

6,856,454 

10,145,909 

1<  .099,471 

10,710,165 

20,604,774 

26,492,111 

21,162,477 

21,622,603 

20,874,887 

295.31 

$1,498,653 

861,084 

617,619 

855,61* 

882,504 

888,885 

1,393  920 

794,136 

929,054 

992,714 

2,399,948 

1,296.771 

1.299,722 

2,068.196 

1,587,641 

5.94 

$3,864,224 

1890 

4,898  642 

1891 

4,812,694 

1892 

4,682,121 

1893 

4,289,687 

1894 

8,858.618 

1895 

4,462,856 

1896 

5,789,730 

1897 

5,737,763 

1898 

6699,514 

1899 

7.787,719 

1900  

9,378,289 
8, 958,878 

1901 

1902 

8.751,779 

1903 

9,792.193 
153,41 

Per  cent  of  increase 

China. 

All  Asia. 

Calendar  year. 

Imports 
into  United 
States  from. 

Exports 

from  United 

States  to. 

Imports 
into  United 
States  from. 

Exports 

from  United 

States  to. 

1899 .. 

1890 

1891 

$15,764,717 
17,750,174 
21.229,212 
19.886.164 
18,864.089 
19,837,375 
21,842,860 
17,707,317 
23,087,740 
17,388,462 
24,196,476 
22.940,397 
18.125.836 
26,182.113 
24.985,510 
58.49 

$3,254,084 
4,787,606 
8,031,606 
5,268,479 
4,875,301 
5.158,215 
3.702,922 
9,889.816 
11,276.289 
42.258,620 
15,225,294 
11,081,146 
18,175,484 
22  698,282 
14,970,138 
360.05 

$67,646,679 
63.340,309 
80,451,865 
83,574.886 
74,845.881 
72,530.886 
87.098.909 
78.177,767 
93,896.750 
94.310.501 
136,863,919 
120,378,219 
125,093,643 
142,223,176 
139.651,662 
106.44 

$21,534,847 
22,664,028 
22,075,267 

1892 

1893 

1894 

1896 

17,772,883 
19.644,782 
18,614,800 
18,746,672 

1896 

1897 

1898 

1899 

33.964,495 
40,663,119 
46,955,598 
58,843,554 

1900 

58,726,173 

1901 

1902 

69,068,723 
62,685,097 

1903 

Per  cent  of  increase 

65,466,113 
167.61 

THE  NONCONTIGUOUS  TERRITORY  OF  THE  UNITED  STATES.  323 

NEW  HONORS    FOR  THE  UNITED   STATES  AND   ITS 
FLAQ  AND  REPRESENTATIVES. 

[By  Hon.  John  Barrett,  United  States  Minister  to  Panama,  formerly 
Minister    to    Argentina    and    Siam    and    Commissioner-Gen- 
eral of  St.  Louis  Expositon.] 


The  Republican  party  is  certainly  entitled  to  great  credit  in 
the  matter  of  raising  the  prestige  and  influence  of  the  United 
States  abroad  to  a  position  in  harmony  with  its  greatness  and 
strength  at  home.  Eight  years  ago  American  ministers  and  con- 
suls, American  merchants,  missionaries,  and  travelers  in  all  parts 
of  the  earth,  particularly  in  the  great  continent  and  along  the 
extensive  coast  line  of  Asia,  did  not  receive  the  recognition  ac- 
corded to  those  of  other  great  nations.  There  was  no  appreciation 
of  the  real  standing  of  the  United  States.  Our  flag  was  little 
known  and  did  not  stand  as  a  symbol  of  power.  Our  diplomatic 
officers  failed  to  receive  the  recognition  in  foreign  countries  which 
was  given  to  those  of  England,  Germany,  and  France,  or  even  of 
Holland  and  Belgium.  Our  merchants  who  encountered  difficul- 
ties for  which  they  were  not  responsible  received  scant  satisfac- 
tion from  foreign  officials  before  whom  they  protested,  although 
they  saw  the  merchants  of  European  countries  everywhere  having 
their  rights  protected.  Our  missionaries,  although  supported  by 
the  united  church  at  home,  were  suffering  unwarranted  indignities, 
while  the  missionaries  of  European  churches  had  their  lives  and 
property  safeguarded  on  every  hand.  Our  travelers,  wishing  to 
study  foreign  parts,  never  gained  any  facilities  from  saying  that 
they  were  citizens  of  the  United  States,  while  the  travelers  of 
European  nations  were  treated  as  if  they  were  the  special  agents 
of  their  respective  governments. 

Now,  as  a  result  of  the  policies  followed  abroad  by  President 
McKinley  and  continued  by  President  Roosevelt,  together  with  the 
prestige  gained  from  the  Spanish- American  war  and  the  later  atti- 
tude of  our  Government  in  the  Philippines,  the  United  States  is 
regarded  in  the  remotest  portions  of  the  world  as  among  the  great 
nations  of  the  earth.  Our  ministers  and  consuls  stand  in  the  front 
rank  of  foreign  representatives,  and  our  merchants,  missionaries, 
and  travelers  find  themselves,  whether  in  the  heart  of  Asia,  Africa, 
or  South  America,  accorded  every  protection,  interest,  and  facility 
that  is  given  to  the  most  favored  nation.  A  tidal  wave  of  Ameri- 
can prestige  has  swept  over  the  seas,  and  even  back  into  the  in- 
terior of  strange  lands  everywhere  our  flag  stands  for  that  which 
is  best  among  all  peoples. 


We  who  have  been  entrusted  with  power  as  public  servants 
during  the  past  seven  years  of  administration  and  legislation  now 
come  before  the  people  content  to  be  judged  by  our  record  of 
achievement*— President  Roosevelt's  speech  accepting  1904  nomi- 
nation. 

The  obstructionists  are  here,  not  elsewhere.  They  may  post- 
pone but  they  can  not  defeat  the  realization  of  the  high  purpose  of 
this  nation  to  restore  order  to  the  islands  and  establish  a  just 
and  generous  government  in  which  the  inhabitants  shall  have  the 
largest  participation  of  which  they  are  capable*— ■President  Mc- 
Kinley to  Notification  Committee,  July  12,  1900. 

Under  present-day  conditions  it  is  as  necessary  to  have  cor- 
porations in  the  business  world  as  it  is  to  have  organizatons— 
unions— among  wage-workers.  We  have  a  right  to  ask  in  each 
case  only  this:  that  good,  and  not  harm,  shall  follow.— President 
Roosevelt  at  Providence,  R.  I.,  August  23,  1902. 

Protection  saves  to  the  world  the  useless  expense  and  labor  of 
shipping  products  from  one  country  to  another  and  turns  these 
into  productive  sources  of  wealth.— kludge  "William  Lawrence,  of 
Ohio,  in  the  American  economist. 

The  man  or  party  that  would  seek  to  array  labor  against 
capital  and  capital  against  labor  is  the  enemy  of  both*— Maj.  Mc- 
Kinley at   Canton,  September  18,  1896. 


324  OUR   EASTERN   DIPLOMACY. 

THE  VICTORIES  OF  OUR  EASTERN 
DIPLOflACY. 


The  Frank  nnd  Effective  Policy  of  the  United  States  In  Preserving 
China  from  Dismemberment  Four  Years  Apt— The  Restriction 
of  the  Areas  of  War  Now — The  Open  Door  nnd  n  Fulr  Chance 
for  Trade — Secretary  Hay's  Brilliant,  Peaceful  Achievements. 

The  most  recent  stroke  of  our  diplomacy  in  the  Far  East, 
whereby  assurances  have  been  secured  that  the  neutrality  of 
China  and  her  administrative  entity  in  all  practicable  ways  will 
be  respected  by  Japan  and  Russia,  and  that  the  area  of  hostilities 
will  be  limited  as  much  as  possible,  recalls  the  preceding  force- 
ful, far-seeing,  and  thoroughly  American  diplomatic  achievements 
of  Mr.  Hay.  Washington,  in  his  memorable  farewell  address, 
formulated  the  basic  principle  of  our  diplomacy  as  follows: 

The  great  rule  of  conduct  for  us  in  regard  to  foreign  nations 
is,  in  extending  our  commercial  relations,  to  have  with  them  as 
little  political  connection  as  possible.  So  far  as  we  have  already 
formed  engagements,  let  them  be  fulfilled  with  perfect  good  faith. 
Here  let  us  stop. 

That  rule  has  been  closely  followed  in  all  our  diplomatic 
history,  and  at  no  time  more  implicitly  than  in  handling  our 
interests  in  the  Far  East  in  recent  years. 

Our  war  with  Spain  brought  the  nation  to  self-consciousness 
as  no  other  event  in  our  history  had  done.  That  short  but 
momentous  conflict  aroused  us  to  a  realization  of  the  fact  that 
more  than  a  century  of  remarkable  internal  industrial  develop- 
ment had  rendered  us  an  important  factor  in  the  world  system. 

While  engaged  in  this  course  of  self-development  we  had  been 
but  half  conscious  that  a  gradual  but  steady  absorption  of  many 
of  the  best  markets  of  trade  and  commerce  by  the  aggressive 
maritime  powers  of  Europe  had  been  going  on,  and  that  there 
was  great  danger  that  our  nation  might  find  itself  confined 
practically  to  the  home  market  for  its  products.  What  was  to 
become  of  the  largely  increasing  productions  of  factory,  loom, 
and  farm,  with  most  of  Africa,  large  portions  of  South  America 
and  Asia  practically  preempted  by  colonization,  "spheres  of  in- 
fluence," and  the  like,  by  the  aggressive  powers  of  Europe?  Where 
could  the  United  States  look  for  a  legitimate,  open  field  for  the 
exercise  of  her  now  fully  matured  commercial  powers? 

These  problems  had  received  the  careful  consideration  of 
statesmen  and  students  of  the  course  of  events  long  before  the 
guns  of  Dewey  awakened  us  to  self-consciousness.  Their  suc- 
cessful solution  was  of  vital  importance  to  the  commercial  pros- 
perity of  our  country. 

In  1899  a  fair  solution  was  advanced  by  Mr.  Hay  by  the  initi- 
ation of  the  "open-door"  policy,  the  success  of  which  has  won 
him  a  well-merited  renown. 

China,  recently  become  a  near  neighbor,  was  a  natural  field 
for  the  extension  of  our  trade  relations  and  the  development  of 
our  industrial  activities.  For  centuries  it  had  been  almost  a 
hermit  nation  hedged  about  by  walls  of  conservatism  stronger 
than  its  wall  of  stone.  Gradually,  however,  she  had  been  open- 
ing her  ports  and  engaging  in  international  trade  on  an  increas- 
ing scale.  But  already  Great  Britain,  Russia,  and  Germany  had 
gained  special  advantages  and  exclusive  privileges  in  portions  of 
China,  and  the  danger  was  imminent  that  the  Empire  might  be 
totally  dismembered  or  divided  among  those  and  other  powers 
under  the  guise  of  "spheres  of  influence." 

TRIUMPH   OF  THE   OPEN-DOOE  POLICY. 

To  meet  and  prevent  if  possible  such  a  contingency  Mr.  Hay 
addressed  the  governments  of  Great  Britain,  Russia,  Germany, 
Italy,  and  Japan  through  the  medium  of  our  diplomatic  repre- 
sentatives in  those  countries,  in  September,  1899,  suggesting  that 
as  he  understood  it  to  be  the  settled  policy  and  purpose  of  those 


OUR  EASTERN"  DIPLOMACY.  325 

countries  not  to  use  any  privileges  which  may  be  granted  to 
them  in  China  as  a  means  of  excluding  any  commercial  rivals, 
and  that  freedom  of  trade  for  them  in  that  Empire  means  free- 
dom of  trade  for  all  the  world  alike,  he  considered  that  the 
maintenance  of  this  policy  is  alike  urgently  demanded  by  the 
commercial  communities  of  the  several  nations  and  that  it  is  the 
only  one  which  will  improve  existing  conditions  and  extend 
their  future  operations.  He  further  suggested  that  it  was  the, 
desire  of  this  Government  that  the  interests  of  its  citizens  may 
not  be  prejudiced  through  exclusive  treatment  by  any  of  the  con- 
trolling powers  within  their  respective  "spheres  of  interest"  in 
China,  and  that  ft  hopes  to  retain  there  an  open  market  for  all 
the  world's  commerce,  remove  dangerous  sources  of  international 
irritation,  promote  administrative  reforms  which  were  so  greatly 
needed  for  strengthening  the  Imperial  Government  and  maintain- 
ing the  integrity  of  China.  He  accordingly  proposed  to  these 
various  powers  that  a  declaration  by  each  of  them  of  their  in- 
tentions in  regard  to  the  treatment  of  foreign  trade  and  commerce 
in  their  "spheres  of  interest"  be  made  substantially  to  the  fol 
lowing  effect: 

"1.  That  it  will  in  no  wise  interfere  with  any  treaty  port  or 
any  vested  interests  within  any  so-called  "sphere  of  interest'  or 
leased  territory  it  may  have  in  China. 

"2.  That  the  Chinese  treaty  tariff  of  the  time  being-  shall 
apply  to  all  merchandise  landed  or  shipped  to  all  such  ports  as 
are  within  such  'sphere  of  interest'  (unless  they  be  'free  ports'), 
no  matter  to  what  nationality  it  may  belong,  and  that  duties  so 
leviable  shall  be  collected  by  the  Chinese  Government. 

"3.  That  it  will  levy  no  higher  harbor  dues  on  vessels  of 
another  nationality  frequenting  any  port  in  such  'sphere'  than 
shall  be  levied  on  vessels  of  its  own  nationality,  and  no  higher 
railroad  charges  over  lines  built,  controlled  or  operated  within  its 
'sphere'  on  merchandise  belonging  to  citizens  or  subjects  of  other 
nationalities  transported  through  such  'spheres'  than  shall  be 
levied  on  similar  merchandise  belonging  to  its  own  nationals, 
transported  over  equal  distances." 

By  December  of  that  year  replies  had  been  received  from  all 
those  governments  giving  cordial  and  full  assurance  of  the  prin- 
ciples suggested  by  our  Government.  The  expressions  of  the 
Government  of  Germany  were  especially  cordial,  and  in  his  note 
of  February  19,  1900,  Count  von  Bulow,  the  German  minister  for 
foreign  affairs,  said:  "Gladly  complying  with  your  wish,  I  have 
the  honor  to  inform  your  excellency  *  *  *  that  the  Im- 
perial Government  has,  from  the  beginning,  not  only  asserted 
but  also  practically  carried  out  to  the  fullest  extent  in  its  Chinese 
possessions  absolute  equality  of  treatment  of  all  nations  with 
regard  to  trade,  navigation,  and  commerce.  The  Imperial  Gov- 
ernment entertains  no  thought  of  departure  in  the  future  from 
this  principle  *  *  *  and,  upon  being  requested,  will  gladly 
*  *  *  participate  with  *  *  *  the  other  powers  in  an 
agreement  made  upon  these  lines  by  which  the  same  rights  are 
reciprocally  secured." 

This  great  triumph  in  favor  of  equality  of  treatment  for  the 
commerce  of  the  nations  was  scarcely  won  when  the  world  was 
startled  by  reports  of  frightful  massacres  and  atrocities  being 
perpetrated  by  the  "Boxers"  upon  all  foreigners  in  China  in  the 
early  part  of  1900.  The  Central  Government  of  that  country,  too 
weak  or  indifferent  to  restrain  its  subjects  or  to  afford  protec- 
tion to  foreign  residents,  abandoned  the  administration  of  the 
Government  and  fled  for  personal  safety  to  an  inaccessible  refuge, 
leaving  to  the  provincial  governors  or  viceroys  the  difficult  duty 
of  handling  locally  the  affairs  of  the  country.  Practical  anarchy 
prevailed,  and  a  feeling  was  rapidly  developing  among  some  of 
the  powers  that  the  situation  justified  a  movement  on  the  part 
of  the  powers  to  take  possession  of  the  country  for  the  purpose 
of  restoring  order  and  enforcing  due  reparation  for  the  wanton 
destruction  of  lives  and  property  of  their  nationals,  and,  once 
in  possession,  it  was  thought  and  hoped  that  an  indefinite  period 
would  be  necessary  to  restore  an  improved  order  of  things. 

THE  BOXER  NEGOTIATIONS. 

While  great  anxiety  and  uncertainty  prevailed  and  the  nations 
stood  aghast  at  the  frightful  fate  which  seemed  almost  inevitably 
to  await  the  entire  diplomatic  corps  and  all  the  other  foreigners 
in  Peking,  and  the  ancient  Empire  seemed  tottering  to  its  fall, 


326  OUB  EASTERN  DIPLOMACY. 

there  appeared  a  clear,  calm  note  addressed  by  our  Secretary  of 
State  on  July  3,  1900,  to  all  powers  having  Interests  in  China, 
containing  a  statement  of  the  position  of  our  Government  with 
respect  to  affairs  there.  It  declared  the  intention  of  the  govern- 
ment to  be  to  adhere  to  -its  well-known  policy  of  peace  with 
China,  the  furtherance  of  commerce,  the  protection  of  American 
citizens,  and  the  demand  of  full  reparation  for  wrongs  done 
them.  The  purpose  of  the  President  was  declared  to  be  to  act 
concurrently  with  the  other  powers  to  reestablish  communica- 
tion with  Peking,  to  rescue  the  Americans  there,  to  protect 
Americans  and  their  property  everywhere  in  Qiina,  and  to  pre- 
vent the  further  spread  of  disorder  in  the  Empire.  It  declared 
further  that  it  was  the  policy  of  the  Government  of  the  United 
States  to  seek  a  solution  for  bringing  about  permanent  safety 
and  peace  to  China,  preserve  Chinese  territorial  and  adminis- 
trative entity,  to  protect  all  rights  guaranteed  to  friendly  powers, 
and  to  safeguard  for  the  world  the  principle  of  equal  and  im- 
partial trade  with  all  parts  of  the  Chinese  Empire. 

The  tone  of  the  note  was  so  calm,  frank  and  reassuring  that 
it  met  with  the  most  sympathetic  and  hearty  reception,  and  it 
aided  greatly  in  encouraging  and  promoting  the  expedition  which 
successfully  undertook  the  rescue  of  the  besieged  legations  and 
the  early  restoration  of  order  and  peace  in  China.  It  was  a 
timely  anticipation  of  a  critical  state  of  affairs,  fraught  with 
momentous  consequences  politically  and  commercially,  and  it 
served  to  reenforce  respect  for  the  "open-door"  policy  and  insure 
its  continuance. 

The  negotiations  that  followed,  resulting  in  the  protocol  be- 
tween China  and  the  allies  which  was  signed  September  7,  1901, 
have  also  served  to  heighten  the  respect  of  the  nations  of  the 
world  for  the  straightforward,  frank  policy  of  the  Government 
of  the  United  States. 

In  those  negotiations  the  demands  made  by  the  powers  on 
China  for  punishment  of  those  guilty  of  instigating  or  participat- 
ing in  the  antiforeign  massecres  were  drastic  and  humiliating  in 
the  extreme,  but  by  the  skillful  endeavors  of  our  commissioners 
a  degree  of  leniency  was  secured  which,  while  insisting  upon 
adequate  punishment,  yet  saved  in  a  measure  the  self-respect 
of  the  Chinese  Government  by  providing  that  the  punishment 
should  be  inflicted  by  that  Government  itself,  and  not  by  the 
allies. 

Similar  fair  and  reasonable  consideration  for  China  was  in- 
sisted upon  by  our  representatives  in  providing  the  means  to 
prevent  the  recurrence  of  such  troubles,  the  policy  being  to  favor 
a  stable  and  responsible  government  in  China,  thereby  securing 
protection  for  our  citizens  and  our  interests  under  existing 
treaties. 

OPPOSITION-  TO  EXORBITANT  INDEMNITY. 

The  firm  stand  taken  by  our  Government  against  the  ex- 
orbitant demand  made  by  the  allies  by  way  of  indemnity  served 
to  very  considerably  reduce  the  amount  originally  demanded, 
thus  giving  to  the  Chinese  and  to  the  world  an  example  of  inter- 
ested and  unselfish  diplomacy  which  was  almost  startling.  This 
considerate  policy  with  regard  to  the  indemnity  has  been  perse- 
vered in,  for  within  a  year  the  United  States  Government  has 
generously  insisted,  in  direct  opposition  to  all  the  other  powers, 
that  the  silver  tael,  in  which  the  indemnity  was  to  be  paid  and 
which  had  fallen  very  much  in  value  since  the  protocol  was 
signed,  should  be  accepted  at  its  market  value  on  the  date  of 
the  signing  of  the  protocol. 

This  friendly  spirit  manifested  for  China  is  not  without  its 
effect  upon  her,  and  has  tended  greatly  to  strengthen  the  ties 
which  bind  the  two  nations. 

Early  in  1902  our  Government  received  information  of  the 
terms  of  a  proposed  agreement  between  China  and  Russia  with 
regard  to  Manchuria.  By  it  exclusive  rights  and  privileges  were 
to  be  given  Russia  in  that  province,  which  were  in  direct  con- 
flict with  our  treaty  rights  and  tended  to  impair  tha  sovereign 
rights  of  China  in  that  part  of  her  dominion. 

A  prompt  and  vigorous  protest  was  made  by  our  Government 
to  both  parties  to  the  agreement,  because  of  its  effect  upon  Ameri- 


OUR  EASTERN   DIPLOMACY.  •  327 

can  interests  and  those  of  the  whole  world  and  because  of 
its  conflict  with  assurances  given  with  regard  to  the  "open  door." 
This  protest  was  followed  by  a  considerable  modification  of  the 
terms  of  the  said  agreement  in  favor  of  other  nations,  and 
called  forth  from  Russia  a  renewal  of  her  assurances  that  she 
would  maintain  the  principle  of  the  "open  door." 

The  recent  commercial  treaty  negotiated  by  our  Government 
with  China,  signed  at  Shanghai  October  8,  1903,  has  further 
strengthened  and  reenforced  the  "open-door"  policy  by  removing 
many  annoying  restrictions  upon  foreign  trade,  and  simplifying 
the  methods  of  intercourse  with  the  Government  of  China,  but 
the  most  important  advantage  gained  by  that  convention  was 
the  opening  of  the  two  cities  of  Mukden  and  Antung  in  Man- 
churia as  places  of  "international  residence  and  trade."  These 
cities,  while  not  seaports,  are  important  trade  centers,  and  have 
strategic  value  commercially  in  that  province.  Events  of  diplo- 
matic importance  have  followed  one  another  In  rapid  succession 
in  the  Orient 

NEUTRALITY  OF  CHINA  IN  THE  PRESENT  WAR. 

About  the  1st  of  February  a  clash  between  Russia  and 
Japan  seemed  inevitable.  The  geographic  situation  of  those  two 
powers  made  it  evident  that  the  area  of  hostilities  would  embrace 
to  a  greater  or  less  extent  the  Empire  of  China,  and  that  China 
herself  was  likely  to  become  involved  in  the  conflict,  the  conse- 
quences of  which  might  seriously  impair  the  integrity  of  that 
Empire  and  the  benefits  which  the  "open-door"  policy  seemed 
to  assure  to  the  United  States  and  the  world. 

Quick  to  perceive  and  prompt  to  act  in  such  a  situation,  Sec- 
retary Hay,  after  some  preliminary  negotiations,  sent  the  fol- 
lowing note,  February  10,  to  the  governments  of  Russia,  Japan, 
and  China,  and  a  copy  of  it  to  other  powers  requesting  similar 
representations  to  Russia  and  Japan: 

"You  will  express  to  the  minister  of  foreign  affairs  the  earn- 
est desire  of  the  Government  of  the  United  States  that  in  the 
course  of  the  military  operations  which  have  begun  between 
Russia  and  Japan  the  neutrality  of  China,  and  in  all  practicable 
ways  her  administrative  entity,  shall  be  respected  .by  both  parties, 
and  that  the  area  of  hostilities  shall  be  localized  and  limited  as 
much  as  possible,  so  that  undue  excitement  and  disturbance  of  the 
Chinese  people  may  be  prevented  and  the  least  possible  loss  to  the 
commerce  and  peaceful  intercourse  of  the  world  may  be  occa- 
sioned." 

The  Japanese  Government  promptly  responded  on  February 
13,  saying: 

"The  Imperial  Government,  sharing  with  the  Government  of 
the  United  States  in  the  fullest  measure  the  desire  to  avoid,  as 
far  as  possible,  any  disturbance  of  the  orderly  condition  of  affairs 
now  prevailing  in  China,  are  prepared  to  respect  the  neutrality  and 
administrative  entity  of  China  outside  the  regions  occupied  by 
Russia,  as  long  as  Russia,  making  a  similar  engagement,  fulfills 
in  good  faith  the  terms  and  conditions  of  such  engagements." 

On  the  19th  of  February  Russia  replied  as  follows : 

"The  Imperial  Government  shares  completely  the  desire  to  in- 
spire tranquillity  of  China;  is  ready  to  adhere  to  an  understanding 
with  other  powers  for  the  purpose  of  safeguarding  the  neutrality 
of  that  Empire  on  the  following  conditions: 

"Firstly — China  must  herself  strictly  observe  all  the  clauses 
of   neutrality. 

"Secondly — The  Japanese  Government  must  loyally  observe 
the  engagements  entered  into  with  the  powers,  as  well  as  the  prin- 
ciples generally  recognized  by  the  law  of  nations. 

"Thirdly — That  it  is  well  understood  that  neutralization  in  no 
case  can  be  extended  to  Manchuria,  the  territory  of  which,  by  the 
force  of  events,  will  serve  as  the  field  of  military  operations." 

On  the  same  day  the  governments  of  Russia,  Japan,  and 
China  were  notified  that  the  answers  were  "viewed  as  responsive 
to  the  proposal  made  by  the  United  States  as  well  as  by  the 
other  powers,"  and  that  the  other  governments  would  be  so  in- 
formed, their  adherence  to  the  principles  having  been  duly 
notified  to  the  Government  of  the  United  States. 

This  action  gives  China  assurances  of  our  continued  friendly 
Interest  and  our  moral  support  in  her  effort  to  maintain  her 
neutrality  and  peaceful  conditions  in  her  dominions. 


328  urn  i astkun  diplomacy. 


A  CONSISTENT,   BROAD,   AND  EFFECTIVE  POLICY. 

In  this  cursory  review  of  the  diplomacy  of  our  Government 
during  the  past  four  or  live  eventful  years  of  our  history  it  is 
plainly  to  be  seen  that  a  consistent,  broad,  and  effective  policy 
of  equality  of  opportunity  in  commerce  and  navigation  in  China 
has  been  pursued  on  lines  in  complete  harmony  with  our  well- 
known  precedents  and  traditions.  Our  presence  in  the  Philip- 
pines has  necessitated  our  taking  ,an  active  and  prominent  part 
in  Asiatic  politics  by  assisting  in  the  maintenance  of  the  balance 
of  power  in  Asia  and  by  our  insistence  upon  the  integrity  of  China, 
yet  this  has  been  done  without  sacrificing  in  any  degree  our 
general  policy  of  "no  entangling  alliances." 

The  elements  that  have  entered  into  this  policy  are  notably 
simplicity,  directness,  and  openness.  It  can  be  safely  asserted 
that  the  success  which  has  attended  our  diplomacy  in  the  Far 
East — and,  indeed,  always — is  the  result  of  the  skillful  use  of 
these  elements  in  all  our  international  relations.  As  Mr.  Hay 
has  well  said,  "We  have  sought,  successfully,  to  induce  the; 
great  powers  to  unite  in  a  recognition  of  the  general  principle 
of  equality  of  commercial  access  and  opportunity  in  the  markets 
of  the  Orient,"  and  through  all  the  correspondence  on  the  "open 
door"  run  these  or  similar  plain,  frank  words,*  "to  insure  to  the 
whole  world  full  and  fair  intercourse,  with  China  on  equal  foot- 
ing." Nothing  could  be  more  simple  or  more  direct,  and  every 
detail  of  the  negotiations  has  been  given  extremely  prompt  and 
timely  publication. 

The  maintenance,  and  if  possible  the  extension,  of  the  "open- 
door"  policy  means  much  to  us  as  a  nation  and  to  the  whole 
world.  To  our  nation  it  means  an  opportunity  to  secure  enlarg- 
ing markets  for  the  products  of  our  growing  industries  on  terms 
of  equality  with  other  nations;  to  our  citizens  residing  in  or 
having  interests  in  China  it  means  increased  safety  to  life  and 
property;  to  China  it  means  the  establishment  of  a  stable  and 
responsible  government  and  its  territorial  integrity  and  com- 
plete sovereignty;  and  to  all  the  world  it  means  equality  of  treat- 
ment for  its  commerce  with  a  country  capable  of  great  expansion 
in  its  purchasing  power,  and  the  removal  of  sources  of  interna- 
tional misunderstandings,  all  of  which  make  for  the  permanent 
peace  and  prosperity  of  the  nations  of  the  earth. 


Not  open  mints  for  the  unlimited  coinage  of  the  silver  of  the 
world,  but  open  mills  for  the  full  and  unrestricted  labor  of  the 
American  workingmen. — Maj.  McKinley's  letter  of  acceptance. 

That  higher  wage  level  aimed  at  by  the  fathers  of  the  Republic, 
the  policy  of  protection,  which  they  inaugurated,  secured,  and  still 
maintain. — Hon.  George  H.  Ely,  of  Ohio,  in  the  American  Eco- 
nomist. 

Our  opponents  ask  the  people  to  trust  their  present  promises  in 
consideration  of  the  fact  that  they  intend  to  treat  their  past  prom- 
ises as  null  and  void. — President  Roosevelt's  speech  accepting  1904 
nomination. 

No  amount  of  intelligence  and  no  amount  of  energy  will  save 
a  nation  wbich  is  not  honest,  and  no  government  can  ever  be  a 
permanent  success  if  administered  in  accordance  with  base  ideals. — 
Theodore  Roosevelt  in  "American  Ideals." 

In  this  age  of  frequent  interchange  and  mutual  dependence,  we 
can  not  shirk  our  international  responsibilities  If  we  -would;  they 
must  be  met  with  courage  and  wisdom,  and  we  must  follow  duty 
even  If  desire  opposes. — President  McKinley  at  Omaha,  Oct.  12, 
1898. 

The  most  casual  observer  must  have  perceived  the  rapid  im- 
provement In  the  commercial  interests  of  the  country  which  fol- 
lowed the  enactment  of  the  Dingley  law,  an  improvement  which 
has  steadily  increased  in  degree  notwithstanding  the  adverse  In- 
fluence of  actual  war.-— Hon.  C.  W.  Fairbanks,  In  U.  S.  Senate,  June 
X  1898,  \ 


THINGS  THE  REPUBLICAN   PARTY   STANDS   FOR.  329 


SOME  OF  THE  THINGS  FOR  WHICH  THE 
REPUBLICAN  PARTY  STANDS. 


Encouragement  of  Manufactures. 


Under  the  protective  system  inaugurated  by  the  Republican 
party  in  1861,  manufacturing  in  the  United  States  has  grown  from 
less  than  2  billion  dollars  in  value  in  I860  to  over  13  billions 
in  1900.  In,  the  entire  70  years  from  the  establishment  of  the 
present  form  of  government  until  1860,  in  which  period  Demo- 
cratic control  and  low  tariffs  were  almost  continuous,  the  annual 
value  of  the  manufacturing  industries  had  never  reached  as  much 
as  2  billion  dollars.  In  a  single  decade,  from  1860  to  1870,  under 
protection,  they  doubled  in  value,  and  in  the  40  years  from  1860 
to  1900  grew  from  less  than  2  billions  to  13  billions  in  annual 
value  of  product.  These  statements  are  from  the  official  figures 
of  the  United  States  Census. 

General    Prosperity. 

The  prosperity  of  the  country  under  protection  as  compared 
with  its  condition  under  Democratic  control  and  free  trade  is  il- 
lustrated by  the  fact  that  during  all  the  70  years  of  our  govern- 
ment down  to  1860,  with  almost  continuous  Democratic  control 
and  low  tariff,  the  national  wealth  had  only  grown  to  16  billions 
of  dollars.  In  a  single  decade,  from  i860  to  1870,  under  pro- 
tection, it  nearly  doubled,  the  total  in  1870  being  30  billions,  and 
in  the  40  years  from  1860  to  1900  it  grew  from  16  billions  to  94 
billions  of  dollars.  In  the  40  years  of  almost  continuous  protection, 
the  growth  in  wealth  was  78  billions,  or  five  times  as  much  as  the 
accumulations  of  the  entire  70  years  under  practically  continuous 
Democracy  and  free  trade.  In  1860  the  per  capita  wealth  was 
only  $514;  in  1900,  $1,236.  The  development  of  the  country  and 
its  industries  during  70  years  of  almost  continuous  Democracy  and 
low  tariff  had  given  to  the  people  of  the  United  States  an  aver- 
age wealth  of  but  $514,  while  the  developments  under  40  years  of 
protection  brought  a  per  capita  to  the  vastly  increased  population 
of  $1,236. 

Money. 

The  money  of  the  country,  good  in  every  part  of  the  world 
and  everywhere  recognized  as  the  best  currency  system  of  the 
world,  amounts  to  over  2%  billion  dollars,  having  grown  from 
\y>2  billions  to  2y2  billions  since  the  Democratic  party  told  us  in 

1896  that  we  could  not  have  a  proper  increase  of  money  without 
the  free  and  unlimited  coinage  of  silver.  Since  that  date  more 
than  one  billion  dollars  have  been  added  to  the  money  in  circu- 
lation in  the  United  States.  (The  figures  for  July  1,  1896,  were 
$1,506,434,966,  and  for  April  1,  1904,  $2,516,639,223.)  In  I860 
when  the  Republican  party  assumed  control  the  total  money  in 
circulation  was  but  435  million  dollars,  and  that  of  a  very  un- 
satisfactory character.  By  1880  it  had  grown  to  973  millions, 
or  more  than  doubled,  and  today  it  is  practically  six  times  as 
much  as  when  the  Republican  party  took  control,  and  every 
dollar  is  good  as  gold  and  a^epted  throughout  the  entire  world, 
while  that  of  1860  could  not  safely  be"  accepted  at  any  consider- 
able distance  from  its  bank  of  issue.  In  1860  the  money  per 
capita  was  $13.85;  by  1892,  when  the  Democratic  party  resumed 
control  of  the  executive  and  legislative  branches  of  the  Govern- 
ment, it  had  grown  to  $24.56;  under  that  Democratic  manage- 
ment it  fell  to  $21.41  in  1896,  and  under  Republican  control  since 

1897  has  grown  to  $30.87. 

The  banking  system  of  the  United  States,  which  has  grown  up 
under  Republican  rule  in  conjunction  with  its  great  currency  sys- 
tem, is  recognized  as  the  best  and  safest  in  the  world,  and  under 
that  system,  a.  part  of  which  is  subject  to  direct  government  con 
trol  and  all  to  certain  supervision  by  State  or  National  govern- 
ments, the  deposits  in  all  classes  of  banks  have  grown  from  2 


330  THINGS  THE  REPUBLICAN    PARTY   81ANDS   FOR. 

billion  dollars  in  1S75,  the  earliest  date  for  which  complete 
figures  arc  available,  to  over  91/-  billions  in  1903,  and  doubtless 
fully  10  billions  of  dollars  at  the  present  time. 

Labor. 

Under  almost  continuous  Democracy  and  low  tariff  up  to  I860, 
the  manufacturing  industries  of  the  United  States  employed  less 
than  1  %  million  people  and  paid  to  them  but  379  million  dollars 
in  wages  and  salaries ;  in  1900,  under  protection,  the  number 
employed  was  5%  millions,  and  the  sum  paid  to  them  in  wages 
and  salaries  2,735  millions,  or  more  than  7%  times  as  much  as 
in  18G0.  With  the  prosperity  that  came  to  that  branch  of  labor 
the  earnings  of  the  farmers  were  enormously  increased  and  the 
value  of  their  property  multiplied.  In  1800,  after  70  years  of 
almost  continuous  Democracy  and  low  tariff,  the  farms  of  the 
country  were  valued  at  less  than  8  billions  of  dollars.  In  1900 
they  were  valued  at  over  20  billions  of  dollars,  an  addition  to  the 
wealth  of  the  farmer  of  the  enormous  sum  of  12 ^  billions  of  dol- 
lars, while  the  annual  value  of  the  farm  products,  which  in  1860 
was  but  about  one  billion  dollars,  was  in  1900  3%  billions.  The 
total  value  of  animals  on  farms,  which  in  the  70  years  up  to 
1860  had  only  reached  one  billion  dollars,  was  in  1903  over  three 
billions  of  dollars.  These  are  official  figures  from  the  census,  ex- 
cept those  of  1903,  which  are  from  the  official  reports  of  the  De- 
partment of  Agriculture.  Up  to  1860  the  wool  production  of  the 
United  States,  under  Democratic  free  trade,  amounted  to  only  60 
million  pounds  production  annually;  in  1902  it  amounted  to  316 
millions,  or  more  than  5  times  as  much  as  in  1860. 

Wages. 

Under  the  Republican  system  of  protection  in  the  United  States 
wages  have  enormously  increased,  and  to-day  greatly  exceed  those 
paid  in  any  otLar  country.  An  official  publication  of  the  British 
Government,  recently  issued,  showed  that  the  rates  of  wages  paid 
in  skilled  trades  in  the  great  cities  of  the  United  States  were 
79  per  cent,  higher  than  in  the  great  cities  of  the  United  King- 
dom, and  in  other  cities  and  towns,  93  per  cent,  higher  in  the 
United  States  than  in  the  same  class  of  towns  and  cities  in  the 
United  Kingdom.  The  unanimous  statement  of  the  Moseley  In- 
dustrial Commission,  made  up  of  representatives  of  the  English 
trade  unions  visiting  the  United  States  in  1902,  was  that  the  cost  of 
living  aside  from  clothing  and  rent  was  no  greater  in  the  United 
States  than  in  England,  and  that  under  the  much  higher  wages 
paid  in  this  country,  workingmen  could  doubtless  accumulate 
much  riore  here  than  in  England. 

The  relative  prosperity  of  the  working  classes  in  the  United 
States  and  the  United  Kingdom  is  illustrated  by  the  fact  that 
the  deposits  in  savings  banks  in  the  State  of  New  York  alone,  with 
7  millions  of  population,  is  more  than  in  the  entire  United 
Kingdom,  with  its  42  millions  of  people.  The  deposits  in  savings 
banks  in  the  United  Kingdom,  according  to  the  latest  official  re- 
ports, are  959  million  dollars,  and  in  the  State  of  New  York, 
according  to  the  official  report  of  the  Comptroller  of  the  Cur- 
rency, 1,112  millions. 

Home  Market. 

• 

The  protective  system  of  the  Republican  party  is  especially 
intended  to  develop  the  home  market,  and  that  it  has  done  so  is 
shown  by  the  fact  that  the  value  of  the  home  market  of  the 
United  States  to-day  is  estimated  by  the  Chief  of  the  Bureau  of 
Statistics  as  equal  to  the  entire  international  commerce  of  the 
world.  Up  to  1860,  according  to  the  same  authority,  the  home 
market  amounted  to  but  about  4  billions  of  dollars  annually, 
while  to-day  it  is  22  billions,  or  more  than  five  times  as  much. 
Under  Republican  policy  there  has  been  built  up  for  the  American 
farmer  and  manufacturer,  or  producer  of  whatever  class,  a  market 
at  his  very  doors  equal  to  the  entire  international  commerce  of 
the  world,  and  four-fifths  of  this  has  been  created  under  the  Re- 
publican protective-tariff  policy. 


THINGS  THE  REPUBLICAN   PARTY   STANDS   FOB.  33l 

Reciprocity. 

The  Republican  form  of  reciprocity  offers'  special  trade  rela- 
tions to  countries  producing  articles  which  we  require  in  excess  of 
our  own  domestic  products  and  which  will  in  exchange  give 
special  advantages  to  the  products  of  our  farms  and  factories. 
Democratic  so-called  reciprocity  proposes  mutual  reductions 
of  duties  with  countries  which  produce  like  articles,  and 
is,  therefore,  free  trade  in  competing  articles,  and  sub- 
jects our  producers  to  competition  with  foreign  countries. 
Republican  reciprocity  is  that  outlined  by  President  Mc- 
Kinley's  last  utterance  on  this  subject,  which  was  that 
it  should  be  of  a  kind  which  "will  not  interrupt  home  pro- 
duction." "We  should  take  from  our  customers,"  he  said,  "such  of 
their  products  as  we  can  use  without  harm  to  our  industries  and 
labor,"  and  by  "such  sensible  trade  arrangements  which  will  not 
interrupt  our  home  production  we  shall  extend  the  outlets  for  our 
increasing  surplus." 

Expansion. 

The  additions  to  our  territorial  possessions  since  1897  have 
already  proved  of  great  advantage  to  our  commerce,  and  promise 
to  be  of  even  greater  importance  in  furnishing  to  the  United 
States  that  great  supply  of  tropical  products  which  it  constantly 
imports  for  use  in  manufacturing  and  food  supplies  which  we 
do  not  produce  at  home,  and  in  building  up  in  them  a  market 
for  the  products  of  our  farms  and  factories.  The  commerce  of 
the  United  States  with  Porto  Rico,  Hawaii,  and  the  Philippine 
Islands  has  grown  from  27  million  dollars  in  1897,  the  year  be- 
fore their  annexation,  to  75  millions  in  1903,  and  is  steadily  and 
rapidly  increasing.  The  United  States  imports  about  400  mil- 
lion dollars'  worth  of  tropical  and  subtropical  products  annually — 
more  than  a  million  dollars  a  day  for  every  day  in  the  year — and 
in  buying  this  class  of  merchandise  from  producers  on  our  own 
territory  is  developing  there  such  prosperity  that  they  will  take  in 
exchange  the  products  of  our  farms  and  factories  to  the  full  extent 
of  that  which  we  purchase  from  them. 

Trade  -with  Asia  and  Oceania. 

Simultaneous  with  and  largely  resulting  from  our  acquisi- 
tions in  the  Pacific  has  come  a  great  increase  in  our  trade  with 
Asia  and  Oceania,  toward  which  all  commercial  countries  are 
now  looking  with  longing  eyes.  The  sales  of  the  United  States 
to  Asia  and  Oceania  grew  from  27  million  dollars  in  1893  to 
over  100  millions  in  1903,  including  the  shipments  to  the  Hawaiian 
Islands,  and  with  our  control  of  the  Philippine  Islands  as  a 
distributing  point  for  our  merchandise,  promises  to  continue  to 
expand  most  rapidly.  The  semicircle  of  Oriental  and  Pacific 
countries,  of  which  Manila  forms  the  center,  has  half  the  popu- 
lation of  the  earth  and  imports  annually  more  than  1,200  million 
dollars'  worth  of  merchandise,  an  average  of  100  millions  per 
month,  or  nearly  as  much  as  our  total  exports  of  domestic 
merchandise.  A  very  large  share  of  this  importation  of  the 
Orient  is  of  the  class  of  goods  which  the  United  States  produces 
and  desires  to  sell — products  of  the  farm  and  factory — and  it  is 
because  of  this  great  demand,  the  increased  standing  which 
the  United  States  has  gained  in  the  Orient,  and  the  popularity 
which  American  products  are  now  making  for  themselves  in 
this  section  of  the  globe,  that  our  trade  with  the  Orient  is  show- 
ing this  rapid  growth. 

Panama  Canal. 

The  developments  of  the  past  few  months,  under  the  vigorous 
administration  of  President  Roosevelt,  have  given  assurance  that 
the  dream  of  centuries — a  ship  canal  to  connect  the  Atlantic  and 
Pacific  at  the  Isthmus  of  Panama — is  to  be  made  a  realization 
by  the  Government  of  the  United  States  under  the  direction  of 
the  Republican  party.  That  canal  will  shorten  the  route  from 
New  York  to  the  great  commercial  cities  of  Japan  and  China,  the 
center  of  this  great  Orient  trade,  2,000  miles,  and  make  the  United 
States  even  more  surely  the  chief  factor  in  the  commerce  of  the 
Orient. 


332  THINGS    THK    KHMKI  l(    \\     I'AKTV    STANDS    lOK. 

Merchant  Marine. 

That  last  step  fn  behalf  of  American  labor  and  American 
commerce,  the  development  of  the  merchant  marine  of  the  United 
States,  hasi  been  delayed  by  reason  of  the  attention  required  l>.\ 
our  capitalists  in  the  development  of  our  railroad  and  other  in- 
ternal communications,  and  the  further  fact  that  European  coun- 
tries have  meantime  appropriated  large  sums  of  money  to  the 
upbuilding  of  their  merchant  marine  service.  During  the  last 
half  century — practically  during  the  time  in  which  the  Republican 
party  has  been  in  control  of  the  Government — 200,000  miles  of  rail- 
way, two-fifths  of  the  railroad  lines  of  the  world,  have  been  built 
in  the  United  States  at  a  cost  of  over  12  billions  of  dollars,  a 
sum  practically  equal  to  all  the- money  of  the  world  at  the  present 
time.  Meantime  the  European  governments  have  expended  250 
million  dollars  in  aid  of  their  merchant  marine  and  are  now  ex- 
pending at  the  rate  of  about  20^  million  dollars  annually. 

REPUBLICAN    LEGISLATION. 

The  following  are  some  of  the  acts  of  legislation  and  adminis- 
tration by  the  Republican  party: 

1.  The  homestead  law,  passed  by  a  Republican  Congress  and 
signed  by  Abraham  Lincoln. 

2.  The  acts  for  the  issuance  of  legal  tenders  and  national-bank 
notes,  which  gave  the  people  a  currency  of  equal  and  stable  value 
in  all  parts  of  the  country. 

3.  The  system  of  internal-revenue  taxation,  by  which  approxi- 
mately one-half  of  the  ordinary  expenses  of  the  Government  have 
been  visited  upon  malt  and  spirituous  liquors,  tobacco,  and  cigars. 

4.  The  thirteenth  amendment  to  the  Constitution,  which  abol- 
ished slavery. 

5.  The  fourteenth  amendment,  which  created  citizenship  of 
the  United  States  as  distinguished  from  citizenship  of  the  several 
States,  and  provided  that  no  state  should  abridge  the  privileges 
or  immunities  of  citizens  of  the  United  States. 

6.  The  fifteenth  amendment,  which  established  equality  of 
suffrage. 

7.  The  civil  rights  act,  which  extended  to  all  persons  the 
equal  protection  of  the  laws. 

8.  All  existing  laws  for  the  payment  of  pensions  to  veterans 
of  the  ciyjU  war  and  their  surviving  relatives. 

9.  The  liberal  legislation  respecting  mineral  lands,  which 
built  up  the  mining  industry,  added  enormously  to  the  wealth  of 
the  country  in  the  precious  and  semiprecious  metals,  and  made 
it  possible  to  resume  specie  payments. 

10.  The  resumption  of  specie  payments. 

11.  The  reduction  of  postage,  the  money-order  system,  the 
establishment  of  the  railway  mail  service,  free  delivery,  and  other 
improvements  that  make  the  Post-Office  establishment  of  the 
United  States  the  most  efficient  agency  of  that  character  that  can 
be  found  on  the  globe. 

12.  The  Life-Saving  Service. 

13.  The  artificial  propagation  and  distribution  of  fish. 

14.  The  distribution  of  seeds,  and  other  measures  of  vast  im- 
portance in  the  promotion  of  agriculture. 

15.  The  endowment  of  public  schools,  agricultural  colleges, 
etc.,  by  grants  of  land  from  the  public  domain. 

16.  The  administrative  customs  act,  which  insures  justice 
ajjd  equality  in  the  collection  of  duties. 

17.  The  international  copyright  law,  which  respects  the 
rights  of  authors  in  the  product  of  their  brains,  but  at  the  same 
time  protects  our  publishing  industry  by  requiring  that  books 
shall  be  printed  in  this  country  to  entitle  them  to  copyright. 

18.  The  ^establishment  of  the  circuit  court  of  appeals  to 
relieve  the  Supreme  Court  and  no  longer  require  litigants  to  suffer 
a  delay  of  three  or  four  years  in  securing  a  decision  on  appeal. 

19.  The  principle  of  reciprocity,  by  which  we  reduce  the  duties 
on  certain  imports  from  countries  that  offer  corresponding  ad- 
vantages to  our  exports  and  thus  extend  our  foreign  markets. 

20.  The  admission  of  the  States  of  Kansas,  Nebraska,  Nevada. 
Colorado,  North  and  South  Dakota,  Washington.  Montana  Idaho 
and  Wyoming. 


THINGS   THE  REPUBLICAN   PARTY   STANDS   FOR.  388 

21.  The  antitrust  act.  (This  was  drawn  by  Senators  Sher- 
man and  Edmunds,  and  introduced  by  the  former.  In  the  House 
its  passage  was  secured  by  William  McKinley  against  an  attempt 
to  have  it  sidetracked  in  behalf  of  a  bill  for  the  free  coinage-of 
silver,  which  received  the  vote  of  every  Democratic  member  with 
one  exception.  So  it  may  be  said  that  the  law  was  placed  upon 
the  statute  books  over  the  united  opposition  of  the  Democratic 
party  as  represented  in  the  House.) 

22.  The  national  bankruptcy  acts  of  1867  and  1898,  which  re- 
lieved many  thousands  of  unfortunate  men  from  their  burdens 
of  debt  and  restored  them  to  commercial  or  industrial  activity. 

23.  The  establishment  of  the  gold  standard,  which  placed  our 
monetary  system  on  a  stable  basis  and  in  harmony  with  the  great 
nations  of  the  world. 

24.  Every  schedule  of  duties  on  imports  adopted  Within  the 
past  fifty  years  in  which  the  policy  of  profection  to  American 
labor  has  been  distinctly  recognized  and  efficiently  applied  has 
been  the  product  of  a  Republican  Congress. 

25.  On  logical  lines  with  the  policy  of  protection,  the  acquisi- 
tion of  the  Philippines.  That  is  to  say,  having  built  up  our  in- 
dustries to  a  point  where  their  output  was  in  excess1  of  our  con- 
sumption, we  secured  a  grand  depot  and  distributing  point  to 
command  in  great  part  the  markets  of  the  600,000,000  inhabitants 
of  Asia. 

LABOR  LAWS   OF  THE  UNITED   STATES. 
Who   Enacted  Them? 

The  great  revolution,  by  which  labor  was  exalted  and  the  coun- 
try freed  from  the  curse  of  slavery,  was  accomplished  by  the  Re- 
publican party  against  the  fiercest  opposition  possible  by  the  com- 
bined forces  of  the  Democrats  and  their  allies. 

The  Coolie  Trade  Prohibited. 

This  law  was  passed  February  19,  1802 ;  amended  February  9, 
1869;  and  further  amended  March  3,  1875.  President  Grant,  in 
his  message  of  December  7,  1874,  laid  before  Congress  a  recom- 
mendation for  the  enforcement  of  the  law.  The  legislation  on 
these  several  acts  was  accomplished  by  the  Republicans  in  1862, 
in  the  Thirty-seventh  Congress,  and  in  1869,  in  the  Fortieth 
Congress.  Peonage  Abolished. 

This  act  was  passed  in  the  Thirty-ninth  Congress,  when  both 
houses  were  Republican  by  a  large  majority,  March  2,  1867. 
Inspection  of  Steam  Vessels. 

Passed  during  the  Fortieth  Congress,  when  the  Republicans 
were  in  power  in  both  houses. 

Protection  of  Seamen. 

Passed  during  the  Forty-second  Congress,  when  both  houses 
were  under  control  of  the  Republicans.  It  was  amended  during 
the  Forty-third  Congress,  when  the  Republicans  were  in  control 
of  both  houses. 

Involuntary  Servitude  of  Foreigners  Abrogated. 
Passed  during  the  Forty-third  Congress,  when  both  houses  were 
under  the  control  of  the  Republicans. 

Incorporation  of  National  Trades  Unions. 
-    Passed  the  Senate  June  9,  1886,  without  division.    Passed  the 
House  June  11,  1886,  without  division. 

Payment  of  Per  Diem  Employees  for  Holidays. 
Passed  without  division  in  the  Forty-ninth  Congress,  second 
session. 

Labor  of  United  States  Convicts — Contract  System  Prohibited. 
Passed  the  House  March  9,  1886.    Passed  the  Senate  February 
28,  1887.    All  the  votes  against  the  bill  were  Democratic. 
Boards  of  Arbitration. 

Passed  the  House  on  April  3,  1886,  with  thirty  votes  against 
the  bill,  all  being  Democratic. 

Hours  of  Labor,   Letter  Carriers. 
Law  limiting  hours  of  labor  of  letter  carriers  to  eight  a  day. 
Passed  in  the  Senate  without  division. 

Department  of  Labor. 

Passed  the  House  April  19,  1888.  Passed  the  Senate  May  23, 
1888.    All  votes  cast  against  the  bill  were  Democratic. 

Trusts  and  Monopolies. 

The  act  to  protect  trade  and  commerce  against  unlawful  re- 
straints and  monopolies  (Sherman  anti-trust  law)  was  passed 
July  2,  1890,  by  the  Fifty-first  Congress,  of  which  both  the  Benate 
and  House  were  Republican, 


334  THE    DEPARTMENT    OF    STATE. 


WO 


RK  OF  THE  DEPARTMENT  OF  STATE, 
1897-1904. 


Tlio  work  of  the  Department  of  State  has  increased  perhaps 
fivefold  within  the  last  six  years,  for  the  reason  that  our  com- 
mercial and  political  interests  have  steadily  grown  in  magnitude 
and  importance.  We  have  many  new  and  significant  points  of 
contact  with  the  world  to-day  that  were  unknown  and  unim- 
portant a  few  years  ago.  World  events  are  moving  rapidly  and 
our  responsibilities  abroad  keep  pace  with  them. 

Consideration  of-  the  series  of  important  happenings  in  the 
Orient,  beginning  with  the  Boxer  trouble,  and  the  settlement  of 
the  Panama  Canal  question,  the  growth  in  the  authority  and 
recognition  of  the  Monroe  Doctrine  since  Mr.  Hay  became  Secre- 
tary of  State,  the  expansion  of  foreign  markets  for  American 
goods,  the  increase  of  over-sea  commercial  opportunities,  the 
efficient  support  and  emphatic  insistence  upon  the  application 
of  the  principle  of  international  arbitration  in  a  practical  way 
to  real  disputes,  will  show  in  what  directions  have  been  our 
greatest  activities  and  achievements  in  the  world  of  diplomacy, 
and  what  they  are  likely  to  be  in  the  immediate  future. 

It  may  be  said  without  boasting  that  no  period  of  our  history 
has  been  richer  in  diplomatic  triumphs  of  a  high  and  wide-sweep- 
ing character  than  the  few  years  now  under  discussion.  Much 
that  has  been  accomplished  has  been  done  so  quietly  and  unob- 
trusively that  the  world  at  large  knows  little  about  it. 

Settlement  of  Large  Claims  of  American  Citizens  Against  Foreign 
Governments. 

During  the  administrations  of  Presidents  McKinley  and  Roose- 
velt there  was  collected  and  settled  through  the  Department  of 
State  and  its  representatives  abroad  claims  of  American  citizens 
against  foreign  governments  amounting  in  the  aggregate  to  the 
enormous  sum  of  $26,690,850.08.  This  record  illustrates  and 
marks  one  of  the  greatest  practical  achievements  of  our  diplo- 
macy. 

Equal  in  importance  with  the  practical  pecuniary  triumph  and 
of  the  vast  sum  of  money  gained  through  the  medium  of  pacific 
adjustment  for  American  claimants  was  the  rich  gain  in  inter- 
national good  feeling  due  to  the  settlement  of  the  many  dis- 
putes of  long  standing  growing  out  of  these  claims. 

The   Consular  Service. 

The  achievements  of  the  consular  service  have  been  no  less 
striking.  Owing  to  the  high  state  of  efficiency  to  which  it  has 
been  brought  during  the  last  few  years,  and  in  spite  of  the  un- 
fortunate system  under  which  our  consular  officers  work,  it  is 
now  saving  to  the  Government  upward  of  six  millions  of  dollars 
annually  through  the  successful  efforts  of  its  officers  in  detecting 
and  preventing  undervaluations. 

Many  Important  Treaties  Made. 

The  record  of  the  Department  of  State  in  the  matter  of  treaty 
making  during  the  last  eight  years  is  a  noteworthy  one.  The 
administration  of  President  Roosevelt  alone  has  upward  of 
thirty  treaties  and  international  agreements  to  its  credit,  and 
since  the  first  inauguration  of  President  McKinley  more  than 
ninety  treaties  and  agreements  with  foreign  powers  have  been 
negotiated  and  proclaimed.  They  range  in  subject  from  the  set- 
tlement of  claims  of  private  citizens  to  the  control  and  construc- 
tion of  the  Panama  Canal. 

Among  the  more  important  of  these  compacts  are  those  pro- 
viding for  the  extradition  of  fugitives  from  justice,  the  list  in- 
cluding conventions  with  Belgium,  Bolivia,  Brazil.  Chile,  Den- 
mark, Great  Britain  (a  supplemental  treaty  extending  the  cata- 
logue of  extraditable  crimes),  Guatemala,  Mexico  (with  which 
power  also  a  supplemental  agreement  was  concluded  adding 


THE   DEPARTMENT   OF    STATE.    *  835 

bi  :1k  ry  to  the  list  of  extradictable  crimes),  Peru,  Servia,  Switzer- 
hind,  and  the  Netherlands  (the  last  mentioned  not  yet  pro- 
claimed). This  series  of  treaties,  together  with  the  extradition 
conventions  preceding  it,  and  with  pending  negotiations,  closes 
the  doors  of  almost  all  the  civilized  nations  of  the  world  against 
fugitives  from  justice  of  the  United  States. 

Other  treaties  of  marked  importance  are  the  peace  protocol 
and  peace  treaty  with  Spain,  of  August  and  December,  1898, 
respectively;  the  cession  of  outlying  islands  of  the  Philippines; 
the  real  and  personal  property  convention  with  Great  Britain, 
providing  for  the  holding  and  disposition  of  real  and  personal 
property  of  aliens  by  will  and  deed  on  a  liberal  basis;  a  treaty 
with  Guatemala  to  the  same  effect ;  trade-mark  conventions  with 
Japan  and  Guatemala,  securing  equal  protection  with  that  af- 
forded native  subjects  and  citizens;  a  temporary  arrangement 
of  the  disputed  Alaskan  boundary  question  in  October,  1899;  the 
appointment  of  a  joint  commission  to  consider  for  settlement  ques-. 
tions  at  issue  between  the  United  States  and  Great  Britain 
respecting  Canada;  the  adhesion  of  the  United  States  to  the  ad- 
ditional articles  to  the  Red  Cross  convention;  the  articles  con- 
cerning naval  warfare— a  great  humanitarian  gain;  the  adhesion 
of  this  Government  to  the  International  Convention  of  Brussels 
of  1899,  for  the  regulation  of  the  importation  of  spirituous  liquors 
into  Africa;  the  canal  protocols  of  December  1,  1900,  with  Costa 
Rica  and  Nicaragua,  providing  a  means  of  agreement  for  the 
construction  and  control  of  an  interoceanic  canal  by  the  Nicaragua 
route.  P^rom  1898  to  1900  reciprocal  commercial  arrangements 
were  entered  into  with  France,  Germany,  Italy,  and  Portugal, 
under  section  3  of  the  tariff  act  of  Congress  of  1897,  and  in  1899 
the  United  States  participated  in  and  became  a  party  to  the 
Hague  Conventions,  for  arbitration  of  international  disputes,  for 
regulating  war  on  land,  for  regulating  maritime  warfare,  and 
the  declaration  to  prohibit  for  five  years  the  launching  of  pro- 
jectiles and  explosives  from  balloons,  and  other  new  nfethods  of 
a  similar  nature. 

During  the ,  past  seven  years  numerous  claims  of  private 
citizens  have  been  settled  by  special  negotiations  between  our 
own  Government  and  those  against  which  the  claim  was  pre- 
ferred, the  foreign  governments  concerned  being  Guatemala,  Haiti, 
Mexico,  Nicaragua,  Peru,  Salvador,  Santo  Domingo,  and  Venezuela, 
while  by  the  treaty  of  March  24,  1897,  the  Chilean  Claims  Conven- 
tion of  August  7,  1892,  was  revived  and  additional  claims  adjusted. 
It  is  hardly  necessary  to  add  that  this  Government  bore  a  most 
material  share  in  the  settlement  of  the  international  difficulties  in 
China  after  the  Boxer  revolutionary  movements,  culminating  in 
the  final  protocol  of  September  7,  1901. 

Treaties    Negotiated    During   the    Administration    of    President 
Roosevelt. 

Among  the  proclaimed  treaties  the  more  important  are  the 
Hay-Pauncefote  treaty  (second)  of  November,  1901,  to  facilitate 
the  building  of  the  Panama  Canal;  the  canal  treaty  with 
the  Republic  of  Panama;  the  Alaskan  boundary  treaty;  the 
Pious  Fund  arbitration  treaty;  the  treaty  of  friendship  with 
Spain;  the  commercial  treaty  with  China,  and  extradition  treaties 
with  Belgium,  Denmark,  Guatemala,  Mexico  (supplementary), 
and  Servia.  The  supplementary  extradition  treaty  with  Mexico 
is  specially  noteworthy  as  providing  for  the  extradition  of  bribe 
givers  and  bribe  takers,  the  crime  of  bribery  being  thus  added 
to  the  existing  list  of  extraditable  offenses. 

The  Hay-Pauncefote  treaty  (of  November  18,  1901)  by  repeal- 
ing, or  rather  by  superseding,  the  Clayton-Bulwer  treaty  (of 
April  19,  1850)  cleared  the  way  for  direct  negotiations  for  the 
construction  of  an  interoceanic  canal.  Immediate  advantage  was 
taken  of  this  fact  and  the  Hay-Herran  canal  treaty  was  con- 
cluded January  22,  1903,  but  subsequently  rejected  by  Colombia. 

The  Panama  treaty  (November  18,  1903)  followed,  and  was 
proclaimed  February  26,  1904,  assuring  the  construction  of  a 
canal. 

The  Alaskan  boundary  convention  (January  24,  1903)  provided 
a  tribunal  by  which  the  last  important  question  at  issue  be- 
tween Great  Britain  and  the  United  States  was  satisfactorily 


386  •  THE    DEI'AUTMKIST-  OF    STATE. 

adjusted,  almost  entirely  in  accordance  with  the  points  claimed 
by  our  Government,  one  of  the  British  members  of  the  tribunal 
participating  in  the  decision  so  largely  in  accordance  with  our 
contention. 

The  treaty  with  Mexico  for  the  arbitration  of  the  Pious  Fund 
claim  is  distinguished  not  only  as  providing  for  the  settlement 
of  an  important  question  long  open,  but  also  as  submitting  the 
first  international  case  to  the  Permanent  Court  of  Arbitration  at 
The  Hague.  By  a  later  international  agreement  this  Government 
participated  in  a  convention  for  the  submission  to  the  same 
tribunal  of  the  question  of  preferential  treatment  of  recent 
claims  against  Venezuela. 

In  addition  to  the  commercial  treaty  with  Cuba  by  which 
preferential  benefits  are  secured  to  both  contracting  govern- 
ments, an  agreement  providing  naval  and  coaling  stations  for 
ships  of  the  United  States  has  been  concluded  and  proclaimed, 
and  two  others— one  respecting  the  status  of  the  Isle  of  Pines, 
and  the  other  defining  our  relations  with  Cuba — are  pending. 

The  commercial  treaty  with  China  contains  several  very  im- 
portant provisions,  besides  a  satisfactory  tariff  schedule.  The 
Likin  tax  (the  collection  of  a  tax  on  goods  in  transit  within  the 
Empire)  is  abolished;  revision  of  Chinese  mining  regulations  is 
secured;  protection  in  the  use  of  trade-marks  and  ownership  of 
patents  is  stipulated;  a  uniform  national  Chinese  coinage  is 
projected;  but  more  important  than  all,  two  new  ports  are  opened 
to  foreign  trade  in  China,  namely,  Mukden  and  Antung,  in  ^Man- 
churia, with  the  result  not  only  of  strengthening  the  American 
policy  of  the  open  door,  but  also  that  of  maintaining  Chinese 
jurisdiction  in  the  territory^  and  tending  to  the  integrity  of 
China. 

Three  agreements  with  Spain  have  been  perfected,  that  of 
July  3,  1902,  reestablishing  friendly  relations  and  containing 
the  provisions  general  in  treaties)  of  friendship— trade,  residence, 
property  and  testamentary  rights,  diplomatic  and  consular  priv- 
ileges, etc.  Another  (January  to  November,  1902),  by  exchange 
of  diplomatic  notes,  restores  the  international  copyright  agree- 
ment; while  another,  earlier  (August  to  November,  1901),  by 
exchange  of  notes  and  a  joint  declaration,  facilitates  the  exchange 
of  letters  rogatory  between  Porto  Rico,  the  Philippine  Islands, 
and  Spain. 

Other  treaties  are,  a  consular  convention  with  Greece  (Novem- 
ber, 1902)  ;  a  trade-mark  agreement  with  Germany  for  Morocco; 
the  reciprocal  commercial  agreement  with  France  (August  20, 
1902)  under  section  3  of  the  existing  tariff  act;  treaties  for  the 
settlement  of  claims  with  Venezuela,  the  Dominican  Republic, 
Salvador,  and  Brazil ;  naturalization  with  Haiti ;  import  duties 
and  light  and  harbor  dues  in  Zanzibar. 

The  five  great  achievements  of  the  treaty  making  of  the  ad- 
ministration are  the  Hay-Pauncefote  treaty,  superseding  the 
Clayton-Bulwer  treaty;  the  Panama  Canal  treaty;  the  Alaskan 
boundary  treaty ;  the  commercial  treaty  with  China,  and  the  treaty 
with  Menelik  providing  for  commercial  relations  with  Abyssin  a, 
thus  opening  to  our  producers  new  trade  relations  with  ten  million 
people.  This  latter  is  one  of  the  most  important  of  our  recent 
commercial  treaties.  The  commercial  treaty  with  Cuba  is  of 
hardly  less  importance  as  an  act  of  good  faith,  pledged  by  this 
Government  as  one  of  the  principal  results  of  the  war  with  Spain. 
International  Arbitration. 

The  administrations  of  McKinley  and  Roosevelt  have  been 
distinguished  by  the  efforts  put  forth  to  promote  peace  among 
the  nations  and  alleviate  the  evils  of  war. 

President  McKinley  was  active  in  seeking  to  have  incorpo- 
rated into  international  law  the  principle  so  long  advocated  by  our 
country  of  the  exemption  of  private  property  on  the  sea  from 
seizure  during  war,  a  measure  so  greatly  desired  in  the  interest 
of  maritime  commerce.  He  instructed  our  delegates  to  The 
Hague  Peace  Conference  in  1899  to  urge  this  principle,  and  when 
the  conference  decided  that  it  had  no  jurisdiction  over  the  sub- 
ject he  asked  Congress  to  authorize  him  to  bring  about  an  in- 
ternational conference  for  the  consideration  of  this  subject,  and 
President  Roosevelt  has  renewed  the  recommendation  to  Con- 


THE    DEPARTMENT    OF    STATE.  337 

The  United  States  was  among  the  first  of  the  powers  to  re- 
spond favorably  to  the  request  of  the  Emperor  of  Russia  in  1898 
for  a  peace  conference.  One  of  the  few  practical  results  of 
that  conference  was  the  arbitration  convention,  which  was 
brought  about  mainly  through  the  efforts  of  the  American  dele- 
gates.   President  McKinley  had  the  honor  of  sending  to  the  Per- 

|  manent  Arbitration  Court  established  by  that  convention  the 
first  case  ever  submitted  to  it. 

A  notable  opportunity  was  presented  to  President  Roosevelt 
in  1903  to  show  his  faith  in  international  arbitration  and  in 
the  efficacy  of  The  Hague  court.  He  was  called  upon  by  Great 
Britain,    France,    and    Italy   to    arbitrate   their    differences    with 

j  Venezuela,  a  distinguished  mark  of  confidence  in  his  ability  and 
impartiality.     But  he  declined  the  honor  and  referred  the  war- 

ji  ring  powers  to  the  Permanent  Arbitration  Tribunal  as  the  proper 

|:  place  to  adjust  their  controversy. 

The  delegates  of  the  United  States  to  the  Pan-American  Con- 
ference of  the  American  Republics,  which  met  in  the  City  of 
Mexico  in  1901-2,  were  prominent  in  the  adoption  of  a  number 
of  conventions  and  agreements  for  the  better  regulation  of  the 

|  commerce  and  intercourse  of  the  American  states,  and  among 
these  was  a  convention  for  the  settlement  by  arbitration  of  claims 
uot  susceptible  of  diplomatic  arrangement. 

But  while  President  Roosevelt  has  committed  himself  so 
heartily  to  international  arbitration,  he  recognizes  that  there 
are  some  political  questions  which  may  not  be  proper  to  submit 
to  such  an  adjustment.  The  Alaskan  boundary  had  in  recent 
years  become  a  matter  of  serious  controversy,  and  stood  as  an 
obstacle  to  the  maintenance  of  peaceful  relations  with  Canada. 
In  view  of  our  long  and  undisputed  occupation  of  the  territory 
in  question  the  President  declined  to  allow  the  reference  of  the 
controversy  to  The  Hague  court,  but  instead  he  proposed  the 
creation  of  a  judicial  tribunal  of  an  equal  number  of  members 
from  each  country,  feeling  confident  that  our  claim  would  be 
established  by  such  a  body.  Against  much  opposition  and  pre- 
diction of  failure  such  a  tribunal  was  created,  and  its  decision 
has  happily  confirmed  the  wisdom  of  the  President's  action, 
peacefully  settled  this  irritating  controversy,  and  restored  good 
relations  with  our  northern  neighbors.  It  has  proved  one  of 
the  most  notable  diplomatic  triumphs  of  our  Government. 

The  Consular  Service. 

The  consular  officers  of  no  other  government  have  such  varied 
and  important  duties  to  perform  as  have  the  consular  officers  of 
the  United  States.  Of  these  duties  perhaps  none  are  so  important 
as  those  relating  to  the  protection  of  American  citizens  and  their 
interests  abroad.  Our  consuls  have  displayed  unusual  ability  in 
discharging  these  duties.  American  citizens  arrested  or  subjected 
to  annoyance  in  foreign  countries  have,  with  rare  exceptions,  found 
the  American  Consuls  energetic  and  successful  in  their  behalf.  In 
China,  Central  and  South  America  the  consular  officers  have  been 
called  upon  to  perform  delicate  and  trying  duties  of  a  diplomatic 
character  and  have  discharged  those  duties  with  rare  tact  and 
ability.  They  have  cared  for  and  sent  home  the  bodies  of  Ameri- 
cans who  have  died  abroad  and  have  collected  and  forwarded  to 
legal  representatives  in  this  country  the  property  of  deceased 
American  citizens  in  foreign  countries. 

But  perhaps  the  most  significant  and  valuable  work,  in  a  money 
sense,  that  has  been  achieved  by  the  consuls  has  been  in  the  way 
of  detecting  and  preventing  attempts  to  defraud  the  customs.  In 
their  investigations  of  values  of  merchandise  exported  fo  the 
United  States  our  consuls  have  shown  wonderful  skill  and  indus- 
try, and  their  work  in  the  direction  of  preventing  exporters  to  the 
United  States  from*  undervaluing  their  merchandise  has  resulted 
in  vast  increases  in  the  customs  dues  collected.  An  approximate 
idea  of  the  value  of  this  work  of  our  consuls  may  be  formed  when 
it  is  recalled  that  the  work  of  one  consular  officer  alone  has  in- 
creased receipts  from  customs  about  one  million  dollars  a  year 
since  1898,  a  total  o£  six  million  dollars  in  six  years.  There  are 
330  consular  officers  who  are  carrying  on  the  same  kind  of  work. 
They  are  for  the  most  part  equally  energetic  and  efficient,  and  it 
is  estimated  that  fully  ten  million  dollars  have  been  saved  to  the 


338  THE   DEPARTMENT    OF    STATE.  * 

revenues  of  the  United  States  by  the  active,  intelligent  and  per- 
sistent efforts  of  our  consuls  abroad.  It  is  safe  to  say  that  this 
branch  of  our  service  alone  has  saved  about  ten  times  its  total 
cost  to  the  Government. 

By  means  of  a  series  of  carefully  planned  instructions  the 
department  has  secured  a  degree  of  cooperation  on  the  part  of 
consuls  with  Treasury  officials  that  has  hitherto  been  unattained. 

The  consuls  have  rendered  a  great  deal  of  varied  and  impor- 
tant service  to  other  departments  of  the  Government  than  the 
Treasury.  Acting  under  recent  instructions  our  consular  officers 
have  been  of  great  assistance  to  the  Navy  Department  in  the  ap- 
prehension of  deserters  and  stragglers  from  war  vessels  and 
colliers  and  are  in  constant  communication  with  men-of-war  in 
local  waters,  supplying  them  with  much  valuable  information. 

VALUE  IN   WAR  AND  PEACE. 

During  the  war  with  Spain  they  rendered  invaluable  service 
to  the  Government  of  the  United  States.  They  formed  a  series  of 
intelligent  observers  throughout  the  world  and  the  information 
and  reports  gathered  by  them  were  often  of  the  highest  value  and 
importance  to  those  directing  our  military  and  naval  operations. 

At  the  instance  of  the  Secretary  of  Agriculture  and  in  pursu- 
ance of  the  pure  food  law  of  March  3,  1903,  the  Department  of 
State  issued  instructions  to  consuls  requiring  prompt  reports  of 
the  shipment  of  food  products  to  this  country.  The  character  of 
these  reports  and  the  -promptness  of  their  transmission  to  the 
Bureau  of  Chemistry  of  the  Department  of  Agriculture  have  been 
most  gratifying  and  have  to  a  great  degree  made  possible  an  intel- 
ligent and  successful  enforcement  of  the  law. 

In  their  work  in  behalf  of  our  export  trade  consular  officers 
have  shown  themselves  very  efficient.  In  the  introduction  to  the 
review  of  the  world's  commerce  for  1902,  it  was  stated  by  the 
chief  of  the  Bureau  of  Foreign  Commerce  of  the  Department  of 
State  that 

"whatever  may  be  the  defects  of  our  consular  service  it  is  at 
least  showing'  itself  to  be  generally  alert  and  responsive  to  the 
new  conditions.  *  *  *  The  consuls  have  also  been  most  active 
in  sending  reports  at  frequent  intervals  on  a  great  variety  of  sub- 
jects of  interest  to  the  industrial  and  commercial  world.  *  *  * 
A  most  gratifying  evidence  of  the  increasing  value  of  the  Consular 
Reports  *  *  *  is  found  in  the  widespread  demand  for  them 
on  the  part  of  colleges  and  schools  as  reference  books  in  special 
courses  of  commercial  instruction.  *  *  *  In  addition  to  the 
published  reports,  the  consuls  of  late,  by  means  of  correspondence 
conducted  under  the  supervision  of  the  Department  of  State,  have 
supplied  a  great  mass  of  information  to  trade  bodies  and  business 
Arms,  and  in  many  cases  have  voluntarily  exerted  themselves  in 
other  ways  to  promote  commercial  expansion.  Their  efforts  fre- 
quently elicit  warm  commendation  in  letters  to  the  Department 
from  the  trade  interests  thus  benefited,  and  even  when  a  consular 
officer  lacks  other  qualifications,  it  seldom  happens  that  he  fails 
to  exhibit  the  characteristic  American  spirit  in  'hustling'  for  busi- 
ness, not  for  himself,  but  for  his  country." 

The  activity  of  the  consuls  has  been'greatly  stimulated  by  the 
prompter  publication  and  wider  distribution  of  their  reports.  In 
December,  1897,  the  department,  discarding  traditions,  began  the 
daily  publication  of  such  reports  as  were  of  current  interest.  The 
result  has  far  exceeded  all  expectations  and  has  marked  a  new 
era  in  the  practical  utilization  of  consular  information.  Our 
business  men  have  been  warm  in  their  praise  of  it.  One  firm 
wrote  the  department,  "we  attribute  our  having  nearly  doubled 
our  foreign  trade  during  the  last  three  years  in  great  degree  to 
the  light  we  obtained  from  careful  perusal  of  these  reports."  A 
manufacturing  firm  said  respecting  the  assistance  derived  from 
the  reports,  "the  result  is  to-day  from  30  per  cent  to  35  per  cent 
of  our  entire  product  in  certain  lines  of  hardware  we  export." 

That  this  method  of  distributing  commercial  information  is  of 
great  practical  value  is  also  shown  by  the,  fact  that  it  was 
promptly  imitated  in  part  by  both  Great  Britain  and  Germany. 

HELPFUL  TO  COMMERCE. 

Undoubtedly  a  large  part  of  our  commercial  progress  in  recent 
years  is  due  to  the  keen  business  instinct  and  activity  of  our  con- 
sular officers  in  pointing  the  way  to  new  markets,  and  to  a  great 
degree  is  due  to  them  the  credit  for  the  enormous  increase  of  our 
exports  from  $886,606,938  in  1896  to  $1,420,141,679  in  1903,— over 
$537,000,000  in  seven  years. 


THE    DEPARTMENT    OF    STATE.  339 

The  consular  fees  collected  have  increased  steadily  and  for  the 
year  ended  June  30,  1903,  amounted  to  $1,190,634.42.  There  has 
also  been  a  steady  increase  in  the  expenditures  for  the  consular 
service,  the  expenditures  amounting  for  the  year  ended  June  30, 
1903,  to  $1,21(5,759.54,  but  notwithstanding  this  increase  there  has 
been  a  marked  decrease  in  the  actual  cost  of  the  service  to  the 
Government,  ranging  from  an  excess  of  expenditures  over  receipts 
of  $302,076.37  for  the  year  ended  June  30,  1898,  down  to  the  insig- 
nificant sum  of  $26,125.12  for  the  fiscal  year  ended  June  30,  1903. 

Since  1901  the  number  of  principal  consular  officers  has  been 
increased  from  315  to  330  and  the  number  of  consular  agencies 
decreased  from  407  to  380.  It  is  doubtful  whether  any  country 
having  a  consular  service  comparable  to  that  of  the  United  States 
either  in  the  number  of  its  officers  or  in  efficiency  is  able  to  main- 
tain it  upon  anything  like  so  small  a  net  expenditure. 

Our  consulates  are  on  the  whole  in  excellent  condition,  both  as 
regards  the  general  character  o£  the  consuls  and  their  work  and 
their  manner  of  performing  it,  and  it  may  justly  be  said  that  we 
have  reason  to  congratulate  ourselves  upon  the  personnel  and 
efficiency  of  the  consular  service.  The  consular  corps,  which  suf- 
fered great  demoralization  during  the  period  from  1893  to  1897, 
owing  to  the  violent,  ill-judged,  and  wholesale  removals,  has  been 
brought  to  its  present  state  of  manifold  usefulness,  cleanness,  and 
high  efficiency  during  the  last  eight  years.  Taken  as  a  whole,  it 
is  composed  of  a  higher  and  better  type  of  men  than  it  has  ever 
before  been  able  to  enlist,  and  it  is  doing  much  better  and  more 
intelligent  work.  A  few  years  ago  our  consular  service  would 
hardly  have  challenged  the  emulation  of  other  countries.  To-day 
it  is  regarded  by  the  best  authorities  abroad  as  the  most  efficient 
organization  of  its  kind  in  the  world  for  increasing  the  sale  of 
goods,  for  stimulating  home  industry  and  enterprise,  and  for  in- 
forming exporters  as  to  trade  conditions  in  every  important  mar- 
ket of  the  globe. 

Throughout  the  recent  consular  reform  movement  in  England, 
the  American  consular  service  was  constantly  held  up  as  a  model 
of  what  the  British  service  should  be.  An  English  trade  journal 
said:  "The  United  States  is  ahead  of  the  world  in  regard  to 
quick  consular  reports."  An  eminent  German  authority  on  con- 
sular matters  recently  referred  to  United  States  consular  officers 
as  "inspectors  of  our  exports,  and  vigilant  sentinels  who  spy  out 
every  trade  opening  or  advantage  and  promptly  report  on  it." 
They  "dive  into  the  economic  condition  of  their  districts  and  ob- 
tain information  the  result  of  which  is  discernible  in  the  steadily 
increasing  exportations  of  their  home  country.  *  *  *  The 
United  States  consular  officers  give  their  Government  better  ser- 
»  vice  and  better  information  than  any  on  earth." 


The  war  with  Spain  was  the  most  absolutely  righteous  foreign 
war  in  which  any  nation  has  engaged  during  the  nineteenth  cen- 
tury, and  not  the  least  of  its  many  good  features  was  the  unity  it 
i  brought  about  between  the  sons  of  the  men  who  wore  the  blue  and 
of  those  who  wore  the  gray. — Theodore  Roosevelt  in  "The  Strenu- 
ous Life." 

Whenever  even  a  single  schedule  is  considered  some  interests 
will  appear  to  demand  a  change  in  almost  every  schedule  in  the 
law,  and  when  it  comes  to  upsetting  the  schedules  generally  the 
effect  upon  the  business  interests  of  the  country  would  be  ruinous. 
— President  Roosevelt  at  Minneapolis,  April  4,  1903. 

The  millions  we  formerly  sent  to  aliens  in  alien  lands  to  pay 
them  for  making  tin  plate  for  us  we  now  pay  to  our  own  country- 
men in  the  United  States;  we  have  the  tin  plate  and  we  have  the 
money  expended  for  tin  plate  besides. — Hon.  Wm.  S.  Greene,  in 
Congress,  April  28,  1004. 

The  3,000,000  of  men  who  went  out  of  employment  with  the  re- 
vision of  the  tariff  by  the  Democratic  party  found  employment  in 
the  enactment  of  the  Dingley  law  by  the  Republican  party,  and  a 
million  and  a  half  have  been  added  to  those  who  have  employment 
in  the  industries  of  the  country. — Hon.  P.  P,  Campbell,  in  Congress. 
April  1,  1004, 


340  THi:    FBBASUBl     i>i  l'AK  l  M  i.M  . 


THE  TREASURY  DEPARTMENT  AND  THE 
NATIONAL  FINANCES. 

Prosperity,  induced  by  the  enactment  of  the  Dlngley  tariff  law 
and  the  gold  standard  act  of  March  14,  1900,  has  been  conserved 
by  the  Treasury  Department  throughout  the  administration  of 
President  Roosevelt.  The  achievements  of  the  administration  so 
far  as  they  relate  to  the  finances  of  the  country  have  not  been 
spectacular,  but  have  had  much  to  do  with  the  continuation  of 
business  health  and  industrial  vigor  resulting  from  the  election  of 
President  McKinley  in  1896. 

The  adoption  of  the  Dingley  tariff  and  its  consistent  enforce- 
ment have  secured  to  the  Government  sufficient  revenues  for  the 
undertaking  of  great  public  improvements,  in  addition  to  provid- 
ing for  the  running  expenses  of  a  Government  which  has  suddenly 
outgrown  the  needs  and  opportunities  of  an  isolated  nation. 

Payment  for  the  Panama  Canal. 

Perhaps  the  greatest  fiscal  undertaking  during  the  administra- 
tion of  President  Roosevelt  was  the  payment  of  fifty  millions  of 
dollars  ($50,000,000)  by  which  the  American  people  secured  abso- 
lute possession  of  the  Panama  Canal  and  the  zone  of  territory 
through  which  it  is  to  be  constructed.  This  feat  of  fiscal  engineer- 
ing was  so  carefully  planned  and  executed  by  the  Secretary  of 
the  Treasury  that  the'payment  of  this  enormous  sum  practically 
at  one  time  produced  not  even  the  slightest  disturbance  in  the 
industrial,  business,  and  financial  circles  of  the  country.  Part  of 
this  sum  was  withdrawn,  by  orders  of  the  Secretary  of  the  Treas- 
ury, from  the  channels  of  trade,  and  practically  simultaneously 
restored  thereto,  and  the  whole  tremendous  transaction  was  ac- 
complished without  attracting  more  than  passing  notice.  Aside 
from  marking  the  actual  beginning  of  a  canal  between  the  At- 
lantic and  Pacific  oceans — a  dream  of  American  statesmanship 
for  more  than  a  century — the  successful  execution  of  this  large 
fiscal  undertaking  is  an  unmatchable  object  lesson  of  the  financial 
resources  and  industrial  health  enjoyed  by  the  United  States  under 
eight  years  of  Republican  rule. 

Reduction  of  Interest  Rate. 

One  of  the  most  important  evidences  of  good  Republican  house- 
keeping is  the  great  reduction  in  the  rate  of  interest  paid  on  the 
public  debt,  and  also  the  contraction  of  the  debt  itself.  July  1, 
1896,  the  average  rate  of  interest  paid  by  the  Government  on  its 
interest-bearing  debt  was  4.058  per  cent.  At  the  close  of  the  fiscal 
year  1904,  the  average  rate  of  interest  is  2.7  per  cent.  This  needs 
no  explanation,  and  is  the  best  evidence  of  thrifty  and  economical 
administration. 

On  November  1,  1899,  after  the  Spanish  war  had  been  fought 
with  such  signal  success,  the  interest-bearing  debt  of  this  country 
amounted  to  $1,046,049,020.  That  was  high-water  mark,  and  even 
at  that  time  the  Government  was  paying  an  average  interest  rate 
of  3.857  per  cent.  Since  then  the  net  reduction  in  the  principal  to 
date  has  been  $150,891,580.  Much  of  the  decreased  interest  rate 
has  been  due  to  judicious  refunding  operations.  This  policy  has 
been  maintained  consistently  throughout  President  Roosevelt's  Ad- 
ministration. Since  the  enactment  of  the  gold-standard  law  of 
March  14,  1900,  which  was  a  Republican  measure,  passed  by  Re- 
publican votes,  the  Secretary  of  the  Treasury  has  been  enabled  to 
gradually  transform  the  interest-bearing  securities  of  the  United 
States  from  4  and  5  per  cent  securities  to  those  bearing  interest  at 
the  rate  of  2  per  cent.  Up  to  date  the  transactions  along  these 
lines  are  rather  startling  in  their  magnitude.  The  amount  of  bonds 
refunded  since  the  operations  began  is  $542,909,950.  The  interest 
saved  exceeded  all  expenses  connected  with  the  new  issue  by 
$14,245,851,  thus  giving  the  government  a  net  profit  of  that 
amount  on  the  transaction. 


THE   TREASURY   DEPARTMENT.  341 


Increase  of  Money  in  Circulation. 


Under  wise  Republican  management  of  the  country's  finances, 
the  feeling  of  security,  and  wide-spread  prosperity  incident  there- 
to, the  circulation  per  capita  has  enormously  increased  during 
each  year  since  the  inauguration  of  President  McKinley.  On 
May  1,  1904,  the  circulation  per  capita  was  the  highest  in  the 
history  of  the  United  States,  being  $31.02  for  each  man,  woman 
and  child  in  the  nation.  July  1,  1897,  the  per  capita  circulation 
was  only  $22.87.  It  has  increased  steadily  throughout  the  suc- 
[  ceeding  years  of  Republican  management,  as  shown  by  the  fol- 
lowing table : 

July  1,  1896  $21.41 

July  1,  1897  22.87 

July  1,  1998  25.15 

July  1,  1899  25.56 

July  1,  1900  26.94 

July  1,  1901  ..., 27.98 

July  1,  1902  28.43 

July  1,  1903 29.42 

May  1,  1904 31.02 

Compared  with  the  tremendous  volume  of  business  and  great 
opportunities  for  carelessness  and  fraud,  the  loss  to  the  Govern- 
ment from  occasional  lapses  on  the  part  of  public  officials,  al- 

j  ways  widely  advertised,  is  infinitesimal.  During  the  fiscal  year 
ended  June  30,  1903,  the  Treasury  Department  received  and  dis- 
bursed more  than  nine  thousand  million  dollars  without  error 

|  or  loss  of  a  single  cent.  The  total  receipts  on  all  accounts  were 
$4,615,509,655;  the  total  disbursements,  $4,317,625,514;  in  round 
numbers  an  aggregate  of  nine  billions — an  average  of  thirty  mil- 
lions a  day.  These  enormous  financial  transactions  of  course 
include  the  collection  of  revenue  and  the  disbursements  on  ac- 
count of  public  expenditure,  the  operations  connected  with  the 

I  currency  and  public  debt  of  the  United  States,  the  operation  of 
the  mints,  the  purchase  and  sale  of  bullion  by  the  assay  offices,  the 

!  issue  and  redemption  of  national-bank  notes,  the  issue,  exchange, 

i  redemption  and  refunding  of  the  bonded  debt,  the  manufacture 
and  issue  of  various  kinds  of  paper  money,  the  exchange  of  money 
of  one  denomination  or  character  for  another,  the  handling  of 
postal  funds,  including  money-order  funds,  on  account  of  the 
Post-Office  Department,  and  the  necessary  transfers  of  funds 
from  one  depositary  to  another. 

Not  including  the  postal  service  the  total  net  receipts  from 
every  source  for  the  fiscal  year  1903  were  $560,396,674.40.  The 
total  net  disbursements  on  accounts  for  the  same  period  were 
$506,099,007.04.  The  receipts  and  disbursements  aggregate  in 
round  numbers  a  billion  dollars — approximately  three  million 
dollars  a  day. 

The  receipts  and  disbursements  for  the  fiscal  year  ending 
June  30,  1904,  aggregate  in  excess  of  one  billion  dollars,  the  re- 
ceipts from  all  sources  amounting,  in  round  numbers,  to  $540,- 
000,000,  and  the  disbursements,  in  round  numbers,  to  $580,000,000. 
This  shows  an  apparent  deficit  of  $40,000,000.  There  has,  how- 
ever, been  no  bond  issue,  and  out  of  the  petty  cash  drawer  of 
the  United  States  has  been  purchased  a  Panama  Canal  for  $50,- 
000,000,  and  $4,600,000  has  been  advanced  to  the  Louisiana  Pur- 
chase Exposition  to  be  reimbursed  to  the  Government,  These  two 
extraordinary  items  have  simply  been  paid  from  a  surplus  due  to 
the  thrift  and  good  financial  management  of  the  party  which  has 
been  in  power  since  1897.  Under  the  immediately  preceding  Demo- 
cratic administration,  the  purchase  of  the  canal  and  the  encourage- 
ment of  an  exposition  of  world-wide  scope  could  only  have  been 
compassed  through  a  bond  issue,  for  during  that  period  in  the  his- 
tory of  the  country  bonds  were  issued  to  pay  the  ordinary  running 
expenses  of  the  Government. 

Payments  for  the  New  Navy. 

Eliminating  the  two  extraordinary  items  paid,  as  has  been 
stated,  by  checks  on  the  nation's  surplus,  the  apparent  deficit 
melts  away,  and  in  place  thereof  there  is  a  surplus  of  approxi- 
mately fifteen  millions — this,  too,  in  spite  of  the  fact  that  during 
the  fiscal  year  not  less  than  $35,000,000  has  been  invested  in  a 


342  THE   TREASURY    DEPARTMENT. 

greater  navy  for  the  protection  of  American  commerce  and  the 
preservation  of  the  prestige  of  the  nation. 

Under  Republican  rule  in  the  last  eight  years  $104,000,000  has 
been  invested  in  this  new  and  greater  navy.  At  the  time  of  the 
Inauguration  of  William  McKinley  the  total  value  of  the  new 
naval  establishment,  including  vessels  complete,  vessels  building, 
and  the  inventory  value  of  the  navy  yards  amounted  to  only 
$162,000,000. 

New  Public  Buildings. 

Since  the  inauguration  of  the  Republican  Administration  in 
1897,  fifty  millions  of  dollars  ($50,000,000)  in  round  numbers 
has  been  invested  in  public  buildings  and  sites  outside  of  the  city 
of  Washington.  .This  generous,  public  improvement  has  been 
nation-wide  and  evenly  distributed  according  to  the  needs  and 
opportunities  of  the  various  sections  of  the  country. 

The  authorizations  to  purchase  sites  and  construct  public  build- 
ings since  1897  aggregate  in  round  numbers  250.  At  the  close  of 
the  fiscal  year  ended  June  30,  1897,  the  actual  investment  in  public 
buildings  outside  of  the  city  of  Washington  amounted  to  $244,- 
235,432.64  At  the  close  of  business,  June  30,  1903,  the  actual 
investment  in  the  same  class  of  improvements  amounted  to  $283,- 
235,747.91.  During  the  fiscal  year  ended  June  30,  1904,  some- 
thing over  ten  million  dollars  has  been  added  to  that  sum,  mak- 
ing the  total  investment  at  the  close  of  this  fiscal  year  approxi- 
mately $294,000,000,  as  against  $244,000,000  when  the  Republican 
administration  took  charge  of  the  affairs  of  government— this, 
too,  in  spite  of  the  fact  that  for  the  first  two  years  of  Republican 
rule  building  operations  were  necessarily  impeded  by  the  condi- 
tion in  which  the  Democratic  party  left  the  Treasury.  During 
the  latter  part  of  President  Cleveland's  term  all  building  opera- 
tions had  ceased,  and  when  the  Republican  party  assumed  control 
it  contented  itself  with  preserving  the  public  buildings  then  in 
existence  until  such  time  as  a  repleted  Treasury  made  possible 
an  intelligent  and  farsighted  improvement  in  public  buildings 
throughout  the  country.  It  was,  therefore,  not  until  1899  that 
the  actual  investment  of  the  fifty  millions  in  good  real  estate  and 
substantial  buildings  was  begun  by  the  Republican  party. 

Stupendous  fiscal  operations  like  those  above  mentioned  have 
been  carried  on  for  years  by  the  officials  of  the  Treasury  Depart- 
ment in  the  most  perfect  manner  with  records  so  accurate  that 
balances  taken  at  the  end  of  years  and  months  of  actual  opera- 
tions show  the  loss  to  the  government  of  not  one  dollar  of  reve- 
nue and  not  one  displaced  security. 

On  the  death  of  the  Assistant  Treasurer  at  New  York  and  the 
appointment  of  his  successor,  the  sub-treasury  in  that  city  was 
thoroughly  inventoried  between  March  23, 1903,  and  May  12, 1903. 
A  force  of  twenty -five  experts  working  constantly  made  the  trans- 
fer from  the  old  to  the  new  administration  of  that  office.  The 
sub-treasury  was  charged  with  $296,911,256.62.  To  find  whether 
that  amount  of  money  was  actually  on  hand,  it  was  necessary  to 
count,  piece  by  piece,  $17,000,000  in  gold  certificates,  weigh  $200,- 
000,000  in  gold  coin,  and  65,000,000  standard  silver  dollars.  The 
gold  coin  weighed  369  tons,  tne  silver  coins  1,930  tons,  subsidiary 
silver  coins  38  tons,  and  minor  coins  14  tons.  In  this  whole 
amount,  $25  in  punched  silver  pieces  was  discovered,  which  sum 
was  made  good  by  those  responsible  for  the  errors.  Short-weight 
coins  to  the  amount  of  $20  were  discovered  and  made  good  in 
like  manner.  A  bag  of  silver  quarters  was  found  to  be  short  one 
piece,  which  was  made  good,  and  in  the  minor  coins  23  cents 
over  were  found.  These  were  the  only  errors  found  in  cash 
aggregating  $297,000,000  in  round  numbers. 

Each  sub-treasury  in  the  United  States  is  overhauled  in  this 
manner  at  least  once  a  year,  whether  there  is  a  transfer  in  the 
Administration  or  not.  A  force  of  experts  appears  at  the  sub- 
treasury  without  warning  and  takes  full  charge.  Seals  are  put 
on  all  vaults  and  safes  and  the  business  of  the  sub-treasury  is 
conducted  under  the  supervision  of  the  examiners  until  the  entire 
office  has  been  checked  up.  The  sub-treasury  at  New  York  is  the 
largest  depositary  of  coin  in  the  United!  States  government,  but 
the  same  care  that  is  exercised  by  the  Government  in  overhauling 
its  vaults  and  papers,  personnel  and  method  of  business  is  ex- 
hibited at  every  other  sub-treasury  in  the  United  States. 


THE  TREASURY  DEPARTMENT.  343 

For  the  first  time  in  nineteen  years,  due  to  the  immense  pres- 
sure of  business  and  the  necessity  for  working  night  and  day,  the 
Bureau  of  Engraving  and  Printing,  in  which  all  the  paper  money 
of  the  United  States  is  manufactured,  was  recently  checked  up 
from  cellar  to  garret.  This  inventory  began  February  21,  and  on 
that  date  the  Bureau  was  charged  with  having  in  its  possession 
8,921,156  sheets  of  distinctive  paper,  from  which  all  of  the  paper 
money  of  the  country  is  made.  For  two  days  one  hundred  and 
thirty  persons  worked  from  dawn  until  darkness  counting  piece 
by  piece  and  sheet  by  sheet,  and  at  the  end  of  the  second  day 
it  was  found  that  the  Bureau  had  actually  in  its  possession  the 
exact  number  with  which  it  was  charged.  When  it  is  remem- 
bered that  in  this  Bureau  alone  there  are  3,000  employees,  each 
one  of  whom  has  to  do  at  some  stage  with  the  manufacture  of 
this  paper  money,  the  accuracy  and  integrity  of  the  system  are 
all  the  more  remarkable.  In  the  nineteen  years  that  elapsed  be- 
tween the  former  count  and  the  count  described  herein,  more 
than  350,000,000  sheets  of  this  distinctive  paper— more  than  2,000 
tons — passed  through  the  Bureau,  and  not  a  single  sheet  was  lost 
or  unaccounted  for. 

Nor  is  the  Bureau  of  Engraving  and  Printing  exceptional  for 
accuracy  in  the  various  offices  of  the  Treasury  Department.  After 
a  lapse  of  37  months  the  Commissioner  of  Internal  Revenue  re- 
cently instituted  a  count  of  all  revenue  stamps  in  the  Bureau  un- 
der his  control.  During  the  period  from  January  7,  1901,  to 
February  23,  1904,  the  books  showed  that  the  total  number  of 
stamps  handled  by  his  Bureau  amounted  to  0,236,311,764 ;  that  the 
value  of  the  stamps  on  hand  at  the  beginning  of  that  period,  added 
to  those  received  during  the  period  amounted  to  $955,067,567.64; 
that  the  office  issued  to  collectors  of  Internal  Revenue  for  sale 
stamps  to  the  value  of  $866,521,359.78,  and  delivered  for  de- 
struction stamps  to  the  value  of  $36,530,256.78,  while  the  balance 
on  hand  February  23,  1904,  of  stamps  amounted  to  $52,015,951.08. 
The  actual  count  of  the  stamps  on  hand  verified  these  figures 
to  a  cent. 

Not  less  interesting  or  more  remarkable  was  the  actual  count 
of  funds  in  the  possession  of  the  United  States  Treasurer 
during  the  past  year.  Full  count  had  not  been  made  since  1897. 
July  1,  1903,  the  contents  of  the  reserve  vault  were  counted. 
The  books  showed  that  the  vault  should  contain  currency  to  the 
value  of  $403,936,500.  This  exact  amount  was  found  to  be  inside 
the  four  walls  of  the  strong  box.  January  19,  1902,  the  lower 
vaults  in  the  office  of  the  Treasurer,  containing  gold  and  silver 
coins,  were  counted.  The  Treasurer  was  charged  with  $15,- 
785,000.  After  a  day  of  careful  counting  that  amount  was  found 
to  be  correct  to  a  cent  January  27,  1904,  the  national-bank 
notes  in  process  or  redemption  in  the  National  Bank  Redemption 
Agency  were  counted.  According  to  the  books  there  should  be 
notes  in  that  Bureau  to  the  amount  of  $15,294,063.71.  Not  a 
dollar  was  found  missing. 

An  Element  of  Elasticity  in  the  Currency  System. 

Though  the  demands  for  currency  at  crop-moving  periods  were 
never  so  tremendous  as  in  the  last  two.  or  three  years,  the 
Treasury  Department,  by  wise  and  prompt  administrative  meas- 
ures, prevented  any  sudden  contraction  of  the  circulation  and  a 
consequent  check  to  prosperity.  The  Secretary  of  the  Treasury 
for  the  first  time  since  the  organization  of  the  national  banks  in 
1863,  utilized  the  best  class  of  approved  savings-bank  investments 
as  security  for  deposits  of  public  moneys  in  national  banks,  on 
condition  that  the  Government  bonds  thus  released  be  used  for 
the  immediate  issue  of  additional  national-bank  circulation.  In 
this  way  the  circulation  was  increased  many  millions.  But  for 
this  original  and  decisive  action  on  the  part  of  the  Secretary  of 
the  Treasury,  a  currency  famine  would  have  resulted.  Following 
in  its  train  would  undoubtedly  have  come  contraction  in 
various  lines  of  industrial  activity  and  at  least  a  partial  paralysis 
of  prosperity.  This  element  of  elasticity,  first  injected  into  the 
national-bank  circulation  in  the  fall  of  1902,  was  again  used  in 
the  fall  of  1903,.  with  equally  good  results.  To  these  wise  meas- 
ures and  to  the  remarkable  and  widely  distributed  growth  of 
national  banks  throughout  the  country  is  due  in  large  measure  the 


344  mi.    n;i:.\snn    in-  i-akimkiNT. 

continued  and  well-sustained  prosperous  condition  of  this  country 
initiated  by  the  Republican  victory  of  1890. 

Extension  of  the   National-Bank   System. 

The  gold  standard  ad  of  March  14,  1900,  gave  a  great  impetus 
to  the  extension  of  the  national-bank  system  of  this  country.  In 
operation  over  forty-one  years,  there  has  been,  during  that  period, 
up  to  April  30,  1904,  7,240  associations  organized,  of  which  5,313 
are  in  active  operation,  1,516  have  been  placed  in  voluntary  liqui- 
dation, and  411,  or  only  5.6  per  cent.,  placed  in  the  hands  of  re- 
ceivers. Insolvent  banks,  the  affairs  of  which  have  been  liqui- 
dated, paid  their  creditors,  on  an  average,  78.55  per  cent,  on 
their  claims. 

Under  authority  conferred  by  the  act  of  March  14,  1900  (which 
authorized  the  incorporation  of  banks  with  a  minimum  capital  of 
$25,000),  and  subsequent  to  that  date,  national  banking  associa- 
tions have  been  organized  to  the  number  of  1,976,  with  aggregate 
capital  of  $114,591,500,  the  number  and  capital  of  asso- 
ciations organized  in  each  geographical  division  being  as  follows : 
New  England,  20  banks  with  capital  of  $4,000,000;  Eastern  States, 
346,  capital  $28,524,000;  Southern  States,  488,  capital  $26,456,500; 
Middle  Western  States,  604,  capital  $33,681,000;  Western  States, 
427,  capital  $13,770,000;  Pacific  States  and  Territories,  88,  capital 
$7,535,000;  Hawaii  and  Porto  Rico,  3,  capital  $625,000. 

On  March  14,  1900,  there  were  in  operation  3,617  associa- 
tions, with  capital  of  $616,308,095,  and  outstanding  circulation  of 
$254,402,730.  Between  that  date  and  April  30,  1904,  there  was  a 
net  increase  in  number  of  banks  and  capital  of  1,696  and  $158,- 
141,220,  respectively.  During  this  period  there  was  a  net  increase 
in  the  amount  of  national-bank. notes  outstanding  of  $182,677,843, 
the  outstanding  issues  amounting  to  $437,080,573  on  April  30. 

From  the  foregoing,  it  will  be  observed  that  there  has  been 
a  material  increase  in  number,  capital,  and  circulation  of  national 
banking  associations  as  a  result,  primarily,  of  the  legislation  of 
March  14,  1900. 

On  February  13,  1900,  the  date  of  reports  to  the  Comptroller 
of  the  Currency-  nearest  to  that  of  the  passage  of  the  currency 
act  of  that  year,  there  were  in  active  operation  3,604  national 
banks,  with  aggregate  resources  of  $4,674,910,710,  of  which  $2,- 
481,579,942  was  represented  by  loans  and  discounts.  The  amount 
of  gold,  silver,  and  lawful  money  held  by  the  associations  on  that 
date  was  $476,544,315.  The  principal  items  of  liabilities  were  as 
follows:  Capital  stock,  $613,084,465;  surplus  and  net  undivided 
profits,  $363,872,959 ;  circulation  outstanding,  $204,912,544 ;  and  in- 
dividual deposits,  $2,481,847,032.  On  March  28,  1904,  the  num- 
ber of  associations  reporting  to  the  Comptroller  of  the  Currency 
was  5,232;  loans  and  discounts,  $3,544,998,555;  specie  and  other 
lawful  money,  $617,515,582;  aggregate  resources,  $6,605,995,612. 
The  paid  in  capital  stock  amounted  to  $765,974,752;  surplus  and 
profits,  $574,532,691 ;  circulation  outstanding,  $385,908,198,  and  in- 
dividual deposits,  $3,254,470,856. 

Comparing  the  returns  on  the  two  dates,  there  is  shown  to  have 
been  an  increase  in  number  of  reporting  banks  of  1,628,  and  in 
aggregate  resources  of  $1,931,084,902.  The  capital  was  increased 
to  the  extent  of  $152,890,287;  surplus  and  other  profits,  $210,- 
659,732;  circulation,  $180,995,654,  and  individual  deposits  to  the 
amount  of  $772,623,824.  The  percentages  of  increase  are  as  fol- 
lows :  Number  of  banks,  45  per  cent. ;  aggregate  resources,  41 
per  cent. ;  capital  stock,  nearly  25  per  cent. ;  individual  deposits,  31 
per  cent. :  circulation,  approximately,  90  per  cent. 

Classifying  the  returns  by  geographical  divisions,  it  is  shown 
that  there  has  been  an  increase  in  the  aggregate  resources  of 
the  banks  in  every  section  of  the  country.  In  the  New  England 
States,  by  reason  of  liquidations  and  consolidations  with  other 
institutions,  there  were  only  529  banks  in  operation  on  March  28, 
1904,  as  against  565  on  February  13,  1900.  With  this  reduction 
in  number  of  banks  there  is  shown  a  reduction  in  capital  stock  of 
$18,485,000,  but  an  increase  in  surplus  and  other  undivided  profits 
of  $8,735,497.  The  increase  in  individual  deposits  was  from  $322,- 
259,422  to  $323,495,707,  or  $1,236,285.  The  banks  in  this  section 
increased  their  circulation  to  the  amount  of  $10,865,769. 

The  number  of  banks  in  the  Eastern  States  increased  from  976 


THE   TBEASURY    DEPARTMENT.  345 

to  1,242  with  increased  assets  to  the  amount  of  $818,321,183.    The 

increase  in  loans  and  discounts  is  shown  to  have  been  $442,125,929, 

or  from  $1,067,365,098  to  $1,509,491,027.    Specie  and  other  currency 

held  by  the  banks  increased  from  $268,812,664  to  $342,976,434,  or 

$74,163,770.    The  increase  in  capital  stock  was  $76,894,620 ;  surplus 

,  and  other  profits,  $115,181,829 ;  circulating  notes,  $59,298,550.    The 

t  individual  deposits  increased  in  the  sum  of  $231,423,116,  or  from 

i  $1,106,036,612  to  $1,337,459,728. 

In  the  Southern  States  the  number  of  banks  increased  420,  or 
[from  545  to  965.     The  increase  in  loans  and  discounts  was  $144,- 
|469,806;  specie  and  other  currency,  $9,462,749,  and  aggregate  re- 
sources, $253,034,551.     The  aggregate  resources  of  the  banks  in 
t  this  division  in  1900  were  $379,875,634,  and  in  March,  1904,  $632,- 
|  910,185.    The  increase  in  number  of  banks  resulted  in  an  increase 
of  capital  stock  of  $28,177,371,  or  from  $64,067,960  to  $92,245,331. 
Surplus  and  profits  increased  $23,578,802 ;  circulation,  $28,904,590, 
and  individual  deposits  $129,924,413.     The  liabilities  of  the  asso- 
ciations to  depositors  in  1900  were  $207,682,432,  and  in  1904  $337,- 
606,845,  an  increase  of  $129,924,413. 

National  banking  associations  to  the  number  of  1,566  were  in 
operation  in  the  Middle  Western  States  on  March  28,  1904,  an  in- 
crease since  1900  of  513,  with  an  addition  in  capital  stock  of 
$42,863,412,  the  amount  of  capital  on  the  earlier  date  being  $159,- 
948,100,  and  on  the  later  $202,811,512.  The  surplus  and  other 
profits  increased  from  $71,068,691  to  $117,289,634,  or  $46,220,943. 
The  banks  in  this  section  increased  their  circulation  during  the 
period  in  question  from  $49,589,110  to  $103,620,140,  or  $54,031,030. 
The  individual  deposit  liabilities  increased  $264,998,484,  or  from 
$635,799,976  to  $900,798,460. 

The  number  of  associations  in  the  Western  States  in  operation 
in  1904  was  738,  an  increase  of  392  since  1900,  with  an  increase 
also  in  capital  stock  of  $14,613,656,  or  from  $29,984,500  to  $44,- 
598,156.  The  aggregate  resources  of  banks  in  this  section  increased 
from  $213,980,433  to  $351,304,708,  or  $137,324,275.  Increase  in 
loans  and  discounts  was  $69,344,026,  and  in  specie  and  other  cur- 
rency holdings  $7,306,460.  The  surplus  and  other  profits  of  the 
banks  increased  from  $9,534,642  to  $18,072,909,  or  $8,538,267.  The 
banks  in  this  section  increased  their  circulation  from  $8,675,187 
to  $23,136,092,  or  $14,460,905.  Individual  deposits  increased  in  the 
sum  of  $78,612,601,  or  from  $135,331,545  to  $213,944,146. 

'  The  number  of  banks  in  the  Pacific  States  and  Territories  re- 
i  porting  in  1904  was  189,  an  increase  of  70  since  1900.    The  aggre- 
gate resources  nearly  doubled,  amounting  to  $237,459,617  on  the 
later  date,  and  $122,353,994  on  the  earlier,  the  increase  being  $115,- 
105,623.     Loans  and  discounts  standing  at  $52,641,665  in  1900,  in- 
■  creased  to  $113,617,579  in  1904,  or  $60,975,914,  and  the  increase  in 
specie  and  other  money  was  from  $15,455,970  to  $23,159,411,  or 
$7,703,441.    The  increase  in  capital  stock  was  from  $19,145,000  to 
$27,346,228,  and  the  surplus  profits  from  $8,304,400  to  $16,639,560, 
|  the  increase  in  each  item  being,  capital,  $8,201,228,  and  surplus, 
!  $8,335,160.    Relatively,  the  greatest  increase  in  circulation  is  shown 
in  this  section,  the  amount  being  $13,168,310,  or  from  $4,376,777  to 
$17,545,087.     The  increase  in  individual  deposits  was  $65,405,065, 
or  from  $74,737,045  to  $140,142,110. 

There  were  no  national  banking  associations  in  existence  in  the 
island  possessions  in  1900,  in  consequence  of  which  comparisons 
similar  to  the  foregoing  cannot  be  made.  In  March,  1904,  there 
were  in  operation  in  Hawaii  two  national  banks  and  in  Porto  Rico 
one,  the  aggregate  capital  of  the  associations  being  $625,000 ;  sur- 
plus and  other  profits,  $69,234;  circulation,  $266,500;  individual 
deposits,  $1,023,860.  The  banks'  aggregate  resources  were  $2,407,- 
864,  of  which  $309,179  was  in  specie  and  other  currency,  and 
$1,176,407  loans  and  discounts. 

The  divisions  of  the  States,  geographically,  are  shown  in  the 
accompanying  tabte  relating  to  the  organization  of  national  banks 
from  March  14,  1900,  to  April  30,  1904 : 




Fate  has  decreed,  and  her  decrees  are  forever  irreversible,  that 

,  we    shall    dwell    in    perpetual    unison.      Political    demagogues,    for 

selfish  endst  and  senseless  agitators  cannot  disturb  the  ties  which 

bind   us   together   with    more   than    a    Titan's   power.— Hon.    C    W. 

Fairbanks,  at  Lancaster,  Mass.,  June  30,  1903. 


346 


Mil.     IKKASIKV    DEPARTMENT. 


summit)-)/.  i>n  states,  geographical  divisions,  and  classes,  of  Na- 
tional banks  organized  from  March  t).  1900,  to  April  80,  190$. 


States,  etc. 

Capital 

— $50.<HX> 

Capital 

$50,000  ,  . 

Total 

organizations. 

No. 

Capital, 

No. 

Capital, 

No. 

Capitol. 

1 
1 

1 

$25,000 
85,000 

25.000 

4 

2 
1 
6 
1 
1 

1286,000 

200.000 

lOO.(KK) 

2.X(X).<XX> 

500.O00 

50,000 

5 
3 
2 
6 
1 
3 

$250,000 

125.000 

2.KWI.IXH) 

500.00Q 

2 

50.000 

Total  New  England  States. . 

5 

125,000 

15 

3,875,000 

20 

4,000,000 

29 
18 
101 
5 
15 

785,000 

475.000 

2,617.000 

145.000 

402,000 

36 

13 
119 

'"'.). 

1 

7,ic>o.<k>o 

875,000 

15.088.000 

"830.006' 
250,000 

65 
31 

220 

5 

24 

1 

i  350  <xxi 

17.658.000 

1,838.000 

250.000 

168 

4,374,000 

178 

24,150,000 

346 

28.524.000 

25 
23 
13 

3 
14 

3 
10 

3 

9 
151 

6 
23 

9 

656,000 
650,000 
335.000 

75.000 
400,000 

85.000 
252,500 

80.000 
225.000 
4,043.000 
150.000 
595.000 
235,000 

17 
16 
2 
6 
11 
10 
18 
9 
9 
70 
7 
14 
7 

1.310.000 
1,235.000 

150.000 

810,000 
1,065,000 
1,200,000 
1,400,000 
1,075.000 

900,000 
5,740.000 

850,000 
2,120.000 

520.000 

42 
39 
15 
9 
25 
13 
28 
12 
18 
221 
13 
37 
16 

1.966.000 

1,885.000 

485.000 

885.000 
1.465.000 
1.285.000 
1.652.500 
1.155.000 
1,125,000 
9.783.000 
1.000,000 
3,015,000 

755,000 

West  Virginia 

Florida 

Total  Southern  States 

292 

7,781,500 

196 

18,675,000 

488 

26.456,500 

66 
39 
74 

7 
23 
126 
73 

1,750.000 

1,035.000 

1.930,000 

190,000 

595.000 

3,201,000 

1,940.000 

430,000 

42 
26 
36 
9 
14 
16 
26 
11 

5,080.000 
2,600.000 
5,380,000 
2,680.000 
1,700,000 
1.600,000 
1,535.000 
2,035,000 

108 
65 

110 
16 
37 

142 
99 
27 

6.830,000 
3,635.000 
7,310.000 
2,870.000 
2,295,000 
4,801.000 
3,475,000 
2,465.000 

16 

Total  Middle  Western  States 

424 

11,071,000 

180 

22,610,000 

604 

33.681.000 

57 
33 
41 
43 
4 
4 
15 
10 
78 
76 

1,435,000 

825,000 

1.065,000 

1.100.000 

105,000 

100,000 

390,000 

255,000 

1,975.000 

1,965,000 

1 
2 
5 

15 
1 
4 

11 
4 
9 

14 

50.000 
100,000 
300,000 
1,050.000 
250.000 
200.000 
900,000 
250.000 
650,000 
805.000 

58 
35 
46 
58 
5 
8 
26 
14 
87 
90 

1.485.000 

925.000 

1.365,000 

2,150,000 

355.000 

300.000 

1,290,000 

505.000 

8,625.000 

2,770,000 

Total  Western  States 

361 

9,215,000 

66 

4,555,000 

427 

13,770,000 

4 
11 
11 
12 

3 

105,000 
275,000 
300.000 
300,000 
80,000 

5 
1 
28 
4 
1 
1 
3 

420,000 
100,000 
5,200.000 
250,000 
50,000 
200.000 
150,000 

9 
12 
39 
16 
4 
1 
7 

525,000 

5,500,000 
550  000 

Utah 

130  000 

200  (XX) 

4 

105,000 

255  000 

Total  Pacific  States 

45 

1,165,000 

43 

6,370,000 

88 

7,535  000 

Hawaii 

1 

25,000 

1 
1 

500,000 
100,000 

2 

1 

525.000 

100  (XX) 

1 

25,000 

2 

600,000 

3 

625,000 

Total  United  States 

.296 

33,756,500 

680 

80,835.000   1 

,976  . 

1114,591,500 

a  Bonds  deposited,  $28,020,100. 


THE  WAR  DEPARTMENT.  347 


THE  WAR  DEPARTMENT. 


Its  Policy  and  Administration  Since  1897. 

From  whatever  view  point  the  War  Department  may  be  judged 
in  the  past  seven  years,  there  can  be  no  just  criticism  of  its  in- 
tegrity, its  administration,  or  its  achievements.  Nor  can  be 
questioned  its  extraordinary  growth  and  useful  importance  as  the 
chief  instrumentality  of  executive  authority  in  the  varied  and 
important  affairs  that  imperatively  claimed  serious  considera- 
tion in  the  two  administrative  terms  since  1897.  Without  de- 
sign or  desire,  the  United  States  became  suddenly  sad- 
dled with  the  duties  of  governing  three  different  sec- 
tions of  foreign  countries,  which,  by  reason  of  their  different  peo- 
ples and  varying  traditions  and  customs,  presented  to  the  Chief 
Executive  political  problems  and  obligations  unparalleled  in  the 
history  of  the  world. 

Although  the  probability  of  war  with  Spain  had  long  been 
•contemplated,  when  it  did  occur  its  suddenness  found  the  United 
States  in  a  measure  largely  unprepared — its  ocean  ports  and  sea- 
coast  cities  almost  defenseless.  Despite  all  handicaps  and  the 
general  unpreparedness,  however,  in  military  organization,  equip- 
ment, armament,  and  seacoast  defensive  fortifications,  the  War 
i  Department  met  this  vital  emergency  with  astounding  alertness 
and  success. 

Just  prior  to  the  outbreak  of  the  Spanish-American  war  the 
strength  of  the  Regular  Army  was  but  2,143  officers  and  26,040  en- 
listed men.  Under  the  President's  first  and  second  calls  for 
troops,  April  23  and  May  25,  respectively,  and  the  recruitment 
of  the  Regular  Army  to  the  maximum  allowed  by  law,  the 
strength  of  the  Army,  including  regulars  and  volunteers,  on  August 
8,  1898,  had  been  quickly  increased  to  11,108  officers  and  263,609 
enlisted  men.  Congress  also  passed  without  a  dissenting  voice 
the  $50,000,000  voted  to  meet  the  emergency  of  that  sudden  war, 
and  with  unmeasured  faith  in  the  President  of  the  United  States 
left  him  without  hindrance,  condition,  or  restriction,  to  expend 
that  large  amount  of  money  as,  in  his  discretion,  seemed  best  for 
the  welfare  of  the  country.  No  greater  tribute  to  the  lamented 
Republican  President  could  have  been  paid  by  friends  and  op- 
ponents in  the  political  world,  and  no  more  complete  justification 
can  be  made  of  the  integrity  of  the  Republican  Administration 
than  to  say  that  not  one  dollar  of  that  appropriation  was  di- 
verted from  its  intended  proper  use. 

Finally,  on  May  30,  1898,  instructions  were  issued  by  the  War 
Department,  under  the  direction  of  the  President,  ordering  an 
expedition  to  proceed  to  Cuba  to  "capture  the  garrison  at  San- 
tiago and  to  assist  in  capturing  the  harbor  and  fleet  of  the  enemy." 
The  expedition  sailed  on  June  14,  1898,  from  Tampa,  Florida,  with 
815  officers  and  16,072  enlisted  men  on  thirty-three  transports, 
and  arrived  at  Daiquiri  on  June  21.  The  troops  immediately  ad- 
vanced and  captured  Siboney.  On  the  morning  of  June  24,  1898, 
a  dismounted  cavalry  brigade  attacked  the  enemy  at  La  Guasima 
and  carried  their  intrenchments.  On  July  1  an  attack  was  made 
on  El  Caney  and  the  place  was  carried  by  assault  about  4  p.  m. 
In  the  meantime  preparations  for  an  attack  on  San  Juan  Hill 
were  completed,  and,  after  a  fierce  encounter,  the  American  forces 
drove  the  enemy  from  his  intrenchments  and  blockhouses,  thus 
gaining  a  position  that  sealed  the  fate  of  Santiago,  and  on  July 
8  the  commander  of  the  Spanish  forces  offered  to  march  out  of 
the  city  of  Santiago  with  arms  and  baggage,  provided  he  would 
not  be  molested  before  reaching  Holguin,  and  to  surrender  to  the 
American  forces  the  territory  then  occupied  by  him.  This  propo- 
sition was  rejected ;  on  the  morning  of  July  11  the  surrender  of 
the  city  was  again  demanded ;  on  the  morning  of  the  14th  General 
Toral  agreed  to  surrender,  and  the  formal  surrender  took  place 
on  the  17th  of  July. 

Thus  the  war  with  Spain  was  practically  ended  with  an  in- 
vading army  of  less  than  17,000  officers  and  men  in  a  sickly 


348  THE   WAK   DEPABTMENT. 

tropical  country  in  the  reputed  deadliest  season  of  the  year.  The 
United  States  had  become  master  of  the  Island  of  Cuba  though 
there  were  stationed  on  the  island  a  fighting  force  of  more  than 
five  times  the  size  of  our  invading  army,  80,000  veteran  Spanish 
soldiers,  the  remnant  of  an  army  of  210,000  sent  from  Spain  to 
dominate  Cuba.  The  casualties  of  the  United  States  Army  in 
that  war  comprised  23  officers  and  237  enlisted  men  killed,  and 
99  officers  and  1,322  enlisted  men  wounded,  only  13  of  whom  died 
of  their  wounds. 

Meanwhile  the  combined  operations  of  the  United  States  Army 
and  Navy  in  the  Philippine  Islands  has  occurred,  beginning  with 
Dewey's  famous  victory  of  May  1st,  resulting  in  the  capture  of 
Manila  on  August  13,  1898,  when  the  surrender  of  the  Spaniards 
was  completed  and  the  Spanish  colors  on  the  sea  front  were  hauled 
down  and  the  American  flag  was  raised.  The  13,000  prisoners 
captured  in  Manila,  added  to  the  23,000  surrendered  at  Santiago, 
constituted  a  force  in  themselves  far  superior  to  the  victorious 
Americans. 

After  the  close  of  hostilities  with  Spain  it  became  necessary 
to  deal  with  the  insurrection  in  the  Philippine  Islands,  which 
continued  with  unvarying  successes  on  the  part  of  the  United 
States  troops  until  the  insurgents  dwindled  into  mere  bands  of 
guerrillas,  hiding  in  remote  and  sequestered  resorts,  and  whn_ 
finally  gave  up  their  arms  and  surrendered  when,  on  March  21, 
1901,  Aguinaldo,  their  self-constituted  chief  or  leader,  was  cap- 
tured. 

There  is  no  prouder  or  more  honorable  page  in  the  history  of 
our  Army  than  that  covering  the  period  of  its  successful  suppres- 
sion of  the  Philippine  insurrection.  Although  the  campaign 
against  the  organized  Filipino  troops  was  swift  and  short,  lasting 
only  about  a  year,  the  guerilla  warfare  that  ensued,  carried  on 
by  the  various  bodies  of  insurrectoes  in  the  different  parts  of 
the  island,  covering  an  extensive  area  of  operations,  required  a 
degree  of  zeal  and  labor  on  the  part  of  our  army  seldom,  if  ever 
before,  devolved  upon  any  troops  in  the  civilized  world.  Scat- 
tered over  a  vast  expanse  of  territory,  our  70,000  soldiers  were 
distributed  at  nearly  600  stations,  while  pursuing  columns  were 
also  undergoing  untold  harships — generals  and  all  alike  without 
regard  to  rank — for  a  great  part  of  the  time  carrying  their  own 
rations  and  possessing  no  other  camp  equipage  than  the  half 
shelter  tent  or  rubber  blanket  carried  on  the  person.  Lieutenants, 
as  well  as  sergeants,  found  themselves  commanding  companies 
and  expeditions,  sometimes  leading  small  aggressive  expeditions, 
all  proving  themselves  equal  to  the  emergency  and  each  contrib- 
uting to  the  success  finally  achieved. 

People  in  this  country  could  have  no  idea  of  the  extent  of  those 
military  operations  in  the  Philippines  or  the  strain  upon  the 
physical  endurance  of  our  soldiers,  who,  for  the  first  time  in 
the  army's  career,  were  experiencing  the  sickening  and  debilitating 
service  in  the  Tropics — marching  over  flooded  rice  fields,  wading 
through  dangerous  swollen  streams  and  crossing  angry  rivers  on 
improvised  rafts,  often  under  hostile  fire;  all  this  without  the 
usual  place  to  rest  in  camp,  without  shelter  from  rain  or  sun,  and 
often  without  cooked  food.  In  thus  fighting  a  guerrilla  enemy, 
who,  as  occasion  required,  hid  their  guns  and  changed  their  cloth- 
ing, pretending  friendship,  only  to  turn  suddenly  from  self-styled 
"amigos"  into  murderous  marauders  whose  cruelty  and  barbarism 
set  at  defiance  all  civilized  warfare  and  shocked  the  sensibilities 
even  of  veteran  soldiers,  their  bravery  is  only  equaled  by  their 
forbearance. 

Reduction  and  Reorganization  of  the  Army. 

Active  ^military  operations  on  the  part  of  the  United  States 
having  been  completed,  the  attention  of  the  War  Department  was 
given  to  the  matter  of  reduction  of  the  military  establishment. 

To  those  who,  without  correct  knowledge  of  the  facts  and 
figures,  assert  that  the  tendency  of  the  United  States  under  Re- 
publican administration  has  been  in  the  direction  of  an  unduly 
increased  military  establishment,  the  following  brief  statement, 
based  upon  the  official  published  reports  of  the  Secretary  of  War 
to  Congress,  may  be  presented  Those  reports  show  that  when 
hostilities  between  the  United  States  and  Spain  were  suspended 


THE   WAR   DEPARTMENT.  349 

by  the  signing  of  the  protocol  between  the  two  governments  on 
August  12,  1898,  the  Army  of  the  United  States  consisted  of  2,324 
officers  and  61,444  enlisted  men  of  the  regular  force,  and  5,216 
officers  and  110,202  men  of  the  volunteer  force,  making  an  aggre- 
gate of  7,540  officers  and  171,646  enlisted  men.  Under  the  pro- 
visions of  the  acts  of  Congress  of  April  22  and  26,  1898,  pro- 
viding for  the  increase  of  the  Army  at  the  beginning  of  the  war 
with  Spain,  it  was  required  that  at  the  end  of  the  war  the  entire 
volunteer  force  should  be  discharged  from  the  service  and  the  Army 
reduced  to  a  peace  basis,  thus'  making  necessary  the  additional 
discharge  of  34,834  regulars  and  110,202  volunteers  besides11,  and 
substantially  all  of  the  5,216  volunteer  officers. 

The  mustering  out  and  transportation  of  this  large  number  of 
soldiers  involved  considerable  labor,  but  it  was  all  duly  accom- 
plished within  the  prescribed  limitations  of  time.  Scarcely  had 
this  reduction  taken  place,  hawever,  when,  on  account  of  the  in- 
surrection among  the  Tagalogs  on  the  Island  of  Luzon,  it  be- 
came necessary  to  again  increase  the  Regular  Army  to  a  strength 
not  exceeding  65,000  men  and  to  raise  a  force  of  35,000  U.  S. 
volunteers.  This  action  was  completed,  and  according  to  the  re- 
port of  the  Secretary  of  War  for  1899  it  will  be  seen  that  the 
great  bulk  of  our  Army,  numbering  65,957  regulars  and  volun- 
teers, were  stationed  in  the  Philippine  Islands. 

Splendid  Work  of  Our  Troops  in  China  in  1900. 

The  troubles  that  arose  in  China  prompted  the  United  States 
to  send,  as  early  as  June  16,  1900,  a  regiment  of  United  States  in- 
fantry from  Manila,  with  suitable  transportation,  medical  officers, 
and  rapid-fire  guns,  with  instructions  to  the  commanding  officer 
to  confer  with  the  admiral  commanding  the  American  fleet  at 
Taku,  and  to  report  to  the  United  States  minister  at  Pekin  for  the 
protection  of  the  lives  of  American  citizens  in  China. 

It  will  be  remembered  that,  seriously  threatening  as  was  the 
condition  in  China  at  this  time,  the  United  States,  reluctant  to 
take  any  intrusive  part  in  the  affairs  of  that  vast  empire,  pro- 
ceeded with  cautious  conservatism,  and  it  was  only  after  it  be- 
came apparent  that  our  international  dignity  had  been  assailed 
and  the  lives  and  property  of  our  citizens  were  in  jeopardy,  with- 
out any  prospect  of  protection  on  the  part  of  the  Chinese  Gov- 
ernment, that  the  United  States  decided  on  its  positive  course  for 
the  protetction  of  American  interests  in  China.  Not  only  had  the 
United  States  legation  at  Pekin  been  attacked,  together  with  the 
legation  buildings  of  other  powers,  but  the  United  States 
legation,  together  with  those  of  other  foreign  powers,  were  actually 
besieged,  and  the  German  ambassador  at  Pekin  was  reported  to 
have  been  murdered.  It  was  at  this  time  that  a  second  com- 
bined expeditionary  force  to  Pekin  became  necessary,  forming  an 
allied  army  of  all  the  great  powers,  and  including  our  own  mili- 
tary force  under  command  of  Major-General  Adna  R.  Chaffee,  who 
had  been  appointed  to  the  command  of  the  United  States  forces 
in  China,  to  protect  our  citizens  and  our  legation  against  the 
murderous  assaults  of  the  so-called  Boxers,  whom  the  Chinese 
government  had  acknowledged  and  proved  itself  utterly  unable 
to  control  or  subdue. 

The  spendid  results  in  this  display  of  American  force  and  the 
assertion  of  the  right  of  the  United  States  to  participate  with  the 
great  powers  of  the  world  in  oriental  matters  need  not  be  re- 
counted here.  The  total  military  strength  of  the  expedition  to 
China  numbered  435  officers  and  15,018  enlisted  men,  besides  2,000 
marines,  of  which  total  number  between  5,000  and  6,000  arrived  in 
China  before  the  capture  of  Pekin,  and  played  an  important  part 
in  the  troublesome  questions  which  were  considered  and  settled 
during  that  emergency. 

Notwithstanding  this  diversion  from  the  general  plan  of  re- 
duction of  the  military  establishment  it  was  not  in  any  way 
changed,  although  for  that  year  the  aggregate  force  varied  little 
from  the  number  of  the  year  previous,  being  maintained  at  103,- 
150,  of  which  number  4,360  were  hospital  corps  men.  On  account 
of  conditions  prevailing  in  the  Philippines  the  military  force  in 
those  islands  was  slightly  increased  to  74,094  officers  and  men, 
whereas  on  account  of  the  tranquil  conditions  in  Cuba  and  Porto 


350  tiii:  wak  ditakiment. 

Kico,  the  military  force  in  those  islands  had  been  largely  re- 
duced. 

The  official  report  of  the  Secretary  of  War  for  1901  phows 
th.it  the  volunteer  force,  pursuant  to  the  act  of  Congress  of  March 

2,   1899,  w;is  to  Continue  Ul  service  not   later  than  .Inly   1,   1001.      It 

was,  accordingly,  brought  hack  from  the  Philippines,  where  it  was 
substantially  all  stationed,  between  January  1  and  June  30,  1901, 
and  mustered  out  in  San  Francisco.  Meanwhile,  however,  in  order 
not  to  leave  the  United  States  with  a  wholly  inadequate  force, 
the  act  of  February  2,  1001,  to  increase  the  efficiency  of  the  perma- 
nentHnilitary  establishment,  authorized  the  President  to  maintain 
a  Regular  Army,  according  to  the  exigency  of  the  time,  from  a 
minimum  of  50,131  to  a  maximum  of  100,600,  without  any  change 
of  commissioned  officers  or  in  the  number  of  organizations  pre- 
scrihed  in  the  act.  The  improvement  of  conditions  in  the  Philip- 
pine Islands  in  the  spring  and  summer  of  1901  made  it  unneces- 
sary to  maintain  the  maximum  number  authorized  by  law,  and 
on  May  8,  that  year,  an  order  was  made  fixing  the  reduced  strength 
of  the  several  organizations  in  a  manner  to  place  the  aggregate; 
enlisted  strength  of  the  Army,  including  all  staff  departments,  at 
77,287  men,  which,  it  will  be  seen,  was  a  reduction  in  the  military 
strength  of  the  country  of  nearly  26,000.  The  further  interesting 
fact  should  be  noted  that  on  September  25,  1001,  the  Philippine 
Islands  held  only  a  military  force  of  43,237,  which  was  a  reduc- 
tion in  the  force  stationed  there  the  year  previous  of  nearly  22,- 
000  men. 

In  1002,  as  reported  by  the  Secretary  of  War  on  December  1, 
the  continued  improved  conditions  in  the  Philippine  Islands  made 
possible  a  further  reduction  of  nearly  10,000  in  the  enlisted 
strength  of  the  Army,  leaving  its  total  at  00,477,  with  an  aggre- 
gate military  force  of  only  22,433  officers  and  men  in  the  Philip- 
pine Islands,  being  another-  reduction  of  nearly  21,000  in  the 
Philippine  Islands  from  the  preceding  year,  or  a  total  reduction  in 
the  two  years  of  nearly  45,000. 

Finally  the  lajst  report  of  the  Secretary  of  War  for  1903  shows* 
that  under  order  made  October  1,  1902,  a  still  further  reduction 
of  the  Army  was  made  to  the  minimum  number  allowed  by  law, 
and  even  that  minimum  number,  on  account  of  subsequent  dis- 
charges and  vacancies  occurring,  was  reduced  on  October  15,  1903, 
to  3,681  officers  and  55,500  enlisted  men.  Of  this  number  the 
force  remaining  in  the  Philippine  Islands  aggregated  only  15,510 
officers  and  men,  a  reduction  from  the  previous  year  of  6,923,  or] 
a  reduction  in  less  than  three  years  of  nearly  52,000. 

When  it  is  remembered  that  the  total  strength  of  the  Regular 
Army,  according  to  the  last  report,  did  not  exceed  the  minimum 
number  fixed  by  law  of  Congress,  which  was  an  increase  over 
the  former  nominal  military  establishment  of  only  about  33,000 
men,  the  fact  at  once  is  suggested  that  the  increase  has  been  but  a 
small  one,  and  not  at  all  commensurate  with  the  growth  of  popu- 
lation and  the  new  conditions  that  arose  demanding  additional 
troops.  Even  had  there  been  no  war  at  all,  the  increased  coast 
defense,  which  had  been  gradually  going  on  for  years,  and  which 
should  and  doubtless  would  have  possessed  if  peace  had  indefi- 
nitely continued,  alone  demanded  a  greater  increase  in  the  artillery 
branch  of  the  service  than  the  whole  Regular  Army  numbered  in 
1898. 

Since  the  war  with  Spain  officers  of  the  Army  have  beenl 
called  upon  to  perform  many  important  duties  of  a  civic  nature. 
They  have  performed  nearly  every  function  of  authority  em- 
braced in  the  civil  as  well  as  the  military  government,  and  tcj 
their  credit  it  must  be  stated  that  in  whatever  office  they  renJ 
dered  service  they  exhibited  marked  zeal  and  strict  fidelity.  Cerf 
tainly  it  is  most  gratifying  to  realize  that  the  military  establish- 
ment of  the  country,  as  was  recently  demonstrated  in  the  Philip- 
pine Islands,  can,  when  called  upon,  meet  every  exigency  of  public 
service  in  all  the  departments  of  civil  government,  including 
those  of  finance,  law,  and  diplomacy,  and  this  often  in  addition 
to  military  duties,  without  extra  expense  to  the  Government. 

Certainly  the  Army  has  reason  to  be  proud  of  its  record  that 
in  its  responsibilities  and  the  exercise  often  of  unrestricted  dis- 
cretion public  trust  has  been  so  well  respected  and  guarded  as 
to  make  conspicuous  the  fact  that  no  officer  of  the  Regular  Army, 


THE   WAR  DEPARTMENT.  351 

during  or  since  the  war  with  Spain,  has  been  guilty  of  misap- 
propriation or  unwarranted  loss  of  a  single  dollar  of  public  money 
or  property.  In  one  instance  alone,  it  may  be  stated  by  way  of 
illustration,  an  officer  of  the  Army,  who,  by  reason  of  his  station 
in  San  Francisco  as  depot  quartermaster,  fell  heir  to  the  trying 
duties  of  furnishing  regular  and  urgent  supplies  to  the  troops  in 
the  Philippines,  disbursed  over  $37,000,000,  and  already  his  ac- 
counts have  been  balanced  and  audited  without  the  suspension  of 
a  single  dollar.  Much  of  the  vast  sum  of  money  expended  by  him 
was  for  purchases  in  open  market,  and  in  many  instances  of  urgent 
rush  he  was  compelled  to  be  guided  only  by  his  own  judgment,  and 
even  to  take  the  responsibility  of  anticipating  subsequent  authority 
of  acts  that  could  not  be  delayed  without  injury  or  discomfort  to 
the  military  service.  Yet  this*  officer  is  but  one  of  many  others 
similarly  situated  about  the  same  time.  For  example,  the  present 
Quartermaster-General  of  the  Army,  who,  as  disbursing  officer  in 
various  important  commands  ranging  over  Cuba,  China,  and  the 
Philippines,  expended  over  fifty  million  dollars  of  public  money. 

Administrative  Reforms. 

Undoubtedly  the  best  achievement  of  the  War  Department  in 
a  purely  administrative  way  has  been  the  reforms  inaugurated 
and  established  in  the  Army  at  large  as  well  as  in  the  War  De- 
partment proper.  An  examination  of  the  reports  to  Congress  will 
develop  the  fact  that  never  before  in  the  history  of  our  Govern- 
ment has  there  been  such  a  fixed  and  steady  policy  pursued  in  any 
department  so  consistently,  and  so  persistently  adhered  to  through- 
out successive  administrations  as  in  the  War  Department,  espec- 
ially in  the  last  five  years. 

As  far  back  as  1899  the  Secretary  of  War  had  advocated  the 
establishment  of  a  war  college  for  certain  specified  duties,  the 
collection  of  military  information,  and  the  furtherance  of  military 
instruction.  At  the  session  of  Congress  in  which  this  recom- 
mendation was  received  the  war  college  was  established,  and  is 
to-day  meeting  all  expectations  in  its  important  work. 

In  his  report  for  1900  the  Secretary  of  War  advocated  the 
^modification  of  the  character  of  examination  of  admission  to  the 
West  Point  Military  Academy,  and  that  action  was  finally  taken, 
giving  the  young  applicants  a  fairer  chance  of  success.  He  also, 
in  that  year  submitted  to  Congress  a  proposed  scheme  for  re- 
organization of  the  Army,  and  in  February,  1901,  the  act  to  in- 
crease the  efficiency  of  the  Army  was  passed,  fixing  the  minimum 
and  maximum  military  strength.  He  also,  the  same  year,  pre- 
scribed a  general  scheme  of  instruction  of  the  Army  and  submitted 
it  to  Congress  as  an  appendix  to  his  report  covering  said  scheme. 
Thus  became  established  schools  at  every  military  post  in  the 
country,  as  well  as  special  service  schools,  including  the  Artillery 
School  at  Fort  Monroe,  Va.,  the  Engineer  School  of  Application, 
Washington  Barracks,  D.  C,  the  School  of  Submarine  Defense, 
Fort  Totten,  N.  Y. ;  the  School  of  Application  for  Cavalry  and 
Field  Artillery,  at  Fort  Riley,  Kans. ;  the  Army  Medical  School, 
Washington,  D.  C. ;  the  Signal  School,  also  the  Infantry  and 
Cavalry  School,  at  Fort  Leavenworth,  Kans.,  as  well  as  the  Staff 
College  at  the  latter  place,  and  a  War  College  at  Washington 
Barracks,  D.  C. — all  forming  a  system  of  military  education  and 
training  never  before  equaled  in  this  or  any  other  country,  all 
under  the  supervision  and  direction  of  the  war  college. 

In  1902  the  Secretary  of  War  also  reported  to  Congress  his 
policy  inaugurated  the  year  previous  to  remove  the  army  posts, 
wherever  practicable,  out  of  the  cities  and  large  towns,  and 
establish  them  upon  larger  tracts  of  cheaper  land  in  the  same 
neighborhood,  so  that  soldiers  might  have  more  healthful  air  and 
larger  opportunities  for  exercise  and  training. 

In  the  same  year  the  Secretary  of  War  urged  upon  Congress 
the  passage  of  the  proposed  scheme  for  improving  the  efficiency 
of  the  militia  system  which  had  remained  unchanged  since  1802 
under  antiquated  laws.  The  militia  law  was  passed,  and  to-day 
the  Regular  Army  and  the  National  Guard  of  the  States  are  work- 
ing together  harmoniously  upon  a  higher  plane  of  usefulness, 
Which  promises  most  satisfactory  results.  Provision  was  made 
for  joint  maneuvers  and  military  exercises  by  regulars  and  militia, 


352  THE    WAR   DEPARTMENT. 

to  the  great  advantage  of  both.  In  the  same  report  for  1902  the 
Secretary  of  War  reiterated  his  arguments  made  in  the  two  pre- 
vious years  in  regard  to  the  establishment  of  a  general  staff, 
which  recommendations  were  enacted  into  law  passed  February 
14,  1903. 

In  July,  1903,  under  the  direction  of  the  President,  the  Sec- 
retaries of  War  and  of  the  Navy  formulated  a  plan  for  a  joint 
army  and  navy  board,  which  was  duly  organized  in  general  orders 
of  the  respective  departments. 

Of  equal  importance  with  the  general  staff  act,  the  act  to  pro- 
mote flie  efficiency  of  the  militia,  approved  January  21,  1903,  went 
into  effect,  supplemented  by  an  appropriation  of  $2,000,000  for  the 
benefit  of  the  organized  militia  of  the  States. 

With  a  view  to  advance  to  a  still  higher  degree  the  military 
proficiency,  both  of  the  Regular  Army  and  the  National  Guard,  the 
Secretary  of  War  renewed  his  recommendation  for  further  action 
by  Congress  for  the  establishment  of  permanent  camp  grounds 
for  the  instruction  of  both  Federal  and  State  troops.  Finally,  after 
having  perfected  his  entire  scheme  of  military  improvement  and 
Army  reorganization — having  completely  revolutionized  the  gov- 
ernment of  the  Army  and  military  administration  in  the  War  De- 
partment— the  Secretary  of  War,  feeling  that  all  practical  im- 
provement of  the  Army  had  been  accomplished,  informed  Con- 
gress that,  in  his  opinion,  no  further  important  legislation  re- 
regarding  the  Army  would  be  advisable  for  some  time  to  come. 


Military  Information. 

Under  the  new  regulations  the  special  duty  of  the  war  col- 
lege is  to  assist  the  chief  of  staff  and  the  entire  general  staff  in 
the  preparation  of  plans  for  the  national  defense.  For  this  pur- 
pose a  number  of  suitable  officers  have  been  detailed  from  the 
general  staff  for  duty  with  the  war  college,  which  from  time  to 
time  is  instructed  by  the  chief  of  staff  as  to  the  problems  which 
it  shall  take  up  and  the  general  line  of  investigation  which  it 
shall  pursue. 

Over  and  above  all,  however,  the  chief  mission  of  this  com- 
paratively new  war  college  institution  is  for  the  extension  o* 
military  instruction.  As  announced  in  recent  orders  in  defining  its 
scope  of  duty  it  was  said  that  "the  object  of  the  war  college  is  not 
to  impart  academic  instruction,  but  to  make  practical  application 
of  military  knowledge  already  acquired." 

The  personnel  of  the  college  consists  of  a  president,  who  shall 
be  a  general  officer ;  two  directors,  who  shall  be  officers  of  the 
general  staff,  the  senior  of  the  rank  of  colonel  and  the  junior  not 
below  the  rank  of  lieutenant-colonel;  a  secretary,  who  shall  be 
an  officer  of  the  general  staff ;  and  certain  other  officers  of 
the  general  staff,  together  with  such  other  students  as 
may  from  time  to  time  be  detailed  under  orders  from  the  War 
Department.  Excepting  the  detailed  students,  the  officers  on  duty 
with  the  war  college  are  officially  designated  as  its  "permanent 
personnel,"  whose  work  consists  of  all  that  is  involved  in  the 
preparation  for  war,  the  practice  of  officers  of  the  Army  in 
strategical  and  tactical  problems,  and  embracing  also  the  general 
system  of  military  instruction  at  all  the  post,  garrison,  and  ser- 
vice schools,  as  well  as  at  the  staff  college,  including  the  approval 
of  text  books  when  used. 

It  is  also  made  the  duty  of  the  war  college  to  supervise  and 
classify  civic  schools  and  colleges  at  which  army  officers  are  de- 
tailed as  instructors,  with  a  view  to  selecting  those  schools  from 
which  graduates  may  be  appointed  as  second  lieutenants  in  the 
Army. 

Thus  it  will  be  seen  that  the  war  college  goes  beyond  any  in- 
stitution of  the  kind  even  attempted  before  in  this  country.  It 
opens  and  controls  a  field  of  military  training  extending  beyond 
the  army  itself,  and  even  to  the  organized  militia  of  States,  whose 
officers  are  eligible  for  instruction  at  the  service  military  schools, 
and  beyond  that  even  to  the  young  students  in  the  various  civic 
colleges  of  the  country.  All  in  all  it  is  an  institution  of  military 
learning  and  instruction  unequaled  In  any  other  country  in  the 
world. 


THE  WAR  DEPARTMENT.  358 


Bureau  of  Insular  Affairs. 


Naturally,  in  the  regular  order  of  the  new  conditions  following 
the  war  with  Spain,  in  assuming  the  control  and  supervision  of 
affairs  involved  in  the  constitutional  military  government  of  the 
acquired  insular  possessions,  the  War  Department  found  it  neces- 
sary to  segregate  and  set  aside  in  a  separate  division  specially 
selected  officials  for  the  management  of  all  matters  pertaining  to 
the  Philippine  Islands,  Porto  Rico  and  Cuba.  Thus  was  born  in 
August,  1898,  after  the  capitulation  of  the  Spanish  forces  at  San- 
tiago, without  any  formative  order  or  creative  act  of  law,  what 
was  first  called  the  Division,  and  now  called  the  Bureau  of  In- 
sular Affairs.  It  began  on  a  small  scale.  Only  one  clerk  was  de- 
tailed to  record  the  papers  received  at  the  Department,  which, 
however,  soon  increased  to  such  volume  and  magnitude  that  the 
bureau  gradually  grew  in  size  until  now  it  is  composed  of  one 
chief,  one  assistant  chief,  one  law  officer  and  seventy-seven  clerks 
and  other  employes,  divided  into  seven  divisions,  each  charged 
with  some  particular  branch  of  insular  affairs.  A  separate  and 
complete  branch  of  government  as  it  now  is  within  itself,  it  has 
practically  evoluted  into  an  important  executive  department  under 
the  direct  control  of  the  Secretary  of  War.  Its  immediate  chief 
was,  necessarily,  required  to  be  a  man  of  wide  range  of  mental 
grasp,  practical  in  business,  and  capable  in  the  knowledge  of  all 
things  pertaining  to  civil  government.  He  was  of  necessity  re- 
quired to  be  possessed  of  rare  executive  ability,  and,  fortunately, 
all  of  these  elements  of  usefulness  and  capacity  were  combined 
in  the  present  chief  of  the  bureau,  under  whom  its  extraordinary 
growth  has  prospered. 

Never,  even  from  the  srart,  was  this  bureau  a  nominal  estab- 
lishment. Its  duties  and  prerogatives  no\£  cover  a  broader  and 
more  varied  field  than  possibly  any  other  one  bureau,  or  even  any 
department  of  the  Government.  Its  first  important  duty  was  with 
respect  to  Cuba,  supervising  and  controlling  the  management  of 
the  customs  and  every  other  department  of  the  military  and  the 
subsequent  tentative  government  of  the  United  States.  Under  an 
order  of  the  Secretary  of  War  in  1900  it  was  specifically  directed 
that  the  class  of  business  assigned  to  this  bureau  should  embrace 
all  matters  pertaining  to  the  civil  affairs  connected  with  the  gov- 
ernment of  Cuba  and  the  Philippine  Islands  as  distinguished  from 
matters  of  a  purely  military  character.  One  of  its  most  successful 
achievements  was  the  preparation  and  supervision  of  the  insular 
tariff  system.  It  began  early  in  its  career  to  secure  the  employ-, 
ment  and  the  transportation  of  hundreds  of  school  teachers,  and 
co-operated  actively  in  carrying  out  the  policy  of  civil  service  in 
the  Philippines.  It  held  itself  ever  ready  to  furnia)^  information 
regarding  the  islands,  compiling  information  and  data  both  for 
Congress  and  the  public.  It  issues  a  bulletin  or  monthly  summary 
of  insular  affairs  for  the  purpose  of  keeping  the  interested  public 
intelligently  informed.  It  distributed  thousands  of  printed  docu- 
ments and^conducts  an  immense  correspondence  covering  all  mat- 
ters of  inquiry.  In  the  branch  of  accounts  and  statistics  are  kept 
the  accounts  of  all  receipts  and  disbursements  of  insular  revenues 
based  on  auditor's  certificates,  so  classified  and  tabulated  that  at 
any  time  a  complete  accounting  may  be  had  of  the  Government's 
financial  stewardship  in  the  Philippines.  It  records  imports  and 
exports,  expends  from  six  to  eight  million  dollars  a  year  in  pur- 
chases for  the  Philippine  Islands,  and  cooperates  in  the  transfer 
of  bullion  and  gold  and  the  exchange  of  credits  and  transfers  of 
funds  between  the  Philippine  and  the  United  States  treasuries. 
It  formulated  a  monetary  system,  including  the  coinage  system, 
which  embraces  also  the  system  of  money  certificates,  which  has 
become  a  matter  of  great  convenience  in  the  transaction  of  busi- 
ness in  the  Philippines.  It  is  practically  the  eye  and  the  ear  of 
the  President  and  the  Secretary  of  War,  to  see  and  hear  every- 
thing of  interest  happening  in  the  Philippines,  and  has  undoubt- 
edly been  a  valuable  instrumentality  in  insular  affairs. 

Fortunately,  the  present  Secretary  of  War,  to  whom  the  chief 
of  the  insular  bureau  reports  direct,  by  reason  of  his  complete 
and  practical  knowledge  of  Philippine  affairs,  will  be  able  to  direct 
even  with  greater  usefulness  and  advantage  the  administration  ot 
this  bureau. 


354  THE    WAR    DKI'ARTMENT. 

Under  the  encouragement  of  (his  bureau  a  magnificent  exhibit 
»>f  th$  Philippine  Islands  is  being  displayed  ;it  the  St.  Louis 
World's  Exposition.  The  people  of  Ibis  country  will  have  ample 
opportunity  not  only  to  examine  the  products  and  resources  of  the 
Philippine  Islands,  as  shown  in  the  exhibits,  but  will  be  able  like- 
wise to  observe  the  manner  of  daily  life  of  the  Filipinos  who  ;iro 
gathered  in  the  village  at  the  World's  Fair  Grounds.  The  large 
number  of  representative  Filipino  citizens  of  education  and  more 
or  less  prominence  in  Filipino  politics,  now  visiting  the  United 
States  under  the  auspices  of  the  Bureau  of  Insular  Affairs,  will 
do  much  on  their  return  to  explain  to  their  people  the  conditions 
in  this  country. 

Under  the  policy  of  enlightenment  and  education  inaugurated 
by  the  United  States  Philippine  Commission,  about  125  intelligent 
Filipino  boys  reached  the  United  States  last  fall  and  spent  the 
winter  in  California.  Arrangements  are  now  being  made,  under 
the  direction  of  the  Bureau  of  Insular  Affairs,  to  distribute  them 
in  various  schools  and  colleges  in  the  United  States.  To  each  of 
these  boys  the  encouraging  promise  is  held  out  that,  after  a  cer- 
tain period  of  schooling,  they  may  return  to  their  country  and 
enter  the  public  service. 


The  Quartermaster**'  Department. 

.  At  the  outbreak  of  the  war  with  Spain,  six  years  ago,  the  reg- 
ular establishment  of  the  Quartermaster's  Department  comprised 
57  officers  of  all  grades. 

Eleven  small  harbor  vessels  were  owned  and  operated  by  the 
Quartermaster's  Department. 

The  total  expenditures  of  the  department  for  all  ordinary  pur- 
poses during  the  twelve  months  ending  June  30,  1898,  aggregated 
between  nine  and  ten  millions  of  dollars. 

The  supplies  of  every  class  in  the  hands  of  the  department  con- 
sisted of  only  the  ordinary  quantities  customarily  carried  in  times 
of  peace  for  the  provision  of  a  comparatively  small  force ;  and 
these  were  not  of  the  character  to  meet  the  peculiar  requirements 
of  tropical  service. 

Within  a  few  weeks  following  the  destruction  of  the  Maine,  the 
total  strength  of  the  Army,  regular  and  volunteer,  had  been  in- 
creased from  26,040  to  upwards  of  275,000  men,  practically  all  of 
whom  were  without  equipment  of  any  kind ;  it  immediately  be- 
came the  duty  of  the  Quartermaster-General,  aided  by  his  assist- 
ants, to  provide  the  armies  with  camps  for  concentration,  trans- 
port them,  and  furnish  them  with  shelter,  clothing,  fuel,  cooking 
facilities,  general  supplies,  wagons,  animals,  harness  and  forage, 
water,  camp  sewerage,  scavenger  service — in  brief,  with  every- 
thing required  for  the  complete  equipment  of  the  soldier  of  the 
line  except  his  arms,  ammunition,  food  and  medical  supplies,  for 
which  latter,  however,  it  was  also  the  duty  of  the  Quartermaster's 
Department  to  furnish  transportation. 

Promptly  with  the  call  to  arms  thirty-one  concentration  camps 
and  temporary  depots  sprang  into  existence  throughout  this  coun- 
try, and  at  forty  points  in  Cuba,  thirty-eight  in  Porto  Rico,  and 
nearly  six  hundred  and  fifty  in  the  Philippine  posts,  temporary 
stations,  and  depots  were  established,  at  which  quartermasters, 
acting  quartermasters,  or  quartermasters'  agents  were  on  duty, 
and  from  which  transportation  was  provided  and  supplies  received, 
distributed,  and  issued  to  troops.  Hospitals  were  built,  depots 
rented  or  constructed  for  housing  the  vast  quantities  of  commis- 
sary, quartermaster,  medical,  signal,  and  ordnance  stores;  all  in 
addition  to  the  ordinary  duties  of  the  department.  As  an  ex- 
ample of  the  magnitude  of  the  operations  required  it  may  be  said 
that  in  a  comparatively  brief  list  of  certain  articles  of  clothing 
and  tentage,  the  issues  of  which  for  ten  months  ending  April  30, 
1898,  amounted  to  1,522,227  articles,  it  was  found  necessary  to  pro- 
vide in  the  3%  months  from  May  to  August  a  total  of  14,329,531. 

To  meet  the  demands  for  oversea  transportation  a  fleet  of  69 
chartered  vessels  had  been  provided  by  June  30,  1898,  and  in  the 
succeeding  year  26  other  vessels  were  furnished  by  charter;  the 
services  of  these  were  dispensed  with  as  rapidly  as  they  could  be 
spared. 


THE   WAR  DEPARTMENT.  355 

Armies  were  transported,  consisting  of  17,460  men  to  Porto 
Rico,  65,612  to  Cuba,  75,723  to  the  Philippines,  and  3,700  compris- 
ing the  China  relief  expedition,  together  with  their  necessary 
civilian  employees,  animals,  and  impedimenta. 

During  the  period  from  the  outbreak  of  the  Spanish  War  to 
June  30,  1903,  the  transport  service  of  this  department  has  carried 
the  following  totals: 

Persons    627,737 

Animals     73,438 

Tons  of  material   772,709 

Miscellaneous    packages    6,000,000 

Pounds  of   mail  matter    5,000,000 

and  between  $30,000,000  and  $40,000,000  in  currency  and  coin. 
This  entire  service  has  been  performed  without  the  loss  of  a  single 
life  chargeable  to  any  act  or  neglect  of  the  service,  and  with  an 
extraordinary  minimum  of  ordinary  casualty.  The  figures  given 
are  exclusive  of  the  inter-island  service  in  the  Philippines,  Cuba 
and  Porto  Rico. 

The  total  of  all  expenditures  from  United  States  funds,  which 
prior  to  the  war  amounted  to  about  $9,000,000  annually,  and  which 
under  the  stress  of  emergency  rose  to  about  $125,000,000  in  the 
year  following  the  first  war  appropriation  of  May  4,  1898,  aggre- 
gated on  June  30,  1903,  $404,523,869.95.  In  addition  to  this,  as  be- 
fore shown,  the  officers  of  this  department  also  disbursed  large 
amounts  of  insular  funds. 

To-day  the  department  does  business  over  practically  every 
route  known  to  commerce  and  travel ;  provides  the  necessities  of 
men  under  the  tropical  sun,  and,  surrounded  by  unbroken  fields  of 
ice  and  snow,  counts  its  supply  depots  from  Alaska  to  China ;  from 
the  Philippines  to  Porto  Rico ;  and  along  the  vast  expanse  of  the 
Pacific,  where  our  tiny  islet  possessions  reach  like  stepping  stones 
to  our  lands  in  the  distant  Orient. 
-  The  transport  fleet  has  now  been  reduced  to  ten  oceangoing 
vessels  in  commission.  The  appropriations  for  the  year  ending 
June  30,  1904,  was  $39,453,794.44,  a  large  reduction  over  the  pre- 
ceding year,  and  the  appropriations  for  the  coming  year  mark  a 
still  further  reduction  of  nearly  $5,000,000,  being  $34,648,412.50. 

The  Commissary  Department  of  the  Army. 

At  the  close  of  1897,  and  in  a  time  of  peace,  the  strength  of  the 
Army,  a  little  over  25,000  men,  was  confined  to  a  compact  terri- 
tory and  with  an  appropriation  for  its  subsistence  of  less  than 
$2,000,000.  Within  a  few  months  thereafter  the  country  was  pre- 
cipitated into  a  war  and  the  Army  swelled  more  than  tenfold  in 
number,  and  the  appropriations,  mounting  up  until  they  reached  a 
maximum  of  over  $24,000,000  for  the  Subsistence  Department  in  a 
single  year.  The  Army  was  supplied,  not  counting  the  great  quan- 
tities of  other  stores,  with  upwards  of  65,000,000  rations  in  less 
than  a  year  that  the  Spanish  troubles  lasted.  The  large  sums  in- 
volved were  economically  expended  and  the  rations  promptly  dis- 
tributed and  issued.  This  sudden  and  great  emergency  was  fully 
met  by  the  Subsistence  Department  without  a  breakdown,  and  to 
the  satisfaction  alike  of  the  Government  and  the  soldier. 

In  the  past  few  years  the  Subsistence  Department  has  met  the 
demands  for  vast  quantities  of  rations  and  stores  for  troops  in 
Cuba,  Porto  Rico,  and  the  Philippines,  whose  almost  sole  depend- 
ence was  upon  a  supply  through  the  Subsistence  Department  and 
drawn  from  the  United  States.  This  distant  and  untried  field, 
with  its  trying  climatic  conditions,  presented  a  new  and  difficult 
problem ;  but  the  department  met  and  solved  this  problem  of 
foods  required  for  troops  in  the  Tropics  and  the  best  methods  for 
their  preservation,  still  keeping  the  United  States  Army  in  the 
position  of  the  best-fed  army  in  the  world. 

In  the  Philippines,  on  many  occasions,  the  Subsistence  Depart- 
ment made  it  possible  to  supply  hot  food  on  the  firing  line.  Dur- 
ing the  Boxer  trouble  in  China  in  1900,  it  was  called  upon  to 
meet  the^udden  demand  of  the  army  transported  there  among 
hostile  surroundings,  and  successfully  met  every  requirement,  and 
many  complimentary  remarks  were  made  regarding  the  amount 
and  quality  of  the  stores  furnished.  The  new  army  ration  established 
by  President  McKinley  in  1901  is  the  best  and  most  liberal  one 
of  any  army  ration  in  the  world,  as  may  be  seen  by  comparison. 


356  THE   WAR   DEPARTMENT. 

and  goes  far  toward  insuring  the  health  and  efficiency  of  the 
troops,  who  are  so  largely  dependent  on  the  food  supply.  Dr. 
Yorke  Davies,  one  of  the  greatest  living  authorities  on  food,  diet, 
and  hygiene,  who  has  for  many  years  paid  particular  attention 
to  the  army  rations  of  the  world,  said  in  1902:  "My  experience 
in  studying  the  diets  of  the  different  armies  of  the  world  is  that 
far  and  away  the  best  for  the  making  of  physically  powerful  sol- 
diers is  that  given  in  the  Army  of  the  United  States  of  America." 

The  Medical  Department. 

The  sudden  expansion  of  the  Army  imposed  a  most  difficult 
task  upon  the  Medical  Department — a  task  which  was  worked  out 
with  the  greatest  success  and  the  highest  credit.  War  inevitably 
entails  disease,  suffering,  and  death,  but,  it  can  be  safely  said,  in 
no  war  have  the  sick  and  wounded  received  so  many  comforts  and 
been  so  tenderly  nursed. 

The  health  of  our  troops  serving  in  the  newly  acquired  terri- 
tory has  been  guarded  by  every  provision  that  modern  science  can 
provide,  and  the  sickness  and  mortality  from  disease  has  been 
kept  far  below  what  was  to  be  expected.  The  ratio  of  deaths  per 
thousand  of  mean  strength  for  the  first  year  of  the  war  was  but 
25.73,  while  that  for  the  first  year  of  the  war  of  18G1-65  was  45.87. 

In  1898-99  smallpox  was  epidemic  in  Porto  Rico,  having  ex- 
isted for  an  indefinite  period  of  time.  Under  the  superintendence 
of  the  Medical  Department  of  the  Army  between  January  and 
July,  1899,  practically  the  entire  population  of  the  island  was 
vaccinated,  with  the  result  that  the  disease  was  practically  eradi- 
cated. 

In  June,  1900,  the  conquest  of  yellow  fever  in  the  island  of 
Cuba  was  begun  by  army  medical  officers.  The  disease,  which 
was  known  by. authentic  records  to  have  existed  without  a  year's 
intermission  for  a  period  of  one  hundred  and  fifty  years,  appeared 
for  the  last  time  in  September,  1901,  since  which  time  the  city  of 
Habana  has  enjoyed  complete  immunity.  Occasional  cases  im- 
ported from  Mexican  and  Central  American  ports  are  treated  in 
the  ordinary  public  hospitals  of  Habana  in  mosquito-proof  rooms 
and  no  secondary  cases  follow. 

It  will  be  remembered  that  in  June,  1900,  a  commission  of 
army  medical  officers  met  at  Habana  for  the  purpose  of  studying 
the  causes  of  yellow  fever.  Major  Reed,  the  master  mind  of  the 
commission,  in  a  series  of  most  perfectly  planned  experiments, 
proved  beyond  doubt  that  yellow  fever  is  transmitted  only  by  the 
bite  of  a  particular  species  of  mosquito,  and  that  the  old  theory 
that  filth,  infected  articles  of  clothing,  etc.,  could  carry  the  disease 
is  absolutely  untenable.  The  commissioners  exercised  great  scien- 
tific ability  and  energy  in  their  investigations,  and  much  indi- 
vidual heroism  was  required  amongst  them,  as  well  as  on  the 
part  of  the  enlisted  strength  of  the  Army  who  voluntarily  offered 
themselves  as  subjects  for  the  experiments.  The  lamented  death 
of  United  States  Contract  Surgeon  Lazear  from  the  bite  of  an 
infected  mosquito,  and  the  severe  illness  of  Contract  Surgeon 
Carroll  and  others  from  the  same  causes,  constituted  the  best 
proofs  of  personal  courage  and  professional  zeal  and  earnestness 
on  the  part  of  the  commission. 

Based  entirely  on  the  conclusive  theory  that  yellow  fever  was 
transmitted  only  by  the  mosquito,  Colonel  Gorgas,  of  the  Medical 
Department,  then  chief  sanitary  officer  of  Habana,  began  the 
eradication  of  the  disease  from  that  city  in  the  spring  of  1901. 

It  is  not  too  much  to  say  that  the  work  of  this  yellow  fever 
commission  resulted  in  the  greatest  discovery  in  the  line  of  pre- 
ventive medicine  since  Jenner  demonstrated  the  protective  effects 
of  vaccination  against  smallpox.  It  is  everywhere  so  recognized 
by  the  scientific  bodies  of  the  world,  and  within  the  last  month 
the  Pasteur  Institute  of  Paris  has  published  the  results  of  the 
experiments  of  a  commission  investigating  yellow  fever  in  Rio  de 
Janeiro,  which  results  entirely  confirm  those  of  Reed  and  his  com- 
panions, and  show  practically  no  further  advance  in  knowledge 
of  the  disease. 

In  the  Philippine  Islands  it  became  the  duty  of  the  Army  Med- 
ical Department  to  protect  the  army  from  cholera  and  plague. 
The  United  States  troops  at  Manila  and  some  of  the  larger  sea- 
port towns  have  been  carried  successfully  through  an  epidemic  of 


THE  WAB  DEPARTMENT.  357 

bubonic  plague  with  but  one  or  two  cases.  -    Smallpox  has  been 
almost  eradicated  from  Manila  and  the  larger  towns. 

The  Pay  Department  of  the  Army. 

An  examination  of  the  records  of  the  Pay  Department  shows 
that  from  1896  to  1903  inclusive  it  was  accountable  for  $310,112,- 
625.32.  The  balance  in  the  hands  of  the  paymasters  on  June  30, 
1903,  up  to  which  date  the  last  computation  for  the  purposes  of 
comparison  was  made,  amounted  to  $5,320,647.19,  showing,  there- 
fore, that  the  total  expenditures  in  the  period  above  specified 
aggregated  $304,791,978.13.  This  money  was  disbursed  in  all 
parts  of  the  world  where  the  Army  was  then  operating,  in  Cuba, 
Porto  Rico,  Hawaiian  Islands,  Alaska,  China  and  the  Philippine 
Islands.  $276,577,212.99  was  paid  to  troops  and  the  balance,  as 
shown,  was  properly  accounted  for.  Over  twenty-eight  millions 
of  dollars  were  transported  to  the  Philippines  in  currency ;  235,000 
volunteer  soldiers  were  mustered  out  of  the  service;  425,203  de- 
posits by  enlisted  men,  aggregating  $14,268,346.13,  were  received 
by  paymasters ;  and  355,105  deposits,  amounting  with  interest  to 
$12,734,177.34,  were  paid  back  to  depositors. 

%  River  and  Harbor  "Work. 

In  no  department  of  governmental  activity  perhaps  has  there 
been  more  progress  during  the  past  eight  years  than  in  the  work 
of  improving  rivers  and  harbors,  which  has  been  under  the  direct 
supervision  and  control  of  the  Corps  of  Engineers  of  the  Army; 
and  certainly  there  is  no  field  of  effort  more  important  or  bene- 
ficial to  the  people  at  large.  From  the  inception  of  the  Govern- 
ment one  of  the  most  momentous  problems  which  has  required 
constant  consideration  is  that  of  cheap,  safe,  and  untrammeled 
transportation. 

Waterways  are  the  commercial  highways  of  the  nation,  abso- 
lutely free,  and  offering  equal  facilities  to  all  who  desire  their 
use.  Very  wisely,  therefore,  the  Government,  at  an  early  day, 
inaugurated  a  policy  of  improvement,  the  first  appropriation  for 
such  purpose  having  been  made  in  1800.  In  the  beginning  this 
policy  was  very  limited  in  scope;  but  the  advance  of  population 
and  commercial  industry  rendered  the  greater  use  of  our  lakes, 
rivers,  and  seacoast  harbors  imperative,  and  this  increasing  course 
of  progress  required  a  corresponding  increase  in  appropriations 
for  its  protection  and  development.  At  no  period  has  this  devel- 
opment been  greater  than  between  the  years  1896-1904;  and  the 
systematic  and  energetic  methods  employed,  born  of  experience 
and  intelligent  conception  on  the  part  of  Congress  and  the  execu- 
tive, have  resulted  in  a  maximum  of  benefit  to  the  agricultural, 
commercial  and  manufacturing  interests  of  the  country  at  a  mini- 
mum of  cost.  During  these  years  Congress  has  appropriated  a 
total  of  $175,806,554  for  the  execution  of  definite  projects  carefully 
and  scientifically  formulated  by  experienced  engineers. 

There  are  now  603  separate  works  being  carried  on  under  the 
charge  and  supervision  of  72  trained  and  educated  officers  of  the 
Corps  of  Engineers.  These  works  range  from  the  bays  and  broad 
armed  ports  where  "rich  navies  ride,"  to  the  small  streams,  creeks 
and  inlets  over  which  the  products  of  the  farm  are  carried  to 
market  in  rowboats  and  small  schooners,  or  lumber  from  our 
virgin  forests  is  floated  in  rafts.  In  1896,  about  7,500  men  were 
employed  on  river  and  harbor  works,  whereas  during  the  past 
year  more  than  11,000  have  been  given  regular  and  profitable 
employment,  an  increase  of  nearly  50  per  cent. 

To  convey  an  accurate  understanding  of  the  magnitude  of  the 
internal  commerce  using  our  waterways,  and  of  the  work  that  has 
been  accomplished  for  its  convenience  is  an  almost  impossible 
task.  The  constant  growth  in  size,  draft,  and  carrying  capacity  of 
vessels  navigating  the  inland  waterways,  as  well  as  those  em- 
ployed on  the  seaboard,  has  necessitated  increased  depths  and 
widths  of  channel.  Twenty-five  years  ago  harbor  depths  of  from 
12  to  25  feet  were  considered  ample,  but  depths  of  30,  35  and  even 
40  feet  are  now  required  in  our  important  harbors,  and  have 
already  been  acquired  or  provided  for. 

Among  the  results  accomplished  up  to  the  present  time  may  be 
mentioned  the  increased  depths  and  widths  of  channels  in  the 


358  THE   WAR   DEPAKI'MI  M. 

great  harbors  of  the  country,  particularly  Charleston,  where  the 
depth  luis  been  increased  from  10  to  20  feet,  and  Galveston,  where 
the  original  depth  of  12  feet  has  been  increased  to  27  feet;  the 
improvement  of  the  ports  and  rivers  tributary  to  the  Great  Lakes, 
which  has  developed  a  marine  performing  a  service  greater  than 
that  done  by  one-quarter  the  entire  railway  freight  equipment  of 
the  nation,  and  forming  a  means  of  transportation  costing  only 
about  one-ninth  of  the  cost  of  the  same  service  by  rail ;  the  con- 
struction of  canals,  and  twenty-three  different  slack-water  systems 
as  artificial  aids  to  the  navigation  of  rivers,  such  as  the  St. 
Mary's  Falls  Canal  through  which  there  passed  during  the  year 
ending  June  30,  1903,  10,615  vessels,  aggregating  20,557,413  regis- 
tered tons,  and  carrying  31,028,365  tons  of  freight,  and  21,990 
passengers,  a  traffic  more  than  twice  as  large  as  that  which  passes 
through  the  Suez  Canal;  the  improvement  of  the  Mississippi 
River  and  its  tributaries,  aggregating  more  than  1G,000  miles  of 
navigable  waterways,  reaching  the  very  center  of  the  country  and 
affording  a  cheap  and  ready  means  of  transporting  the  vast  prod- 
ucts of  farm  and  mine;  the  improvement  of  various  important 
harbors  and  waterways  on  the  Pacific  coast,  including  the  Colum- 
bia River,  which  penetrates  the  rich  forests  of  Washington  and 
the  grain-bearing  regions  of  Oregon,  and  into  which,  since  im-# 
provement,  the  largest  vessels  can  now  enter  and  depart  without 
difficulty;  in  short,  every  part  of  our  seacoast,  from  St.  John  to 
the  Rio  Grande,  from  San  Diego  to  Puget  Sound,  more  than  23,000 
miles  in  extent,  and  every  section  of  the  country  traversed  by  our 
inland  waterway  has  been  benefited  by  reason  of  the  increased 
facilities  and  lessened  cost  of  transportation. 

The  Work  of  the  United  States  Army  Signal  Servlee  Shows  Splen- 
did   Achievements. 

On  occupying  Cuba  the  Signal  Corps  of  the  Army  found  a  few 
dilapidated,  telegraph  lines  on  the  western  half  of  the  island 
about  800  miles  in  length,  operated  with  antiquated  methods,  with 
tariff  rates  increasing  in  proportion  to  the  length  of  the  message, 
without  free  delivery,  and  with  grave  uncertainties  as  to  espion- 
age, secrecy,  and  delivery.  It  constructed  a  system  of  about  3,000 
miles  with  two  main  trunk  lines  from  the  extreme  eastern  to  the 
western  end  of  Cuba,  and  thirteen  intersecting  cross-lines.  The 
American  system  was  thoroughly  installed,  with  instruments  of 
the  best  modern  type,  a  speedy  and  reliable  transmission,  with  low 
tariff  rates,  certainty  of  delivery  and  inviolability  of  messages. 
The  Cuban  operators  were  trained  in  American  methods,  and  by 
judicious  action  the  entire  system  was  turned  over  to  the  Cuban 
government  without  interruption  or  delay  in  current  business. 
More  than  1,000,000  messages  were  sent  in  a  single  year.  Not  a 
cent  of  the  commercial  receipts  was  spent,  but  every  account  was 
systematically  audited  and  the  receipts  deposited  without  loss  in 
the  Cuban  treasury,  and  the  lines  were  turned  over  with  commer- 
cial receipts  of  about  $100,000  annually. 

In  Porto  Rico  the  Signal  Corps  found  an  antiquated,  inefficient 
system,  expensively  and  inefficiently  managed.  During  the  mili- 
tary occupancy  of  the  island  a  hurricane  destroyed  the  whole  sys- 
tem, some  800  miles,  which  was  rebuilt  in  accordance  with  modern 
engineering  methods  and  thoroughly  equipped  with  American  in- 
struments. This  entire  system  of  Porto  Rico  was  maintained, 
operated,  repaired  and  reconstructed  by  the  Signal  Corps  without 
entailing  a  dollar  of  expense  on  the  treasury  of  Porto  Rico,  to  the 
government  of  which  the  telegraph  lines  were  transferred  without 
impairing  the  efficiency  of  the  service. 

The  Signal  Corps  found  the  Philippine  Islands  destitute  of  any 
land  telegraph  system  on  the  American  occupancy,  Manila  being 
connected,  however,  by  cable  with  three  islands.  A  telegraph  and 
cable  system  of  about  7,000  miles  has  been  constructed,  of  ma- 
terial all  of  American  manufacture,  and  maintained  efficiently  and 
economically.  It  connects  fifteen  of  the  most  prominent  islands 
of  the  archipelago,  facilitating  greatly  commerce  and  business,  as 
well  as  administration.  American  methods  of  inviolability  of  mes- 
sages, low  rates,  and  efficient  service  have  been  carried  out,  and  the 
cost  of  telegraphing  over  this  system  is  from  one-third  to  one- 
fourth  of  that  charged  by  the  English  cable  system  installed  by 
Spain  in  these  islands.    The  commercial  receipts,  exceeding  $50,000 


THE   WAR   DEPARTMENT.  359 

per  year,  have  been  carefully  audited  and  deposited  in  the  treasury 
without  loss,  no  expenditures  being  made  therefrom. 

The  Signal  Corps  telegraph  system  in  Alaska  constructed  dur- 
ing the  past  three  years  affords  telegraphic  communication  with 
nearly  every  place  of  importance  on  the  mainland  of  Alaska,  in- 
cluding the  entire  Yukon  Valley  as  far  as  St.  Michael  Island. 
The  completion  of  an  all- American  cable  route,  which  shall  bring 
the  whole  of  Alaska  in  direct  communication  with  the  rest  of  the 
United  States,  is  in  progress  and  will  probably  be  completed  the 
present  year. 

Coast  Defenses. 

The  United  States  Engineers  and  Ordnance  Departments  are 
so  intimately  connected  and  mutually  dependent  upon  each  other 
for  military  usefulness  in  the  work  of  construction  and  arma- 
ment of  the  coast  defenses  that  they  must  be  in  a  measure  con- 
sidered together.  The  Engineers,  under  recommendations  of  the 
Board  of  Fortifications  and  Seacoast  Defenses,  construct  the  forts, 
batteries,  and  fortifications,  and  the  Ordnance  supplies  the  guns 
and  war  munitions.  The  work  of  each  is  most  important  and 
involves  much  expenditure  of  money  especially  in  time  of  peace 
when  must  be  done  the  efficient  work  of  manufacturing  guns  and 
ammunition  and  constructing  fortifications,  as  well  as  preparing 
emplacements  of  heavy  guns— all  this  in  preparation  for  war 
which,  after  all,  is  the  only  time  their  practical  use  is  ever 
contemplated. 

To  form  some  idea  of  the  extent  of  this  work  of  construction 
and  manufacture,  the  fact  may  be  mentioned  that  the  so-called 
seacoast  guns  vary  in  size  from  six  inches  to  twelve  inches  and 
cost  from  $10,000  to  $55,000  each,  while  most  of  these  guns  are 
mounted  on  the  disappearing  carriages  so  designed  that  the  recoil 
carries  a  gun  from  the  more  or  less  exposed  firing  position  to 
one  of  concealment  and  security  behind  the  parapets.  The  cost 
of  such  gun  carriages  varies  from  $10,000  to  $40,000  each,  accord- 
ing to  size,  making  each  effective  complete  mounted  gun  cost 
from  $20,000  to  $95,000,  irrespective  of  the  additional  large  cost 
of  construction  work  involved,  and  also  the  cost  of  projectiles  and 
powder,  the  charges  of  powder  for  each  firing  of  the  gun  varying 
from  one  hundred  to  four  hundred  pounds. 

One  of  the  great  achievements  in  recent  years  of  these  two 
departments  has  been  a  great  reduction  in  the  cost  of  emplace- 
ment of  the  heavy  guns  so  as  to  protect  them  from  the  emeny 
after  firing.  Formerly,  when  the  work  began  under  the  Endicott 
Board  scheme  of  1886,  the  only  means  of  protecting  the  high  power 
coast  defense  gun  was  the  steel 'or  chilled  coast  iron  turret,  the 
cost  of  which  was  between  $1,100,000  and  $1,000,000  for  each  pair 
of  12-inch  guns  mounted.  The  gun  lift  scheme  was  subsequently 
adopted  at  a  cost  of  $525,000  exclusive  of  the  guns,  each  of 
which  could  be  fired  once  in  eight  minutes.  But  as  recently  re- 
ported by  the  Secretary  of  War  we  can  now  have  two  12-inch 
guns  mounted  on  disappearing  carriages — as  at  Sandy  Hook,  for 
example — which  cost  only  about  $150,000  for  the  carriages,  em- 
placements, and  protection  of  both  guns,  and  each  of  those  guns 
can  be  fired  ten  times  in  eight  minutes,  or  ten  times  faster  now 
than  a  few  years  ago,  and  this,  too,,  at  a  reduced  total  cost  of 
$375,000. 

While  it  must  be  accepted  that  this  feature  of  the  Nation's 
defense  always  has  been  and  always  will  be  necessarily  an  ex- 
pensive one — and  also  a  necessarily  unavoidable  one  which  no 
political  party  will  ever  be  able,  on  account  of  its  pretentions  to 
reform  or  economy,  to  ignore  or  neglect. 

From  a  recent  special  report  of  the  newly  appointed  General 
Staff  of  the  Army,  the  below  indicated  interesting  figures  are 
taken  to  illustrate  the  magnitude  of  this  part  of  the  work  of 
military  defense,  which  in  time  of  peace — the  only  fitting  and 
safe  time  for  its  accomplishment — cannot  be  too  long  delayed. 
This  consolidated  statement  shows  the  expenditures  for  fortifi- 
cations, armament,  electrical  appliances,  and  quartermaster's  con- 
struction and  supplies  up  to  September,  1903,  to  have  been  $89,- 
599,621.58.  And  further,  according  to  the  official  estimates  of  the 
same  military  authority  of  the  cost  of  completing  the  defense 
project  of  the  so-called  Endicott  Board,  as  modified  from  time 


360  THE   WAB  DEPABTMENT. 

to  time,  it  will  yet  cost  for  continued  and  additional  similar 
work  in  the  projected  scheme  of  National  defense  $50,852,694.98 : 
so  that  when  this  projected  scheme  of  coast  defense  is  com- 
pleted the  aggregate  cost  of  defending  our  coast  and  ocean  har- 
bors and  seaport  cities  will  have  reached  $140,452,310.56.  In 
addition  to  this  must  be  considered  the  annual  cost  of  maintenance 
of  coast  defense  fortifications,  including  garrisoning,  and  annual 
supplies,  estimated  at  $18,083,145.85. 

The  present  administration  of  the  War  Department  under  the 
direction  of  the  President,  realizing  fully  the  value  and  vital 
importance  of  this  coast  defensive  work,  has  boldly  met  the 
National  obligations  involved  and  does  not  shrink  from  tht 
groundless  criticisms  which  the  uninformed  partisan  is  pleased 
to  make  on  the  score  of  alleged  increased  militarism  every  time 
military  expenditures  are  recommended.  It  is  true  that  cursory 
reading  of  the  statistical  statements  of  National  expenditures 
each  year,  briefly  classified  under  the  laconic  heading  of  "War," 
aggregating,  as  they  do,  for  the  past  eight  years  nearly  nine  hun- 
dred millions  of  dollars,  are,  it  must  be  admitted,  likely  to  mislead 
the  average  layman  who  construes  the  appropriations  for  purely 
army  purposes  only.  But  an  examination  of  the  nature  of  those 
so-called  expenditures  for  war  will  show  that  much  of  them  is 
expended  in  time  of  peace,  and  will  show,  also,  that  those  so- 
called  "war"  expenditures  not  only  include  the  comparatively 
small  cost  of  maintaining  the  minimum  Regular  Army,  but  the 
various  unavoidable  expenditures  which  no  political  party  could, 
even  if  they  wished,  well  avoid,  as,  for  example,  the  millions  of 
dollars  expended  annually  for  internal  improvements,  lake  im- 
provements, preservation  of  public  parks,  road  and  bridge  build- 
ing, as  well  as  for  the  manufacture  of  ordnance  and  arms  and 
the  munitions  of  war,  a  reasonable  amount  of  which  it  is  always 
wise  and  safe  to  accumulate  in  times  of  peace. 

Due  attention  has  been  given  to  the  matter  of  coast  defenses 
in  the  insular  possessions.  Projects  for  the  defense  of  San 
Juan,  Porto  Rico,  Pearl  Harbor  and  Honolulu  Harbor,  Hawaii, 
San  Luis  d'Apra,  Guam,  Manila  Bay,  and  Subig  Bay  in  the 
Philippines,  have  been  made  and  approved.  The  subject  of  forti- 
fications of  naval  stations  in  the  West  Indies  has  also  been  urged 
upon  Congress. 

The  Corps  of  Engineers,  U.  S.  Army. 

On  June  30,  1896,  the  fortifications  of  the  sea  coasts  of  the 
United  States  were  so  incomplete  as  to  make  it  a  matter  of 
national  necessity  to  exclude  from  them,  as  far  as  possible,  any 
one  who  might  communicate  the  information  to  foreign  powers 
that  our  shores  were  to  all  intents  and  purposes  without  defense. 

At  each  harbor  there  were  remains  of  the.  old  stone  forts — 
the  best  of  their  kind  in  the  world  in  their  day  and  utterly  im- 
pregnable by  wooden  sailing  fleets — supplemented  by  the  earthen 
batteries  for  smooth-bore  guns  of  the  period  immediately  suc- 
ceeding the  Civil  War.  At  a  few  harbors,  interspersed  among 
these  decaying  remains  of  former  systems  of  defense,  rendered 
obsolete  by  the  wonderful  advance  in  rifled  guns,  smokeless  pow- 
der, and  hard-faced  steel  armor,  were  one  or  two  modern  bat- 
teries of  the  earlier  type,  experimental  attempts  to  develop  a 
system  to  meet  the  new  demands  of  defense  against  the  modern 
high-power  naval  guns  behind  their  panoply  of  steel  hard-faced 
and  backed  up  by  the  rigid  structure  of  the  new  type  battleship, 
at  once  fleet  and  powerful. 

In  the  last  eight  years  these  batteries  have  grown  from  few 
in  number  and  experimental  in  type  to  the  numerous  and  complete 
defenses  of  to-day;  at  nearly  every  harbor  a  good  defense  is 
now  possible.  From  having  ready  92  emplacements  for  heavy 
guns  and  mortars,  75  of  which  were  mounted,  and  two  emplace- 
ments for  2.24-inch  rapid  fire  guns,  in  1896,  we  now  have  ready 
for  the  hands  of  well-trained  and  effective  artillery  garrisons 
emplacements  for  652  heavy  guns  and  mortars,  611  of  which  are 
mounted,  and  for  367  rapid  fire  guns  of  6-inch  and  lighter  cali- 
bers, 185  of  which  are  mounted. 

For  some  two  years  prior  to  the  war  with  Spain  the  sub- 
marine mine  system  was  under  revision  by  a  special  Board  of 
Engineer  Oflicers,   whose  work   had  been  practically   completed, 


THE   WAR  DEPARTMENT.  361 

but  neither  time  nor  funds  had  been  available  for  replacing  the 
old-style  material  with  the  new.  In  March,  1898,  when  the  out- 
break of  war  appeared  imminent,  there  were  about  3,500  mine 
cases  stored  at  a  number  of  the  principal  harbors  of  the  coun- 
try, out  of  a  total  of  about  8,000  required  for  the  complete  ap- 
proved projects,  but  practically  no  cable,  none  of  the  various 
articles  essential  to  an  efficient  working  of  a  system  of  mines, 
and  no  searchlights.  March  17,  1898,  funds  were  allotted  for  the 
torpedo  defenses  from  the  appropriation  for  National  defense,  and 
were  applied  at  once,  under  telegraphic  orders,  to  the  purchase 
and  distribution  of  the  most  necessary  articles  of  torpedo  ma- 
terial. An  April  21  the  order  to  plant  mines  was  given,  and  by 
the  close  of  that  month  practically  nearly  every  harbor  of  im- 
portance was  defended  by  at  least  a  preliminary  line  of  mines. 
These  submarine  mines,  which  had  been  planted  in  28  harbors, 
were  maintained  until  the  signing  of  the  peace  protocol  with 
Spain,  when  they  were  removed,  partly  by  explosion  and  partly 
by  raising  and  unloading,  and  all  material  recovered  was  cleaned 
and  stored  for  future  use. 

Subsequent  appropriations  have  been  applied  to  the  equipment 
of  all  ~harbors  with  a  full  complement  of  the  material  essential 
to  rendering  available  for  service  all  the  mines  and  cable  already 
on  hand,  to  alterations  and  improvements  in  the  old-type  case- 
mates, and  to  the  construction  of  new  casemates,  cable  tanks,  and 
storehouses. 

With  few  exceptions  all  harbors  are  now  equipped  with  tor- 
pedo storehouses,  cable  tanks,  and  sevicable  mining  casemates, 
though  many  of  the  latter  are  not  of  the  latest  type. 

During  the  last  eight  years  the  authorized  strength  of  the 
Corps  of  Engineers  has  been  increased  from  107  to  188  officers 
and  from  one  battalion  of  five  companies  to  three  battalions  of 
four  companies  each.  The  engineer  soldier  has  been  educated  up 
to  new  duties.  To  accompany  the  advance  in  the  Philippine  cam 
paigns  a  portion  of  the  engineers  were  mounted,  and  this  now 
forms  part  of  their  regular  organization. 


Everyone  knows  that  the  average  American  consumer  pays 
more  than  the  average  British  consumer.  Yet  the  British  con- 
sumer, in  spite  of  that  advantage,  is  by  no  means  so  well  off  as  the 
American  consumer.— The  London  Daily  Telegraph. 

Let  nothing  distract  us;  let  no  discordant  voice  intrude  to  em- 
barrass us  in  the  solution  of  the  mighty  problems  -which  involve 
such  vast  consequences  to  ourselves  and  posterity.  Let  us  re- 
member that  God  bestows  supreme  opportunity  upon  no  nation 
which  is  not  ready  to  respond  to  the  call  of  supreme  fluty.— Presi- 
dent McKinley  at  St.  Louis,  Oct.  14,  1898. 

This  is  not  and  never  shall  be  a  government  of  a  plutocracy; 
it  is  not  and  never  shall  be  a  government  by  a  mob.  It  is,  as  it 
has  been  and  as  it  will  be,  a  government  in  which  every  honest 
man,  every  decent  man,  be  he  employer  or  employed,  wage-worker, 
mechanic,  banker,  lawyer,  farmer,  be  he  who  he  may,  if  he  acts 
squarely  and  fairly,  if  he  does  his  duty  by  his  neighbor  and  the 
State,  receives  the  full  protection  of  the  law  and  is  given  amplest 
chance  to  exercise  the  ability  that  there  is  within  him,  alone  or  in 
combination  with  his  fellows,  as  he  desires. — President  Roosevelt 
at  Butte,  Mont.,  May  27,  1903. 

We  are  not  a  nation  of  classes,  but  of  sturdy,  free,  Independent 
and  honorable  people,  despising  the  demagogue  and  never  capitu- 
lating to  dishonor. — McKinley's  letter  of  acceptance,  1896. 

I  have  seen  it  to  be  an  actual  fact,  abundantly  sustained  by 
evidence,  that  under  the  system  of  protection  every  hour  of  honest 
toil  purchases  more  of  material  comfort  for  the  toiler  than  is  at- 
tainable under  any  other  system,  the  degree  of  such  advantage  be- 
ing contingent  upon  the  completeness  and  accuracy  of  the  appli- 
cation of  the  protective  system.  This  advantage  comes  directly 
or  indirectly  to  all  classes  of  toilers,  be  they  weavers,  spinners, 
carpenters,  painters,  machinists,  farmers,  doctors,  editors,  or  teach- 
ers.— Hon.  H.  B.  Metcalf,  Pawtucket,  R.  L,  in  the  American 
Economist. 


,162  THE  DEPARTMENT  OF  JUSTICE. 


\ 


THE  WORK  OF  THE  DEPARTMENT  OF 
JUSTICE. 

The  Department  of  Justice  is  that  branch  of  the  Government 
upon  which  is  imposed  the  duty  of  enforcing,  by  civil  and  criminal 
proceedings,  the  laws  of  the  United  States,  and  all  rights  of  the 
Government  under  them.  Prompt  and  efficient  enforcement  of  law 
is  of  the  utmost  importance  to  the  Government.  This  has  been 
the  policy  of  the  Department  during  the  administrations  of  Presi- 
dent  McKinley  and  President  Roosevelt,  as  shown  by  the  results 
it  has  accomplished.  During  these  administrations  an  unusual 
number  of  highly  important  cases,  involving  grave  constitutional 
questions,  have  arisen  and  have  been  decided  in  favor  of  the 
Government  The  more  important  of  these  may  be  summarized 
as  follows: 

The  Insular  Tariff  Cases. 

These  cases  grew  out  of  the  cession  to  the  United  States  by 
Spain,  as  a  result  of  war,  of  the  Island  of  Porto  Rico  and  the 
Philippines;  and  as  a  result  of  the  annexation,  by  resolution,  of 
the  Republic  of  Hawaii. 

The  one  great  question  involved  in  these  cases  was  whether 
Congress  might  impose  duties  upon  goods  coming  into  the  United 
States  from  its  island  possessions,  and  upon  goods  going  into  its 
island  possessions  from  the  United  States. 

In  the  Dowries  Case  (decided  in  May,  1901;  182  U.  S.,  244) 
the  court  upheld  the  power  of  Congress  to  impose  duties  on 
goods  coming  into  the  United  States  from  Porto  Rico,  as  pro- 
vided in  the  Foraker  act,  for  the  reason  that  by  the  cession 
Porto  Rico  did  not  become  a  part  of  the  United  States  within  that 
provision  of  the  Constitution  which  declares  that  "all  duties,  im- 
posts, and  excises  shall  be  uniform  throughout  the  United  States;" 
and  that  therefore  Congress,  under  the  power  conferred  to  govern 
territory  belonging  to  the  United  States,  had  a  right  to  provide 
for  Porto  Rico  a  system  of  customs  and  internal  taxation  appro- 
priate to  its  needs  and  distinct  from  that  in  force  in  the  United 
States. 

In  the  Second  Dooley  Case  (decided  in  December,  1901;  183 
U.  S.,  151),  there  was  involved  the  question  of  the  right  to  col- 
lect duties  imposed  by  the  Foraker  act  upon  goods  brought  into 
Porto  Rico  from  the  United  States.  In  addition  to  the  objection 
urged  in  the  Dowries  Case  that  Congress  could  not  impose  such 
duties  because  they  were  not  uniform  throughout  the  United 
States,  the  further  objection  was  made  that  the  imposition  of 
such  a  duty  was  a  tax  or  duty  upon  "articles  exported  from  any 
State."  which  was  forbidden  by  the  Constitution.  The  courts  held, 
however,  that  only  those  articles  destined  for  a  foreign  country 
constituted  "articles  exported  from  any  State ;"  that  Porto  Rico 
was  not  "a  foreign  country,"  but,  under  the  decision  in  the  DcLima 
CY/.vr,  was  territory  appurtenant  and  belonging  to  the  United 
States,  and  that  Congress  had  the  power  to  impose  such  a  tax. 
The  other  insular  tariff  cases  involved  the  right  to  collect 
duties  passing  between  the  United  States  and  its  island  pos- 
sessions after  their  cession  to  the  United  States,  but  prior  to  ap- 
propriate legislation  by  Congress,  the  court  denying  such  a  right. 
These  cases  were  the  DeLima,  the  First  Dooley,  the  Armstrong, 
the  Diamond  Rings,  the  Goetze,  and  the  Grossman  cases  (182-183 
U.  S.),  the  court  holding  that  these  islands  were  not  "foreign 
countries"  within  the  meaning  of  the  Dingley  law  and  that  goods 
coming  therefrom  were  not  subject  to  dutv  under  the  Dingley  law. 

In  the  First  Dooley  Case  (decided  in  May,  1901 ;  182  U.  S.  222), 
the  court  upheld  the  power  of  the  Military  Commander  and  the 
President,  as  Commander  in  Chief,  under  the  war  power,  to  col- 
lect duties  on  goods  brought  into  Porto  Rico  from  the  United 
States  from  the  time  possession  was  taken  of  that  island  until 
the  ratification  of  the  treaty  of  peace> 


THE  DEPARTMENT  OV  .TT7STICE.  363 

The  Federal  Inheritance  Tax  Cases. 

In  the  case  of  Knowlton  v.  Moore  (decided  in  May,  1900; 
178  U.  S.,  41)  and  the  other  cases  heard  with  it,  there  was  in- 
volved the  validity  of  sections  29  and  30  of  the  War  Revenue  act 
of  June  13,  1898  (30  Stat.,  404),  which  imposed  an  excise  tax 
upon  legacies  and  distributive  shares  arising  from  personal  prop- 
erty. There  was  a  double  gradation  of  the  tax,  the  tax  in  the 
tirst  instance  being  determined  by  the  degree  of  kinship,  lineal 
descendants  being  subjected  to  one  rate  of  tax,  those  of  collateral 
kinship  paying,  a  higher  rate,  and  those  not  related  a  still  higher 
rate.  The  second  gradation  depended  upon  the  amount  of  the 
legacy,  a  small  legacy  paying  a  lower  rate  than  a  larger  one — • 
the  tax  varying  from  %  of  1  per  cent  to  15  per  cent  of  the  amount 
of  the  legacy. 

The  law  was  attacked  upon  three  grounds:  (1)  That  it  was 
a  direct  tax  and  not  apportioned  as  required  by  Article  I,  section 
9,  clause  4  of  the  Constitution;  (2)  if  not  a  tax  on  property,  but  a 
tax  upon  the  privilege  of  transmitting  or  receiving  property,  it 
was  invalid  because  the  privilege  of  inheritance  is  conferred  by 
the  States;  and  (3)  it  violated  the  uniformity  clause  of  the  Con- 
stitution.   Article  I,  section  *8,  clause  1.) 

The  court  overruled  all  these  objections,  holding  the  tax  to 
be  indirect;  that  Congress  might  impose  the  tax  even  though  the 
privilege  be  granted  and  regulated  by  the  States ;  and  that  it 
did  not  violate  the  rule  of  uniformity  which  was  held  to  be  merely 
geographic  in  its  nature,  the  same  rate  of  tax  being  imposed  upon 
all  legacies  of  the  same  class  wherever  found. 

While  Congress  has  since  repealed  the  inheritance  tax  law, 
nevertheless  the  decisions  are  of  great  importance  as  establish- 
ing the  principle  that  Congress,  in  seeking^objects  for  taxation, 
may  tax  valuable  privileges,  however  obtained,  and  in  adjusting 
the  burdens  of  government  may  apportion  the  tax  according  to  the 
ability  of  the  person  on  whom  it  is  placed  to  bear  the  same. 

I/and  Fraud  and  TImher  Trespass  Cases. 

A  very  important  class  of  litigation  at  the  present  time  is 
that  aimed  to  prevent  and  to  punish  frauds  in  the  unlawful  secur- 
ing of  public  lands  from  the  Government  and  the  unlawful  cut- 
ting of  timber  thereon. 

Under  the  land  laws  a  person  may  not  enter  more  than  1G0 
acres  of  land.  Because  of  this  fact,  and  with  a  view  to  securing 
large  tracts  for  grazing  purposes  and  for  the  timber  growing 
thereon,  which,  in  many  instances,  is  of  far  more  value  than  the 
land,  large  corporations  and  companies  have  undertaken  to  secure 
the  lands  by  employing  and  inducing  large  numbers  of  irrespon- 
sible persons  to  enter  the  land  and  in  so  doing  to  make  false  affi- 
davits in  order  to  obtain  patents,  and  upon  obtaining  patents  to 
convey  the  lands  to  the  corporations  or  other  persons  who  have 
furnished  the  necessary  money  with  which  to  pay  all  fees  and 
costs,  besides  a  compensation  to  the  persons  employed  to  com- 
mit the  frauds  and  perjuries.  In  this  manner  large  tracts  of 
valuable  public  lands  have  been  secured.  So  glaring  did  these 
frauds  become  that  determined  measures  were  adopted  by  the 
Department  of  Justice  and  the  Department  of  the  Interior  Lo 
put  a  stop  to  them  and  to  punish  the  offenders. 

To  this  end  special  counsel,  skilled  in  the  land  and  timber 
laws,  have  been  employed  to  prosecute  such  parties  and  to  in- 
stitute proceedings  to  cancel  the  patents  wrongfully  acquired. 
A  large  number  of  patents  so  acquired  have  already  been  can- 
celed by  the  court,  and  suits  are  pending  and  are  being  pushed 
to  as  speedy  a  conclusion  as  possible  to  cancel  patents  to  large 
tracts  of  lands.  In  addition  a  large  number  of  indictments  have 
been  returned  against  the  parties  to  the  frauds.  Some  of  the 
parties  indicted  have  pleaded  guilty  and  have  been  severely  pun- 
ished. The  pending  indictments  will  be  tried  as  soon  as  a  trial 
can  be  forced  upon  the  criminals.  These  vigorous  measures  have 
had  the  effect  of  greatly  checking  the  frauds  practiced  upon  the 
Government  in  this  respect  in  the  past. 

Another  class  of  this  litigation  refers  to  the  proceedings  to 
recover  the  value  of  timber  unlawfully  cut  from  the  public  lands 
.and  to  punish  the  offenders  for  their  illegal  acts.    The  timber 


364  THE  DEPABTMENT  OF  JUSTICE. 

lands  of  the  Government  being  in  remote  places  it  has  been  some- 
what easy  for  the  lumber  and  mining  companies  to  steal  and  to 
cut  up  into  lumber  la  rue  quantities  of  timber  taken  from  Govern- 
ment lands.  This  has  been  due  in  part  to  a  lack  of  a  sufficient 
number  of  agents  to  properly  patrol  the  forests,  and  to  a  re- 
luctance on  the  part  of  those  having  knowledge  of  the  trespasses 
to  furnish  evidence  to  convict  the  guilty  parties. 

Under  the  administrations  of  President  McKinley  and  of 
President  Roosevelt  vigorous  measures  have  been  adopted  to 
put  a  stop  to  these  unlawful  practices.  The  Department  of  Jus- 
tice, acting  with  the  hearty  cooperation  of  the  Department  of  the 
Interior,  has  employed  special  attorneys  skilled  in  the  knowledge 
of  the  timber  and  laud  laws,  specially  charged  with  the  work 
of  bringing  suits  to  recover  the  value  of  the  timber  stolen  and  of 
instituting  prosecutions  to  criminally  punish  the  offenders.  This 
has  had  the  effect  of  largely  checking  these  trespasses.  Many 
suits  have  been  brought  and  large  sums  of  money  have  been  re- 
covered. Other  suits  are  pending  and  are  being  brought  and  are 
being  pushed  to  as  speedy  a  conclusion  as  is  possible.  In  Mon- 
tana alone  suits  are  pending  against  great  companies  in  that 
State  to  recover  nearly  $2,000,000,  the  value  of  the  timber  taken 
(unlawfully  cut)  from  the  public  lands.  Besides,  a  large  num- 
ber of  persons  have  been  indicted  for  willful  trespass ;  some 
have  been  found  guilty  and  punished  and  the  trial  of  the  other 
indictments  will  be  had  at  as  early  a  date  as  is  possible. 

Another  branch  of  this  litigation  refers  to  the  suits  brought 
against  a  number  of  the  Pacific  railroads  for  cutting  timber  for 
use  on  their  railroads.  Under  the  act  of  March  3,  1875  (18  Stat, 
482),  Congress  granted  to  any  railroad  desiring  it  a  right  of  way 
through  the  public  lands ;  and  authorized  the  companies  to  take 
from  the  public  lands  adjacent  to  their  right  of  way  material, 
earth,  stone,  and  timber  necessary  for  the  construction  of  the 
road. 

Acting  under  this  statute,  the  railroads  have  construed  the 
word  "adjacent"  to  mean  any  distance  they  may  see  fit  to'  go 
for  the  timber,  and  have  cut  timber  as  far  as  from  25  to  50 
miles  distant  from  the  line  of  their  road.  A  number  of  suits  have 
been  brought  against  the  railroads  for  timber  taken  more  than 
two  miles  distant  from  their  line  of  roads,  and  judgments  have 
been  recovered  against  them.  And  the  Supreme  Court  has  prac- 
tically adopted  this  construction  in  the  case  of  United  States 
v.  St.  Anthony  Railroad  Co.  (192  U.  S.,  524),  decided  in  February, 
1904;  so  that,  hereafter,  when  a  railroad  goes  beyond  a  two-mile 
limit  in  cutting  timber  from  the  public  lands,  in  order  to  escape 
from  being  held  a  willful  trespasser,  it  must  show  some  special 
reason  why  the  two-mile  limit  should  not  be  held  to  apply.  This 
decision  will  practically  put  a  stop  to  these  trespasses  by  the 
railroad  companies. 

The  Lottery  Law. 

Another  direction  in  which  the  efficient  work  of  the  Depart- 
ment of  Justice  is  shown  is  in  the  enforcement  of  the  Lottery 
Law  of  March  2,  1895  (28  Stat,  963),  the  validity  of  which  was 
sustained  by  the  Supreme  Court  in  February,  1903,  in  the  case  of 
Champion  v.  Ames,  Marshal  (188  U.  S.,  321).  That  act  pro- 
vides for  the  punishing  by  imprisonment  for  not  exceeding  two 
years,  or  by  a  fine  of  not  more  than  $1,000,  or  both,  of  "any  per- 
son who  shall  cause  to  be  brought  within  the  United  States  from 
abroad,  for  the  purpose  of  disposing  of  the  same,  or  deposited  in 
or  carried  by  the  mails  of  the  United*  States,  or  carried  from  one 
State  to  another  in  the  United  States,  any  paper,  certificate,  or 
instrument  purporting  to  be  or  reperesent  a  ticket,  chance,  share, 
or  interest  in  or  dependent  upon  the  event  of  a  lottery,  so-called 
gift  concert,  or  similar  enterprise,  offering  prizes  dependent  upon 
lot  or  chance;"  or  shall  cause  to  be  brought  into,  deposited  or 
carried  in  the  mail,  or  transferreed  from  one  State  to  another, 
any  advertisement  of  a  lottery  or  other  similar  scheme  or  en- 
terprise.   The  court  held: 

"Lottery  tickets  are  subjects  of  tariff  among  those  who  choose 
to  buy  and  sell  them  and  their  carriage  by  independent  carriers 
from  one  state  to  another  is  therefore  interstate  commerce  which 
Congress  may  prohibit  under  its  power  to  regulate  commerce 
among  the  several  states. 


THE  DEPARTMENT  OF  JUSTICE.  365 


"Legislation  under  that  power  may  sometimes  and  properly 
assume  the  form,  or  have  the  effect,  of  prohibition. 

"Legislation  prohibiting  the  carriage  of  such  tickets  is'  not 
inconsistent  with  any  limitation  or  restriction  imposed  upon  the 
exercise  of  the  powers  granted  to  Congress." 

The  effect  of  this  decision  has  been  to  render  it  next  to  im- 
possible to  traffic  in  lottery  tickets. 

The  Oleomargarine  Cases. 

These  suits,  four  in  number,  grew  out  of  the  attempt  on  the 
part  of  the  manufacturers  of  oleomargarine  to  evade  and  defeat 
the  provisions  of  the  act  of  May  9,  1902  (32  Stat.,  193),  amending 
the  original  oleomargarine  act  of  August  2,  1886  (24  Stat,  209), 
imposing  a  tax  of  ten  cents  per  pound  upon  oleomargarine  arti- 
ficially colored  in  imitation  of  yellow  butter.  This  legislation 
resulted  from  the  great  profits  realized  by  the  manufacturers  and 
dealers  in  oleomargarine  in  fraudulently  selling  colored  oleomar- 
garine as  and  for  butter,  and  is  in  harmony  with  the  policy  of 
Congress  in  imposing  taxes  upon  those  subjects  best  able  to  bear 
them. 

The  manufacturers  resisted  the  payment  of  the  tax  of  ten 
cents  per  pound  upon  the  colored  article  upon  the  ground  that  the 
tax  was  confiscatory;  that  it  was  an  attempted  regulation  and 
not  a  tax ;  and  sought  to  evade  and  defeat  the  ^law  in  every  pos- 
sible way. 

In  the  three  cases  which  have  been  decided  (on  May  31, 
1904)   the  Supreme  Court  held: 

That  the  tax  is  an  excise,  which  Congress  had  the  power  to 
impose; 

That  the  only  limitation  upon  the  power  of  Congress  to  impose 
excises  is  that  they  shall  be  uniform  throughout  the  United  States; 
that  this  tax  is  uniform; 

That  it  is  for  Congress  to  fix  the  rate  of  tax,  and  that  it  is  not 
within  the  power  of  the  court  to  inquire  into  the  reasonableness  of 
the  excise,  either  as  respects  the  amount,  or  the  property  upon 
which  it  is  imposed; 

That  if  Congress  abuses  its  taxing  power,  the  remedy  lies 
with  the  people  who  elect  the  Congress,  and  not  with  the  courts. 

The  court  having  heretofore  held  that  the  States  may,  in  the 
exercise  of  their  police  power,  absolutely  probihit  the  manufac- 
ture and  sale  of  oleomargarine  colored  to  look  like  butter,  be- 
cause of  the  aptitude  of  that  article  to  deceive  the  public  into 
buying  it  as  butter,  it  results  that  even  if  the  effect  of  the  tax 
of  10  cents  per  pound  be  to  repress  the  manufacture  of  the  arti- 
fically  colored  article,  such  repression  violates  no  fundamental 
right,  for  the  manufacture  of  artificially  colored  oleomargarine 
may  be  prohibited  by  a  free  government  without  a  violation  of 
fundamental  rights;  and 

That  the  use  of  artificially  colored  butter  in  the  manufacture 
of  oleomargarine,  although  an  authorized  ingredient,  constitutes 
an  artificial  coloration,  and  subjects  the  oleomargarine  to  the  tax 
of  ten  cents  per  pound. 

But  the  foregoing  classes  of  cases  do  not  embrace  all  that 
have  been  begun  and  successfully  prosecuted  by  the  Department. 
Also  deserving  of  special  mention  are  the  suits  arising  out  of 
the  collection  of  the  customs  and  the  internal  revenue,  and  the 
prosecutions  for  a  violation  of  the  laws  relating  thereto;  of  the 
suits  brought  for  the  purpose  of  enforcing  the  provisions  of  the 
interstate  commerce  law;  of  the  proceedings  instituted  and  de- 
fended in  the  enforcement  of  the  Chinese  exclusion  and  the 
immigration  laws;  of  the  suits  brought  to  forfeit  and  to  re- 
store to  the  public  domain  land  grants  in  aid  of  the  construction 
of  railroads,  the  conditions  of  the  grant  not  having  been  com- 
plied with ;  of  the  proceedings  to  forfeit  and  condemn  as  prize 
Spanish  vessels  captured  in  the  war  with  Spain;  and  of  the 
proceedings  and  prosecutions  to  enforce  the  law  imposing  taxes 
upon  oleomargarine  and  other  fraudulent  imitations  of  dairy  and 
food  products. 

Trusts— Enforcement  of  the  Sherman  Anti-Trust  Law. 

The  work  of  the  Department  in  the  enforcement  of  the  Sher- 
man Anti-trust  law,  which  may  be  considered  its  most  important 
work  in  recent  years,  is  fully  discussed  in  the  chapter  relating  to 
trusts. 


366  THE  ^OST-OBFICE  DEPARTMENT. 


WORK  OF  THE  POST-OFFICE  DEPART- 
MENT. 


Hunt!    Free   Delivery— Correction    of   Abuses  In    Second-*  l:\»n   Mall 

Privilege — The   Investigations    Instituted   by   Republican 

Officials  and  Their  Results. 

The  business  of  the  Post-Office  Department  is  a  reliable  index 
to  the  general  condition  of  the  country  and  the  postal  receipts  for 
the  last  ton  years  show  conclusively  that  our  people  have  been 
prosperous  and  our  business  more  active  since  the  return  of  the 
Republican  party  to  power  than  ever  before  in  the  history  of  the 
country.  The  following  table  gives  the  figures  of  receipts  for  the 
years  Indicated  : 

1893 $75,896,933.10 

1894  ., 75,080,479.04 

1895 70,983,128.19 

.  1890 /. 82,499,208.40 

1897 82,005,402.73 

1898 89,012,018.55 

1899 95,021,384.17 

1900 102,354,579.29 

1901 111,031,193.39 

1902 121,848,047.20 

1903 134,224,443.24 

1904  (estimated) 144,100,000.00 

The  increase  of  nearly  $70,000,000.00  in  ten  years  shows  a  truly 
marvelous  development. 

Rural  Free  Delivery. 

The  responsibility  for  the  introduction  of  rural  free  delivery 
belongs  to  the  administration  of  President  McKinley  and  its  in- 
crease and  continuance  to  the  administration  of  President  Roose- 
velt. The  introduction  of  this  service  has  proceeded  with  mar- 
velous rapidity.  At  the  beginning  of  the  fiscal  year  1899  there 
were  less  than  200  routes  in  operation.  At  the  close  of  the 
present  fiscal  year  the  number  in  actual  operation  will  be  in  excess 
of  25,000,  bringing  a  daily  mail  service  to  more  than  12,500,000  of 
our  people  residing  in  the  rural  districts. 

At  the  present  time  complete  service  is  established  in  one 
hundred  and  forty-two  counties,  in  which  all  the  people  outside 
of  the  cities  receive  their  mail  daily  by  rural  free  delivery 
carriers. 

The  policy  of  rural  free  delivery  is  no  longer  a  subject  of 
serious  dispute.  It  has  unmistakably  vindicated  itself  by  its 
fruits.  The  practical  benefits  and  the  popular  appreciation  and 
demand  have  been  decisively  demonstrated.  It  has  been  made 
plain  that  this  service  is  a  potent  educational  force;  that  it 
brings  agricultural  life  into  far  closer  relations  with  the  active 
business  world;  that  it  keeps  the  farmers  in  daily  touch  with 
markets  and  prices ;  that  it  advances  general  intelligence  through 
the  increased  circulation  of  legitimate  journals  and  periodicals, 
stimulates  correspondence,  quickens  all  interchanges,  promotes 
good  roads,  enhances  farm  values,  makes  farm  life  less  isolated 
and  more  attractive,  and  unites  with  other  wholesome  influences 
in  checking  and  changing  the  hitherto  prevailing  current  from 
country  to  city.  The  national  value  of  these  advantages  is  in- 
calculable. They  are  not  theoretical,  but  real,  direct,  and  im- 
mediate. In  diffusing  them  the  beneficent  agency  of  the  Govern- 
ment is  brought  into  the  daily  presence  and  thought  of  the 
people. 

The  appropriation  made  by  the  present  Congress  for  the  con- 
tinuation of  the  service  and  its  extension  into  districts  where  its 
introduction  is  justifiable  was  $20,810,000.00. 

The  Post-Oflice  Department  has  also  endeavored  to  extend  the 
benefits   of  the   rural    free   delivery   service   to   remote   districts 


THE  POST-OFFICE  DEPARTMENT.  367 

where  the  number  of  people  is  not  sufficient  to  justify  the  es- 
tablishment of  rural  free  delivery,  and  to  this  end  has  arranged  for 
the  delivery  of  mail  into  boxes  along  the  lines  of  20,000  star 
routes,  aggregating  249,000  miles  in  length,  and  over  500,000  peo- 
ple are  having  their  mail  delivered  to  them  by  the  star  route  car- 
riers in  this  way,  and  reports  indicate  that  the  service  is  gener- 
ally satisfactory  to  those  who  are  served. 

The  Investigations  and  Their  Results. 

During  the  year  1903  an  investigation  of  the  Post-Office  De- 
partment was  ordered  by  President  Roosevelt.  The  investigation, 
by  the  Postmaster-General,  was  conducted  under  the  immediate 
supervision  of  the  Fourth  Assistant  Postmaster-General,  who  had 
about  fifty  inspectors  detailed  exclusively  to  aid'ln  the  investiga- 
tion covering  a  period  of  eight  months.  The  inception  of  this 
investigation  is  clearly  set  forth  in  the  following  extract  taken 
from  the  memorandum  of  the  President  made  after  an  examina- 
tion of  the  report  of  the  Fourth  Assistant  Postmaster-General : 

"It  appears  that  in  December,  1902,  Postmaster-General  Payne 
and  Congressman  E.  F.  Loud,  chairman  of  the  Committee  on  the 
Post-Office  and  Post-Roads,  held  various  consultations  regarding 
the  postal  service,  and  as  a  result  of  these  interviews  it  was  de- 
termined that  as  soon  as  possible  after  the  necessary  appropria- 
tions could  be  made  by  the  Congress  an  investigation  should  be 
made  of  the  service,  both  Messrs.  Payne  and  Loud  agreeing  as  to 
the  need  for  the  investigation  ,and  the  time  when  it  should  take 
place.  Accordingly,  an  increase  of  $5,000  in  the  appropriation  bill 
reported  in  January  was  made  for  the  express  purpose  of  carry- 
ing on  the  investigation  in  question.  The  reasons  for  the  increase 
in  the  appropriation  were  known  only  to  the  Postmaster-General, 
to  Congressman  Loud,  and  to  Congressman  Bromwell. 

"Subsequently,  some  time  in  January,  information  was  laid  be- 
fore me  by  Mr.  Seckendorff  tending  to  show  improper  conduct 
by  Beavers,  general  superintendent  of  the  division  of  salaries  and 
allowances,  and  Machen,  general  superintendent  of  the  free  de- 
livery system;  and  by  Mr.  William  Allen  White  tending  to  show 
corruption  by  or  under  Tyner,  Assistant  Attorney-General  for  the 
Post-Office  Department.  First  Assistant  Postmaster-General 
Wynne  also  informed  me  that  he  had  become  suspicious  of  the  in- 
tegrity of  both  Machen  and  Beavers.  After  full  consultation  with 
Mr.  Payne  it  was  decided  that  Fourth  Assistant  Postmaster-Gen- 
eral Bristow  should  make  a  thorough  and  exhaustive  investigation 
of  the  charges  in  question  and  of  all  matters  that  might  be  de- 
veloped in  connection  with  them.  Mr.  Bristow's  report  is  a  record 
of  as  thorough  a  bit  of  investigating  work  as  has  ever  been 
done  under  the  Government.  After  this  investigation  had  been 
in  progress  for  about  two  months  it  became  evident  that  legal 
proceedings  would  have  to  be  undertaken  against  some  of  the 
offenders.  Owing  to  the  importance  of  the  case  it  was  deemed 
advisable  that  special  counsel  should  be  employed,  and  Messrs. 
Charles  J.  Bonaparte  and  Holmes  Conrad  were  chosen  for  this 
purpose.  Messrs.  Bonaparte  and  Conrad,  in  their  review  of  the 
report  of  Mr.  Bristow,  speak  as  follows:  "We  consider  the  re- 
port an  exceptionally  able,  candid,  and  impartial  review  of  its 
subject-matter  and  that  it  shows  clearly  reprehensible  misconduct, 
amounting  in  many  cases  to  crime,  on  the  part  of  a  number  of 
public  officials.  It  is  a  voluminous  document,  but  this  arises,  not 
from  prolixity,  but  from  the  nature  of  the  matters  discussed. 
*  *  *  We  heartily  commend  the  report  and  deem  its  conclu- 
sions fully  .justified  by  the  facts  it  sets  forth ;  and  while  regret- 
ting in  common  with  all  patriotic  citizens  that  the  grave  abuses 
of  long  standing  which  it  reveals  should  have  grown  up  in  the 
Post-Office  Department,  we  consider  the  exposure  of  these  abuses 
and  the  attempts  made  to  punish  those  responsible  for  them  a 
work  of  the  highest  public  utility,  quickly  and  ably  performed." 
In  all  that  is  thus  said  of  the  report  of  Mr.  Bristow  I  cordially 
agree. 

"The  investigation  made  by  Mr.  Bristow  discloses  a  condition  of 
gross  corruption  in  the  office  of  the  First  Assistant  Postmaster- 
General  and  in.  that  of  the  Assistant  Attorney-General  for  the 
Post-Office  Department.  In  the  case  of  the  superintendent  of  free 
delivery,  Machen,  the  evidence  shows  that  his  misconduct  began 


368  THE  POBT-Ofc'l'-li  K    DKPAKTMENT. 

immediately  after  his  appointment  in  September,  1893.  In  the 
case  of  the  general  superintendent  of  salaries  and  allowances, 
Beavers,  it  began  soon  after  he  was  appointed  to  that  place  in 
1897. 

"In  the  review  of  the  report  of  the  Fourth  Assistant  Postmaster- 
(uiHial  made  by  Messrs.  Conrad  and  Bonaparte,  they  recom- 
mended that  a  law  be  passed  extending  the  statute  of  limitations 
from  three  to  five  years  for  offenses  of  this  character.  In  com- 
menting upon  this  recommendation  the  President  said: 

"I  heartily  approve  of  the  recommendation  of  Messrs.  Conrad 
and  Bonaparte  that  the  statute  of  limitations  be  extended  in  the 
case  of  Government  servants  to  a  period  of  at  least  five  years; 
for  the  persons  who  in  such  positions  of  trust  engage  In  corrupt 
practices  can  ordinarily  conceal  their  guilt  for  a  longer  time  than 
is  covered  by  the  present  short  statute  of  limitations.  This  recom- 
mendation has  been  laid  before  the  jCongress  in  the  report  of  the 
Attorney-General,  and  it  is  earnestly  hoped  that  it  will  be  acted 
upon  favorably.  Moreover,  our  experience  shows  that  outsiders 
claiming  political  influence  sometimes  sell  their  influence  to  can- 
didates for  office,  or  in  other  words  blackmail  tnese  candidates. 
There  should  be  legislation  which  will  permit  of  summary  dealing 
with  such  offenders. 

"However,  the  prime  need  is  not  new  legislation  but  the  punish- 
ment of  those  who  offend  against  existing  laws.  The  Post-Office 
Department  is  making  certain  changes  in  the  methods  of  ad- 
ministration, notably  in  the  method  of  inspection,  by  which  the 
service  will  be  improved  and  tne  chance  of  corruption  existing 
without  discovery  be  minimized ;  but  the  only  way  to  meet  the  real 
evil  is  to  punish  the  offenders,  by  removal  in  any  event,  and  where 
possible  by  prosecution  under  the  criminal  statutes.  In  any  great 
business,  public  or  private,  wrongdoing  is  certain  at  times  to 
occur.  The  way  to  guard  against  it  is  rigorously  to  scrutinize  the 
character  of  those  appointed,  carefully  to  supervise  their  actions 
after  appointment,  and  finally,  to  punish  with  relentless  severity 
those  who  go  wrong.     All  this  is  being  done. 

"The  immediate  reformation  of  the  service  by  the  turning  out 
of  the  offenders  is  not  in  itself  enough  to  meet  the  demands  of 
justice.  The  cases  against  both  those  within  and  those  without 
the  Post-Office  Department,  who  by  their  acts  have  brought  them- 
selves within  the  grasp  of  the  law,  will  be  pushed  with  the  utmost 
vigor.  Every  effort  must  be  made  to  see  that  both  the  delinquent 
official  and  the  outsider  who  shares  his  guilt  are  punished  to  the 
limit  of  the  law.  In  pursuance  of  this  policy  the  individuals  above 
enumerated  have  been  indicted.  In  no  case  has  the  indictment 
been  sought  save  where  the  officials  of  the  Government  were  con- 
vinced of  the  man's  guilt ;  and  in  every  case  the  Government  will 
exhaust  every  expedient  in  its  power  in  the  effort  to  see  that 
justice  is  meted  out  to  the  offenders.  Those  in  the  public  service 
whose  duty  it  is  must  ever  be  vigilant  in  the  detection  of  wrong- 
doing, fearless  in  its  exposure,  relentless  in  its  prosecution;  but 
in  the  last  resort,  when  everything  which  the  public  official,  wheth- 
er legislator,  judge,  or  executive  officer,  can  do  has  been  done,  it 
remains  for  the  jury,  drawn  from  the  people  and  representing  the 
people,  to  do  even-handed  justice,  shielding  the  innocent,  but 
declining  to  be  misled  by  any  plea  into  refraining  from  punish- 
ment of  the  guilty." 

As  the  result  of  this  investigation  thirty-one  people  were  in- 
dicted ;  thirteen  were  removed  from  office,  and  four  resigned. 

Of  those  indicted,  twelve  have  already  been  tried  and  seven 
convicted.    Those  convicted  are  as  follows: 

A.  W.  Machen,  Clerk  in  the  post-office  at  Toledo,  Ohio,  from  1886 
to  1887,  and  assistant  postmaster  in  that  office  from  1887  to 
July  31,  1890;  appointed  assistant  superintendent  free  delivery 
in  the  Department  May  6,  1893. 

C.  Ellswobth  Upton,  Clerk  in  the  Free  Delivery  Division,  ap- 
pointed July  1,  1900. 

Diller  B.  Geoff,  not  in  the  Postal  Service. 

Edmund  H.  Dbiggs,  member  of  Congress  from  Brooklyn,  N.  Y., 
from  1897  to  1900. 


THE  POST-OFFICE  DEPARTMENT.  369 

Thomas  W.  McGregor,  Clerk  in  Free  Delivery  Division,  appointed 

March  11,  1891. 
George  E.  Lorenz,  Postmaster  Toledo,  Ohio,  from  1886  to  1890. 

Not  in  the  service  at  time  of  conviction. 
Samuel  A.  Groff,  not  in  the  Postal  Service. 

In  closing  his  memorandum  the  President  said: 

No  crime  calls  for  sterner  reprobation  than  the  crime  of  the 
corruptionist  in  public  life,  and  of  the  man  who  seeks  to  corrupt 
him.  The  bribe  giver  and  the  bribe  taker  are  equally  guilty. 
Both  alike  sin  against  the  primary  law  of  the  State's  safety.  All 
questions  of  difference  in  party  policy  sink  into  insignificance  when 
tbe  people  of  this  country  are  brought  face  to  face  with  a  question 
like  this,  which  lies  at  the  root  of  honest  and  decent  government. 
On  this  question,  and  on  all  others  like  it,  we  can  afford  to  have 
no  division  among  good  citizens.  In  the  last  resort  good  laws  and 
good  administration  alike  must  rest  upon  the  broad  basis  of  sound 
public  opinion.  A  dull  public  conscience,  an  easy-going  acquies- 
cence in  corruption,  infallibly  means  debasement  in  public  life,  and 
such  debasement  in  the  end  means  the  ruin  of  free  institutions. 
Self-government  becomes  a  farce  if  the  representatives  of  the 
people  corrupt  others  or  are  themselves  corrupted.  Freedom  is 
not  a  gift  which  will  tarry  long  in  the  hands  of  the  dishonest  or  of 
those  so  foolish  or  so  incompetent  as  to  tolerate  dishonesty  in 
their  public  servants.  Under  our  system  all  power  comes  from 
the  people,  and  all  punishment  rests  ultimately  with  the  people. 
The  toleration  of  the  wrong,  not  the  exposure  of  the  wrong,  is  the 
real  offense. 

Correction  of  the  Abuse  of  the  Second-Class  Mail  Privilege. 

The  rate  of  postage  for  tbe  second  class  of  mail  matter  is 
one  cent  per  pound,  which  is  estimated  to  be  about  one-fifth  of 
the  cost  to  the  Government  of  handling  the  same.  Congress  in 
granting  this  favored  rate  of  postage,  it  is  presumed,  did  not 
intend  to  open  the  door  for  all  kinds  of  publications,  but  intended 
that  only  legitimate  newspapers  and  periodicals  should  have  the 
benefit  thereof.  In  the  administration  of  the  postal  service -abuses 
of  this  privilege  hase  grown  up,  so  that  it  was  estimated  that 
nearly  one-half  of  the  mail  matter  sent  at  the  second  class  rate 
was  composed  of  mere  shams  or  pretensions  which  had  no  right 
under  the  law  to  those  privileges,  or  were  books  and  libraries, 
which  were  clearly  not  intended  to  come  within  this  class. 

The  Department  undertook  to  reform  these  abuses  which  had 
so  insidiously  grown  up.  At  once  legal  steps  were  taken  to  pre- 
vent the  Department  from  carrying  out  the  reform.  Several  cases 
have  been  tried  in  the  United  States  courts  and  finally  some  of 
these  cases  have  reached  the  Supreme  Court  of  the  United  States, 
which  tribunal,  in  a  decision  rendered  April  11,  1904,  determined 
that  the  action  of  the  Department  in  the  cases  pending  before  the 
court  was  proper  and  within  the  law.  There  are  several  other 
cases  pending  in  the  United  States  courts,  but,  as  the  decisions 
referred  to  cover  the  general  principles  involved,  it  is  believed 
that  the  right  of  the  Postmaster-General  to  decide  what  publica- 
tions are,  and  what  are  not,  entitled  to  be  classified  as  second- 
class  matter  is  fully  established. 

This  reform  is  very  important,  in  that  it  will  result  in  the 
exclusion  from  the  mails  of  many  worthless  publications  and 
confine  the  privilege  of  second-class  mail  matter  to  legitimate 
newspapers  and  periodicals,  and  in  the  end  result  in  the  saving 
of  a  very  large  amount  of  money  to  the  Government. 


England   learns   from   experience— Democracy  does   not. — Hon. 
Charles  Dick,  in  Congress,  Jan.  5,  1904. 

During  the  seven  years  that  have  just  passed  there  Is  no  duty, 
domestic  or  foreign,  which  we  have  shirked;  no  necessary  task 
which  we  have  feared  to  undertake,  or  -which  we  have  not  per- 
formed with  reasonable  efficiency.  We  have  never  pleaded  impo- 
tence. We  have  never  sought  refuge  in  criticism  and  complaint 
instead  of  action.  We  face  the  future  -with  our  past  and  our  pres- 
ent as  guarantors  of  our  promises;  and  we  are  content  to  stand  or 
to  fall  by  the  record  which  we  have  made  and  are  makings— Presi- 
dent Roosevelt's  speech  accepting  1904  nomination. 


$70 


II  IK    POST  OFFICE   IiKPARTMENT. 


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THE  NAVY  DEPARTMENT.  371 


WORK  OF  THE  NAVY  DEPARTT1ENT. 


Under  the  present  administration,  as  under  that  of  President 
McKinley,  the  Navy  has  shown  itself  worthy  of  its  best  traditions. 
The  great  victories  at  Manila  Bay  and  Santiago  which  shed 
undying  fame  upon  this  arm  of  the  national  defense  were  in 
no  sense  accidents.  They  wrere  the  results  of  years  of  careful 
training  of  officers  and  men  and  the  thorough  preparation  of  the 
fleets  for  the  crucial  test  of  war.  For  this  preparation,  this 
readiness  to  meet  the  supreme  moment  for  which  a  navy 
is  constructed  and  maintained,  those  who  administer  the 
affairs  of  the  Navy  should  have  credit.  The  glory  goes  to  our 
heroes  who  are  in  command  afloat  and  to  those  officers  and 
men  who  seize  the  opportunities  of^war  to  render  conspicuous 
service;  but  in  remembering  them,  let  us  not  forget  those  who 
labor  without  ceasing  to  secure  the  fleet  in  condition  of  high 
efficiency  and  to  place  at  the  disposal  of  commanding  officers 
an  abundance  of  the  supplies,  without  which  the  fleet  is  power- 
less. 

As  early  as  January  11,  1898,  more  than  a  month  before  the 
Maine  was  destroyed  in  the  harbor  of  Habana,  the  Secretary  of 
the  Navy  began  to  mobilize  the  ships  of  the  Navy  and  to  take 
such  measures  as  would  place  at  the  disposal  of  the  officers 
in  command  the  full  measure  of  our  naval  force. 

Immediately  upon  the  passage  of  the  bill  appropriating 
$50,000,000  for  the  national  defense,  a  board  was  organized  for 
the  purchase  of  auxiliary  ships,  and  after  careful  examination 
102  ships  of  various  types  were  secured  at  a  total  cost  of 
$17,956,850.  Of  these  vessels  but  two,  the  New  Orleans  and  the 
Albany,  were  strictly  vessels  of  war.  The  others  were  mer- 
chant ships,  pleasure  yachts,  tugs,  etc.,  which  were  rapidly  over- 
hauled at  the  different  navy-yards,  provided  with  such  light 
armor  protection  as  was  practical,  and  suitably  armed. 

It  is  a  fact  worthy  of  preservation  that  this  number  of  102 
ships  selected  and  purchased  under  the  direction  of  the  then 
Assistant  Secretary  of  the  Navy,  now  President  of  the  United 
States,  contained  but  nine  whose  sale  as  unsuited  to  the  needs 
of  the  permanent  naval  establishment  was  found  necessary  in 
the  years  following  the  war.  Eighty-five  of  the  ships  then  pur- 
chased are  still  on  the  navy  list  doing  excellent  service  either 
with  the  regular  Navy  or  as  ships  of  practice  and  instruction  with 
the  naval  brigades  of  the  various  States ;  one,  the  Merrimac,  was 
sunk  in  the  channel  at  Santiago,  two  were  wrecked,  and  five  were 
transferred  to  the  War  Department. 

Quick  Preparations  for   War. 

Between  March  16  and  June  30  all  these  vessels  were  pur- 
chased and  as  rapidly  as  overhauled  were  placed  in  commission 
and  put  into  active  service.  They  were  used  not  only  as  auxil- 
iary war  vessels,  but  to  supply  the  fleets  with  coal  and  ammuni- 
tion and  with  fresh  water  and  fresh  provisions.  For  the  care 
of  the  sick  and  wounded  the  Solace  was  fitted  out  as  a  complete 
hospital,  and  to  make  repairs  to  vessels  at  sea  the  Vulcan  was 
fitted  out  as  a  modern  machine  shop.  In  order  to  meet  the  in- 
creased demands  on  the  navy-yards  it  was  necessary  to  prac- 
tically double  the  force  between  February  15  and  the  middle  of 
April. 

In  addition  to  the  ships  which  were  added  to  the  Navy  by  pur- 
chase, fifteen  revenue  cutters  and  four  light-house  tenders  were 
transferred  from  the  Treasury  Department  to  the  Navy,  and  four 
of  the  great  steamers  of  the  International  Navigation  Company 
were  chartered.  There  were  in  all  128  ships  added  to  the  regular 
naval  establishment,  and  it  became  at  once  necessary  to  provide 
officers  and  men  to  man  them.  For  this  purpose  225  officers  on 
the  retired  list  were  ordered  to  active  duty,  850  officers  were  ap- 
pointed for  temporary  service,  and  the  enlisted  force  was  in- 
creased from  12,500  to  over  24,000  men. 

0  -  ■  .        :^\  S      ' 


372  i  hi:  .navy  hki'aktment. 

It  was  an  enormous  undertaking  to  make  all  tflese  additional 
ships  ready  for  war  service,  to  secure  the  necessary  guns  for 
them,  and  to  keep  the  fleets  supplied  with  coal,  ammunition,  and 
provisions.  But  this  was  only  a  part  of  the  work  which  the 
Navy  Department  had  in  hand.  For  the  protection  of  tne  coasts 
of  the  United  States  an  auxiliary  naval  force  was  created, 
which  was  officered  and  manned  by  the  naval  militia  of  the 
United  States.  A  coast  signal  service  was  established,  which 
kept  practically  our  entire  coast  line  from  Maine  to  Texas 
under  observation,  to  give  warning  of  the  approach  of  an 
enemy's  vessel  or  of  suspicious  craft  of  any  kind. 

The  operations  of  the  fleets  of  the  Asiatic  and  North  Atlantic 
squadrons  are  so  well  known  that  it  is  hardly  necessary  to  speak 
of  them  in  detail.  Their  work  was  so  well  done  that  the 
power  of  Spain  was  swept  from  the  sea,  and  Cuba,  Porto  Rico, 
and  the  Philippines,  which  she  had  misgoverned  for  centuries, 
were  taken  from  under  her  dominion. 

The  Appeal  from  Peking. 

When  in  May,  1900,  an  appeal  for  help  came  from  the  lega- 
tions at  Peking,  the  Navy  Department  had  made  provision  of  ships, 
officers,  and  men,  so  that  it  not  only  had  an  adequate  naval  force 
at  the  nearest  seaport  town  but  was  also  able  to  send  forward 
immediately  a  force  of  marines  for  the  protection  of  the  United 
States  legation.  This  guard  reached  the  Chinese  capital  in  the 
latter  part  of  May,  only  a  short  time  before  the  representatives 
and  citizens  of  foreign  countries  in  that  city  were  subjected  to 
siege  and  cut  off  from  the  rest  of  the  world.  The  annals  of  his- 
tory present  few  examples  of  more  dramatic  interest  than  the 
story  of  the  beleaguered  legations  in  Peking  from  June  20,  1900, 
the  date  on  which  the  German  minister  was  killed  and  the  siege 
began,  until  August  14,  when  the  allied  forces  entered  the 
Chinest  capital.  Official  and  unofficial  reports,  and  particularly 
the  dispatches  of  our  minister,  show  that  the  American  marines 
bore  their  full  share  in  the  burdens  of  defense  during  this  mem- 
orable siege.  The  United  States  legation  was  situated  just  in- 
side and  near  to  the  wall  of  the  Tartar  city.  When  the  lega- 
tions were  assaulted  the  American  detachment  immediately  oc- 
cupied a  position  on  the  city  wall,  a  strategic  point  of  great 
importance,  establishing  an  improvised  sandbag  fort  there,  which 
enabled  them  to  defend  the  section  of  wall  immediately  com- 
manding the  legations,  and,  although  repeatedly  attacked  by 
overwhelming  numbers,  and  on  two  occasions  driven  for  a  few 
minutes  from  the  wall,  they  were  never  permanently  dislodged, 
but  held  this  vital  position  until  relief  came. 

Another  detachment  made  up  from  the  fleet  of  the  United 
States  at  Taku,  composed  chiefly  of  seamen  and  under  the  com- 
mand of  Captain  B.  H.  McCalla,  U.  S.  N.,  joined  the  relief  col- 
umn under  Admiral  Seymour  which  started  for  Peking  on  June 
10.  Of  the  part  borne  in  this  hazardous  expedition  by  the  Ameri- 
can sailors  honorable  mention  is  made  in  all  reports.  The  British 
admiral  said  of  them  "Their  post  was  usually  in  the  advanced 
guard,  where  their-  zeal  and  go  were  praised  by  all."  In  the 
meantime  the  foreign  settlement  at  Tientsin  was  attacked  and 
communication  between  that  city  and  Taku  was  interrupted. 
On  June  19  a  detachment  of  our  marines  arrived  at  Taku  from 
Cavite  and  was  ordered  to  the  relief  of  Tientsin,  but  the  little 
fowce  of  not  over  500  men  was  confronted  by  overwhelming  num- 
bers on  June  21  and  driven  back.  On  June  22  an  allied  force 
of  2,000  men  was  made  up  by  reenforcements,  and  the  foreign 
city  of  Tientsin  was  entered  and  the  siege  raised.  On  June 
25  Admiral  Seymour's  force  was  relieved  and  on  July  14  the 
walled  city  of  Tientsin  was  carried.  Conspicuous  gallantry 
was  displayed  by  the  American  marines  in  this  action,  in  which 
one  officer  and  four  enlisted  men  were  killed  and  four  officers 
and  fifteen  enlisted  men  were  wounded. 

On  the  day  of  the  capture  of  the  Chinese  stronghold  at  Tien- 
tsin the  systematic  attacks  upon  the  beleaguered  legations  at 
Peking  ceased ;  an  informal  truce  was  arranged  at  the  instance 
of  the  tsungli  yamen;  communication  between  the  besieged  and 
the  outside  world  was  partially  reopened;  the  legations  were 
offered  certain  supplies  by  the  Chinese  authorities,  and  although 


THE   NAVY  DEPARTMENT.  373 

subjected  to  desultory  attacks  from  time  to  time  and  to  a  fierce 
final  assault  on  the  night  of  August  13,  were  on  the  following 
day  relieved  by  the  entrance  into  Peking  of  the  allied  forces. 

During  the  course  of  the  insurrectionary  troubles  in  the 
Philippines  the  Navy  took  an  active  and  creditable  part.  Owing 
to  the  nature  of  the  service  unusual  demands  were  made  upon 
the  commissioned  and  enlisted  personnel,  calling  for  the  qualities 
of  tact  and  discretion  as  well  as  for  a  high  standard  of  efficiency 
and  courage.  The  smaller  vessels  which  were  captured  during 
the  course  of  the  Spanish  war  were  organized  into  subordinate 
detachments  and  squadrons,  and  afforded  effective  support  and  aid 
to  the  army  in  suppressing  the  various  otubreaks  which  preceded 
the  establishment  of  civil  government  in  the  islands. 

Record   at   the   Isthmus. 

The  instant  readiness  of  the  Navy  of  the  United  States  to 
perform  any  service  or  any  duty  was  exemplified  by  the  events 
on  the  Isthmus  which  began  with  the  landing  of  troops  on 
November  3,  1903,  with  intent  to  disturb  the  peaceful  conditions 
which  were  guaranteed  by  the  United  States  within  the  zone 
crossed  by  the  isthmian  railroad.  On  the  morning  of  November 
3  four  hundred  Colombian  troops  were  landed  at  Colon;  when 
refused  transit  over  the  isthmian  railroad  and  on  learning  of 
the  Panama  revolution  in  the  city  of  Panama,  their  command- 
ing officer  threatened  to  open  fire  on  the  city  of  Colon  and  kill 
every  United  States  citizen.  Commander  John  Hubbard  of  the 
U.  S.  S.  Nashville  immediately  landed  a  force  for  the  protection 
of  the  town,  and,  though  outnumbered  by  the  Colombian  troops, 
by  the  firmness  of  his  front  and  his  determination  to  protect 
the  town  and  the  peace  of  the  Isthmus  at  all  hazards,  secured 
the  withdrawal  of  the  threat  and  the  abandonment  of  Colon  by 
the  Colombian  troops,  who  returned  to  Cartagena  on  the  follow- 
ing day. 

The  mobilization  of  an  effective  force  to  insure  the  continua- 
tion of  peace  on  the  Isthmus  was  rapidly  carried  out  by  the 
Navy  Department.  The  preparation  for  the  ordinary  course  of 
duty  made  by  the  constitution  of  a  Caribbean  squadron  was 
found  ample,  with  the  addition  of  a  small  force  of  torpedo  boats 
and  special  service  vessels,  not  only  for  the  purpose  of  maintain- 
ing peace,  but  for  an  extended  series  of  observations  and  surveys 
along  little  known  parts  of  the  isthmian  coast.  The  tact  and 
effective  diplomacy  which  universally  marks  the  intercourse 
of  the  Navy  of  the  United  States  with  the  people  and  represen- 
tatives of  foreign  nations  assisted  materially  in  restoring  confi- 
dence among  the  people  of  the  Isthmus  and  in  allaying  misap- 
prehensions as  to  the  intention  of  the  presence  of  the  Caribbean 
squadron  in  those  waters. 

For  the  purpose  of  still  further  assuring  the  peace  of  the 
Isthmus,  battalions  of  marines  to  the  total  number  of  1,300  were 
dispatched  to  the  Isthmus,  the  whole  being  under  the  command 
of  the  Brigadier-General  Commandant.  From  the  moment  the 
order  for  the  mobilization  of  the  marines  was  given  to  that  of  the 
arrangement  for  stationing  the  marines  on  the  Isthmus  under  the 
terms  of  the  treaty  of  Panama,  the  progress  of  the  movement  was 
frictionless.  Transportation  from  the  United  States  with  the 
necessary  stores  arrived  at  League  Island  coincidentally  with  the 
companies  of  marines  ordered  to  the  Isthmus  and  sailed  for  their 
destination  on  the  moment  appointed.  On  the  Isthmus  sanitary 
conditions  were  quickly  established,  and  dispositions  made  so  that 
the  tour  of  duty  was  accomplished  without  the  loss  of  a  life  from 
tropical  conditions  and  with  results  in  the  maintenance  of  the 
general  health  of  the  battalions  that  has  never  been  equalled  in 
similar  tropical  service. 

Increase  of  Naval  Strength. 

But  the  claims  of  the  administration  of  the  Navy  to  the  ap- 
proval of  the  people  rest  not  alone  on  its  war  record.  The  up- 
building of  the  new  Navy  has  gone  steadily  forward,  and  Congress 
has  cooperated  with  the  ^Department  In  the  desire  to  materially 
increase  our  naval  strength. 


374 


lilt     NAVY   DEPARTMENT] 


The  platform  of  the  Republican  party  adopted  at  St.  Louis, 
.July   17.  1896,  said: 

"The  peace  and  security  of  the  Republic  and  the  maintenance 
of  its  rightful  influence  among  the  nations  of  the  earth  demand 
a  naval  power  commensurate  with  its  position  and  responsibility. 
We  therefore  favor  the  continued  enlargement  of  the  Navy." 

It  has  been  a  source  of  pride  to  the  citizens  of  the  United 
States  thai  the  upbuilding  of  the  Navy  has  not  been  a  partisan 
undertaking.  The  new  Navy,  based  upon  the  investigations  under- 
taken by  a  Republican  administration,  had  its  inception  in  the 
authorization  of  four  ships  by  a  Congress  in  which  the  Republi- 
cans held  the  lower  House  by  a  small  majority  and  in  which  the1 
Senate  was  almost  equally  divided. 

Since  that  Congress  there  have  been  five  Congresses  in  which 
the  Democratic  party  has  held  the  majority  of  votes  of  the  lower 
House,  in  which  propositions  for  appropriations  originate,  and  five 
(not  counting  the  present  Congress)  in  which  the  Republican 
party  has  had  the  preponderance  of  influence.  With  the  addi- 
tions to  the  Navy  contemplated  in  the  naval  appropriation  bill  for 
1904-5,  the  authorizations  of  ships  for  the  increase  of  the  Navy  of 
the  United  States  are  shown  in  comparison  by  the  following  table : 


Congress. 

DEMOCRATIC. 

Armored 

ships. 

Cruisers. 

Torpedo 
boats. 

Total. 

Forty-eighth 

4 
6 
9 
3 
6 

4 

Forty-ninth 

8 
2 
2 

1 

15 

Fiftieth 

11 

1 
6 

6 

Fifty-third 

14 

Total 

14 

28 

8 

50 

REPUBLICAN. 

4 
2 

4 

Fifty-first 

3 
3 
13 
5 
9 
3 

1 
10 
31 

6 

Fifty-fourth 

13 

Fifty-fifth 

8 
3 
4 
3 

52 

Fifty-sixth 

15 

Fifty-eighth 

6 

Total 

36 

24 

49 

109 

Since  the  4th  of  March,  1897,  Congress  has  authorized  the 
construction  of  76  ships  with  a  total  displacement  of  404,668  tons. 
This  includes  15  battle  ships  of  the  first  class,  8  armored  cruisers 
of  the  first  class,  4  monitors,  9  protected  cruisers,  35  torpedo  boats, 
surface  and  submarine ;  3  gunboats,  and  2  training  ships.  The 
naval  appropriation  bill  for  the  fiscal  year  1904-5  contains  in  addi- 
tion the  authorization  of  one  battle  ship,  two  armored  cruisers,  and 
three  scout  cruisers,  of  a  total  displacement  of  56,250  tons,  with 
two  colliers,  making  a  total  authorization  since  the  above  date  of 
84  vessels  with  a  total  displacement  of  approximately  475,000 
tons. 

There  have  been  completed  under  Republican  administration 
since  the  4th  of  March,  1896,  76  vessels  of  war  with  a  total  ton- 
nage of  144,000  tons.  This  includes  8  battle  ships,  4  monitors,  4 
protected  cruisers,  9  gunboats,  and  51  torpedo  boats  and  torpedo- 
boat  destroyers. 

A  strong  Navy  not  only  adds  to  our  prestige  abroad,  but  makes 
the  rights  of  our  country  respected  wherever  they  may  exist.  The 
money  expended  does  its  part  in  lending  a  stimulus  in  many 
branches  of  trade  and  manufacture  and  in  the  employment  of 
labor. 

The  industrial  operations  involved  in  building  and  maintain- 
ing the  navy  of  the  United  States  are  so  wide-spread  that  it  is 
difficult  to  make  a  comprehensive  estimate  of  the  employment 
afforded.  In  operations  conducted  by  the  department  itself,  not  less 
than  an  average  of  22,000  men  are  employed,  while  in  the  private 
enterprises  carrying  out  naval  construction  work,  the  estimate 
of  15,000  men  is  a  conservative  one.  if  the  labor  employed  in 
producing  the  miscellaneous  supplies  and  fittings  of  the  Navy 


THE  WAVY  DEPARTMENT.  375 

is  considered,  together  with  the  number  included  in  the  per- 
.  sonnel  of  the  Navy  and  Marine  Corps,  a  total  of  over  100,000 
men  may  safely  be  arrived  at  who  are  afforded  steady  and  re- 
munerative employment  in  maintaining  this  national  safeguard, 
the  cost  of  which,  as  shown  by  the  last  report  of  the  Secretary 
of  the  Navy,  is  but  seven-tenths  of  a  mill  on  each  dollar  of 
uational  valuation. 

High  Standard  of  Efficiency  Attained. 

It  is  not  too  much  to  say  that  as  the  result  of  eight  years  of 
Republican  administration,  aided  by  the  lessons  which  were  taught 
by  the  period  of  active  service  of  the  Spanish  war,  the  Navy  of  the 
United  States  is  better  equipped,  better  organized,  in  a  higher  state 
of  efficiency  than  ever  before  in  the  history  of  the  United  States. 
In  the  administration  of  President  McKinley  and  through  its 
efforts  legislation  was  effected  reorganizing  the  personnel  of  the 
Navy  and  creating  salutary  changes,  which  have  placed  the  organ- 
ization on  a  much  more  satisfactory  basis,  increased  the  flow  of 
promotion  so  that  officers  are  brought  to  command  rank  at  a  much 
earlier  age,  and  have  eliminated  conditions  which  were  long  a 
source  of  dissatisfaction.  The  increased  provision  of  ships  has 
made  it  possible  to  create  fleet  dispositions  and  exercise  the  ves- 
sels on  the  various  stations  in  squadron  formations  to  an  extent 
that  has  not  previously  been  possible.  The  excellent  effect  of  the 
development  of  fleet  work  in  the  Navy  is  shown  in  the  marked 
increase  in  the  general  efficiency  of  the  Navy  and  by  rapid  progress 
in  the  matter  of  marksmanship  with  all  classes  of  guns.  In  the 
successive  target  practices  of  the  two  years  last  past  a  general 
standard  of  marksmanship  has  been  attained  equaling  that  of  any 
navy  in  the  world,  while  the  world's  record  for  shooting  with 
heavy  guns  has  been  more  than  once  raised  and  again  broken. 

As  a  result  of  the  responsibilities  which  grew  out  of  the 
Spanish  war,  the  need  of  naval  stations  outside  of  the  continental 
limits  of  the  United  States  became  imperative.  The  long-neglected 
gateway  to  the  southern  coasts  of  the  United  States  through  the 
West  Indian  channels  has  been  protected  by  the  formation  of  a 
squadron  to  be  permanently  stationed  in  the  Caribbean.  In  order 
to  secure  an  effective  base  for  the  operations  of  this  squadron,  ter- 
ritory for  a  naval  station  was  secured  by  treaty  provisions  with 
Cuba  at  Guantanamo  and  the  proper  development  of  this  base  has 
been  undertaken.  When  the  moderate  provision  proposed  for  a 
naval  base  at  this  point  is  completed,  a  means  of  defense  at  a  dis- 
tance from  the  shores  of  the  United  States  will  have  been  provided 
for  the  southern  coasts,  and  an  important  factor  in  the  defense  of 
the  entrance  of  the  Isthmian  canal  established. 

The  needs  of  the  fleet  which  has  done  such  effective  work  in 
Asiatic  waters  also  brought  the  requirement  of  a  better  naval  base 
than  that  afforded  by  the  station  at  Cavite.  An  ideal  location  has 
been  selected  at  Olongapo,  on  Subig  Bay,  and  this  easily  defended 
and  accessible  base  will  be  made  the  refitting  and  supply  station 
of  United  States  ships  in  Asiatic  waters. 

Young  Native-Born   Men  Attracted  to  the   Service. 

It  is  also  to  be  noted  that  under  Republican  administration, 
the  Navy  has  been  exceptionally  successful  in  attracting  the  serv- 
ices of  the  young  men  of  the  nation  to  a  most  creditable  degree. 
As  late  as  1889  it  was  stated  in  a  report  of  Secretary  of  the  Navy 
Tracy  that  "at  the  present  time  crews  of  our  naval  vessels  are  in 
large  part  composed  of  foreigners."  For  the  year  1903,  90.7  per 
cent,  of  the  enlisted  men  were  citizens  of  the  United  States  and 
nearly  eighty  per  cent,  were  native  born.  Of  the  12,934  enlist- 
ments effected  in  1903  a  very  large  proportion  came  from  the 
States  of  the  West  and  Middle  West,  and  the  splendid  examples  of 
American  young  manhood  who  undergo  the  careful  training  and 
education  in  seamanship  and  the  duties  of  the  man-of-war  have 
developed  into  a  class  described  by  Admiral  Dewey  as  the  "best 
enlisted  men  in  the  world."  The  strength  of  the  Navy  on  March 
31,  1904,  consisted  of  2,060  officers  and  30,751  enlisted  men,  while 
the  strength  of  the  Marine  Corps  carries  233  officers  and  7,467 
enlisted  men. 

It  is  to  be  noted  that  while  the  expenditures  for  the  building 
up  of  the  Navy  and  for  providing  the  necessary  accessories  for  its 
efficient  operation  have  increased  largely  in  this  term  of  years,  the 


376  THE  NAVY  DEPARTMENT. 

item  of  expenditure  "salaries  and  expenses"  has  not  had  a  pro- 
portionate Increase.  Thus  the  proportion  of  this  item  to  the  whole 
expenditures  for  the  Navy  for  the  fiscal  years  ended,  respectively, 
on  June  30  in  1894,  1895,  1896,  and  1897  was  1.2  per  cent  in  1894 ; 
1.4  per  cent,  in  1895;  1.4  per  cent,  in  1896,  and  1.1  per  cent,  in 
1897.  The  years  of  1894,  1895,  and  1896  were  those  of  Democratic 
administration,  as  were  also  nine  months  of  the  fiscal  year  ended 
June  30,  1897.  Of  the  six  succeeding  fiscal  years,  which  are  years 
wholly  of  Republican  administration,  the  proportion  of  "salaries 
and  expenses"  to  total  expenditures  is,  in  1898,  0.7  per  cent; 
1899,  0.6  per  cent;  1900,  0.7  per  cent;  1901,  0.7  per  cent;  1902, 
0.7  per  cent;  1903,  0.6  per  cent. 

Our  Naval  Stations  In  Cuba. 

In  accordance  with  the  seventh  stipulation  of  the  "Piatt 
Amendment,"  the  Cuban  authorities  have  already  transferred 
to  the  United  States  Navy  Department  two  sections'  of  Cuban 
territory  for  the  establishment  of  United  States  naval  and  coal- 
ing stations — one  on  the  south  coast  and  one  on  the  north  coast. 
The  southern  station  is  at  Guantanamo,  and  includes  a  large 
tract  of  18,500  acres  of  land,  bordering  on  one  of  the  best  harbors 
of  Cuba.  The  northern  station  is  at  Bahia  Honda.,  a  bay  about 
forty  miles  east  of  Habana,  and  includes  a  tract  of  about  1,000 
acres.  Both  stations  are  highly  satisfactory  to  the  United  States 
naval  authorities,  and  the  negotiations  regarding  their  selection 
and  transfer  have  been  eminently  amicable  and  cordial  on  both 
sides.  By  the  t^rms  of  the  agreements  the  stations  are  to  be 
leased  to  the  United  States  at  an  annual  rental  of  $2,000,  which 
is  universally  considered  by  the  United  States  authorities  as  a 
mark  of  great  generosity  and  good  will  on  the  part  of  the  Cubans. 
Congress  has  already  appropriated  $311,000  to  begin  work  on 
the  station  at  Guantanamo,  which  is  a  position  of  great  strategic 
importance  and  value,  effectually  guardinig  all  the  Caribbean  ap- 
proaches, and  it  will  greatly  strengthen  the  most  vulnerable  coast 
line  of  the  United  States.  The  station  at  Bahia  Honda,  the  de- 
velopment of  which  will  be  attended  to  later,  will  also  prove  very 
useful  to  this  country. 

Under  the  stipulation  included  in  the  negotiations  between  the 
United  States  and  Cuba,  there  has  been  placed  at  the  disposal  of 
the  Navy  Department  certain  sections  of  Cuban  territory  for  the 
establishment  of  naval  and  coaling  stations.  The  details  of  these 
arrangements  have  been  carried  out  in  a  spirit  of  friendliness  and 
mutual  accommodation  which  has  been  the  source  of  universal 
satisfaction.  The  defense  of  the  independence  of  Cuba,  as  well 
as  the  protection  of  the  entrance  of  the  Panama  Canal  and  of  the 
Gulf  coast  of  the  United  States,  which  has  during  its  history  been 
vulnerable  and  open  to  attack  from  the  direction  of  the  Caribbean, 
has  been  assured  by  the  far-sighted  policy  of  both  governments  In 
setting  aside  at  Guantanamo  Bay,  on  the  south  coast  of  Cuba,  a 
tract  of  land  surrounding  the  best  harbor  on  the  coast  for  the 
purpose  of  the  establishment  of  an  adequate  naval  station  and 
base  for  the  Use  of  the  vessels  of  the  United  States  in  these 
southern  waters. 

In  February,  1903,  an  agreement  was  signed  by  the  President 
of  the  Cuban  Republic  and  by  the  President  of  the  United  States 
providing  for  the  lease  to  the  United  States  of  land  at  Guantana- 
mo, amounting  to  about  18,500  acres,  and  at  Bahia  Honda,  a  bay 
some  forty  miles  from  Habana  on  the  north  coast  of  Cuba, 
amounting  to  about  a  thousand  acres.  By  a  further  treaty,  ratifi- 
cations of  which  were  exchanged  in  Washington  October  6,  1903, 
the  annual  rental  for  these  lands  was  fixed  at  two  thousand  dol- 
lars, American  gold,  so  long  as  the  United  States  should  occupy 
the  land.  Under  the  various  agreements  the  United  States  has 
full  power  and  jurisdiction  to  occupy  the  land  for  the  purposes  of 
naval  bases,  and  amicable  arrangements  have  been  made  to  pre- 
vent all  conflict  of  jurisdiction. 

Appropriations  of  $300,000  have  been  made  available  by  the 
Congress  of  the  United  States  to  provide  for  the  inception  of  the 
work  at  Guantanamo,  the  location  at  Bahia  Honda  being  reserved 
for  development  at  a  future  date  as  the  necessities  of  the  situation 
develop.  The  leasehold  at  Guantanamo  is  a  most  gratifying  acqui- 
sition in  every  respect.    A  capacious  harbor  with  ample  depth  of 


I 


THE  NAVY  DEPARTMENT.  377 


water  Is  surrounded  by  land  which  may  be  improved  readily  for 
the  purposes  of  a  naval  station.  It  is  strategically  the  most  im- 
portant point  on  the  south  coast  of  Cuba,  being  within  easy  dis- 
tance of  all  the  important  channels  opening  into  the  Caribbean. 
Its  acquisition  and  the  development  of  a  naval  station  there  is  the 
most  important  step  in  the  national  defense  that  has  been  taken  in 
recent  years,  since  it  will  effectually  guard  the  most  vulnerable 
coast  line  of  the  United  States.  As  a  guaranty  of  the  predomi- 
nance of  the  influence  of  the  United  States  in  southern  waters  the 
value  of  this  concession  is  inestimable,  as  the  wisdom  of  its  acqui- 
sition is  undoubted,  while  the  liberality  of  the  terms  on  which  the 
Government  of  Cuba  effected  the  lease  is  an  indication  of  the  sub- 
stantial nature  of  the  friendly  relations  existing  between  the  two 
nations. 

Surveys  which  have  been  made  at  Bahia  Honda  develop  the 
fact  of  a  large  anchorage  for  deep-draft  vessels,  and  while  it  is 
not  the  intention  to  inaugurate  improvements  there  at  present,  the 
location  affords  an  effective  base  for  coaling  from  ships  and  as  a 
point  from  which  effective  defense  of  the  waters  immediately  be- 
tween Cuba  and  the  United  States  may  be  made. 

I  am  a  protectionist  because  I  think  by  that  policy  the  work- 
men of  America  will  be  well  paid  and  not  underpaid.— Hon.  George 
F.  Hoar. 

Protection  creates  a  home  market,  -without  which  the  culti- 
vators of  land  in  America  would  be  but  a  little  better  off  than  our 
aborigines. — Hon.   J.    S.   Morrill. 

Our  appeal  Is  not  to  a  false  philosophy  or  vain  theories,  but  to 
the  masses  of  the  American  people,  the  plain,  practical  people 
whom  Lincoln  loved  and  trusted  and  whom  the  Republican  Party 
has  always  faithfully  striven  to  serve.— Maj.  McKInley  to  Notifica- 
tion Committee,  1896. 
r 
The  Republican  party  stands  now,  as  it  has  always  stood,  and  al- 
ways -will  stand,  for  sound  money  with  which  to  measure  the  ex- 
changes of  the  people;  for  a  dollar  that  is  not  only  good  at  home, 
but  good  in  every  market  place  in  the  -world.— Major  McKInley  to 
Young  Men's  Republican  Club,  June  26,  1896. 

The  prosperity  of  any  of  us  can  be  best  attained  by  measures 
that  will  promote  the  prosperity  of  all.  The  poorest  motto  upon 
which  an  American  can  act  is  the  motto  of  "Some  men  down"  and 
the  safest  to  follow  is  that  of  "All  men  up." — Vice-President 
Roosevelt  at  opening  of  Pan-American  Exposition,  May  20,  1901. 

No  matter  how  capital  combines  or  how  labor  combines  or  how 
they  differ  among  themselves,  their  interests  are  inseparable  and 
it  ought  to  be  plain  to  both  that  they  can  not  afford  to  go  out  of 
business  in  favor  of  foreign  labor  and  foreign  capital  by  abandon- 
ing the  policy  of  protection.— Hon.  K.  L.  Hamilton,  in  Congress, 
April  14,  1904. 

That  -whenever  the  need  arises  there  should  be  a  readjustment 
of  the  tariff  schedules  is  undoubted;  but  such  changes  can  with 
safety  be  made  only  by  those  whose  devotion  to  the  principle  of  a 
protective  tariff  is  beyond  question,  for  otherwise  the  charges 
would  amount  not  to  readjustment  but  to  repeal.  The  readjust- 
ment when  made  must  maintain  and  not  destroy  the  protective 
principle. — President  Roosevelt's  speech  accepting  1904  nomination. 

f 
A  protective  tariff  unquestionably  increases  the  rewards  of 
labor  (a)  by  creating  a  demand  for  skilled  labor,  (b)  by  diversify- 
ing the  kinds  of  labor  in  a  country  and  thus  differentiating  both 
demand  and  supply,  and  (c)  by  making  for  producers  of  every  kind 
a  home  market.  This  increase  of  the  laborer's  reward  is  not  con- 
fined to  the  protected  industries,  but  elevates  wages  in  every 
sphere  (a)  by  the  sympathetic  effect  of  high  wages  generally,  and 
(b)  by  -withdrawing  from  the  nonprotected  industries  and  from 
agriculture  a  surplus  of  -wage-earners  -who  would  divide  and  re- 
duce wages  if  they  competed  against  each  other.— David  J.  Hill, 
D.  D.,  Iili.  D.,  president  University  of  Rochester. 


378  THE  NAVY  DEPARTMENT. 


NAVAL  EXPENDITURES. 

[From  the  Nautical  Gazette.] 
Certain  grumblers  in  the  session  of  Congress,  just  closed  com- 
plained of  the  increased  expenditures  necessary  to  give  us  a 
navy  worthy  of  the  position  of  our  nation  in  the  affairs  of  the 
world,  and  of  our  growing  foreign  commerce.  Let  us  see,  for  the 
four  years  1 1 )< m i-l 003,  how  our  naval  expenditures,  maintenance, 
and  new  ships  compare  with  the  expenditure  for  similar  pur- 
poses by  our  four  most  important  commercial  rivals — Great 
Britain,  Germany,  France,  and  Russia. 

Greut    Britain. 

1900 $160,060,000 

1901 168,632,000 

1902 171,009,000 

1903 195,304,000 

United  States. 

1900 $56,378,000 

1901 60,985,000 

1902 68,302,000 

1903 83,116,000 

France. 

1900 $62,555,000 

1901 ' 65,538,000 

1902 61,359,000 

1903 62,964,000 

Russia. 

1900 $54,814,000 

1901.  . . . ". 58,298,000 

1902 53,339,000 

1903 61,747,000 

Germany. 

1900 $37,362,000 

1901 46,124,000 

1902 51,453,000 

1903-: 51,260,000 

Averaging  these  four  years  we  get  the  following  result,  in 
round  millions: 

Great  Britain $173,000,000 

United   States    67,000,000 

France    63,000,000 

Russia    57,000,000 

Germany    46,000,000 

Is  there  any  reason  why  we  should  not  take  as  much  care  of 
our  world  position  and  our  world  trade,  as  does  Great  Britain, 
while,  as  a  matter  of  fact,  our  exports  exceed  those  of  our  Trans- 
Atlantic  cousins?  Instead  of  crying  out  that  we  are  spending 
too  much  on  our  navy,  these  grumblers  (for  party  purposes)  should 
call  for  larger  expenditures,  or,  at  least  keep  quiet.  Great  Britain, 
with  a  smaller  export  trade,  is  devoting  more  than  two  and  a 
half  times  as  much  money  to  the  support  and  upbuilding  of  her 
navy  as  is  the  United  States. 


THE   DEPARTMENT   OF   THE   INTERIOR.  379 


DEPARTMENT  OF  THE  INTERIOR. 


The   Land  Fraud  Investigation. 

Information  that  frauds  of  a  serious  nature  were  being  perpe- 
trated against  the  Government  by  a  combination  of  land  specu- 
lators located  at  San  Francisco,  California,  was  brought  to  the 
attention  of  the  Secretary  of  the  Interior  about  December,  1902, 
through  a  report  of  one  of  the  agents  of  the  land  department. 
Some  of  the  persons  implicated  were  represented  to  be  men  of 
wealth,  of  apparent  high  standing  in  their  business  relations,  and 
of  great  social  and  political  influence.  It  was  charged  that  these 
men  were  defrauding  the  United  States  out  of  large  quantities  of 
the  public  lands  by  obtaining  the  same  in  an  unlawful  manner 
under  certain  provisions  of  the  forest  reserve  legislation  contained 
in  the  act  of  Congress  of  June  4,  1897  (30  Stat.  11,  34-36),  the 
purpose  of  which  legislation  was  to  allow  the  exchange  of  lands 
held  in  private  ownership  within  the  limits  of  United  States  forest 
reserves  for  other  lands  belonging  to  the  United  States,  situated 
outside  of  such  reserves.  By  the  creation  of  forest  reserves  many 
private  owners  of  land  within  the  boundaries  thereof  were  placed 
in  a  state  of  isolation  from  the  markets  and  business  centers,  and 
from  church,  school,  and  social  advantages,  and  the  value  of  their 
lands  was  thereby  necessarily  impaired.  There  was  no  longer 
hope  of  the  continuing  and  increasing  settlement  of  the  surround- 
ing lands,  such  as  was  reasonably  expected  and  anticipated  when 
their  titles  were  acquired. 

It  was  with  a  view  to  relieving  the  situation  thus  described 
with  respect  to  the  pioneer  settlers  of  the  public  domain,  and  to 
provide  a  means  whereby  the  Government  might  become  the  sole 
owner  of  all  the  lands  within  such  reserves,  and  thereby  be  en- 
abled to  improve  and  protect  the  forests  therein  for  the  purpose 
of  securing  conditions  favorable  to  a  continuous'  water  flow  and 
to  a  permanent  supply  of  timber  for  the  use  and  necessities  of  the 
citizens  of  the  United  States,  that  the  legislation  referred  to  was 
enacted. 

The  information  touching  the  alleged  fradulent  transactions 
tended  strongly  to  show  that  this  legislation,  enacted  in  the  inter- 
est of  the  public  and  for  the  most  laudable  purposes,  was  being 
perverted  to  the  unlawful  use  of  unscrupulous  and  scheming  men, 
whose  sole  object  was  to  increase  their  own  possessions  by  de- 
frauding the  Government  of  its  public  lands. 

The  Secretary  of  the  Interior  at  once  placed  the  matter  in  the 
hands  of  competent  agents,  with  instructions  to  make  a  most  thor- 
ough and  exhaustive  investigation  thereof  and  to  probe  every  clue 
to  wrongdoing  to  the  bottom,  regardless  of  any  influence,  social, 
political,  or  otherwise,  that  might  be  possessed  by  the  parties  im- 
plicated. The  investigation  was  commenced  early  in  January, 
1903,  and  notwithstanding  many  great  and  almost  insurmountable 
difficulties  which  had  to  be  met  and  overcome,  and  the  constant 
efforts  on  behalf  of  the  persons  involved  to  defeat  the  investiga- 
tion and  to  control  its  issue  favorably  to  themselves,  the  work 
proceeded  without  cessation,  under  the  personal  direction  of  the 
Secretary  of  the  Interior,  with  the  result  that  in  February  last 
Frederick  A.  Hyde  and  John  A.  Benson,  of  San  Francisco,  Califor- 
nia, the  leading  spirits  in  the  combination,  together  with  others 
implicated  with  them,  were  indicted  by  the  grand  jury  of  the  Dis- 
trict of  Columbia,  under  section  5440  of  the  Revised  Statutes,  for 
conspiracy  to  defraud  the  United  States.  The  evidence  procured 
in  the  investigation  showed  that  these  parties  had  been  engaged 
for  several  years  in  securing  and  attempting  to  secure  titles  to 
and  the  possession  and  use  of  large  tracts  of  the  public  lands  of 
the  United  States  fn  exchange  for  State  school  lands  lying  within 
the  limits  of  United  States  forest  reserves  in  the  States  of  Cali- 
fornia and  Oregon,  the  titles  to  which  school  lands  "were  acquired 
by  said  parties  from  said  States  contrary  to  the  laws  thereof  re- 
lating to  the  disposal  of  school  lands,  and  in  a  grossly  illegal  and 
fraudulent  manner,  by  means  of  false  and  forged  affidavits  and 
other  documents  required  by  the  laws  of  said  States  to  be  executed 


380  1I1K    DKFABTMENT    OF   THE   INTERIOR. 

and  filed  in  connection  with  the  purchase  of  school  lands;  and 
also  by  making,  and  securing  to  be  made,  false  and  forged  relin- 
quishments to  the  United  States  of  the  lands  thus  fraudulently 
obtained  from  said  States,  and  by  selecting  other  lands  belonging 
to  the  United  States  outside  of  forest  reserves  in  lieu  of  the  lands 
so  fraudulently  obtained  and  relinquished  to  the  United  States. 

While  several  hundred  thousand  acres  of  the  public  lands,  sit- 
uated in  various  of  the  public  land  States  and  in  the  Territories 
of  Arizona  and  New  Mexico,  are  involved,  only  about  thirty  or 
forty  thousand  acres  had  been  patented  by  the  Government  when 
the  fraud  was  discovered.  The  issue  of  patents  for  such  lands 
was  immediately  stopped,  and  the  Government  is  therefore  in  no 
danger  of  further  loss  of  its  public  lands  through  the  said  fraudu- 
lent scheme. 

As  a  further  result  of  the  investigation  John  A.  Benson  has 
been  indicted  for  bribery  of  public  officials  at  Washington  in  con- 
nection with  these  fraudulent  transactions. 

The  indictments,  both  for  the  conspiracy  and  for  the  bribery, 
are  now  being  prosecuted  with  the  utmost  possible  vigor  by  the 
Department  of  Justice.  Immediately  after  the  indictments  were 
found  the  defendants  were  arrested — two  in  the  State  of  Cali- 
fornia, one  in  the  State  of  New  York,  and  another  in  the  District 
of  Columbia.  Proceedings  under  Section  1014  of  the  Revised 
Statutes  have  been  instituted  in  California  and  New  York  to  secure 
the  removal  of  the  defendants  arrested  in  those  States  to  the  Dis- 
trict of  Columbia  for  trial. 

The  investigation  and  prosecution  have  had  the  effect  to  con- 
vince the  public  mind  that  the  Secretary  of  the  Interior,  as  the 
head  of  the  land  department,  is  determined  to  guard  the  interests 
of  the  people  with  the  greatest  care  and  watchfulness  in  the  mat- 
ter of  the  disposal  of  the  public  lands,  and  to  preserve  the  same 
for  the  benefit  of  those  entitled  to  them  under  the  law ;  and  also 
to  show  that  the  Government  is  determined  to  punish  all  persons 
who  seek  to  acquire  its  public  lands  by  means  of  forgery,  perjury, 
bribery,  or  other  unlawful  means. 

The  Attorney-General  has  taken  hold  of  the  prosecution  with 
vigor  and  determination,  and  the  people  need  have  no  fear  that 
any  of  the  guilty  parties  will  be  allowed  to  escape  just  punish- 
ment for  their  misdeeds.  That  the  results  accomplished  will  have 
a  beneficial  effect  in  deterring  others  from  entering  upon  similar 
fraudulent  practices  there  can  be  no  doubt,  nor  can  the  full  extent 
of  the  good  done'be  at  this  time  estimated. 

A  copy  of  the  indictment,  the  first  count  whereof  describes  in 
detail  the  fraudulent  methods  employed  by  the  conspirators,  is 
herewith  submitted. 

Frauds  of  a  much  less  serious  nature  and  extent  have  also 
been  perpetrated  in  the  States  of  California,  Oregon,  and  Wash- 
ington by  other  parties  in  attempts  to  secure  title  to  timber  lands 
belonging  to  the  United  States,  under  legislation  enacted  for  the 
disposal  of  such  lands.  (Act  June  3,  1878,  20  Stat.  89.)  A  number 
of  indictments  have  been  found  against  the  parties  engaged  in 
these  frauds,  and  the  cases  are  now  being  pressed  for  trial  in  the 
courts,  with  the  confident  expectation  that  convictions  will  be  had. 

Care  of  the  Indians. 

The  civilization  of  the  American  Indian  is  being  accomplished 
through  educational  processes  which  have  been  wonderfully  devel- 
oped during  the  past  seven  years.  A  continuous  policy  has  been 
pursued,  and  results  are  commensurate  with  the  time,  thought, 
and  money  which  have  been  expended.  Education  to  work  has 
been  the  dominant  factor.  Literary  training  has  been  given  the 
subordinate  place.  All  Indian  schools  have  been  made  industrial 
centers  from  which  are  annually  radiating  educated  Indian  boys 
and  girls.  They  return  in  a  great  many  instances  to  their  reserva- 
tion homes  and  allotments  carrying  the  seeds  of  industry  and 
thrift,  which  are  beginning  to  bear  fruit.  Seven  years  ago  89,000 
Indians  out  of  a  total  of  183,000  dressed  as  citizens,  while  to-day 
112,000  are  thus  habited.  Then  there  were  38,000  who  could  read, 
and  now  there  are  50,000,  and  66,000. who  have  sufficient  knowl- 
edge of  the  language  to  use  it  familiarly  in  ordinary  business  life. 

There  were  conducted  in  1897  234  schools,  with  an  enrollment 
of  23,000  pupils,  and  to-day  there  are  close  to  30,000  whose  names 


THE    DEPARTMENT   OF  THE   INTERIOR.  381 

are  on  the  school  rolls.  They  are  taught  by  2,500  teachers  and 
Instructors. 

In  no  phase  of  the  Indian  question  has  greater  progress  been 
made  than  in  the  education  of  Indian  children.  Careful  instruc- 
tion%adapted  to  future  environment  is  taught  in  257  schools  which 
a  generous  Government  has  provided  for  its  wards.  These  estab- 
lishments are  on  the  collossal  scale  of  Haskell  and  Chilocco,  with 
seven  or  eight  hundred  bright  Indian  boys  and  girls  as  assiduously 
pursuing  their  studies  as  their  white  friends,  or  on  the  modest 
plane  of  a  little  day  school  of  twenty-five  pupils,  tucked  away  in 
a  mountain  gulch  on  an  Indian  reservation  far  from  railroad  and 
civilization.    Each  is  working  out  the  destiny  of  the  Indian. 

All  the  energies  of  the  administration  have  been  to  civilize  the 
Indian — to  prepare  him  for  citizenship  and  enlarge  his  capacity 
to  enjoy  its  blessings.  Indian  schools  are  laying  the  broad  founda- 
tion for  this  result,  and  unnumbered  individual  instances  are  pro- 
duced showing  that  the  American  Indian  is  fast  adapting  himself 
to  the  manners,  customs,  and  habits  of  the  whites.  The  educated 
Indian  as  a  citizen  and  a  voter,  as  a  farmer  and  a  worker,  is 
reaching  the  standard .  of  the  average  citizen  of  our  country. 
Reservation  barriers  are  being  broken  down,  and  the  great  tide  of 
civilization  is  sweeping  into  and  around  the  lands  of  the  Red  Man. 
Modest  as  well  as  splendid  homes  and  cities  are  springing  up  on 
the  old  reservations.  The  Indian  is  thus  brought  in  contact  and, 
after  education,  into  a  portion  of  that  civilization.  Business  ad- 
ministration of  schools  and  agencies  has  been  substituted  for  the 
haphazard  policies  of  the  past.  Men  of  education,  experience,  and 
business  qualifications  now  control  the  destinies  of  the  agencies  and 
schools.  These  men  are  directing  the  energies  of  returned  Indian 
pupils,  and  as  a  result  ignorance,  thriftlessness,  and  their  attend- 
ant evils  are  being  banished.  Civilized  homes  and  contented  citi- 
zens can  be  the  only  result. 

The  education  of  the  Indian  costs  about  four  million  dollars 
per  annum.  It  is  money  well  spent,  in  that  it  is  uplifting  a  race 
of  native-born  people  to  the  high  grade  of  citizens.  It  is  annually 
sending  back  among  the  whilom  warriors,  bucks,  and  squaws  of 
the  older  generation  2,000  or  more  educated,  civilized  youths  to 
leaven  the  old  mass,  to  break  down  tribal  customs,  and  build  up 
a  sturdy  yeomanry.  It  is  dotting  the  West  with  deserted  army 
posts,  costing  millions  to  build,  equip,  and  maintain,  turning  bar- 
racks into  dormitories,  and  cannon  into  plow  shares.  The  rattle 
of  the  saber  and  the  clank  of  war  have  given  way  to  the  busy 
hum  of  the  shops  and  the  cheerful  call  of  the  red  plow  boy,  and 
instead  of  sending  out  a  dashing  troop  to  carry  desolation  and 
carnage  to  the  Indian  home,  now  emerges  the  educated  Indian  to 
take  his  place  in  our  civilization  as  a  wage-earner  and  peaceful 
worker  in  the  shops  and  on  the  farm. 

During  the  past  four  years  the  Government  has  been  engaged 
in  settling  the  affairs  of  the  Five  Civilized  Tribes  in  Indian  Ter- 
ritory, under  agreements  with  the  several  tribes  and  legislation 
by  Cdngress.  This  necessitated  the  resurvey,  appraisement,  and 
classification  of  nineteen  and  a  half  millions  of  acres,  the  largest 
estate  ever  settled  in  the  history  of  the  world,  a  Territory  about 
the  size  of  the  State  of  Indiana,  and  an  inquiry  into  the  rights  of 
two  hundred  and  fifty  thousand  claimants  to  citizenship,  resulting 
in  favorable  action  on  about  one  hundred  and  thirty  thousand 
cases,  allotments  having  been  made  to  about  ^wo-thirds  of  these. 
Two  hundred  and  ninety-seven  towns  have  been  surveyed  and  the 
lots  appraised  and  scheduled  preparatory  to  sale,  and  it  is  ex- 
pected that  at  least  five  millions  will  be  realized  for  the  tribes. 
There  being  large  tracts  of  coal  lands  in  the  Choctaw  and  Chicka- 
saw Nations,  four  hundred  and  fifty  thousand  acres  have  been  set 
aside  and  are  soon  to  be  sold  for  the  benefit  of  the  two  tribes,  the 
value  being  estimated  at  several  millions.  Many  and  far-reaching 
legal  questions  have  been  solved  or  are  in  process  of  solution  in 
connection  with  this  work,  to  the  end  that  all  the  affairs  of  these 
tribes  may  be  finally  closed  up  when  their  governments  expire  by 
limitation  of  law  in  March,  1906,  and  their  citizens  become  merged 
with  the  general  citizenship  of  the  Nation. 

As  a  result  of  the  recent  laws  relating  to  Oklahoma  and  Indian 
Territories  there  have  been  constructed  in  that. section  of  country 
Within  the  past  four  years  about  2,000  miles  of  new  railroad. 


3S2  I  111!    HI.I'AKI  MINI    01    IHK    nviKiuoii. 

opening  to  market  the  resources  of  one  of  the  most  richly  endowed 
portions  of  the  United  states,  embracing  extensive  coal  and  as- 
phalt ticlds :  and  nearly  every  town  and  handet  in  that  broad 
region  is  connected  hy  telephone  with  the  surrounding  States. 

Since  the  first  of  October,  $01,  over  2,<MH)  allottnents  of  lands 
in  severalty  have  been  mad<  to  Indians  on  various  reservations 
in  pursuance  of  the  policy  of  breaking  up  the  reservation  system. 

During  the  same  time  over  800,000  acres  of  reservation  lands 
have  been  restored  to  the  puhlic  domain  and  made  subject  to  set- 
tlement and  sale,  providing  homesteads  for  5,<KM>  families. 

The  further  quantity  of  2300,000  acres  of  Indian  reservation 
lands  is  to  he  disposed  of  within  the  next  two  or  three  years. 

In  the  matter  of  the  occupancy  of  Indian  lands,  a  remarkable 
reform  has  been  accomplished  witlfcn  the  past  few  years.  Only  a 
few  years  ago  Indian  reservations  were  open  to  encroachment  by 
the  whites  and  were  subject  to  continual  trespassing.  Now  prac- 
tically every  acre  of  surplus  tribal  land  is  under  lease,  yielding 
the  Indians  of  the  several  reservations  a  revenue  of  more  than 
a  million  and  a  half  dollars  annually. 

Under  the  act  of  1902,  authorizing  the  sale  of  lands  of  deceased 
Indians,  the  Department  of  the  Interior  has  disposed  of,  at  fair 
prices  to  the  Indian  heirs,  about  one  thousand  five  hundred  sep- 
arate tracts,  aggregating  150,000  acres,  situated  principally  in  the 
middle  west,  making  1,500  additional  homes  to  meet  the  wants  of 
our  ever  increasing  population. 

During  the  present  administration  no  less  than  15,000  leases  of 
Indian  allotments  have  been  executed,  and  approved  by  the  Secre- 
tary of  the  Interior,  covering  an  area  of  about  a  million  and  a 
quarter  acres,  and  yielding  a  revenue  to  individual  Indians  of 
something  like  $600,000  annually,  and  providing  temporary  homes 
for  thousands  of  settlers. 

Pensions. 

In  the  administration  of  the  pension  laws,  the  Pension  Bureau, 
under  Republican  administration,  has  always  been  liberal  and 
generous  to  the  brave  defenders  of  our  country.  The  Republican 
party  has  been  the  devoted  and  consistent  friend  of  the  soldier  and 
his  dependents,  and  this  fact  stands  forth  prominently  in  the  his- 
tory of  pension  legislation  ever  since  1862. 

Liberal  and  beneficent  laws  have  been  enacted,  and  the  present 
pension  system,  which  has  been  built  up  by  the  different  adminis- 
trations, is  the  best  and  most  liberal  in  the  world.  It  embraces 
within  its  provisions  the  soldier  and  sailor  who  contracted  his 
disabilities  in  the  service,  and  grants  relief  to  450,000  survivors  of 
the  Civil  War  who  are  incapacitated  for  earning  a  support  from 
causes  which  have  arisen  since  the  war.  Besides  these,  nearly 
300,000  widows  and  dependent  relatives  are  receiving  the  benefits 
of  the  pension  laws. 

Notwithstanding  the  fact  that  the  annual  death  rate  of  pen- 
sioners is  about  45,000  per  year,  the  allowance  of  new  pensions 
each  year  are  nearly  sufficient  to  prevent  any  material  decrease 
in  the  number  of  pensioners,  and  in  the  -amount  of  the  annual 
payments. 

Starting  with  126,722  pensioners  in  1866,  the  roll  has  steadily 
increased  under  the  beneficent  legislation  of  Congress,  and  from 
July  to  October,  1902,  the  number  of  pensioners  exceeded  one 
million.  There  has  been  only  a  slight  decrease  since  that  date, 
and  it  would  not  be  surprising  if  the  roll  should  again  exceed  one 
million.  k 

Since  1866  the  total  payments  for  pensrons  have  been  over 
$3,000,000,000,  and  the  magnitude  of  the  pension  roll  both  as  to 
the  number  of  beneficiaries  and  the  amount  paid  has  excited  the 
wonder  and  admiration  of  all  the  nations  of  the  world. 

The  details  of  the  pension  system  and  pension  legislation  of  the 
United  States  are  discussed  at  length  on  page  403. 


Our  opponents  now  appeal  for  confidence  on  the  ground  that  if 
triumphant  they  may  be  trusted  to  prove  false  to  every  principle 
which  in  the  last  eight  years  they  have  laid  down  as  vital,  and  to 
leave  undisturbed  those  very  acts  of  the  administration  because  of 
which  they  ask  that  the  administration  itself  be  driven  from  power. 
— President  Roosevelt's  speech  accepting  1004  nomination. 


THE  DEPARTMENT  OF  AGRICULTURE.  *         383 


THE  DEPARTMENT  OF  AGRICULTURE. 


I'  Work  of  the  MeKinley-Roosevelt  Administration  in   Behalf  of  the 

Farmer. 

During  the  last  seven  years  Presidents  Mcl^jnley  and  Roose- 
velt have  aimed  to  bring  the  Department  of  Agriculture  to  the  help 
[of  our  farmers  in  all  sections  of  the  country,  and  have  instructed 
[the  Secretary  of  Agriculture  to  use  all  endeavors  to  help  the  tiller 
of  the  soil  toward  greater  efficiency  and  more  economic  produc- 
tion ;  to  make  the  American  acre  more  potent  in  growing  crops. 
The  Congress  during  the  last  seven  years  has  doubled  the  amount 
of  money  invested  in  agricultural  research  and  demonstration, 
to  give  the  American  farmers  help  in  their  operations  on  the 
farm,  to  feed  our  people  well  and  cheaply,  and  enable  them  to 
compete  with  the  outside  world.  It  has  provided  for  two  thou- 
j  sand  scientists,  specialists  in  their  respective  lines,  who  are  in 
touch  with  our  farmers  in  all  sections  of  the  country,  gathering 
information  and  preparing  it  for  issue  in  departmental  publica- 
tions, of  which  twelve  million  pieces  are  given  out  annually  and 
go  into  our  country  homes,  dealing  directly  with  what  is  upper- 
most in  the  minds  of  our  growers,  of  plants  and  animals  at  the 
time  of  publication. 

Science  Applied  to  Development  of  Agriculture. 

The  education  of  specialists  in  applied  science  to  meet  the 
demand  for  research  under  the  Federal  Government  and  under 
State  institutions,  has  become  a  prominent  feature  of  departmental 
work.  Graduates  of  our  agricultural  colleges  are  drafted  into 
the  Department  of  Agriculture  and  prepared  for  scientific  re- 
search along  the  lines  demanded  by  the  producers  of  our  country 
under  all  our  varied  conditions.  Within  the  last  seven  years 
five  hundred  young  men  have  had  postgraduate  instruction  in 
the  sciences  of  agriculture.  The  Department  of  Agriculture  and 
the  State  experiment  stations  are  actively  cooperating  with  re- 
gard to  the  unsolved  problems  that  affect  the  farmer  throughout 
our  State  and  Territories  and  in  the  islands  of  the  sea  that  have 
lately  come  into  our  possession. 

New  markets  for  our  surplus  production  are  being  sought  in 
foreign  countries,  and  scientific  inquiry  is  being  made  into  the 
preparation  of  our  exports  for  foreign  markets.  Uncertainty  with 
regard  to  the  magnitude  of  our  crops  at  home  is  being  removed 
by  careful  statistical  inquiry,  to  the  end  that  more  accurate  know- 
ledge with  regard  to  production  may  mitigate  the  evils  of  specu- 
lation. Inquiry  is  also  being  made  into  the  productions  of  com- 
peting countries,  in  order  that  the  American  farmer  may  know 
what  he  has  to  meet  in  foreign  markets. 

New  Products   for  American  Farms. 

Strenuous  efforts  are  being  made  to  encourage  the  home  pro- 
duction of  articles  we  have  been  importing  from  foreign  countries. 
During  the  last  seven  years  there  has  been  an  increase  in  the 
production  of  sugar  from  beets  of  over  two  hundred  thousand 
tons  in  quantity  and  over  sixteen  million  dollars  in  value.  Seven 
years  ago  we  produced  only  one-fourth  of  the  rice  consumed  in 
the  United  States.  The  fostering  work  of  the  Federal  Government 
has  enabled  the  rice  growers  to  produce  more  than  the  equivalent 
of  our  home  consumption  and  foreign  markets  are  being  sought 
for  the  surplus.  There  was  an  increase  in  the  production  of  rice 
from  115,000,000  pounds  in  1898  to  400,000,000  pounds  in  1903. 

Scientific  research  by  the  Bureau  of  Soils  demonstrates  the 
fact  that  we  can  produce  at  home  the  fine  tobaccos  for  which  we 
have  been  paying  fifteen  million  dollars  a  year  to  foreign  coun- 
tries. Our  explorers  have  searched  foreign  lands  for  grains,  le- 
gumes, fiber  plants,  teas,  etc.,  for  introduction  into  sections  of  the 
United  States  suitable  to  their  production.  The  producing  area 
for  grains  has  been  extended  westward  into  the  dry  Regions  of  our 


384  THJE   DKI'AKTMENT  OF   AGRICULTl'KK. 

i -Dmitry  through  the  introduction  of  plants  that  are  at  home  where 
the  rainfall  is  light.  Millions  of  bushels  are  being  grown  in 
regions  that  have  heretofore  been  unproductive. 

Eradication  of  Diseases  of  Farm  Animals  and  Products. 

The  Federal  Government  is  studying  the  diseases  of  domestic 
animals  with  a  view  to  their  complete  eradication.  Our  animals 
ami  their  products  go  to  foreign  countries  with  bills  of  health- 
fulness.  The  American  meats  are  the  most  wholesome  in  the 
world,  and  the  world  is  beginning  to  find  it  out.  An  imported 
foreign  disease  or  domestic  animals  was  promptly  stamped  out 
within  a  year  at  an  expenditure  of  three  hundred  thousand  dol- 
lars, to  prevent  it  from  spreading  throughout  the  country  among 
our  herds  and  flocks.  Rigid  inspection  against  foreign  countries 
having  animal  diseases  is  maintained  at  our  ports  of  entry,  in 
order  to  protect  the  health  of  our  domestic  animals.  Within  the 
last  seven  years  the  Government  lias  become  thoroughly  equipped 
to  deal  with  plant  diseases.  The  loss  of  half  a  million  dollars 
annually  was  stopped  by  pathological  examination  of  our  sea- 
island  cottons.  New  varieties  of  fruits,  cereals,  cottons,  etc.,  are 
being  created  by  hybridizing  to  meet  the  demands  of  producers 
of  these  crops  in  the  North  and  in  the  South. 

Our  forests  have  been  mostly  destroyed  and  our  mountains, 
the  natural  reservoirs  for  water,  have  been  rendered  incapable 
of  retaining  moisture.  Efforts  are  being  made  to  reforest  the 
country,  to  prevent  fires,  to  regulate  grazing  in  our  forests,  and 
to  study  lumbering  and  forest  products. 

The  Federal  Government  is  making  inquiry  into  road  material, 
and  a  beginning  has  been  made  in  the  education  of  young  men 
toward  road  building.  A  laboratory  has  been  established  in  the 
Department  of  Agriculture  for  the  study  of  materials  with  which 
to  construct  roads,  and  rocks,  gravels,  clays,  tiling,  cement,  con- 
crete pavements,  stone,  brick,  wood,  and  asphaltum  are  being 
studied. 

A  Central  American  weevil  threatens  to  destroy  the  cotton 
crop  of  the  United  States.  The  Federal  Government,  in  searching 
the  world  for  a  remedy,  has  found  on  the  table-lands  of  Guatemala 
an  ant  which  gives  promise  of  destroying  the  pest.  The  San 
Jose  scale,  which  was  destroying  our  orchards,  is  now  being 
checked  by  an  insect  enemy  found  near  the  Great  Wall  of  China. 
The  black  scale,  that  attacks  orange  and  lemon  groves  in  Cali- 
fornia, is  being  exterminated  by  a  parasitic  fly  brought  from 
South  Africa. 

The  practicability  of  growing  tea  in  the  United  States  is 
being  demonstrated,  and  extensive  experimentation  is  being  made 
in  the  production  of  silk. 

The  atmosphere  in  its  relations  to  agriculture  and  commerce 
is  being  carefully  studied,  and  trained  meteorologists,  for  the 
first  time  in  our  history,  are  being  detailed  from  the  Department 
of  Agriculture  to  give  lectures  in  institutions  of  learning,  in  order 
that  we  may  have  scholars  in  the  land  along  this  line  of  inquiry, 
to  the  end  that  the  farmer  and  the  mariner  may  have  all  the 
protection  that  intelligent  forecasting  can  give  them. 

The  Farmer  and  the  Balance  of  Trade. 

During  the  thirteen  years,  1890-1902,  the  average  annual  ex- 
cess of  domestic  exports  over  imports  amounted  to  $275,000,000. 
and  during  the  same  time  the  annual  average  in  favor  of  farm 
products  was  $337,000,000,  from  which  it  is  apparent  that  there 
was  an  average  annual  adverse  balance  of  trade  in  products  other 
than  those  of  the  farm  amounting  to  $62,000,000,  which  the  farmers 
offset  and  had  left  $275,000,000  to  the  credit  of  themselves  and 
the  country. 

Taking  the  business  of  1903,  the  comparison  is  much  more 
favorable  to  the  farmers  than  during  the  preceding  thirteen-year 
period,  since  the  value  of  domestic  exports  over  imports  was 
$367,000,000,  the  entire  trade  being  included,  while  the  excess  for 
farm  products  was  $422,000,000,  which  was  sufficient  not  only  to 
offset  the  unfavorable  balance  of  trade  of  $56,000,000  in  products 
other  than  those  of  the  farm,  but  to  leave,  as  above  stated,  the 
enormous  favorable  balance  of  $367,000,000. 


THE  DEPARTMENT  OF  AGRICULTURE.  385 

During  the  last  fourteen  years  there  was  a  balance  of  trade 
in  favor  of  farm  products,  without  excepting  any  year,  that 
amounted  to  $4,806,000,000.  Against  this  was  an  adverse  balance 
of  trade  in  products  other  than  those  of  the  farm  of  $865,000,000, 
and  the  farmers  not  only  canceled  this  immense  obligation,  but  had 
enough  left  to  place  $3,940,000,000  to  the  credit  of  the  nation 
when  the  books  of  international  exchange  were  balanced. 

These  figures  tersely  express  the  immense  national  reserve 
sustaining  power  of  the  farmers  of  the  country  under  present 
quantities  of  production.  It  is  the  farmers  who  have  paid  the 
foreign  bondholders. 

The  health  of  our  people  is  being  safeguarded  by  inquiry  into 
importations  of  food  from  foreign  countries  that  contain  sub- 
stances deleterious  to  health.  The  United  States  is  no  longer  the 
dumping  ground  for  food  stuffs  that  are  forbidden  sale  in  the 
countries  where  they  originate. 

An  aim  of  the  Department  is  to  make  the  American  independent 
with  regard  to  everything  that  can  be  produced  in  our  latitudes. 
Corps  of  scientists  have  been  placed  in  each  of  the  new  island 
groups  that  have  lately  come  under  our  jurisdiction  for  the  pur- 
pose of  helping  them  to  produce  what  can  not  be  grown  in  tbe 
continental  United  States. 

The  Department  of  Agriculture  is  furnishing  information  re- 
garding the  requirements  and  possibilities  of  irrigation,  both  in  the 
arid  regions  of  the  United  States  and  as  an  aid  to  agriculture  in 
the  humid  East.  This  inquiry  determines  the  amount  of  water 
needed  to  give  the  best  results,  the  time  when  it  should  be  ap- 
plied, and  the  methods  of  application  best  suited  to  different  lo- 
calities and  different  crops.  The  evils  of  too  much  water,  resulting 
in  the  ruin  of  large  areas  which  were  highly  productive  a  few 
years  ago,  are  being  investigated,  with  a  view  to  preventing  not 
only  the  ruining  of  crops  which  get  too  much  water,  but  of  those  on 
equally  fertile  soil  which  are  deprived  of  the  necessary  water 
supply.  The  economic  use  of  water,  and  the  introduction  of  plants 
from  foreign  countries  where  the  rainfall  is  light,  are  extending 
crop  growing  over  large  areas  that  have  hitherto  been  unpro- 
ductive. 

See  "Agricultural  Prosperity,"  page  136,  and  "Value  of  the 
Factory  to  the  Farmer,"  page  148. 


I  believe  it  is  a  good  deal  better  to  open  tbe  mills  of  the  United 
States  to  the  labor  of  America  than  to  open  the  mints  of  the 
United  States  to  the  silver  of  the  world. — Maj.  McKinley,  to  his 
comrades  of  the  23d  Ohio  Regiment,  at  Canton,   August   12,  1896. 

A  tax,  and  a  stiff  one,  upon  foreign  manufacturers  would  be 
one  of  the  most  popular  as  well  as  one  of  the  wisest  imposts  ever 
levied  in  this  country.  Either  the  foreign  manufacturer  would 
pay  the  duty  or  the  home  manufacturer  would  get  the  trade- 
London  Daily  Telegraph,  December  10,  1903. 

Judging  by  the  history  of  the  last  12  years,  down  to  this  very 
month,  Is  there  justification  for  believing  that  under  similar  cir- 
cumstances and  with  similar  initial  differences  of  opinion,  our 
opponents  would  have  achieved  any  practical  result? — President 
Roosevelt's   speech   accepting  1904  nomination. 

Laying  aside  the  fact  that  trusts  are  organized  under  English 
free  trade  as  well  as  German,  Austrian,  and  American  protection, 
it  is  susceptible  of  absolute  demonstration  that  American  free 
trade  would  operate  in  the  interests  of  trusts  and  against  the  in- 
terest of  American  labor.— lion.  E.  L.  Hamilton,  in  Congress,  April 
14,  1904. 

Under  our  policy  of  free  trade  we  have  lost  that  commercial 
and  industrial  superiority  we  acquired  under  the  policy  of  strict 
protection.  Our  policy  of  direct  taxation  bears  heavily  upon  our 
industries  and  reacts  on  the  working  classes  in  reduction  of  wages 
and  employment.  Our  agriculture  has  been  ruined  and  our  indus- 
tries are  struggling  hard  for  existence.  Other  nations,  under  a 
policy  of  strict  protection,  are  beating  us  In  the  race  of  competi- 
tion, not  only  in  neutral,  but  in  our  own  markets.-— Sir  Guilford  L. 
Molesworth  on  Free  Trade  in  England. 


386  DEPARTMENT  OF  COMMERCE  AND  LABOR. 


DEPARTHENT  OF  COHflERCE 
AND  LABOR. 

The  act  creating  the  Department  of  Commerce  and  Labor  was 
approved  February  14,  l(.»o:;,  .uul  lion.  George  B.  Cortelyou,  form- 
erly Secretary  to  the  President,  was  made  Secretary  of  Commerce 
and  Labor.  On  July  1,  1903,  the  following  offices  were  trans- 
ferred from  other  departments  and  made  a  part  of  the  Depart- 
ment of  Commerce  and  Labor:  The  Light-House  Board,  the 
Light-House  Establishment,  the  Steamboat-Inspection  Service,  the 
Bureau  of  Navigation,  the  United  States  Shipping  Commissioners, 
the  National  Bureau  of  Standards,  the  Coast  and  Geodetic  Survey, 
the  Commissioner-General  of  Immigration,  the  Commissioners  of 
Immigration,  the  Bureau  of  Immigration,  the  Immigration  Service 
at  Large,  the  Bureau  of  Statistics,  the  Census  Office,  the  Depart- 
ment of  Labor,  the  Fish  Commission,  the  Office  of  Commissioner 
of  Fish  and  Fisheries,  the  Bureau  of  Foreign  Commerce,  the 
Alaskan  Fur-Seal  and  Salmon  Fisheries. 

The  personnel  of  the  Department  on  that  date  comprised 
10,125  employees,  of  which  number  1,289  were  on  duty  in  Wash- 
ington and  8,836  in  the  country  at  large. 

The  act  creating  the  Department  having  become  a  law  after 
the  preparation  of  the  usual  appropriation  bills,  the  sum  appro- 
priated for  the  services  of  the  fiscal  year  1903-4  was  limited. 
Notwithstanding  that  fact,  material  progress  has  been  made  by 
this  new  Department  in  developing  and  enlarging  the  scope  of 
tbe  work  of  the  bureaus  assigned  to  it  and  in  preparing  for 
thorough  and  valuable  work  by  the  newly  created  bureaus  and 
divisions. 

The  Census  Office  has  perfected  its  plans  for  a  taking  of  the 
census  of  manufactures  in  1905,  which  will  be  the  first  occasion 
on  which  a  Federal  census  relating  to  any  important  industry 
or  factor  of  our  national  life  was  made  in  any  other  than  the 
decennial  year  or  in  connection  with  the  decennial  census.  Un- 
der the  law  a  census  of  manufactures  is  hereafter  to  be  taken 
every  five  years. 

The  work  of  the  Bureau  of  Statistics  has  been  materially 
broadened  and  its  value  increased  by  a  consolidation  of  the 
Bureau  of  Foreign  Commerce,  formerly  of  the  State  Department, 
with  it.  The  reports  of  the  United  States  consuls  in  various  parts 
of  the  world  on  commerce  and  commercial  matters  are  edited  and 
published  by  the  Bureau  of  Statistics  in  conjunction  with  its  sta- 
tistics of  our  own  import  and  export  trade  and  domestic  produc- 
tions. By  this  combination  of  the  information  furnished  by  the 
consuls  and  that  of  the  Bureau  of  Statistics,  the  value  of  their 
work  has  been  materially  increased.  Under  authority  granted  by 
a  recent  act  of  Congress,  a  Division  of  Foreign  Tariffs  is  to  be 
established  by  the  Bureau  of  Statistics,  from  which  information 
regarding  the  tariffs  of  the  various  countries  of  the  world  can  be 
obtained.  Reports  of  the  consuls  are  issued  in  a  daily  bulletin  and 
distributed  to  the  press,  the  great  commercial  organizations  of  the 
country,  and  to  such  individuals  engaged  in  manufacturing  and 
export  trade  as  may  find  them  of  value  in  their  studies  of  condi- 
tions in  foreign  markets  or  opportunities  for  expanding  their  sales 
abroad. 

The  act  creating  the  Department  authorized  the  establishment 
of  a  Bureau  of  Manufactures,  but  owing  to  the  inadequacy  of  the 
appropriation  made  after  the  passage  of  the  bill  in  the  closing 
days  of  the  session  this  could  not  be  accomplished  during  the  last 
fiscal  year,  but  a  sufficient  appropriation  has  been  made  to  justify 
its  establishment  early  in  the  new  fiscal  year. 

The  Bureau  of  Fisheries  has  enlarged  and  extended  its  work 
and  is  giving  special  attention  to  the  fisheries  in  Alaska,  with 
the  purpose  of  taking  such  steps  as  will  prevent  the  destruction 
of  the  salmon  fisheries  of  that  important  section  of  the  United 
States — an  industry  which  is  of  great  importance  at  the  present 
time,  and  which  with  proper  care  and  protection  will  continue 
as  a  producer  of  great  food  supplies  and  great  wealth. 


DEPARTMENT  OE  COMMERCE  AND  LABOR.  387 

The  Bureau  of  Labor. 

A  large  part  of  the  office  and  field  force  of  the  Bureau  of 
Labor  has  been  engaged  during  the  past  year  in  the  collection  of 
data  for  the  eighteenth  annual  report  of  the  Bureau  (the  report 
for  1903)  and  in  its  preparation.  This  report  presents  the  re- 
sults of  an  extended  investigation  into  the  cost  of  living  of 
workingmen's  families  and  the  retail  price  of  staple  articles  of 
food  used  by  such  families.  That  part  of  the  report  which  relates 
to  retail  prices  is  the  first  extended  investigation  of  the  kind  that 
has  been  made  in  this  country.  The  previous  price  studies,  cover- 
ing a  period  of  years,  have  dealt  solely  with  wholesale  prices, 
which  of  course  do  not  represent  accurately  the  cost  to  the  small 
consumer. 

The  second  annual  report  on  the  course  of  wholesale  prices 
was  \made  in  the  Bureau's  bulletin  for  March,  1903.  While  it  is 
considered  advisable  to  continue  this  index  of  wholesale  prices, 
the  data  relative  to  retail  prices  contained  in  the  eighteenth  an- 
nual report  should  be  used  in  preference  to  wholesale  prices  in 
any  study  of  the  cost  of  living  of  workingmen's  families. 

In  addition  to  the  preparation  of  the  eighteenth  annual  report 
and  other  work  done  by  the  Bureau,  its  bulletin  has  been  issued 
regularly  every  other  month.  Each  number  of  the  bulletin  con- 
tains, in  addition  to  one  or  more  special  articles,  timely  data 
Relative  to  agreements  between  employers  and  employes,  digests 
of  recent  reports  of  State  bureaus  of  labor  statistics,  digests  of 
recent  foreign  statistical  publications,  court  decisions  affecting 
labor,  and  laws  of  various  states  relating  to  labor.  As  the  re- 
sult of  investigations  in  progress  or  completed,  forthcoming  bulle- 
tins will  contain  the  following  special  articles : 

Labor  Unions  and  British  Industry. 

Labor   Conditions   in   Australia. 

Labor  Conditions  in  the  Philippine  Islands. 

The  Revival  of  Handicrafts  in  the  United  States. 

Trade  Union  Movement  among  the  Coal  Mine  Workers  of 
the  United  States. 

Other  investigations  are  being  carried  on  by  the  Bureau,  and 
the  results  will  appear  either  in  the  bulletins  or  in  special  re- 
ports. Among  the  latter  may  be  mentioned  a  report  on  re- 
striction of  output  by  employers  and  employees  in  the  United 
States,  Great  Britain,  and  the  continent  of  Europe;  a  report  on 
the  labor  of  children  in  the  principal  industrial  States  of  the 
Union;  a  report  of  coal-mine  labor  in  Europe;  and  also  a  com- 
pilation of  the  labor  laws  of  the  United  States,  which  revises  and 
brings  down  to  date  the  second  special  report  of  the  Bureau, 
published  in  1896.  Reports  have  already  been  issued  upon  the 
condition  of  the  laboring  classes  of  the  Territory  of  Hawaii. 

Active  work  on  the  preparation  of  the  nineteenth  annual  re- 
port of  the  Bureau  and  the  collection  of  data  therefor  was  begun 
some  months  ago,  and  rapid  progress  is  being  made.  This  re- 
port, which  should  be  available — in  summary  form,  at  least — 
in  the  spring  of  1904,  will  comprise  the  largest  and  most  repre- 
sentative collection  of  data  relative  to  wages  ever  undertaken. 
The  period  covered  will  be  the  years  from  1890  to  1903,  inclusive, 
and  it  is  expected  that  every  important  manufacturing  industry 
and  every  large  industrial  center  in  the  United  States  will  be 
adequately  represented. 

One  of  the  first  official  acts  of  the  Secretary  of  Commerce  and 
Labor  on  the  day  the  Bureau  of  Labor  was  transferred  to  this 
Department  was  to  direct  the  employment  of  a  special  agent  to 
make  an  investigation  in  England  as  to  the  effect  of  trade  union- 
ism on  British  industries.  The  agent's  report,  which  is  to  appear 
in  an  early  issue  of  the  bulletin,  will  commend  itself  to  the  at- 
tention of  those  interested  in  this  subject.  In  view  of  the  atten- 
tion which  the  subject  of  trade  unionism  commands,  and  the 
efforts  made  by  employers  and  employees  to  improve  their  rela- 
te- prevent  strikes  and  other  industrial  disturbances,  and  to  pro- 
vide a  ready  and  certain  method  by  which  disagreements  can  be 
adjusted,  it  is  believed  that  this  report,  explaining  the  methods 
adopted  in  Great  Britain  and  the  lessons  they  teach,  will  prove 
a  valuable  contribution  to  the  literature  of  sociology  and  may  offer 
some  suggestions  which  can  be  profitably  adopted  in  our  own 
industrial  system. 


388  DKl'ARTMENT  OF  COMMKRt'K   AND   I.AlloK. 

Commenting  on  the  Bureau  of  Labor  and  its  work,  Secretary 
(ortelyou  said  in  bis  annual  report: 

"The  Bureau  of  Labor  bas  rendered  effective  service 
in  its  special  field.  Tbe  Department  will  utilize  to  (he 
fullest  extent  the  experience  that  bas  been  gained  in 
this  important  Bureau,  and  will  seek  to  make  more  ;unl 
more  available  the  information  it  can  obtain  and  to  secure 
larger  results  from  its  work.  Not  only  is  there  at  present  a 
bureau  doing  work  pertaining"  exclusively  to  labor,  but  it  is  pro- 
posed to  make  every  other  bureau  in  the  Department  do  its 
share,  so  far  as  its  organization  will  permit,  to  'foster,  promote 
and  develop  *  *  *  the  labor  interests,  *  *  *  of  the 
United  States.'  The  Department's  statistics  on  labor,  as  well  as 
its  statistics  on  other  subjects,  will  be  gathered  fairly,  given  out 
fairly,  and  as  far  as  possible  will  be  made  to  represent  accurately 
conditions  found  to  exist.  Whatever  rearrangement  may  be  found 
necessary  in  any  of  the  duties  now  assigned  to  the  Bureau,  the 
great  interests  of  labor  and  of  industry  in  their  broadest  sense 
will  be  subserved.  The  new  Department  should  not  be  ex- 
pected to  do  impossible  things.  If  it  can  be  helpful  to  any  con- 
siderable extent  in  improving  existing  relations  as  between  em- 
ployer and  employee ;  if  its  publications  can  furnish  facts  from 
which  there  may  come  fuller  understanding ;  if,  having  gained 
the  confidence  of  the  people,  it  can,  from  time  to  time,  point  the 
way  to  better  feeling  and  broader  views  as  between  contending 
interests,  it  will  accomplish  one  of  the  most  beneficent  results  of 
its  organization. 

"The  Department  is  empowered  to  acquire  and  diffuse  among 
the  people  of  the  United  States  useful  information  on  subjects 
connected  with  labor,  in  the  most  general  and  comprehensive 
sense  of  the  word,  especially  regarding  its  relation  to  capital,  such 
as  tbe  hours  of  labor  and  tbe  earnings  of  laboring  men  and 
women ;  tbe  means  in  general  of  promoting  their  material,  social, 
intellectual,  and  moral  condition ;  the  elements  of  cost,  or  ap- 
proximate cost,  of  products ;  the  comparative  cost  of  living,  and 
the  kind  of  living ;  the  articles  controlled  by  trusts  or  other 
combinations  of  capital,  business  operations,  or  labor,  and  the 
effect  such  trusts  or  other  combinations  have  on  production  and 
prices;  the  causes  of  and  facts  relating  to  all  controversies  ami 
disputes  between  employers  and  employees. 

"Capitalists  and  wage  receivers  are  to  be  treated  on  an  equality, 
for  in  these  matters  relating  to  labor  and  capital  and  to  their 
respective  representatives  tbe  Department  must  stand  in  the  po- 
sition of  an  educational  office,  collecting  and  publishing  such  in- 
formation as  will  enable  each  party  to  understand  more  fully 
the  prevailing  conditions. 

"The  Department  has  no  executive  functions  relative  to  the 
settlement  of  labor  disputes.  It  can  not  interfere  on  behalf  of 
either  employer  or  employee  in  controversies  arising  between  them. 

"Whatever  enables  either  party  to  secure  necessary  information 
falls  within  the  authority  of  law.  That  authority  does  warrant 
the  Department  in  publishing  any  information  drawn  from  condi- 
tions in  this  or  in  other  countries  which  will  be  helpful  in  bring- 
ing about  fuller  knowledge  and  better  understanding.  Employer 
and  employee  are  dependent  upon  each  other,  and  tbe  recognition 
of  the  welfare  of  both,  and  of  the  means  of  assisting  in  securing 
that  welfare,  will  be  assiduously  cultivated.  All  possible  measures 
of  an  educational  nature  will  be  employed  to  induce  the  repre- 
sentatives of  labor  and  capital  to  conduct  their  affairs  on  a 
basis  which  shall  not  interfere  with  the  general  welfare  of  those 
not  engaged  in  the  disputes.  This  general  policy  must  commend 
itself  to  the  wisdom  of  employer  and  employee  alike,  as  it  is  in  the 
interests  of  both." 

The  Bureau  of  Corporations. 

The  Bureau  of  Corporations,  created  by  this  act,  is  charged 
with  the  duty  of  gathering  information  on  the  subject  of  inter- 
state and  foreign  commerce,  to  investigate  the  organization,  con- 
duct, and  management  of  corporations  and  joint  stock  companies 
engaged  in  such  commerce  (other  than  common  carriers  subject 
to  the  jurisdiction  of  the  Interstate  Commerce  Commission),  to 
report  the  results  of  such  investigations  to  the  President  through 
the  Secretary  of  Commerce  and  Labor,  and  to  compile  and  pub- 


DEPARTMENT  OE  COMMERCE  AND  LABOR.  389 

useful  information  concerning  corporations  engaged  in  in- 
terstate and  foreign  commerce,  including  insurance  companies. 

As  an  aid  to  investigation,  the  Commissioner  of  Corporations 
is  given  like  powers  to  those  granted  the  Interstate  Commerce 
Commission. 

Since  the  organization  of  the  Bureau  on  L\ '  uary  2G,  1903,  ex- 
haustive studies  have  been  undertaken  in  the  lollowing  fields: 

1.  A  systematic  study  of  the  law  creating  the  Bureau 

2.  The  general  subject  of  interstate  commerce  and  the  powers 
of  the  Federal  Government  in  relation  thereto. 

3.  The  decisions  of  the  Federal  courts  relating  to  corporations 
engaged  in  interstate  commerce  which  are  subject  to  the  juris- 
diction of  the  Bureau. 

4.  The  jurisdiction  and  powers  of  the  Interstate  Commerce 
Commission. 

5.  The  decisions  of  the  Federal  courts  in  relation  to  trade 
conspiracies,  monopolies,  and  combinations  in  restraint  of  trade. 

6.  The  corporation  laws  of  the  various  States  and  Territories, 
particularly  those  relating  to  the  annual  reports  and  the  returns 
for  taxation  purposes  required  from  such  corporations. 

7.  The  methods  of  taxing  corporations  in  each  State  and  the 
decisions  relating  to  the  taxation  of  interstate  commerce. 

8.  The  effect  of  industrial  combinations  upon  the  prices  of 
the  commodities  sold  by  such  combinations,  the  effect  of  tariff 
duties  upon  the  prices  of  commodities  subject  to  such  duties,  and 
the  reasons  for  the  difference,  if  any  exists,  between  the  domestic 
and  foreign  prices  of  commodities  manufactured  by  the  protected 
industrial  combinations   of  this  country. 

9.  The  powers  of  the  Federal  Government  in  relation  to  in- 
surance companies. 

From  a  preliminary  study,  it  became  apparent  that  the  public 
records  of  States  and  Territories,  the  reports  of  special  commit- 
tees appointed  under  State  or  Federal  authority,  the  files  of  cer- 
tain Government  offices,  and  various  commercial  and  industrial 
publications  contained  a  fund  of  valuable  information  on  the  sub- 
jects to  be  investigated.  This  information  is  being  brought  to- 
gether, analyzed,  and  properly  indexed,  in  order  that  the  facts 
already  known  may  be  utilized  in  planning  more  specific  inquiries. 

An  investigation  of  the  beef  trust  is  also  in  progress ;  the 
details  regarding  this  investigation  are  stated  under  the  discus- 
sion relative  to  trusts,  on  another  page  of  this  volume. 

Regarding  the  functions  and  work  of  this  important  new 
Bureau  Secretary  Cortelyou  said  in  his  annual  report  for  1903: 

"The  creation  of  the  Bureau  was  viewed  by  some  with  alarm, 
or  at  least  with  suspicion.  It  was  feared  that  the  powers 
granted  might  be  hastily  or  inadvisedly  used  to  the  injury  of  legiti- 
mate enterprise.  No  such  purpose  actuated  the  framers  of  the 
law ;  no  such  purpose  will  control  its  administration. 

"Many  corporations  have  been  granted  important  privileges  by 
the  public,  and  some  of  these  corporations,  through  consolidation 
of  capital,  have  acquired  extensive  influence  in  the  industrial  af- 
fairs of  the  country.  Such  privileges,  if  used  improperly,  not  only 
retard  the  progress  of  industry,  but  frequently  breed  corruption 
in  politics.  The  legislation  creating  the  Bureau  of  Corporations 
was  the  expression  of  a  popular  belief  that  further  safeguards 
should  be  provided  for  the  regulation  of  business  enterprises  to 
which  special  privileges  have  been  granted  by  the  people.  Pub- 
licity will  disclose  unfair  dealing,  dishonesty,  and  corruption ;  but 
if  properly  enforced  it  will  not  disclose  to  trade  competitors  the 
fruits  of  individual  thrift  and  initiative^  nor  permit  in  any 
other  manner  the  invasion  of  private  rights*" 

Work  of  the  Immigration  Bureau. 

There  is  no  branch  of  the  administrative  service  which  ex- 
hibits a  more  pronounced  and  practically  useful  advance  during 
the  present  administration  than  the  Immigration  Service.  This 
advance  is  due  both  to  legislation  and  to  the  intelligent  and  fear- 
less administration  of  those  laws  by  the  officers  responsible 
therefor. 

On  March  3d,  1903,  a  general  immigration  law  was  passed 
and  received  the  executive  approval.  This  law  was  a  combined 
codification  of  all  preceding  legislation  upon  the  subject,  with  cer- 
tain entirely  new  measures,  either  suggested  by  administrative 
defects  in  the  preceding  laws  or  by  the  growing  necessity  of  pro- 
tecting the  people  of  this  country  from  the  dangers  of  an  indis- 
criminate immigration  of  aliens. 

To  provide  an  adequate  fund  to  defray  the  cost  of  administer- 


390  DEPARTMENT  OF  COMMERCE  AND  LABOR. 

ing  these  laws  the  head  tax  imposed  upon  transportation  lines 
bringing  aliens  to  the  United  States  was  increased  from  one  to 
two  dollars  per  capita.  As  a  result  commodious  struct  urea  have 
been  erected  for  the  humane  accommodation  of  aliens  pending 
examination  and  for  their  care  during  temporary  sickness.  The 
official  force  at  the  ports  of  entry  has  been  enlarged  in  each  in- 
stance so  as  to  facilitate  a  prompt  and  efficient  inspection  of  such 
persons,  the  admission  of  those  entitled  to  land,  and  the  rejection 
and  deportation  of  those  not  so  entitled. 

To  the  list  of  those  already  excluded  by  law  there  were  added 
epileptics,  those  who  have  been  insane  within  Ave  years  prior  to 
arrival,  those  who  have  had  two  or  more  attacks  of  insanity  at 
any  time  previously,  professional  beggars,  anarchists,  prostitutes, 
procurers  of  prostitutes,  and  those  who  have  been,  within  one  year 
prior  to  their  coming,  excluded  from  admission  upon  the  ground 
that  they  had  come  in  pursuance  of  some  promise  or  assurance, 
given  prior  to  their  embarkation,  of  work  awaiting  them  in  this 
country.  The  exception  from  the  excluded  classes  of  professionals 
under  the  old  law  was  restricted  under  the  new  act  to  those  be- 
longing to  a  "learned  profession."  That  portion  of  the  new  act 
which  related  to  the  exclusion  of  what  are  known  as  alien  con- 
tract laborers  was  enlarged  so  as  to  embrace  within  that  term 
not  only  those  coming  under  contract  but  those  whose  coming  is 
induced  by  offers,  solicitations,  promises,  or  agreements  to  per- 
form labor  in  this  country. 

Another  new  feature  introduced  by  the  act  of  1903  is  the  im- 
position of  a  penalty  of  $100  upon  any  transportation  agency 
knowingly  and  wilfully  bringing  any  diseased  alien  to  the  United 
States  for  each  such  alien  so  brought,  and  to  make  such  penalty 
effective  the  act  provides  that  such  fine  when  imposed  shall  not 
be  remitted.  Prior  to  that  time  the  only  penalty  imposed  on  a 
vessel  which  thus  wilfully  endangered  the  health  of  the  people 
of  this  country  by  bringing  diseased  aliens  in  contact  with 
healthy  ones  was  the  obligation  to  return  such  diseased  aliens  at 
its  own  expense. 

There  are  many  other  respects  too  numerous  to  mention  in 
detail  in  which  the  new  act  strengthened  the  hands  of  the  ad- 
ministrative branch  of  the  government  and  enabled  it  to  prevent 
the  landing  in  this  country  of  objectionable  aliens.  The  time 
within  which  aliens  found  unlawfully  in  the  United  States  could 
be  deported  at  the  expense  of  the  vessel  or  vessels  on  which  they 
were  brought  was  extended  from  one  to  two  years,  and  authority 
was  given  to  appoint  inspectors  to  canvass  the  public  institutions 
of  the  various  States  with  a  view  to  ascertaining  how  many  aliens 
were  detained  therein  for  the  purpose  either  of  punishment,  of 
treatment  for  disease,  or  of  free  support,  thus  enabling  the  admin- 
istrative branch  of  the  government  to  discover  such  persons  there- 
in as  could  be  deported  under  the  two  year  limit. 

Perhaps  the  most  striking  feature  of  the  act  is  that  portion 
which  relates  to  the  exclusion  or  expulsion  of  anarchists,  a  feature 
of  the  law  which  in  its  application  has  been  found  to  be  efficacious 
and  which  the  Supreme  Court  lias  had  occasion  to  declare  con- 
stitutional and  therefore  vital. 

One  other  feature  of  the  act  is  especially  noteworthy  in  taking 
away  the  privilege  theretofore  enjoyed  by  diseased  aliens  of  tem- 
porary treatment  in  hospitals  of  this  country.  This  has  in  great 
measure  destroyed  the  temptation  of  such  persons  to  embark  for 
the  United  States,  and,  coupled  with  a  fine  imposed  in  such  cases 
on  the  transportation  company,  removes  the  inducement  of  such 
persons  to  attempt  to  come  to  this  country. 

Under  the  present  administration  the  enforcement  of  the  laws 
has  kept  pace  in  progress  and  efficiency  with  improved  legislation. 
Stations  have  been  established  at  the  principal  ports  of  our  in- 
sular possessions  and  efficient  and  experienced  officers  have  been 
placed  in  charge  thereof.  The  most  notable  feature  in  such  prog- 
ress, however,  is  in  the  organization  of  an  official  force  along 
the  Canadian  boundary,  which  for  the  first  time  controls  the 
influx  of  aliens  from  Canada  into  the  United  States.  Within  the 
past  three  years  the  enforcement  of  these  laws  on  such  boundary 
has  become  as  effective  as  at  the  best  equipped  and  administered 
port  upon  our  seacoast.  Under  an  agreement  with  the  Canadian 
transportation  lines,  to  avoid  impeding  travel  at  the  boundary 
to  make  inspection  there,  no  alien  can  secure  transportation  over 


DEPARTMENT  OF  COMMERCE  AND  LABOR.  391 

such  lines  into  the  United  States  except  upon  the  production  of 
a  certificate  from  the  Commissioner  of  Immigration  at  Montreal 
showing  that  he  has  been  found  admissible  and  that  the  head  tax 
for  his  admission  will  be  paid.  To  show  how  efficient  this  service 
is,  during  the  year  ending  June  30,  1903,  5,158  aliens  were  ex- 
cluded along  the  Canadian  border,  1,439  of  whom  were  suffering 
with  dangerous  contagious  diseases.  During  the  same  period 
there  were  excluded,  in  the  aggregate,  at  ports  of  the  United 
States,  8,769,  of  whom  1,773  were  diseased  persons.  These  figures 
will  give  some  idea  of  the  relative  importance  of  the  Canadian 
border  service,  which  had  no  existence  prior  to  1901.  During  tho 
same  period  officers  along  the  said  border  arrested  31  persons 
engaged  in  smuggling  aliens  unlawfully  into  the  United  States, 
most  of  whom  were  convicted,  some  fined,  some  imprisoned,  and 
some  were  subjected  to  both  penalties. 

Since  the  passage  of  the  said  act,  moreover,  a  large  number 
of  aliens  have  been  denied  admission  as  contract  laborers  and 
a  number  of  suits  have  been  instituted  against  the  contractors 
in  this  country,  in  which  every  effort  is  being  made  to  convict 
the  offenders,  a  valuable  aid  to  which  is  found  in  that  provision 
of  the  new  act  which  allows  the  detention  of  the  aliens  whose 
services  are  contracted  for  for  use  as  witnesses. 

For  the  first  time  in  the  administration  of  the  immigration 
laws  their  terms  have  been  applied  to  Chinese  aliens,  by  means 
of  which  a  large  number  of  such  persons  have  been  excluded  be- 
cause they  were  afflicted  with  dangerous  contagious  diseases. 

On  April  29,  1902,  all  existing  Chinese  exclusion  laws,  each  of 
which  had  been  enacted  for  the  limited  period  of  ten  years  from 
date  of  enactment,  and  which  were  about  to  expire,  were  re- 
enacted  and  extended  to  the  insular  possessions  of  the  United 
States  and  to  intercourse  between  such  possessions  and  the  con- 
tinental portion  of  this  country.  This  law  contained  no  limita- 
tion of  time  as  to  its  duration.  It  is  permanent  until  repealed. 
The  provision  in  said  law  which  limited  the  reenactment  to  such 
portions  of  prior  acts  as  were  not  inconsistent  with  treaty  obliga- 
tions was,  by  the  last  Congress,  repealed,  leaving  the  act  absolute 
and  permanent. 

As  an  evidence  of  the  purpose,  fostered  by  this  administration, 
to  enforce  these  laws,  attention  may  be  called  to  the  fact  that  the 
meager  appropriations  made  during  former  administrations  and 
amounting  to  between  $100,000  and  $200,000  per  annum  was  in- 
creased, for  the  fiscal  year  1904,  to  $500,000,  and  for  the  year 
1905  to  $600,000. 

The  administration  of  the  Chinese  exclusion  law,  thus  aided, 
has  been  no  less  energetic,  efficient  and  fearless  than  the  enforce- 
ment of  the  immigration  laws.  A  notable  instance  of  this  will 
be  found  in  the  means  adopted  to  prevent  the  unlawful  entry  of 
Chinese  persons  from  Canada  into  the  United  States.  Congress 
had  made  exclusive  ports  of  entry  on  the  seacoast,  but  conferred 
upon  the  Secretary  of  the  Treasury  authority  to  open  additional 
ports.  This  authority  was  exercised  along  the  Canadian  border 
without  any  condition  or  precaution,  and  the  result  was  that  many 
hundred  Chinese  who  were  brought  to  Canada,  after  remaining 
there  a  short  time,  entered  the  United  States  across  the  border, 
either  surreptitiously  or  in  open  defiance  of  the  law.  The  latter 
course  was  usually  taken  to  insure  their  examination  before 
United  States  commissioners,  where  the  advantage  of  the  training 
they  had  received  in  Canada  was  made  apparent  by  the  large 
number  annually  discharged,  many  of  them  as  American  citizens, 
upon  the  score  that  they  had  proved  birth  in  this  country.  By 
an  arrangement  with  the  Canadian  transportation  line  which 
brings  Chinese  persons  through  Canada  to  the.  United  States,  se- 
cured through  an  intimation  that  unless  such  arrangement  was 
made  the  border  would  be  closed  and  the  company  deprived  of 
the  outgoing  travel  from  the  United  States  that  it  had  long  en- 
joyed, all  Chinese  destined  to  the  United  States  are  brought  direct 
to  one  of  four  specified  ports  on  the  Canadian  boundary  and 
there  delivered  to  inspection  officers,  who  determine  their  right 
to  admission  before  they  can  secure  an  opportunity  to  coach,  the 
expense  of  maintenance  during  detention  being  borne  by  the  said 
company,  as  well  as  the  expense  of  returning  those  who  are  re- 
jected. As  a  result  the  unlawful  entry  of  Chinese  across  the 
Canadian  boundary  has  virtually  ceased,  and,  as  illustrative  of 


392 


1>K!\\IU  Ml.N  I     <>l     (OMMKRCK    AM)    I.AHOK. 


the  efficiency  of  tho  present  system,  it  may  ho  stated  that  from 
8  single  one  of  said  border  ports  there  were  recently  returned  to 
China,  at  the  expense  of  the  Canadian  Pacific  Railroad  Company, 
is?  Chinese  persons' who  fals/ly  represented  themselves  as  having 
been  born  in  the  United  States  and  being  citizens  thereof.  Be- 
sides this,  many  more  arrests  have  been  made  of  those  unlaw- 
fully in  the  United  States,  who  have  accumulated  here  during 
Lai  administration,  and  upon  trial  have  been  ordered  deported. 

There  is  one  other  feature  in  the  administration  of  these 
laws  which  has  contributed  largely  to  their  efficient  administra- 
tion. The  consolidation  in  the  hands  of  a  single  bureau  of  all 
the  administrative  functions,  not  only  those  discharged  by  in- 
spectors, but,  as  well,  those  formerly  imposed  upon  collectors  of 
customs  and  collectors  of  internal  revenue,  has  added  largely  to 
the  successful  enforcement  of  the  Chinese  exclusion  acts. 

When  it  is  recalled  that  the  interests  opposed  to  a  strict  en- 
forcement both  of  the  immigration  and  the  Chinese  exclusion 
laws  are  those  representing  large  combinations  of  capital,  such 
as  the  transportation  lines,  both  of  the  Atlantic  and  Pacific,  it 
will  be  conceded  that  the  present  administration  has  evinced  un- 
flagging courage  and  independence  in  its  efforts  to  protect  the 
people  of  this  country  from  dangerous  and  undesirable  im- 
migration. 


Government  finance,  per  capita. 


Year. 


1871, 
1872, 
1873, 
1874, 
1875, 
1876, 
1877, 
1878, 
1879, 
1880, 
1881, 
1882, 
1883, 
1884, 
1885, 
1886, 
1887, 
1888, 
1889, 
1890. 
1891, 
1892, 
1893, 
1894, 
1895, 
1896, 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 


Population 
June  1. 


Am' 
ountof 
money 
in  the 
United 
States 
July  1. 


39.555,000 
40,596,000 
41,677,000 
42,796  000 
43.951.000 
45,137,000 
46.353,000 
47.598.000 
48,866,000 
50,155,783 
51.316,000 
52.495,000 
53,693,000 
54.911,000 
56,148,000 
57.404,000 
58.680,000 
59.974.000 
61,289,000 
62,622,250 
63,844,000 
65.086.000 
66.349.000 
67,632.000 
68.934,000 
70,254,000 
71.592,000 
72.947,000 
74,318.000 
76.303.387 
77.647,000 
79,01)3,000 
80.372,000 
81,752.000 


Government  finance,  per  capita. 


Money 
in  cir- 
cula- 
tion 
July  1. 


Dolls. 
18.75 
18.79 
18.58 
18.83 
18.16 
17.52 
16.46 
16.59 
21.15 
23.64 
26.30 
26.85 
27.42 
27.08 
27.38 
27.20 
27.84 
28.20 
27.06 
26.91 
26.28 
26.92 
26.21 
26.69 
26.39 
25.62 
26.62 
28.43 
29.47 
30.66 
31.98 
32.45 
33.40 
34.27 


Debt 

less 

cash  in 

Treas- 
ury, 

July  1 


Dolls. 
18.10 
18.19 
18.04 
18.13 
17.16 
16.12 
15.58 
15.32 
16.75 
19.41 
21.71 
22.37 
22.91 
22.65 
23.02 
21.82 
22.45 
22.88 
22.52 
22.82 
23.42 
24.56 
24.03 
24.52 
23.20 
21.41 
22.87 
25.15 
25.58 
26.94 
27.98 
28.43 
29.42 
30.80 


Dolls. 
56.81 
52.96 
50.52 
49.17 
47.53 
45.66 
43.56 
42.01 
40.85 
38.27 
35.46 
31.91 
28.66 
26.20 
24.50 
22.34 
20.03 
17.72 
15.92 
14.22 
13.34 
12.93 
12.64 
13.30 
13.08 
13.60 
13.78 
14.08 
15.55 
14.52 
13.45 
12.27 
11.51 
11.83 


Year  ending  June  30. 


Inter- 
est on 
public 
debt. 


Dolls. 

2.83 

2.56 

2.35 

2.31 

2.20 

2.11 

2.01 

1.99 

1.71 

1.59 

1.46 

1.09 

.96 

.87 

.84 

.79 

.71 

.65 

.53 

.47 

.37 

.35 

.35 

.38 

.42 

.49 

.48 

.47 

.54 

.44 

.38 

.35 

.32 


Net 
reve- 
nue. 


Dolls. 
9.69 
9.22 
8.01 
7.13 
6.55 
6.52 
6.07 
5.42 
5.60 
6.65 
7.00 
7.68 
7.41 
6.36 
5.76 
5.86 
6.33 
6.32 
6.31 
6.43 
6.14 
5.45 
5.81 
4.40 
4.54 
4.65 
4.85 
5.56 
6.94 
7.43 
7.56 
7.11 
6.96 
6.61 


Netex 
penses 


Dolls. 
7.39 
6.84 
6.97 
7.07 
6.25 
5.87 
5.21 
4.98 
5.46 
5.34 
5.08 
4.91 
4.94 
4.44 
4.63 
4.22 
4.56 
4.46 
4.88 
5.07 
5.73 
5.30 
5.78 
5.43 
5.16 
5.01 
5.11 
6.07 
8.14 
6.39 
6.56 
5.96 
6.29 
7.12 


Dis- 
burse- 
ments 
for 

pen- 
sions. 


Dolls. 

0.84 

.74 

.70 
.71 


.56 
.69 
1.14 
.98 
1.03 
1.13 
1.04 
1.17 
1.13 
1.27 
1.33 
1.45 
1.71 
1.95 
2.07 
2.40 
2.09 
2.05 
1.98 
1.97 
2.02 
1.88 
1.85 
1.79 
1.75 
1.72 
1.74 


We  know  what  we  mean  when  we  apeak  of  an  honest  and  stahle 
currency.  We  mean  the  same  thing  from  year  to  year. — President 
Hoosevelt's  speech  accepting  J 904  nomination. 


Assuredly  It  is  unwise  to  change  the  policies  which  have  worked 
so  well  and  which  are  now  working  so  -well. — President  Roosevelt's 
speech  accepting  1004  nomination. 


THE  CIVIL  SERVICE.  393 


THE  CIVIL  SERVICE. 

The  chief  criticisms  of  the  Civil  Service  of  the  United  States 
indulged  in  by  the  opponents  of  this  Administration  are  based 
either  upon  a  total  misapprehension  or  a  willful  misstatement  of 
the  facts. 

The  Civil  Service  law  was  enacted  in  1883  for  the  purpose  of 
stopping  the  flagrant  abuses  which  had  developed  under  the  old 
patronage  system  of  appointments.  Under  that  system  the  govern- 
ment service,  particularly  in  the  Departments  at  Washington,  had 
become  inefficient  and  extravagant.  Public  office  was  considered 
a  perquisite  of  the  party  in  power,  not  a  public  trust. 

It  was  to  remedy  such  evils  that  the  Civil  Service  law  was 
enacted ;  and  during  the  twenty-one  years  of  its  enforcement,  there 
has  been  developed  a  high  order  of  industry,  integrity,  and  effi- 
ciency in  the  public  service.  This  development  has,  of  course,  not 
been  free  from  difficulties ;  mistakes  have  been  made,  but  year 
by  year  the  merit  system  has  been  improved  and  extended,  until 
now  the  competitive  classified  service  covers  about  117,000  Federal 
employees,  and  is  recognized  as  necessary  for  good  adminis- 
tration. 

The  conclusive  answers  to  the  criticisms  are  the  following 
plain  statements  of  existing  conditions  and  the  acts  of  this  Ad- 
ministration : 

First. — Entrance  to  the  Federal  classified  service  is  not  de- 
pendent upon  personal  or  political  influence ;  hence  the  service 
is  now  composed  of  self-respecting,  independent  men  and  women 
who  appreciate  that  advancement  will  depend  upon  individual 
industry  and  ability.  They  do  not  constitute  a  body  of  per- 
manent officeholders  who  are  protected  from  removal  even  though 
inefficient  and  incapacitated,  as  is  charged.  The  power  of  re- 
moval is  absolute  in  the  head  of  every  Department,  this  rule 
having  been  clearly  defined  by  President  Roosevelt,  and  explained 
by  the  Commission  in  its  last  annual  report,  as  follows : 

"The  Commission  desires  to  call  particular  attention  to  this 
provision,  under  which  appointing-  officers  are  made  the  absolute 
judges  of  the  sufficiency  of  reasons  given  for  the  removal  of  any 
person  in  the  competitive  classified  service.  No  examination  of 
witnesses  is  required,  nor  any  trial  or  hearing,  except  in  the  dis- 
cretion of  the  officer  making  the  removal.  The  rule  is  intended 
to  prevent  removals  upon  secret  charges  and  to  stop  political  pres- 
sure for  removals.  *  *  *  The  civil  service  law  and  rules  pro- 
vide no  tenure  of  office  except  that  based  upon  efficiency  and  good 
behavior,  and  under  the  requirements  of  the  law  and  rules  it  is  as 
much  the  duty  of  an  appointing  officer  to  remove  classified  em- 
ployees for  inefficiency  as  it  is  not  to  discriminate  against  them  in 
any  way  for  political  or  religious  reasons." 

The  merit  system  does  not  result  in  an  undue  permanency  of 
tenure.  Fifty-seven  per  cent  of  the  persons  in  the  entire  execu- 
tive civil  service  have  served  less  than  five  years,  and  seventy-four 
per  cent  less  than  ten  years.  In  the  Departments  at  Washing- 
ton naturally  the  service  is  more  stable,  but  there  forty-one  per 
cent  of  the  employees  have  served  less  than  five  years  and  sixty 
per  cent  less  than  ten  years.  The  appointments  made  as  a  result 
of  the  examinations  in  the  entire  service  are  at  the  rate  of  about 
2,100  per  month.  About  twenty-two  per  cent  of  the  entire  service, 
and  about  ten  per  cent  of  the  Departmental  service  in  Wash- 
ington, changes  each  year.  The  inefficient  employee  gives  way 
to  the  efficient,  or  the  efficient  employee  finds  private  work  more 
profitable  or  more  congenial. 

The  charge  that  the  service  is  filled  with  superannuated  clerks 
is  unfounded.  Sixty  per  cent  of  the  employees  are  less  than  forty 
years  old,  and  ninety-one  per  cent  less  than  sixty  years ;  in 
Washington  fifty  per  cent  are  less  than  forty  and  eighty-seven 
per  cent  less  than  sixty. 

Second. — It  is  not  claimed  that  a  competitive  examination  is 
an  absolutely  correct  means  of  determining  the  qualifications  of 
applicants,  but  it  is  the  best  means  yet  devised.  The  Civil  Ser- 
vice Commission  is  constantly  changing  the  character  of  the  ex- 
aminations to  meet  the  special  requirements  of  particular  places. 
The  experience  of  twenty  years  has  shown  definitely  that  the 


39-A  THE  CIVIL  SERVICE. 

average  examination  can  be  passed  by  any  intelligent  person  who 
has  bad  a  common  school  education,  and  does  afford  a  remarkably 
accurate  basis  for  the  determination  of  the  relative  ability  of 
applicants. 

As  a  result  of  the  examination  for  the  scientific  and  technical 
positions,  there  have  been  built  up  various  corps  of  thoroughly 
trained  men  who  have  placed  the  scientific  work  of  this  Govern- 
ment in  the  forefront  among  the  nations  of  the  world.  This  has 
been  particularly  true,  and  the  results  have  been  of  great  practical 
value,  in  the  Departments  of  Interior,  Agriculture,  and  Commerce 
and  Labor. 

Third. — It  is  a  mistake  to  suppose  that  the  Civil  Service  Com- 
mission exists  simply  for  the  purpose  of  enforcing  the  law  and 
rules.  Its  purpose  is  to  provide  the  most  efficient  eligibles  pos- 
sible for  every  branch  of  the  service.  It  looks  to  the  good  of 
the  service,  not  to  the  mere  enforcement  of  a  rule.  It  is  the 
barrier  against  the  spoils  system,  but  it  does  not  protect  the  in- 
efficient or  dishonest  employee. 

The  ideal  Civil  Service  law  should  close  the  door  to  entrance 
into  the  public  service  except  through  a  method  which  can  be 
followed  by  any  qualified  person  without  political  influence  or 
favor,  but  leaves  to  the  executive  authorities  the  power  to  re- 
move for  any  cause,  'other  than  political  or  religious.  It  is  to- 
ward this  ideal  that  the  present  Administration  is  working. 

The  business  of  the  Government  has  grown  in  proportions  not 
appreciated  by  the  people  at  large.  The  executive  Departments 
are  made  responsible  for  the  expenditure  of  about  $GOO,000,000 
annually.  Such  expenditures  can  be  wisely  and  honestly  made 
only  by  exercising  the  highest  degree  of  business  ability  and 
selecting  efficient,  capable  employees  who  will  make  good  service 
to  the  government  their  ambition.  President  Roosevelt  has  proved 
that  under  his  administration  the  business  of  government  is  so 
conducted.  He  has  appointed  men  of  recognized  ability  and 
judgment  to  carry  on  executive  work.  He  has  made  no  promises 
impossible  of  fulfillment.  By  precept  and  example  he  has  in- 
spired public  officers  to  a  higher  sense  of  duty.  He  has  shown  that 
neither  personal  nor  political  influence  can  save  the  corrupt 
official  from  punishment.  American  citizens  should  remember 
and  take  to  heart  his  words  spoken  at  the  unveiling  of  the  Sher- 
man statue: 

"The  most  successful  governments  are  those  in  which  the 
average  public  servant  possesses  that  variant  of  loyalty  which  we 
call  patriotism,  together  with  common  sense  and  honesty.  We  can 
as  little  afford  to  tolerate  a  dishonest  man  in  the  public  service 
as  a  coward  in  the  army.  The  murderer  takes  a  single  life;  the 
corruptionist  in  public  life,  whether  he  be  bribe  giver  or  bribe 
taker,  strikes  at  the  heart  of  the  commonwealth.  In  every  public 
service,  as  in  every  army,  there  will  be  wrongdoers,  there  will 
occur  misdeeds.  This  can  not  be  avoided;  but  vigilant  watch  must 
be  kept,  and  as  soon  as  discovered  the  wrongdoing  must  be  stopped 
and  the  wrongdoers  punished." 


Protection  steadily  enlarges  the  home  market  for  farm  prod- 
ucts.— Hon.  Li.  R.  Casey. 

"Well-paid  wage-earners  are  generous  consumers. — Former 
Senator  Casey,  in  the  American  Economist. 

The  theory  of  free  trade  between  nations  is  as  fallacious.  Im- 
practicable, and  utterly  absurd  as  is  that  of  free  love  between 
families. — Hon.  B.  F.  Jones. 

We  know  our  own  minds  and  we  have  kept  of  the  same  mind 
for  a  sufficient  length  of  time  to  give  to  our  policy  coherence  and 
sanity. — President  Roosevelt's  speech  accepting  1904  nomination. 

It  is  true,  as  Peter  Cooper  well  said:  "No  goods  purchased 
abroad  are  cheap  that  take  the  place  of  our  own  labor  and  our 
own  raw  material." — H.  K.  Thurber,  in  the  American  Economist. 

The  dollar  paid  to  the  farmer,  the  wage-earner,  and  the  pen- 
sioner must  continue  forever  equal  in  purchasing  and  debt-paying 
power  to  the  dollar  paid  to  any  Government  creditor. — Maj.  Mc- 
Knley  to  Notification  Committee,  1896. 


RAILWAY  REGULATION.  395 


RAILWAY   REGULATION. 


Work  of  the  Interstate  Commerce  Commission. 

No  more  important  or  difficult  task  devolves  upon  the  Govern- 

mt  than  the  efficient  regulation  of  our  railway  systems.  The 
marvelous  rapidity  of  their  growth,  their  incomparable  utility,  the 
indispensable  service  they  perform,  the  vast  capital  they  repre- 
sent, and  the  enormous  amount  of  labor  they  employ  all  require 
their  subjection  to  adequate  public  control.  As  the  function  of 
railway  transportation  becomes  better  understood  and»the  depend- 
ence thereon  of  all  other  activities  is  more  clearly  perceived  the 
greater  will  be  the  demand  for  securing  to  every  citizen  the  right 
of  fair  and  equal  treatment  in  the  use  of  these  public  facilities. 

In  nearly  every  civilized  country  except  the  United  States  and 
Great  Britain  the  railroads  are  owned  and  operated  by  the  several 
governments,  and  public  ownership  here  is  not  without  its  advo- 
cates. This  proposition,  however,  has  not  made  any  considerable 
headway  and  is  not  likely  for  a  long  time  to  become  a  political 
issue.  It  is  a  project  at  variance  with  our  inherited  ideas  and  the 
traditional  spirit  of  our  institutions.  The  dominant  sentiment  of 
our  people  is  strongly  in  favor  of  allowing  this  service  to  be  per- 
formed by  private  enterprise,  yet  so  controlled  and  regulated  as 
to  secure  reasonable  charges  and  prevent  discriminating  practices. 
It  is  of  the  utmost  consequence,  therefore,  that  laws  enacted  for 
this  purpose  shall  be  vigorously  and  thoroughly  enforced. 

The  first  serious  attempt  at  Federal  railway  control  was  the 
passage  of  the  act  to  regulate  commerce,  commonly  known  as  the 
interstate  commerce  law,  in  1887.  The  adminstration  of  this  law 
was  committed  to  a  commission  of  five  members,  of  whom  not 
more  than  three  shall  belong  to  the  same  political  party ;  the  com- 
mission was  intended  to  be,  and  in  fact  has  always  been,  strictly 
nonpartisan.  Under  this  law  and  its  various  amendments  the 
commission  exercises  such  authority  as  has  been  conferred  upon 
it  by  the  Congress,  and  the  results  have  been  in  the  main  highly 
satisfactory. 

It  must  be  remembered,  however,  that  the  Commission  is  an 
administrative  and  not  a  judicial  body.  It  has  no  power  to  en- 
force its  own  orders,  much  less  can  it  punish  criminal  offenders. 
It  is  practically  dependent  for  success  upon  the  vigilant  coopera- 
tion of  the  Department  of  Justice.  The  civil  remedies  which  this 
law  provides  must  be  enforced  against  disobedient  carriers  by  suits 
in  the  Federal  courts,  while  the  criminal  remedies  afforded  are 
wholly  in  the  hands  of  the  various  United  States  attorneys  under 
the  direction  of  the  Attorney-General.  The  efficiency  and  useful- 
ness of  the  Commission  must  in  the  nature  of  the  case  be  deter- 
mined largely  by  the  attitude  and  efforts  of  the  Department  of 
Justice. 

Bearing  these  facts  in  mind,  it  is  not  easy  to  estimate  the  bene- 
ficial results  which  have  been  attained  during  the  last  few  years. 
The  Commission  has  been  sustained  and  encouraged  in  its  difficult 
work,  and  the  law  has  been  enforced  with  a  degree  of  ability  and 
success  never  before  approached.  Between  the  Department  and  the 
Commission  the  most  cordial  relations  have  constantly  obtained, 
and  they  have  acted  together  in  harmonious  effort  and  with  a 
common  purpose  to  promote  the  public  welfare.  The  last  report 
of  the  Commission,  submitted  to  the  Congress  in  December,  1903, 
closes  with  this  significant  statement: 

"In  conclusion  the  Commission  takes  pleasure  in  saying  that 
the  Department  of  Justice  has  promptly  and  cheerfully  complied 
with  every  request  for  the  prosecution  of  civil  and  criminal  pro- 
ceedings, and  has  in  various  ways  materially  aided  the  efforts  of 
the  Commission  to  enforce  the  regulating-  statutes." 

This  tribute  from  an  independent  and  nonpartisan  board  to  a 
Republican  Attorney-General  carries  its  own  comment. 

But  this  is  by  no  means  all  that  has  been  done  during  the 
present  Administration.  A  Republican  Congress  has  passed  and  a 
Republican  President  has  approved  amendments  to  the  interstate 
commerce  law  which  have  greatly  increased  its  efficacy  and  greatly 
aided  the  success  of  public  regulation.  As  a  means  for  the  cor- 
rection of  transportation  abuses  these  amendments  have  in  fact  re- 


306  RAILWAY    REGULATION. 

invigorated  the  law  by  removing  defects  and  adding  needful  pro- 
visions. The  regulating  statute  has  been  put  upon  a  far  more 
workable  basis  and  the  utility  of  this  legislation  has  already  been 
proven  beyond  doubt  or  question.  This  is  particularly  true  of  the 
Elkin8  law,  so  called,  which  was  approved  in  February,  1903. 
Concerning  this  law  the  Commission  in  its  last  annual  report  makes 
the  following  statement: 

"It  has  proved  a  wise  and  salutary  enactment.  It  has  cor- 
rected serious  defects  in  the  original  law  and  greatly  aided  the 
attainment  of  some  of  the  purposes  for  which  that  law  was  en- 
acted. No  one  familiar  with  railway  conditions  can  expect  that 
rate-cutting  and  other  secret  devices  wll  immediately  and  wholly 
disappear,  but  there  is  basis  for  a  confident  belief  that  such  of- 
fenses are%no  longer  characteristic  of  railway  operations.  That 
they  have  "greatly  diminished  is  beyond  doubt,  and  their  recur- 
rence to  the  extent  formerly  known  is  altogether  unlikely.  In- 
deed, it  is  believed  that  never  before  in  the  railroad  history  of  this 
country  have  tariff  rates  been  so  well  or  so  generally  observed  as 
they  are  at  the  present  time." 

Only  those  familiar  with  the  history  of  railway  operations  can 
fully  appreciate  the  significance  of  this  official  declaration.  It 
means  that  the  announced  charges  of  railway  carriers  are  now 
in  fact  actually  applied  to  large  and  small  shippers  alike.  This  is 
cause  for  public  rejoicing.  As  everyone  knows,  the  secret  advan- 
tages heretofore  secured  by  rebates  and  other  forms  of  favoritism 
were  the  dishonest  means  by  which  large  concerns  often  crushed 
out  their  smaller  rivals.  Nothing  has  so  powerfully  aided  the 
aggreseions  of  industrial  trusts,  nothing  connected  with  these  com- 
binations has  been  so  offensive  and  destructive,  as  the  private  bar- 
gains of  one  sort  and  another  by  which  they  secured  lower  freight 
rates  than  independent  dealers  were  compelled  to  pay.  This  was 
the  characteristic  and  odious  evil  of  railway  methods  up  to  a  re- 
cent  date.  Within  the  last  two  years  this  evil  has  been  thoroughly 
suppressed.  To  a  very  great  extent,  to  an  extent  which  justifies 
the  most  favorable  comment,  the  whole  rebate  business  has  been 
broken  up  and  is  rapidly  disappearing.  This  is  perhaps  the  great- 
est benefit  that  could,  be  conferred  upon  the  general  business  inter- 
ests of  the  country.  It  gives  each  man  the  same  opportunity  and 
puts  the  small  dealer  on  a  footing  of  equality  with  his  largest  rival 
so  far  as  transportation  charges  are  concerned.  It  is  difficult  to 
realize  the  advance  that  has  been  made  in  this  regard  within  a 
comparatively  short  time.  The  salutary  provisions  of  the  Elkins 
law,  and  the  resolute  and  persistent  efforts  of  the  Attorney-Gen- 
eral during  the  present  administration,  have  practically  removed 
the  greatest  and  gravest  of  railroad  abuses. 

The  important  and  most  useful  changes  effected  by  the  Elkins 
law  are  described  by  the  Commission  as  follows : 

In  the  first  place,  the  recent  amendment  makes  the  railway 
corporation  itself  liable  to  prosecution  in  all  cases  where  its  offi- 
cers and  agents  are  liable  under  the  former  law.  Such  officers 
and  agents  continue  to  be  liable  as  heretofore,  but  this  liability  is 
now  extended  to  the  corporation  which  they  represent.  This 
change  in  the  law  corrects  a  defect  which  has  always  been  a 
source  of  embarrassment  to  the  Commission,  as  has  been  explained 
in  previous  reports,  because  it  gave  immunity  to  the  principal  and 
beneficiary  of  a  guilty  transaction.  As  a  practical  matter,  it  is  be- 
lieved that  much  benefit  will  result  from  the  fact  that  proceedings 
can  now  be  taken  against  the  corporation. 

The  amended  law  has  abolished  the  penalty  of  imprisonment, 
and  the  only  punishment  now  provided  is  the  imposition  of  fines. 
As  the  corporation  can  not  be  imprisoned  or  otherwise  punished 
for  misdemeanors  than  by  money  penalties,  it  was  deemed  expedi- 
ent that  no  greater  punishment  be  visited  upon  the  offending  officer 
or  agent.  The  various  arguments  in  favor  of  this  change  have 
been  stated  in  former  reports  and  need  not  here  be  repeated,  i 
Whether  the  good  results  claimed  by  its  advocates  will  be  realized  j 
is  by  no  means  certain,  but  the  present  plan  should  doubtless  be 
continued  until  its  utility  is  further  tested. 

A  further  change  has  been  effected  by  the  act  of  1903  which  is 
of   much   importance.     As    the    former   law   was   construed   by   the 
courts,  it  was  not  sufficient  to  show  that  a  secret  and  preferential 
rate  had  been  allowed  in  a  particular  case;  there  had  to  be  further 
proof    of    the    payment    of    schedule    charges,    or    at    least    higher  I 
charges  than  those  in  question,  by  some  other  person  on  like  and  i 
contemporaneous    shipments.     That   is,   it   was   necessary   to    prove 
discrimination  in  fact  as  between  shippers  entitled  to  the  same  rates 
by  reason  of  receiving  the  same  service.     The  practical  result  of 
this  construction  was  to  render  successful  prosecutions  extremely 
difficult     if   not    impossible,    because    the    required    evidence    could  J 
rarely  be  secured,  and  this  was  particularly  the  case  when  there 
was    an    extensive    demoralization   of   rates   and   consequently    the  : 
most  urgent  occasion  for  the  use  of  criminal  remedies,    Under 


RAILWAY    REGULATION. 


397 


such  circumstances  it  frequently  happened  that  all  shippers  re- 
ceived substantially  the  same  rates,  much  less,  however,  than  the 
published  tariff,  and  thus  there  was  no  actual  discrimination.  This 
aggravating  defect  appears  to  have  been  wholly  cured,  as  the  new 
law  in  most  explicit  terms  makes  the  published  tariff  the  standard 
of  lawfulness,  as  respects  criminal  misconduct,  and  any  departure 
therefrom  is  declared  to  be  a  misdemeanor.  It  is  sufficient  now, 
in  order  to  make  out  a  case  of  criminal  wrongdoing,  to  show  that 
a  lower  or  different  rate  from  that  named  in  the  tariff  has  been 
accorded.  The  effect  of  this  amendment  is  to  make  the  shipper 
liable  whenever  the  carrier  is  liable,  while  either  or  both  of  them 
may  be  convicted  by  simply  proving  that  the  rate  charged  ts  not 
covered  by  the  tariff  applicable  to  the  transaction. 

The  foregoing  are  the  principal  changes  made  by  the  Elkins 
law  as  respects  the  criminal  remedies  for  prohibited  practices. 
They  relate  solely  to  acts  which  are  made  misdemeanors  and  have 
no  other  application.  The  further  provisions  of  this  law,  affecting 
what  may  be  called  civil  remedies,  are  likewse  important  and  may 
be  briefly  mentioned.  One  of  these  makes  it  lawful  to  include  as 
parties,  in  addition  to  the  carrier  complained  of,  all  persons  in- 
terested in  or  affected  by  the  matters  involved  in  the  proceedings; 
and  this  may  be  done  both  before  the  Commission  and  when  suit 
is  begun  originally  in  the  circuit  court.  Under  the  former  law 
carriers  only  could  be  made  parties  defendant;  under  the  amended 
law  shippers  also  may  be  included.  To  what  extent  this  change 
will  prove  advantageous  the  Commission  does  not  undertake  at 
this  time  to  express  an  opinion. 

The  other  and  more  essential  provision  of  the  character  now 
referred  to  is  the  one  which  confers  jurisdiction  upon  the  circuit 
courts  of  the  United  States  to  restrain  departure  from  published 
rates,  or  "any  discriminations  forbidden  by  law,"  by  writ  of  injunc- 
tion or  other  appropriate  process.  The  writ  or  process  thus  au- 
thorized is  enforcible  as  well  against  parties  interested  in  the 
traffic  as  against  the  carrier.  This  provsion  disposes  of  a  question 
which  has  been  the  subject  of  much  controversy,  and  furnishes  a 
comprehensive  remedy  which  is  believed  to  be  of  the  greatest 
value. 

During  the  last  two  years,  also,  the  safety  appliance  laws  have 
been  improved  by  important  amendments  and  by  an  act  requiring 
reports  of  railway  accidents.  This  humane  legislation  has  proved 
of  incalculable  benefit  to  railroad  employees.  It  safeguards  their 
dangerous  and  responsible  work,  and  at  the  same  time  gives  added 
security  to  the  millions  of  travelers.  These  are  immense  benefits 
to  the  public  and  to  hundreds  of  thousands  of  the  most  intelligent 
and  deserving  working  men  in  the  country. 


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MKKCI1ANT    MARINE. 


flERCHANT  riARINE. 

While  American  shipping  in  foreign  trade  has  not  yet  agair. 
reached  a  rank  commensurate  with  the  country's  needs  or  witt 
its  growth  and  greatness  in  other  directions,  American  shipping 
and  shipbuilding  since  the  return  of  the  Republican  party  tc 
power  have  made  good  progress.  The  following  table  shows  the 
total  merchant  tonnage  (gross  register  tons)  under  the  Americar. 
tl. ig,  divided  according  to  the  trade  in  which  engaged,  on  June  3( 
of  each  year  named,  and  also  the  gain  or  loss  for  each  period  ol 
four  fiscal  years,  covering  approximately  the  three  latest  national 
administrations : 

Total   American   Merchant   Shipping;. 


On  June  30— 

Foreign 
Trade. 

Coasting1 
trade. 

Sea 
fisheries. 

Total. 

1892 

977,624 
829.833 
816.795 
879,264 

3.700.773 
3.790.296 
4,286,516 
5.141.037 

86.524 
83.751 
61.528 
67.044 

4.764.92 
4  703  88( 

1896 

1900 

5  164  835 

1903 

6  087  34J 

Gain  or  Loss  In  Four  Years. 


Period. 

Foreign 
Trade. 

Coasting 
Trade. 

Sea 

fisheries. 

Total. 

1893-1896 

—147.791 

~r  13.038 

*62,469 

89.523 
496,220 
*854,521 

—  2.773 

—22.223 

*5.516 

—61,041 

1897-1900 

460,959 

1901-1903  

♦922.506 

♦Gain  in  three  years.  The  returns  for  June  30,  1904,  not  yet 
completed,  will  show  a  total  increase  during  the  four  years  ol 
nearly  1,100,000  gross'  tons,  and  about  1,000,000  gross  tons  in  the 
coasting  trade. 


American   Tonnage    Built   During;    Recent    Periods    of   Pour   Fiscal 
Years,  Beginning;  June  30. 

Gross  regis- 
ter tons. 

1893-1896  inclusive 681.53S 

1897-1900  inclusive 1 ,  106,51 1 

♦1901-1904  inclusive 1.769.47S 


The  notable  increase  in  American  shipping  during  the  eight 
years  pf  Republican  administration  has  been  due  to  wise  legisla- 
tion as  well  as  to  general  causes.  The  Porto  Rican  act  of  April  12, 
1900,  and  the  Hawaiian  act  of  April  30,  1900,  brought  under  the 
American  flag  51,618  gross  tons  of  shipping  formerly  belonging  to 
those  islands.  By  applying  the  coasting  laws  to  trade  between  the 
United  States  and  those  islands  the  construction  in  American 
shipyards  of  steel  steamers  for  those  trades,  aggregating  about 
140,000  gross  tons,  has  been  encouraged,  involving  an  expenditure 
for  labor  and  materials  of  fully  $15,000,000.  Means  of  communica- 
tion between  these  islands  and  the  United  States  are  better  than 
ever  before,  freight  rates  are  lower,  and  trade  has  increased.  The 
first  regular  American  steamship  line  around  Cape  Horn  has  been 
established  and  an  American  yard  has  built  the  largest  steamer 
ever  launched  into  the  Pacific.  By  the  Philippine  act  of  April  15, 
1904,  trade  between  the  United  States  and  the  Philippines  after 
July  1,  1906,  will  be  subject  to  the  coasting  laws.  This  act  will 
doubtless  lead  to  the  establishment  of  the  first  regular  American 
steamship  line  through  the  Suez  Canal.  Prudence  dictated  a  date 
far  enough  in  advance  to  permit  the  construction  of  ample  Ameri- 
can shipping  for  the  trade,  the  necessary  adjustment  of  tariff  rela- 
tions, and  the  registry  under  the  American  flag  of  143,837  gross 
tons  of  shipping  now  owned  in  the  Philippines. 

The  act  of  April  28,  1904,  provides  that  vessels  of  the  United 
States  and  no  others  shall  be  employed  in  the  transportation  by 
sea  of  supplies  for  the  Army  and  Navy,    This  act  is  in  accord  with 


MERCHANT    MARINE.  399 

the  policy  of  England,  Germany,  and  France,  and  strengthens 
American  sea  power  and  increases  American  shipbuilding. 

The  act  of  June  28,  1902,  and  the  prompt  action  of  President 
Roosevelt  thereunder  has  put  the  United  States  in  possession  of 
the  Panama  Canal  Zone,  and  the  actual  construction  of  the  canal 
under  American  auspices  has  begun.  The  Panama  Canal 
(discussed  at  page  2G5)  will  give  a  powerful  stimulus  to 
American  shipping  and  shipbuilding.  The  distance  from  New 
York  to  San  Francisco  by  the  Straits  of  Magellan  is  13,090  miles ; 
by  the  Panama  Canal  it  will  be  only  5,278  miles.  The  saving  in 
distance  between  our  Atlantic  and  Pacific  ports  will  involve  a 
great  increase  in  the  American  coasting  trade,  increased  ship- 
building and  reduced  freight  charges  by  land  and  sea. 

Mainly  at  the  request  of  commercial  and  shipping  interests 
Congress  by  act  of  February  14,  1903,  created  a  Department  of 
Commerce  and  Labor,  charged  with  the  duty  of  fostering,  promot- 
ing, and  developing  the  foreign  and  domestic  commerce,  shipping 
and  fishery  industries,  the  labor  interests,  and  the  transportation 
facilities  of  the  United  States. 

The  general  policy  entered  upon  by  the  Republican  party  in 
1872  of  exempting  from  duty  imported  materials  to  be  used  in 
American  shipyards  for  vessels  for  the  foreign  trade  has  been 
extended  by  successive  enactments  until  by  the  Dingley  tariff  of 
July  24,  1897,  all  imported  materials  for  vessels  in  the  foreign 
trade,  or  for  their  machinery,  outfit  and  equipment  and  for  their 
repairs,  are  admitted  free  of  duty,  and  supplies  for  American  ves- 
sels in  foreign  trade  are  free  from  customs  duties  or  internal- 
revenue  taxes. 

The  United  States  has  always  exerted  its  influence  in  favor  of 
peace  and  the  mitigation  of  the  injuries  caused  by  war  to  non- 
combatants.  At  the  recommendation  of  the  late  President  Mc- 
Kinley  and  President  Roosevelt,  Congress  passed  the  following 
joint  resolution,  approved  April  28,  1904: 

"Resolved,  By  the  Senate  and  House  of  Representatives  of  the 
United  States  of  America  in  Congress  assembled,  That  it  is  the 
sense  of  the  Congress  of  the  United  States  that  it  is  desirable,  in 
the  interest  of  uniformity  of  action  by  the  maritime  states  of  the 
world  in  time  of  war,  that  the  President  endeavor  to  bring-  about 
an  understanding  among  the  principal  maritime  powers  with  a 
view  of  incorporating  into  the  permanent  law  of  civilized  nations 
the  principle  of  the  exemption  of  all  private  property  at  sea,  not 
contraband  of  war,  from  capture  or  destruction  by  belligerents." 

Legislation  for  Seamen. 

In  recent  years  of  Republican  control  of  Congress  and  the 
executive  departments  the  conditions  of  American  labor  at  sea 
have  been  greatly  improved  by  legislation.  The  act  of  December 
21,  1898,  provided  a  compulsory  scale  of  provisions  for  seamen  on 
American  merchant  vessels  very  much  superior  in  quantity  and 
quality  to  the  food  furnished  to  seamen  on  foreign  vessels.  It 
also  provided  for  the  prompter  payment  of  wages,  already  much 
higher  than  on  foreign  ships,  and  for  the  return  of  wrecked,  sick,  or 
injured  American  seamen  from  abroad  at  the  expense  of  the  Fed- 
eral government.  Forecastle  quarters  on  American  ships  are  now 
equal  to  any  on  foreign  ships  and  superior  to  most.  Warm  rooms 
are  prescribed  in  cold  weather.  Government  relief  is  extended  to 
distressed  American  seamen  in  Alaska,  Porto  Rico,  Hawaii,  and  the 
Philippines  as  well  as  in  foreign  ports.  The  penalty  of  imprison- 
ment for  the  seaman's  breach  of  a  civil  contract  has  been  abol- 
ished, and  all  forms  of  corporal  punishment  prohibited  under 
heavy  penalties.  Prompt  trial  of  cases  in  which  the  seaman  is  a 
party  has  been  provided.  More  rigid  inspection  at  home  and 
abroad  of  the  seaworthiness  of  a  vessel,  the  sufficiency  of  pro- 
visions, and  the  adequacy  of  the  crew  are  now  required  by  law. 
The  act  of  December  21,  1898,  imposes  heavy  penalties  for  sending 
an  unseaworthy  American  ship  to  sea.  The  hulls  of  the  larger  sail- 
ing vessels  are  subjected  to  Government  inspection  and  their  mas- 
ters and  mates  are  required  to  stand  Government  tests  of  com- 
petency. 

The  evils  of  the  "crimping"  system,  by  which  seamen  have  been 
cheated  of  their  wages,  have  been  combated  by  legislative  enact- 
ment and  administrative  effort.     Abuses  of  allotments  of  wages 


400 


MKIUTIANT    MARINE. 


have  been  reduced,v  under  the  act  of  December  21,  1898.    Of  that 
act  the  Supreme  Court  of  the  United  States  recently  said : 

"The  story  of  the  wrongs  done  to  sailors  in  the  larger  ports, 
not  merely  of  this  nation  but  of  the  world,  is  an  oft-told  tale,  and 
many  have  been  the  efforts  to  protect  them  against  such  wrongs. 
One  of  the  most  common  means  of  doing  these  wrongs  is  the  ad- 
vancement of  wages.  Bad  men  lure  them  into  haunts  of  vice,  ad- 
vance a  little  money  to  continue  their  dissipation,  and  having  thus 
acquired  a  partial  control  and  by  liquor  dulled  their  faculties, 
place  them  on  board  the  vessel  just  ready  to  sail  and  most  ready 
to  return  the  advances.  When  once  on  shipboard  and  the  ship  at 
sea,  the  sailor  is  powerless  and  no  relief  is  availing.  It  was  in 
order  to  stop  this  evil,  to  protect  the  sailor,  and  not  to  restrict  him 
of  his  liberty,  that  this  statute  was  passed.  And  while  in  some 
cases  it  may  operate  harshly,  no  one  can  doubt  that  the  best  in- 
terests of  seamen  as  a  class  are  preserved  by  such  legislation." 

Already  this  year  one  crimp  has  been  sentenced  to  five  years' 
imprisonment  and  a  fine  of  $5,000 ;  three  have  been  sentenced  each 
to  18  months'  imprisonment  and  a  fine  of  $1,000;  lesser  penalties 
have  been  imposed  in  other  cases,  and  still  other  cases  are  under- 
going or  awaiting  trial.  The  acts  of  March  31,  1900,  and  April  13. 
1904,  providing  stricter  regulations  for  boarding  incoming  vessels, 
have  reduced  the  opportunities  for  crimping. 

The  Shipping?  Question. 

Thus  during  the  nearly  eight  years  of  complete  Republican  con- 
trol of  Congress  and  the  executive  departments  American  shipping 
and  shipbuilding  have  developed  rapidly  under  legislation  bene- 
ficial alike  to  the  interests  of  shipbuilders,  shipowners,  and  seamen 
and  to  the  general  welfare  of  the  whole  country ;  but  American 
ships  still  carry  a  diminishing  proportion  of  our  exports  and  im- 
ports. In  1892  they  carried  12.3  per  cent. ;  in  1896,  12  per  cent. ; 
in  1900,  9.3  per  cent.,  and  in  1903,  9.1  per  cent.  A  merchant  fleet 
Is  a  national  necessity,  first  to  furnish  the  reserve  transports  and 
supply  ships  needed  in  war  to  supplement  the  Navy,  and  second  to 
furnish  the  reserve  seamen  required  to  put  the  country  on  a  war 
footing  at  sea,  as  the  national  guard  of  the  States  can  put  the 
country  on  a  war  footing  ashore.  The  transportation  of  our  ocean 
mails  is  a  public  service  which  should  be  intrusted  as  far  as  prac- 
ticable to  American  steamers. 

Ocean  carrying  in  national  ships  promotes  a  country's  commer- 
cial importance  and  its  influence  in  the  affairs  of  nations;  it  de- 
velops and  diversifies  home  industries  to  the  advantage  of  labor, 
and  brings  to  home  capital  a  fair  return  on  investment.  During 
the  past  twelve  years  the  values  of  American  exports  and  imports 
carried  in  American  and  foreign  vessels  have  been  as  follows : 


Year. 

In  American 
vessels. 

In  foreign 
vessels. 

Total. 

Per 

cent. 

1892 

$220,173,735 
197,765.507 
195.268,216 
170,507,196 
187,691.887 
189.075,277 
161.328,017 
160,612.206 
195.084.192 
177.398,615 
185.819.987 
214,695,032 

$1,564,558,808 
1,428.316.568 
1.273,022.456 
1.285.896.192 
2.377.973,521 
1.525,753,766 
1,582,492.479 
1,646,263,857 
1,894,444,424 
1,974,536,796 
1.919,029,314 
2,026,102,388 

$1,784,732,543 
1,626,082,075 
1,468,290,672 
1,456,403,388 
1,565,665,408 
1,714,829,043 
1.743.820.496 
1,806,876.063 
2,089,528,616 
2,151,935,411 
2,104,849,301 
2,240,797,420 

12.3 

1893 

12.2 

1894 

13.3 

1895 

11.7 

1896 

12 

1897 

11 

1898 

9.3 

1899 

8.9 

1900 

9.3 

1901 

8.2 

1902 

1903 

8.8 
9.1 

There  are  no  wholly  reliable  figures  of  the  amount  paid  in 
freights  for  ocean  cargoes.  The  late  authority  on  international 
statistics,  Mulhall,  estimated  ten  years  ago  that  the  earnings  of 
ships  amounted  to  about  8  per  cent  of  the  value  of  the  cargoes, 
rates  are  subject  to  great  fluctuations,  and  have  been  low  the  past 
two  years.  For  1903  the  freights  paid  on  American  exports  and 
imports  were  approximately  $140,000,000,  of  which  American  ves- 
sels received  9.1  per  cent.  Passenger  fares  exceed  annually  $30.- 
000,000  of  late  years. 

Other  nations  for  military,  mail,  and  commercial  purposes  deem 
it  important  to  promote  their  national  shipping  in  foreign  trade  by 
national  assistance.  The  annual  grants  for  these  purposes  at  the 
present  time  by  the  principal  nations  are  substantially  as  follows : 


MERCHANT    MARINE. 
Subsidies  to  Shipping. 


401 


Country. 

Mail. 

General. 

Total. 

Austria-Hungary 

$1,288,201 

82,455 

5,019,703 

1,825.651 

4,874,243 

1,757.812 

2.865.831 

367,468 

48,338 

63,300 

$656,270 

$1,944,471 
82  455 

Denmark 

France 

3,623,720 

8  643  423 

Germany 

1  825  651 

Great  Britain 

662.369 

1.061.639 

76.465 

5  536  612 

Italy 

2  819  451 

2.942.296 
367  468 

Norway 

89,218 
"'i,595,76i' 

137  556 

Portugal 

63  300 

Russia 

1  595  701 

Spain . 

1,629,927 
81,849 

1  629  927 

Sweden 

81  849 

19.904,778 

7.765.382 

27.670,160 

The  British  House  of  Commons  in  July,  1903,  ratified  a  con- 
tract by  which  the  British  Government  agrees  to  advance  to  the 
Cunard  Company  £1,300,000  for  each  of  two  mail  steamers,  the 
largest  and  fastest  afloat,  to  be  repaid  in  twenty  years  at  2%  per 
cent  interest.  During  these  twenty  years  the  Government  guar- 
antees an  annual  subsidy  of  £150,000  and  £68,000  additional  for 
the  mails.  So  important  does  England,  the  great  shipping  and 
naval  power,  deem  fast  ocean  mail  steamers  that  by  this  contract 
she  practically  gives  to  the  Cunard  Company  the  two  finest  ships 
which  can  be  built,  if  the  company  will  operate  them  as  mail  and 
auxiliary  naval  vessels. 

The  best  means  of  restoring  the  American  marine  to  the  ocean 
has  been  a  matter  of  long  and  thus  far  fruitless  debate.  On 
recommendation  of  President  Roosevelt  Congress  on  April  28,  1904, 
created  a  Merchant  Marine  Commission  of  five  Senators  and  five 
Representatives,  whose  duty  it  is  to  investigate  and  report  to  the 
Congress  on  the  first  day  of  its  next  session  what  legislation  is  de- 
sirable for  the  development  of  the  American  merchant  marine  and 
American  commerce,  and  also  what  change  or  changes,  if  any, 
should  be  made  in  existing  laws  relating  to  the  treatment,  comfort, 
and  safety  of  seamen,  in  order  to  make  more  attractive  the  seafar- 
ing calling  in  the  American  merchant  service.  This  commission  is 
now  engaged  in  obtaining  the  views  of  shipbuilders,  shipowners, 
ship  managers,  and  others  engaged  in  the  shipping  industries  at  the 
great  centers  of  the  shipping  trade,  visiting  all  parts  of  the  coun- 
try where  citizens  having  special  knowledge  on  this  subject 
through  experience  or  otherwise  are  to  be  found.  It  is  believed 
that  the  information  which  they  will  thus  collect  will  aid  Congress 
in  determining  what  steps  should  be  taken  to  develop  the  mer- 
chant marine  of  the  country. 


PRESIDENTIAL   RECOMMENDATIONS. 

Extract  from  President  McKin ley's  message,  December  3,  1900 : 

Foreign  ships  should  carry  the  least,  not  the  greatest,  part  of 
American  trade.  The  remarkable  growth  of  our  steel  industries, 
the  progress  of  shipbuilding  for  the  domestic  trade,  and  our  stead- 
ily maintianed  expenditures  for  the  Navy  have  created  an  oppor- 
tunity to  place  the  United  States  in  the  first  rank  of  commercial 
maritime  powers. 

Besides  realizing  a  proper  national  aspiration  this  will  mean 
the  establishment  and  healthy  growth  along  all  our  coasts  of  a 
distinctive  national  industry,  expanding  the  field  for  the  profitable 
employment  of  labor  and  capital.  It  will  increase  the  transporta- 
tion facilities  and  reduce  freight  charges  on  the  vast  volume  of 
products  brought  from  the  interior  to  the  seaboard  for  export,  and 
will  strengthen  an  arm  of  the  national  defense  upon  which  the 
founders  of  the  Government  and  their  successors  have  relied. 

Extract  from  President  Roosevelt's  message,  December  3,  1901 : 

Shipping  lines,  if  established  to  the  principal  countries  with 
which  we  have  dealings,  would  be  of  political  as  well  as  commer- 
cial benefit.  From  every  standpoint  it  is  unwise  for  the  United 
States  to  continue  to  rely  upon  the  ships  of  competing  nations  for 
the  distribution  of  our  goods.  It  should  be  made  advantageous 
to  carry  American  goods  in  American-built  ships. 

At  present  American  shipping  is  under  certain  great  disadvan- 
tages when  put  in  competition  with  the  shipping  of  foreign  coun- 
tries. Many  of  the  fast  foreign  steamships,  at  a  speed  of  fourteen 
knots  or  above,  are  subsidized,  and  all  our  ships,  sailing  vessels 


402  M EEC II ANT    MARINE. 

and  steamers  alike,  cargo  carriers  of  slow  speed  and  mail  carriers 
of  hi^li  speed,  have  to  meet  the  fact  that  the  original  cost  of  build- 
ing American  ships  is  greater  than  is  the  case  abroad;  that  the 
wages  paid  American  officers  and  seamen  are  very  much  higher 
than  those  paid  the  officers  and  seamen  of  foreign  competing  coun- 
tries, and  that  the  standard  of  living  on  our  ships  is  far  superior 
to  the  standard  of  living  on  the  ships  of  our  commercial  rivals. 

Our  Government  should  take  such  action  as  will  remedy  these 
Inequalities.  The  American  merchant  marine  should  be  restored 
to   the  ocean. 

Causes  of  the  Growth  of  Foreign  Shipping  and  Decline  of  American 
Shipping  for  the  Foreign  Trade. 

The  great  causes  of  growth  of  foreign  shipping  and  decline 
of  American  shipping  for  the  foreign  trade  are  well  known. 
Great  Britain  began  the  payment  of  large  sums  to  her 
shipowners  in  the  forties,  some  in  the  guise  of  payments 
for  carrying  mails  and  some  as  direct  subsidies.  She  was 
followed  in  this  plan  of  encouraging  the  shipping  interest 
by  other  European  countries.  This  custom  has  grown  until  the 
annual  payments  to  ships  for  mail  services  or  as  direct  subsidies 
now  amount  to  about  30  million  dollars  per  annum,  of  which  about 
2  millions  are  paid  by  the  United  States.  The  sums  paid  by  for- 
eign governments  to  aid  in  developing  their  merchant  marines 
since  1860  have  aggregated  many  hundreds  of  millions  of  dollars. 
While  these  governments,  chiefly  those  of  Europe,  have  been  de- 
veloping their  merchant  marines  at  this  enormous  cost  the  Govern- 
ment and  people  of  the  United  States  were  encouraging  the  de- 
velopment of  our  splendid  railroad  system,  which  now  forms  two- 
fifths  of  the  railways  of  the  world.  During  that  same  period 
the  ocean  transportation  system  was  being  entirely  changed  from 
the  wooden  and  iron  vessels  to  the  modern  steel  screw  pro- 
peller. The  consequence  was  that  the  American  vessels  which  ex- 
isted before  the  civil  war  became  almost  useless  in  competition 
with  the  new  style  of  vessels,  and  as  American  capital  was  busy 
with  the  more  profitable  work  of  developing  the  railways,  the 
lake  transportation  and  the  coastwise  transportation  systems  of 
the  country,  the  ocean  shipping  was  neglected.  The  Government 
aid  which  foreign  lines  obtained,  together  with  cheapness  in  labor 
for  building  and  operating  vessels,  enabled  them  to  carry  freights 
at  such  low  rates  that  little  incentive  was  offered  to  Americans 
to  invest  in  shipbuilding,  especially  as  cost  of  labor  was  and  is 
much  higher  here  than  abroad,  both  in  the  building  and  operating 
of  vessels.  In  the  domestic  commerce — along  the  coasts,  upon  the 
lakes— and  on  the  rivers  -where  foreign  ships  are  not  permitted 
to  operate,  American  shipping  has  shown  a  healthj-  growth. 

Views  of  Minister  Barrett. 

In  response  to  the  request  of  the  Congressional  Merchant  Ma- 
rine Commission,  Hon.  John  Barrett,  United  States  Minister  to 
Panama,  and  who  has  formerly  been,  respectively,  United  States 
Minister  in  Argentina  and  Siam,  in  addition  to  making  a  journey 
around  the  world  as  Commissioner-General  of  Foreign  Affairs  for 
the  St.  Louis  Exposition,  appeared  before  that  body  in  Chicago, 
June  24,  and  made  a  statement  based  on  his  observations  as  a 
foreign  representative  of  the  United  States  and  a  traveler  in  many 
different  countries.  This  statement,  which  was  highly  commended, 
not  only  by  the  friends  but  by  the  opponents  of  so  called  ship 
subsidies  present,  is  summarized  below.     Mr.  Barrett  said : 

I  am  not  here  to  make  any  argument  for  or  against  ship  subsi- 
dies, but  to  submit  a  few  facts  and  suggestions  based  on  my  study 
of  our  foreign  trade  in  many  different  countries  and  upon  various 
seas.  During  the  last  ten  years  it  has  been  my  privilege  to  make 
three  journeys  around  the  world,  twice  while  a  Minister  of  the 
United  States  and  once  as  Commissioner-General  of  the  St.  Louis 
Exposition.  After  what  I  have  seen  I  would  be  lacking  in  patriot- 
ism and  be  unmindful  of  actual  conditions  if  I  did  not  urge  that 
something  should  be  done  for  the  development  of  American  ship- 
ping. 

It  does  not  seem  that  this  is  a  question  of  so  called  "subsidies." 
It  is  rather  a  problem  as  to  whether  the  United  States  Govern- 
ment is  willing  to  pay  certain  sums  for  the  carrying  of  the  mails 
between  ports  of  the  United  States  and  ports  of  foreign  lands, 
just  as  it  would  pay  a  railroad  company,  a  stage  driver,  or  a  mes- 


MERCHANT    MARINE.  403 

senger  to  do  the  same  service  in  the  United  States.  The  higher 
the  expense  for  such  transportation,  and  the  greater  the  difficul- 
ties to  be  encountered,  the  more  the  United  States  should  be  will- 
ing to  pay.  Just  as  the  Government,  or  an  individual,  pays  a 
company,  or  a  person,  to  do  any  work  for  it,  in  accordance  with 
the  conditions  surrounding  this  undertaking,  so  the  United  States 
should  take  into  consideration  what  are  the  conditions  surround- 
ing the  carrying  of  the  mails  on  comparatively  fast  steamers  to 
distant  ports  of  foreign  lands.  If  the  United  States  pays  a  certain 
man  $1,000  for  carrying  the  mail  one  year  in  a  stage  coach  be- 
tween two  towns  in  Vermont,  or  Colorado,  so  that  people  living 
in  this  section  may  have  good  service,  it  is  difficult  to  understand 
why  the  same  Government  should  not  be  willing  to  pay  a  propor- 
tionate amount  to  carry  mails  between,  for  instance,  New  York 
City  and  Buenos  Aires,  the  great  commercial  entrepot  of  South 
America,  and  other  important  places  in  foreign  lands.  Without, 
however,  going  further  into  this  argument,  beyond  simply  empha- 
sizing that  I  argue  in  favor  of  practical  every-day  methods  being 
applied  to  American  steamship  service,  without  any  regard  to 
actual  subsidies,  I  state  now  what  supports  me  in  my  argument. 

First:  No  one  can  dispute  the  importance  of  building  up 
closer  relations  of  commerce  and  friendship  between  the  United 
States  and  the  great  staple  countries  of  South  America,  like  the 
Argentine  Republic.  The  foreign  trade  of  Argentina  last  year 
amounted  to  $360,000,000,  of  which  the  share  of  the  United  States 
was  only  $24,000,000,  counting  both  exports  and  imports ;  the  great 
proportion  of  the  remainder  was  with  European  countries.  Ar- 
gentina is  the  United  States  of  South  America,  and  is  destined  in 
trade  and  influence  to  dominate  all  South  America.  Its  capital 
city  and  chief  port,  Buenos  Aires,  has  a  population  of  one  million, 
and  is  growing  more  rapidly  than  any  city  in  the  world,  with  the 
exception  of  New  York  and  Chicago.  When  I  left  Buenos  Aires 
in  April,  1904,  there  were  seven  first-class  fast  mail  and  passen- 
ger steamship  lines  running  between  Buenos  Aires  and  the  prin- 
cipal ports  of  Europe,  like  Liverpool,  Southampton,  Hamburg,  Bor- 
deaux, Barcelona,  Genoa,  and  Naples ;  there  was  not  a  single  line 
of  similar  steamers  between  Buenos  Aires  and  New  York,  or  any 
North  American  port.  In  other  words,  there  were  almost  two 
steamers  per  week  of  this  kind,  aside  from  a  large  regular  freight 
fleet  running  between  southern  South  America  and  Europe,  while 
no  direct  mail  or  passenger  steamers  with  fast  freight  facilities 
were  leaving  Buenos  Aires  for  or  coming  from  the  United  States. 
Expressed  in  another  way,  which  should  come  home  to  every  busi- 
ness man  in  the  United  States,  the  situation  is  this :  A  merchant 
or  banker  in  Buenos  Aires  can  write  to  Europe  and  get  an  answer 
within  55  days,  but  he  can  not  write  to  the  United  States  and 
obtain  a  reply  in  less  than  75  or  90  days.  It  is  needless  to  point 
out  that  such  conditions  are  booming  trade  with  Europe  and  de- 
pressing trade  with  the  United  States  in  a  field  that  has  a  mag- 
nificent future. 

Second:  Just  before  leaving  Argentina,  General  Roca,  the 
President  of  that  Republic,  informally  stated  to  me  that  Argen- 
tina stood  ready  to  do  her  share  in  cooperation  with  the  United 
States  to  pay  a  reasonable  sum  for  the  carrying  of  the  mails  be- 
tween Buenos  Aires  and  New  York,  in  steamers  which  would  also 
have  passenger  and  fast  freight  facilities.  He  said  that  there  was 
no  other  influence  that  would  do  more  than  this  to  promote  closer 
relations  between  the  two  great  republics  of  North  and  South 
America.  The  newspapers  and  all  classes  of  men,  irrespective  of 
calling,  are  favorable  to  such  legitimate  payment  for  services  that 
may  be  done  by  a  steamship  company,  and  can  not  understand 
why  the  United  States  will  not  do  its  part,  especially  when  they 
believe  that  it  would  add  millions  and  millions  of  dollars  to 
American  trade  with  South  America.  The  reason  why  no  steam- 
ship company  can  now  afford  to  put  on  first-class  vessels  between 
New  York  and  Buenos  Aires  is  that  it  can  not  compete  success- 
fully against  these  European  lines,  most  of  which  are  paid  well 
by  the  governments  for  carrying  their  mails,  and  which  in  some 
instances  have  entered  into  contracts  with  freight  steamship  lines 
between  the  United  States  and  southern  South  America  not  to 
carry  passengers,  or  put  on  fast  mail  and  freight  ships.  They 
desire  naturally  not  only  to  keep  the  business  in  Europe,  but  to 


*U*  AIMICMAINT     A1AK1JN*;. 

keep  passengers,  the  number  of  which  is  increasing  greatly  every 
\r;ir,  hum  (oining  to  the  United  States  instead  of  Europe.  From 
reliable  data  placed  in  my  hands  I  have  reason  to  believe  that 
:>.(kh)  to  10,000  representative  influential  men  of  Argentina  would 
come  to  the  United  States  every  year  for  trade  and  travel,  and 
that  our  trade  with  that  country  would  be  increased  50  to  100 
per  cent  per  annum  (or  to  $40,000,000  to  $(50,000,000  per  annum, 
and  even  more)  if  such  steamship  service  were  established.  In 
other  words,  if  the  United  States  were  willing  to  join  with  Argen- 
tina and  pay  what  might  be  termed  a  reasonable  wage  to  a  steam- 
ship company  for  carrying  the  mails  between  New  York  and 
Buenos  Aires  and  other  South  American  ports,  like  Rio  Janeiro, 
Santos,  and  Montevideo,  there  would  be  a  beginning  of  the  end 
a  I  >«»ut  all  this  talk  of  European  trade  controlling  South  America 
in  trade  and  politics. 

Third:  During  the  last  journey  I  made  around  the  world, 
leaving  San  Francisco  and  going  by  the  way  of  Japan,  China, 
India,  the  Mediterranean,  and  Europe,  I  did  not  see  in  any  impor- 
tant port  along  the  highway  of  empire  a  single  large  merchant 
vessel  flying  the  American  flag.  There  were,  on  the  other  hand, 
the  flags  of  Great  Britain,  Germany,  and  France  and  often  that  of 
Japan.  I  need  not  enlarge  upon  this  condition  of  affairs  to  prove 
that  something  should  be  done  for  the  upbuilding  of  our  merchant 
marine.  There  is  something  the  matter  somewhere!  During  the 
four  years  that  I  was  United  States  Minister  in  Siam  I  never  saw 
one  American  merchant  vessel  enter  the  harbor  of  Bangkok,  which 
is  one  of  the  most  prosperous  and  important  cities  of  Southeastern 
Asia,  with  a  large  and  growing  trade  with  the  outer  world,  but 
every  day  I  witnessed  vessels  coming  in  and  going  out  flying  the 
flags  of  England,  Germany,  Japan,  and  not  infrequently  those  of 
Norway,  Sweden,  and  Denmark.  There  are  to-day  a  half  dozen 
fast  mail  and  passenger  steamers  running  between  Europe  and  the 
east  of  Asia  which  are  well  paid  by  their  governments  for  carry- 
ing the  mail,  while  there  is  only  one  line  flying  the  American  flag 
between  the  west  coast  of  the  United  States  and  the  Orient.  In 
harmony  with  this  condition  can  be  noted  that  the  trade  of  Europe 
with  Asia  is  six  or  seven  times  that  of  the  United  States.  Ten 
years  ago,  when  I  first  traveled  up  and  down  the  coast  of  Asia, 
from  Japan  to  India,  I  seldom  if  ever  saw  merchant  vessels  under 
the  Japanese  flag ;  to-day  they  can  be  found  in  almost  every  port, 
in  addition  to  running  to  Europe  and  the  United  States^  The 
Japanese  Government  and  business  men  ascribe  this  wonderful 
development  almost  entirely  to  the  liberal  sums  the  Japanese  Gov- 
ernment voted  to  Japanese  ships  for  carrying  the  mails  in  appro- 
priate vessels. 


The  world's  production  of  pig  iron  from  1790  to  1902. 


Year. 

United 
States. 

Great 
Britain. 

Germany. 

France. 

Various. 

Total. 

Tons. 

Tons. 

Tons. 

Tons. 

Tons. 

Tons. 

1790 

30,000 

40,000 

55.000 

110.000 

180,000 

290,000 

560,000 

820.000 

1,670,000 

68.000 

190.000 

250,000 

400.000 

680.000 

1.390.000 

2,250.000 

3,830,000 

5.960.000 

30,000 
40.000 
46,000 
90.000 
120,000 
170.000 
402.000 
530,000 
1,390.000 

40.000 
60.000 
85.000 
140.000 
220.  (XX) 
350.000 
570.000 
900.000 
1,180.000 

110.000 
130,000 
180.000 
270.000 
385.000 
480,000 
640.000 
1.100.000 
1,710.000 

278  000 

1800 

460  000 

1810 

616  000 

1820 

1.010.000 
1.585.000 
2,680.000 

1830 

1840 

1850 

4,422  000 

I860 

7  180  000 

1870 

11.910.000 

1880 

3,840,000 

7,750,000 

2.730.000 

1,730,000 

2,090.000 

18.140,000 

1885 

4,050,000 

7.420.000 

2,690.000 

1.630.000 

2.310.000 

19.100,000 

1889 

7.600,000 

8,250.000 

4.530.000 

1,720,000 

3,060,000 

25,160,000 

1895.. 

9,446.000 

7.703.000 

5.465,000 

2,006.000 

4.247.000 

28.867.000 

1896 

8,623.000 

8,660,000 

6.271,000 

2,302.000 

5,001.000 

30,857,000 

1897 

9,652,000 

8.796.000 

6.771,000 

2.444.000 

5,267,000 

32.930,000 

1898 

11.773,000 

8,610,000 

7,196,000 

2,485.000 

5.808,000 

35,872,000 

1899 

13,620,000 

9.421,000 

8.013.000 

2,537,000 

6,464,000 

40,055,000 

1900 

13.789.000 

8,960,000 

'8,384,000 

2,671,000 

6.686,000 

40,490.000 

1901 

15.878,000 

7,929.000 

7,754,000 

2.351,000 

6,886,000 

40.798,000 

1902 

17.821.000 

8.680,000 

8,393,000 

2.367.000 

*6,800,000 

*44,061.000 

1903 

18,009.000 

♦Partial  estimate. 
NOTE — Official  figures  for  the  United  States,  the  United  King- 
dom, Germany  and  France.     Figures  for  all  other  countries  taken 
from  the  French  and  Swedish  Mineral  Statistics. 


MHIKUHAJNT     MAKIJNE. 


4:Ufc> 


Statement  of  number  and  tonnage  of  steam  and  sailing  vessels  of 
over  100  tons,  of  the  principal  countries  of  the  world,  as  recorded 
in  Lloyd's  Register  for  1903-4. 


Flag. 


British : 

United  Kingdom. 
Colonies 


Total 

American  (United  States): 

Sea 

Lake 

Total 


Argentine 

Austro-Hungarian . 

Belgian 

Brazilian 

Danish 

Dutch 

French 

German 

Greek 

Italian 

Japanese 

Norwegian 

Philippine  Islands. . 

Russian 

Spanish 

Swedish 

Other  countries : 


Steam. 


No. 


7.530 
1.023 


349 


1,211 

119 
267 
112 
288 
385 
360 
717 
1,425 
199 
365 
544 
962 
92 
573 
459 
750 


Net  tons.  Gross  tons 


,233,721 
466,732 


8.700.453 


810,003 
756,470 


1,566,473 


13,410, 

782: 


14,193,582 


1.220.995 
1.001,072 


2,222,067 


Sail. 


No. 


2,581 


2,119 
56 


99 

29 
2 

90 
414 

98 
638 
473 
192 
861 
1,042 
1.256 

37 
726 
136 
764 

15 


Net 
tons. 


1,478,677 
334,115 


24.918 

20.952 

488 

22,979 

97,279 

45,626 

468,255 

488,936 

52.304 

476,226 

141.276 

718,511 

8,261 

231.305 

43,625 

218,535 

5.333 


CONDITION    OF    AMERICAN    MERCHANT    MARINE    1860    TO    1903. 


American  vesssels. 

Registered 

tonnage 
of  vessels 
passing 
through 
Sault  Ste. 
Marie 
Canal. 

Years. 

Built. 

Engaged 

in  foreign 

trade. 

Engaged 

in  domestic 

trade. 

Engaged 
in  com- 
merce of 
Great 
Lakes. 

1860 

Tons. 
214.797 
233,194 
175,075 
311,045 
415,740 
394,523 
336,146 
305,595 
285,304 
275,230 
276,953 
273,226 
209,052 
359,245 
432,725 
297,638 
203,585 
176,591 
235,503 
193,030 
157,409 
280,458 
282,269 
265,429 
225,514 
159,056 
95.453 
150,450 
218,086 
231,134 
294,122 
369,302 
199.633 
211.639 
131,195 
111,602 
227,096 
232,232 
180,458 
300,038 
393,790 
483,489 
468.833 
436,152 

Tons. 

2,546,237 

2,642,628 

2,291,251 

2.026,114 

1,581.894 

1,602,583 

1,492,926 

1,568,032 

1,565,732 

1,566,422 

1,516,800 

1,425,142 

1,410,648 

1,423,288 

1,428,923 

1.553,827 

1,592,821 

1,611,193 

1.629,048 

1,491,534 

1,352,810 

1,335,586 

1,292,294 

1.302,095 

1,304,221 

1,287,998 

1,111,179 

1.015,563 

943,784 

1,021,595 

946,695 

1,005,950 

994,676 

899,803 

916,180 

838,186 

844,954 

805,584 

737,709 

848,246 

826.694 

889.129 

882.555 

888.776 

Tons. 

2,807.631 

2,897,185 

2,830,913 

3,128,942 

3,404,506 

3,494,199 

2,817,852 

2,736,455 

2,786,027 

2,578,219 

2,729,707 

2,857,465 

3,027,099 

3,272,739 

3,371,729 

3,299,905 

2,686,637 

2,631 ,407 

2,583,717 

2,678,067 

2,715,224 

2,722,148 

2,873.639 

2,933,392 

2,967,008 

2,977.936 

3,019,957 

3,090,282 

3.248.132 

3,285,880 

3,477,802 

3,678.809 

3,770,245 

3,925.268 

3,767,849 

3.797.774 

3,858.926 

3,963,436 

4.012,029 

4,015,992 

4,338,145 

4,635,089 

4,915,347 

5,198,569 

Tons. 

467,774 

490,445 

563,260 

635,054 

700,673 

673,697 

573,912 

617,686 

695,604 

661,366 

684,704 

712,027 

724,493 

788,412 

842,381 

837,891 

613,211 

610,160 

604.656 

597,376 

605,102 

663,382 

711,269 

723.911 

733,069 

749,948 

762,560 

783,721 

874.102 

972.271 

1,063,063 

1,154.870 

1,183,582 

1,261.067 

1,227,400 

1,241,459 

1,324,067 

1,410,102 

1,437,500 

1,446,348 

1,565.587 

1,706.294 

1,816.511 

1,902,698 

Registered 
tons. 
403,657 

1861 

276,639 

1862 

359,612 

1863 

507,434 

1864 

571,438 

1865 

409,062 

1866 

458,530 

1867 

1868 

556,899 
432.563 

1869 

524,885 

1870 

690,826 

1871 

752,101 

1872 

914,735 

1873 

1,204,446 

1074 

1,070.857 

1875 

1,259,534 

1876 

1,541.676 

1877 

1,439,216 

1878 

1,667.136 

1879 

1,677,071 

1880 

1,734,890 

1881 

2,092,757 

1882 

2,468,088 

1883 

2.042,259 

1884 

2.997,837 

1885 

3.035,937 

1886 

4,219,397 

1887 

4,897,598 

1888 

5,130.659 

1889 

7,221,935 

1890 

8.454,435 

1891 

8,400,685 

1892 

1893 

10,647,203 
8,949,754 

1894 

13,110.366 

1895 

16,806,781 

1896...            

17,249,418 

1897 

17,619,933 

1898                         

18,622.754 

1899                     

21,958,347 

1900                       

22,315.834 

1901                  

24.626.976 

1902 

31,955.582 

1903              

27.736.446 

406 


MERCHANT    MARINE. 


Value  of  Foreign  Carrying  Trade  of  the  United  States  in  Ameri- 
can and  Foreign  Vessels,  etc.  -Total  United  States  Imports 
and  Exports. 

[From   the   Statistical   Abstract.] 


By  sea. 

Year 

By  land 
vehicles. 

Total  by 

land 
and  sea. 

ending 

June 

30. 

In  Ameri- 
can vessels 

In  foreign 
vessels. 

Total. 

Per  cent 
in  Ameri- 
can vessels 

Dollars. 

Dollars. 

Dollars. 

Dollars. 

Dollars. 

1860 

507.247.757 

255.040,798 

762.288,550 

66.5 

762.288,550 

1881 

381.616.788 

203,478.278 

684.995.066 

65.2 

584,995,066 

1862 

217.695.418 

218,015.296 

435.710,714 

50. 

435,710,714 

1863..... 

241.872.471 

343.056,031 

584,928.502 

41.4 

584,928,502 

1864 

184.061.486 

485,793,548 

669,855.034 

27.5 

669.855,034 

1865 

167.402,872 

437,010.124 

604,412,996 

27.7 

604.412,996 

1866 

325.711,861 

685,226.691 

1,010,938,552 

32.2 

1,010,938.552 

1867 

297.834,904 

581,330.403 

879.165,307 

33.9 

879.165,307 

1868 

297,981.573 

550,546.074 

848,527,647 

35.1 

848.527,647 

1869 

289,956,772 

586,492,012 

876,448,784 

33.2 

876,448,784 

1870 

352.969,401 

638.927.488 

991,896.889 

35.6 

991,896,889 

1871 

353.664,172 

755,822,576 

1,109,486.748 

31.9 

'22, 985,510 

1.132,472.258 

1872 

345,331,101 

839,346,362 

1,184,677.463 

29.2 

27.650.770 

1,212,328,233 

1873 

346.306,592 

966,722,651 

1,313,029,243 

26.4 

27,869,978 

1.340,899,221 

1874 

350.451,994 

939,206,106 

1,289,658,100 

27.2 

23,022,540 

1,312,680,640 

1875 

314,257,792 

884,788.517 

1,199,046,309 

26.2 

20,388,235 

1,219,434.544 

1876 

311,076,171 

813,354,987 

1,124,431,158 

27.7 

18,473,154 

1,142,904,312 

1877 

316,660,281 

859,920,536 

1,176,580.817 

26.9 

17,464,810 

1,194,045.627 

1878 

313.050,906 

876,991,129 

1,190,042,035 

26.3 

20,477,364 

1,210,519,399 

1879..... 

272,015.692 

911,269,232 

1,183,284.924 

23. 

19,423,685 

1,202,708,609 

1880 

258.346,577 

1,224,265,434 

1,482.612,011 

17.4 

20.981,393 

1,503,593,404 

1881 

250.586,470 

1,269,002,983 

1,519,589,453 

16.5 

25.452,521 

1.545,041,974 

1882 

227,229.745 

1,212,978,769 

1,440,208,514 

15.8 

34,973.317 

1,475,181,831 

1883 

240,420,500 

1.258,506,924 

1,498,927,424 

16. 

48,092,892 

1,547,020,316 

1884 

233,699,035 

1.127,798,199 

1,361,497,234 

17.2 

46,714,068 

1,408.211,302 

1885 

194,865,743 

1,079,518,566 

1.274,384,309 

15.3 

45,332,757 

1.319,717,084 

1886 

197,349,503 

1,073,911.113 

1,271,260,616 

15.5 

43,700,350 

1,314,960,966 

1887 

194,356,746 

1,165,194.508 

1.359,551,254 

14.3 

48.951,725 

1,408,502,979 

1888 

190,857,473 

1,174.697,321 

1,365,554,794 

14. 

54,356,827 

1.419,911,621 

1889..... 

203,805,108 

1,217,063,541 

1,420,868,649 

14.3 

66,664,378 

1,487.533,027 

1890 

202,451.086 

1.371.116,744 

1,573,567,830 

12.9 

73.571,263 

1,647,139,093 

1891 

206,459,725 

1,450,081,087 

1,656,540,812 

12.5 

72,856,194 

1.729,397,006 

1862 

220,173,735 

1,564,559,651 

1,784,733,386 

12.3 

72,947,224 

1,857,680.610 

1893 

197,765,507 

1,428.316,568 

1,626,082,075 

12.2 

87,984,041 

1,714,066,116 

1894 

195,268,216 

1,273,022,456 

1,468,290,672 

13.3 

78,844,522 

1,547,135.194  . 

1895 

170,507,196 

1,285,896,192 

1,456.403,388 

11.7 

83,104,742 

1,539.508,130 

1896 

187,691,887 

1,377,973,521 

1 ,565,665,408 

12. 

96,666,204 

1,662,331,612 

1897 

189,075,277 

1,525,753,766 

1,714,829,043 

11. 

100,894,925 

1,815,723,968 

1898 

161,328,017 

1.582,492,479 

1,743,820,496 

9.3 

103,711,488 

1,847,531,984 

1899 

160,612,206 

1,646.263.857 

1,806,876,063 

8.9 

117,295,728 

1,924,171,791 

1900 

195,084,192 

1.894,444,424 

2,089,528,616 

9.3 

154,895,650 

2.244,424,266 

1901 

177,398,615 

1,974,536,796 

2,151,935,411 

8.2 

159,001,745 

2,310,937,156 

1902 

185,819,987 

1,919,029,314 

2,104,849,301 

8.8 

180,191,048 

2,285,040,349 

1903 

214,695,032 

2,026,106,388 

2,240,801,420 

9.1 

205,059,496 

2,445,860,916 

A  fall  day's  work  must  be  paid  in  full  dollars.— Major  McKinley, 
at  Canton,  1896. 

"I  believe  that  the  protective  system  has  been  a  mighty  in- 
strument for  the  development  of  our  national  wealth  and  a  most 
powerful  agency  in  protecting  the  homes  of  our  workingmen."— - 
Harrison. 

"To  increase  production  here,,  diversify  our  productive  enter- 
prises, enlarge  the  field  and  increase  the  demand  for  American 
workmen;  what  American  can  oppose  these  worthy  and  patriotic 
objects  ?" — McKinley. 

"Every  citizen  of  the  United  States  has  an  interest  and  a  right 
in  every  election  within  the  Republic  where  national  representa- 
tives are  chosen.  We  insist  that  these  laws  relating  to  our  na- 
tional elections  shall  be  enforced,  not  nullified."— Garfield. 

"A  currency  'worth  less  than  it  purports  to  be  worth  will  in  the 
end  defraud  not  only  creditors  but  all  those  who  are  engaged  in 
legitimate  business,  and  none  more  surely  than  those  who  are  de- 
pendent upon  their  daily  labor  for  their  daily  bread."— Hayes. 

"The  right  of  railway  corporations  to  a  fair  and  profitable  re- 
turn upon  their  investments  and  to  reasonable  freedom  in  their 
regulations  must  be  recognized;  but  it  seems  only  just  that,  so  far 
as  its  constitutional  authority  'will  permit,  Congress  should  protect 
the  people  at  large  in  their  interstate  traffic  against  acts  of  Injus- 
tice which  the  State  governments  are  powerless  to  prevent."— 
Arthur. 


MERCHANT    MARINE. 


407 


Subsidies   and  Payments   for  the  Ocean  Mail  Service  of   Great 
Britain  and  the  United  States  from  1848  to  1908. 

[Compiled  from  official  sources.] 


Great 
Britain. 

United  States. 

Year. 

Mail  payments. 

Subsidy  to 

British 
steamers. 

To  Amer- 
ican 
steamers. 

To  for- 
eign 
steamers. 

Total 

amount 

paid. 

1848 

$3,250,000 
3,180,000 
5,313,985 
5,380,000 
5,510,635 
5.805,400 
5,950,559 
5,741,633 
5,713,560 
5,133,485 
4,679.415 
4,740.179 
4,349,760 
4,703,285 
4,105,353 
4,188,275 
4,503,050 
3,981,995 
4,227,018 
4,079.966 
4,047,586 
5.481,690 
6,107.761 
6,070,741 
5,693,500 
5,665,296 
5,697.346 
4,860.000 
4,420,261 
3,976,580 
3,914,990 
3.768,230 
3,873,136 
3.601,350 
3,538,835 
3,608,800 
3,608,355 
3,612,065 
3,662,805 
3,625,915 
3,490,864 
3,184,425 
3,827,260 
4,142,139 
4,277,972 
4,328.501 
4,442,361 
4,574,805 
4,450,317 
4,516,583 
4,716,397 
4,801,028 
4,743.000 
4,371.000 
4,017.000 
5,536,612 

$100,500 

235,086 

619,924 

1,465,818 

1,655,241 

1.880,273 

1,903,286 

1,936,715 

1,886,766 

1,589,153 

1,177,303 

1,079,220 

707,245 

570,953 

80,683 

79,397 

64,356 

66,572 

245,605 

411,065 

625.239 

757,964 

791,389 

699,661 

805.788 

81S.400 

750,296 

740,361 

580,063 

283,835 

40,152 

41,251 

38,780 

42,552 

40,645 

48,077 

53.170 

49.048 

43.319 

76,727 

86,890 

109,828 

120.170 

147.561 

259.788 

646,031 

711,443 

633,035 

1,027,735 

1,288,674 

1,038,141 

998,211 

1,269,660 

1,250,381 

1,525,313 

1,611,794 

$100  500 

1849 

235  086 

1850 

619  924 

1851 

1,465,818 
1  655  241 

1852 

1853 

1  883  273 

1854 

1,903,286 
1  936  715 

1855 

1856 

1,886  766 

1857 

1,589  153 

1858 

$33,758 

125,350 

147,085 

235,932 

293,932 

336,677 

376,085 

498,856 

468,324 

456,138 

390,907 

343,726 

315,944 

275,364 

221.103 

228,757 

238,098 

236,283 

173,547 

162,061 

159,828 

158,775 

161,029 

197,515 

239,856 

268,281 

279,051 

282,855 

286,072 

335,946 

376,528 

505,573 

420,507 

443,204 

478,748.95 

495.630.87 

461,956.87 

429,856.67 

394,636.60 

392.670.18 

437.882.06 

487,038.24 

518,954 

575,666 

556,195 

597,940 

1,211,061 

1859 

1,204,570 

1860 

854.330 

1861  

896,885 

1862 

374,618 

1863 

416,074 

1864 

440.441 

1865  . .' 

475.428 

1866 

713,929 

1867 

1868 

867,203 
1.016,146 

1869 

1,101.690 

1870 

1871  

1872 r. 

1873 

1874 

1,115,333 

975,025 

1.026,891 

1,044,157 

988,394 

1875 

976.644 

1876 

756,610 

1877 

448,896 

1878 

199,980 

1879 

200,026 

1880 

199,809 

1881  

240,067 

1882 

280.501 

1883 

316.358 

1884 

332,321 

1885 

331.903 

1886 

329.391 

1887 

412,673 

1888 

463,418 

1889 

515,401 

1890 

510,677 

1891  

590,765 

1892 

738,537.51 

1893 

1,141.662.69 
1.173W00.'80 

1894 

1895 

1,062,892.56 

1896 

1.422,372.50 

1897 

1.681,344.40 

1898 

1.478.023.21 

1899 

1.485.250.09 

1900 

1,788,614 

1901 

1,826,047 

1902 

2,081,508 

1903 

2,209,735 

Resuscitation  will  not  be  promoted  by  recrimination.  The 
distrust  of  the  present  will  not  be  relieved  by  a  distrust  of  the 
future.  A  patriot  makes  a  better  citizen  than  a  pessimist. — Presi- 
dent McKinley  before  Manufacturers'  Club,  Philadelphia,  June  2, 
1S97. 


While  American  labor  is  more  efficient  and  more  productive 
than  labor  elsewhere,  it  yet  remains  incontestibly  true  that  there 
are  thousands  of  commodities  which  can  not  be  made  by  our  arti- 
sans in  competition  with  low-priced  labor  elsewhere. — Hon.  Henry 
M.  Hoyt. 

"The  present  phenomenal  prosperity  has  been  won  under  a 
tariff  made  in  accordance  with  certain  fixed  principles,  the  most  Im- 
portant of  which  is  an  avowed  determination  to  protect  the  in- 
terests of  the  American  producer,  business  man,  wage-worker,  and 
farmer  alike."— Roosevelt. 


408 


n  NSIONS. 


PENSIONS. 


The  Record  of  the  Republican  Party  In  Behalf  of  the  Soldier. 

The  first  duty  of  a  nation  is  to  care  for  its  defenders.  Those 
who  leave  the  paths  of  peace  and  bare  their  breasts  to  the  storms 
of  war  when  their  country's  peril  calls  have  an  abiding  lien  upon 
the  sympathy  and  gratitude  of  that  country  wheh  disabled,  old, 
and  poor.  This  is  Republican  doctrine,  and  that  it  is  no  idle  pre- 
tense, no  flimsy  generality,  the  records  of  the  40  years  since  the 
thunder  of  the  guns  that  defended  the  Union  were  silenced  in 
victory  have  abundantly  proved.  Our  splendid  pension  system 
which  has  no  precedent  in  the  world's  history,  and  no  peer  in 
justice  and  generosity  among  the  nations  of  the  earth,  is  a  dis- 
tinctively Republican  institution,  not  one  feature  of  which  is  due 
to  or  has  ever  been  claimed  by  the  Democratic  party. 

The  official  statements  herewith  presented  will  verify  the 
boast  of  the  Republican  party  that  it  has  not  failed  to  redeem 
every  promise  made  in  the  dark  hours  of  that  great  struggle  of  the 
last  century,  the  promise  to  care  for  the  soldier,  for  his  widow, 
and  for  his  children. 

The  total  number  of  original  pension  claims  allowed  from 
1862  to  June  30,  1903,  is  1,782,213. 

To  this  will  be  added  during  the  current  fiscal  year  probably 
50,000  more,  making  more  than  one  million  eight  hundred  thous- 
and cared  for  "soldiers,  their  widows,  and  their  children." 


The  number  of  original  pension  issues  from  1862  to 
elusive,  is: 

1903,  in- 

Year 

Applica- 
tions 

Claims 
allowed 

Year 

Applica- 
tions 

Glaims 
allowed 

1862 

2,487 
49,832 
53,599 
72,684 
66.256 
36.753 
20.768 
26,066 
24,851 
43,969 
26,391 
18,308 
16,734 
18,704 
28,623 
22,715 
44,587 
67,118 
141,466 
31,116 
40,939 
48,776 

462 
7,884 
39,487 
40,171 
60,177 
36,482 
28,921 
28,196 
18,221 
16,562 
34,333 
16,062 
10,462 
11,152 
9.977 
11.826 
11,962 
31,346 
19,545 
27,394 
27,664 
88,162 

1884 

41,785 
40,918 
49,895 
72,465 
75,726 
81.22H 
105,044 
696,941 
246,638 
119,361 
67,141 
45,861 
42,244 
50.585 
48.732 
68.881 
51,964 
58,373 
47.965 
52,325 

34,192 
35.767 

40  857 

1868 

1885 

1864 

1886 

1866 

1887 , 

55,191 
60  262 

1866 

1888 

1867 

1889 

81,921 
66,637 
156,486 
224,047 
121,680 
89,086 
39,185 
40.374 
50,101 
52,648 
37,077 
40,646 
44,868 
40,178 
40,186 

1868 

1890 

1869 

1891 

1870 

1892 

1871 

1893 

1872 

1894 

1873 

1895 

1874 

1896 

1876 

1897 

1876 

1888 

1877 

1899 

1878 

1900 

1879 

1901 

1880 

1902 

1881 

1903 

Total 

1883 

2,924,701 

1,782,218 

In  the  report  for  1902  it  was  suggested  that  the  number  of 
pensioners  would  reach  1,000,000.  The  following  table  gives  the 
monthly  report  of  pensioners  during  the  fiscal  year  of  1903,  and 
also  the  number  dropped  by  death : 


June  30, 1902 


Jnly31,1902 

August  81,  1902 

September  30,  1902. 

October  31,  1902 

November  80, 1902.. 
December  81,  1902.... 
January  81,  1903  .... 
February  28, 1903  ... 

March  31, 1908 

April  30,  1908 

May  31. 1908 

June  30,  1903 

Total 


Number  of 
pensioners 
on  the  rolls 


Number  of 
pensioner* 
dropped  by 

death 


999,446 

1,001,494 

2,026 

1,000.530 

3,890 

1.000,732 

2,151 

1.000,392 

3,144 

999,894 

3,826 

998,932 

8.029 

998,964 

2.865 

997,414 

3.938 

996.686 

3,833 

995,088 

4.826 

995.819 

8.482 

996,545 

6,403 

40,907 


PENSIONS. 


409 


It  is  not  probable  that  the  pension  roll  will  again  cross  the 
million  line.     The  high-water  mark  was  on  July  31,  1902. 

The  number  of  pensioners  upon  the  rolls  July  1,  1903,  and  for 
four  preceding  years,  respectively,  is  as  follows: 


Wars 


1903 


1900 


War,  Revolutionary : 

Widows 

Daughters  

War  of  1812 

Survivors 

Widows 

Indian  wars: 

8urvivors 

Widows 

Mexican  war: 

Survivors 

Widows 

Service  after  Mar.  4, 1861 
General  laws — 

Army  invalids 

Army  widows 

Navy  invalids 

Navy  widows 

Army  nurses 

Act  June  27.  1890— 

Army  invalids 

Army  widows 

Navy  invalids 

Navy  widows 

War  with  Spain: 
General  laws- 
Army  invalids 

Army  widows 

Navj  invalids 

Navy  widows 

Total 


1.565 
3,169 


5.964 
7,910 


264.139 

86,866 

4,142 

2,221 

624 

427,711 

155.249 

16.010 

6,992 


8,798 

8,488 

402 

174 


4 
4 

1 
1,317 


3.320 


6,828 
8,017 


277,965 

87,046 

4.360 

2,263 

634 

426,188 

148,201 

15,953 

6.977 


6.282 

2.727 

329 

127 


1 

1,627 


1.086 
3.479 


293.186 

86,504 

4.489 

2,298 

650 

422,481 

138.490 

15,683 

6.621 


3,344 

1,981 

211 


1 
1.742 


1.370 
8.739 


8.352 
8.151 


305.980 

88,463 

4.622 

2,314 

646 

415.265 

129,412 

If. 392 

6.314 


822 
845 
60 


1 

1.998 


1.656 
3,899 


9.204 
8.176 


90.597 

4.721 

2,293 

653 

405.987 

124,127 

14.925 

6.139 


117 
165 


997,735 


993,529 


991,519 


The  Burden  of  Pensions. 

The  cost  of  the  pension  system  is  made  the  burden  of  com- 
plaint by  our  Democratic  brethren  in  and  out  of  Congress. 

While  $140,000,000  per  year  is,  technically,  somewhat  of  a 
burden,  it  is  so  slight  compared  with  the  wealth  of  the  nation 
that  it  ceases  to  be  an  argument. 

The  official  figures  will  exhibit  this  in  detail. 

The  cost  of  the  pension  system  per  capita  of  population  for  each 
year  since  1889  and  the  proportion  it  sustains  to  the  wealth  of 
the  United  States  are  as  follows: 


Year. 

Number 
of  pen- 
sioners. 

Total  cost  of 
pension  Bystem. 

Total 
population. 

CoBt  per 

capita  of 

population. 

1889 

489,725 
637,944 
676,160 
876,068 
966,012 
969,544 
970,524 
970,678 
976,014 
993,714 
991,519 
993,529 
997,736 
999,446 
996,545 

892,309,688  98 
109,620,282.52 
122,018,326.94 
144,292,812.91 
161,774,372  86 
143,950,702.48 
144,150,314.51 
142,212,080.07 
143,987,500.42 
148,765,971.26 
142,502,570.68 
142,303,837.89 
142,400,279.28 
141,335,646.95 
141,752,870.50 

61,289,000 
62,622,250 
68,844,000 
65,086,000 
66,349,000 
67,632,000 
68,934,000 
70,254,000 
71,592,000 
72,947,000 
74,318,000 
76,803,8»7 
77,647,000 
79,003,000 
80,847,000 

8151 

1890 

llbX 

1891 

1.91 

1892 

2.22 

1893 

1894 

2.44 
2.13 

1895 

2  09 

1896 

2.02 

1897 

2.01 

1898 

2.04 

1899 

1.92 

1900  

186)4 

1901 

1.84 

1902 

1.79 

1903 

1.75 

The  pension   system   was  and  is   a  burden  on  the  aggregate 
wealth  of  the  United  States  as  follows : 


Year. 

Aggregate  wealth 
of  the  United  States. 

Cost  of  pen- 
sion system 
per  81,000. 

1890 

865,037,091,000 

a  72,200,000,000 

77,000,000,000 

94,800,000,000 

a  107,200,000,000 

81.40 

1893                               

224 

1895  , 

1.90 

1000    .„ 

150 

1908 .... 

132 

a  Estimated. 


410 


TENSIONS. 


The  pension  system  was  the  greatest  as  a  burden  to  the  people 
of  Hit'  United  States  in  \SWA,  since  which  time  the  burden  has 
been  constantly  decreasing  until  it  has  shrunk  in  ten  years  from 
$2.24  to  $1.32  per  $1,000  of  taxable  wealth.  In  ten  years  more 
the  burden  will  cease  to  be  noticed. 

The  disbursements  for  pensions  by  the  United  States  from 
July  1,  1790,  to  June  30,  1865,  were  $96,445,444.23. 

The  total  of  pensions  and  expenses  from  the  latter  date  to  the 
present  is,  with  the  number  of  pensioners,  as  follows : 


Year. 

Paid  as  pen- 
sions. 

Cost,  main- 
tenance, and 
expenses. 

Total. 

Number 
of  pen- 
Biooers. 

1866 

$15,450,549,88 

20,784,789.69 

23,101.509.86 

28,518,247.27 

29,351,488.78 

28,518,792.62 

29  752,746.81 

26.982,063.89 

30.206,778.99 

29.270.404.76 

27,936,209.53 

28  182  821.72 

26  786  009.44 

33,664,428.92 

56.689.229.08 

60,583.405.35 

54  313,172.05 

60,427,573.81 

57.912,387.47 

65,171,937.12 

64,091,142.90 

73,752  997.08 

78,950,501.67 

88,842,720.58 

106,098.850.39 

117,312.690.50 

139,394.147,11 

156,906,637.94 

139,986,726.17 

139,812,294.30 

138,220,704.46 

139,949.717.35 

144,651,879.80 

138.355.052.95 

138,462,130.65 

138,531,483.84 

137,504,267.99 

137,759.653.71 

$407,165.00 

490.977.85 

553.020.34 

564,526.81 

600,997.86 

863.079.00 

951,253.00 

1,003,200  64 

966  794.13 

982  695.35 

1,015,078.81 

1,034,459.33 

1,032,500.09 

837,734.14 

935,027.28 

1,072,059.64 

1,466,236.01 

2,591,648.29 

2,835.181.00 

3,392.676.34 

3,245,016.61 

3,753,400.91 

3,615.057.27 

3,466.968.40 

3,526.382.13 

4  700,636.44 

4.898,665.80 

4,867,734.42 

3,963,976.31 

4,338,020.21 

3,991,375.61 

3,987,783.07 

4,114.091.46 

4.147,517.73 

3,841.706.74 

3,868,795.44 

3,831,378.96 

3,993,216.79 

$15,857  714.88 

21,275.767.04 

28.654,529.70 

29  077,774.08 

29  952,486.64 

29  381,871.62 

80  703,999  81 

27,985.264.53 

81,173.573.12 

30,253,100.11 

28  951,288.34 

29,217.281.05 

27,818.509.63 

34,502,163.06 

57,624,266.36 

51,665,464.99 

56,779,408.06 

63,019,222.10 

60,747,568.47 

68,564,513.46 

67,336,159.51 

77,506,397.99 

82,466.558.94 

92.309,688.98 

109,620,232.52 

122,013,326.94 

144,292,812.91 

161,774,372.86 

143,950,702.48 

144,150,314.51 

142,212,080.07 

143,937,500.42 

148.765.971.26 

142,502,670.68 

142,308,837.39 

142,400.279.28 

141,335,646.95 

141,752,870.50 

126,722 
155.474 
169.643 
187  963 

1867 

1868 

1869 

1870 

198  686 

1871 

207,495 
232,189 
238,411 
236,241 
234,821 
232,137 
232  104 

1872 

1878 

1874 

1875 

1876 

1877 

1878 

223.998 
242,755 
250,802 
268,830 
285,697 
303,658 
322  756 

187» 

1880 

1881 

1882   

1883 

1884 

1885 

345,125 
865  788 

1886 

1887 

406,007 
452,557 
489,725 
537,944 
676  160 
876  068 

1888 

1889 

1890 

1891 

1892 

1893  ..  . 

966,012 
969  544 

18»4 

1895 

970,524 
970,678 
976  014 

1896 

1897 

1898 

993  714 

1899 

991  519 

1900 

993  529 

1901 

997  736 

1902 

999  446 

1903 

996  545 

Total 

$2,942,178,145.93 

$95,647,934.71 

$3,037,826,080.64 

Total  number  of  pensions  June  30,   1903,   was  996,545.     The 
number  now  is  practically  the  same. 

The  following  table  shows  the  number  of  pensions,  and  the 
monthly  rate  thereof: 


Rate. 


Number  of 
pensions 


Rate. 


Number  of 
pensions. 


$6  and  under 

From  $6  to  88,  inclusive... 
From  $8  to  $10,  inclusive. 
From  $10  to  $12,  inclusive 
From  $12  to  814,  inclusive 
From  $14  to  815,  inclusive 
From  fcl5  to  $16,  inclusive 
From  816  to  817,  inclusive. 
From  $17  to  $18,  inclusive 
From  $18  to  $20,  inclusive 
From  $20  to  $24,  inclusive 
From  824  to  825.  inclusive 


129,614 

1544,620 

83,696 

296,084 

22,926 

8,782 

9,084 

43,784 

786 

7,316 

26,216 

3,114 


From  825  to  $30,  inclusive., 
From  830  to  836,  inclusive. . 
From  836  to  $45,  inclusive. . 
From  $45  to  850,  inclusive.. 
From  $50  to  $72,  inclusive., 
From  872  to  $100,  inclusive 

At  $125 

At  8166% 

At$i08>^ 

At  $416% 

TotaL. 


14,472 

540 

3,536 

3,254 

3,787 

77 

1 

8 


996,545 


The  average  value  of  a  pension  i3  $133.49. 
Over  one-half  of  the  pensions  are  $10  or  under. 


In  addition  to  caring  for  the  disabled  soldier  the  Republican 
party  has  also  provided  for  his  widow  and  children.  One  pro- 
vision of  the  well  known  act  of  May  9,  1900,  is  deserving  of 
special  consideration.  It  provides  for  the  well-being  of  insane, 
idiotic,  or  otherwise  helpless  children,  physically  or  mentally,  of 


PENSIONS.  411 

the  deceased  soldiers,  by  pensioning  them  during  life,  unless  they 
recover  from  such  disability.  Such  a  provision  for  the  helpless 
children  of  soldiers  is  elsewhere  unknown  in  the  world. 

Of  the  recent  enactments  for  the  benefit  of  the  Republic's  de- 
fenders the  Republican  party  has  pride  in  referring  to  these  gen- 
erous provisions : 

Act  of  January  15,  1903,  providing  a  pension  of  $40  per  month 
for  total  loss  of  hearing. 

Act  of  February  28,  1903,  providing  for  restoration  to  the  rolls 
of  a  pensioned  widow  who  had  remarried  and  whose  second  hus- 
band has  died  or  from  whom  she  has  been  divorced  without  fault 
upon  her  part. 

Act  of  March  2,  1903,  providing  generous  increase  of  pension  to 
those  who  have  lost  limbs  in  the  service,  the  rates  running  from 
$40  to  $100  per  month,  according  to  the  disability. 

Act  of  March  3,  1903,  providing  an  increase  of  pension  to  $12 
per  month  to  all  Mexican  war  survivors. 

The  survivors  of  all  the  Indian  wars  and  disturbances  were 
provided  for  by  the  act  of  June  27,  1902,  as  well  as  their  widows. 
(Wars,  etc.,  up  to  1856.) 

Order  78. 

No  single  act  of  this  Administration  has  aroused  such  deter- 
mined opposition  from  the  Democratic  minority  in  Congress  as  the 
order  of  the  Commissioner  of  Pensions,  cordially  approved  by  the 
Secretary  of  the  Interior  and  the  President,  bringing  within  the 
benefits  of  the  pension  laws  all  veterans  who  have  reached  the 
age  of  62  years  and  over  in  these  terms : 

"(1)  In  the  adjudication  of  pension  claims  under  said  act  of 
June  27,  1890,  as  amended,  it  shall  be  taken  and  considered  as  an 
evidential  fact,  if  the  contrary  does  not  appear,  and  if  all  other 
legal  requirements  are  properly  met,  that  when  a  claimant  has 
passed  the  age  of  62  years  he  is  disabled  one-half  in  ability  to  per- 
form manual  labor  and  is  entitled  to  be  rated  at  six  dollars  per 
month;  after  65  years  at  eight  dollars  per  month;  after  68  years 
at  ten  dollars  per  month,  and  after  70  years  at  twelve  dollars  per 
month. 

"(2)  Allowances  at  higher  rate,  not  exceeding  twelve  dollars 
per  month,  will  continue  to  be  made  as  heretofore,  where  disabili- 
ties other  than  age  show  a  condition  of  inability  to  perform  man- 
ual labor. 

"(3)  This  order  shall  take  effect  April  13,  1904,  and  shall  not 
be  deemed  retroactive.  The  former  rules  of  the  office  fixing  the 
minimum  and  maximum  at  65  and  75  years,  respectively,  are 
hereby  modified  as  above." 

As  will  be  noticed,  this  is  not  new  legislation,  as  opponents 
of  the  system  contend,  but  a  construction  of  the  act,  which  is  with- 
in the  always  acknowledged  competency  of  the  Department. 

THE  DEMOCRATIC  RECORD  ON  PENSION  LEGISLATION. 

Following  the  Republican  lead  it  has  been  a  habit  with  Demo- 
cratic conventions  to  insert  in  their  platforms  a  perfunctory  plank 
in  favor  of  "liberal  pensions  to  our  brave  soldiers."  The  insin- 
cerity of  this  forced  public  recognition  of  the  services  of  the 
republic's  defenders  is  apparent  from  the  most  cursory  review  of 
that  party's  performance  when  opportunity  was  offered  to  make 
good.  On  the  fourteen  most  important  measures,  constituting  the 
pension  law  as  it  exists  today,  the  record  shows  a  total  vote  as 
follows : 

Democrats,  for  the  bills  417. 

Democrats,  against  the  bills   648. 

Republicans,  for  the  bills 1,068. 

Republicans,  against  the  bills None. 

In  line  with  this  showing  made  by  the  last  Democratic  Ad- 
ministration when  8,694  pensioners  were  dropped  from  the  rolls 
and  23,702  pensions  were  reduced.  Why?  Because,  forsooth,  af- 
ter from  one  to  four  years  inarching,  fighting,  starving,  freezing, 
it  was  alleged  that  they  were  not  found  sufficiently  disabled  to 
hold  the  pensions  which  a  Republican  Administration  had  given 
them. 


412  PENSIONS. 

General  Sickle*  on  the  Old  Age  Pension  Order. 

The  following  correspondence  between  General  O.  O.  Howard 
and  General  Daniel  E.  Sickles  is  self-explanatory  : 

Boston,  Mass.,  June  5,  190k- 
Dear  General  Sickles  : 

When  you  and  I  were  on  railroad  coach  the  other  day,  in  answer 
to  some  statements  of  the  Commissioner  of  Pensions,  you  said  in 
substance  that  his  recent  pension  order  was"  a  good  one  for  all 
concerned,  and  you  made  a  very  clear  and  concise  demonstration 
that  this  said  order  was  thoroughly  legal,  a  proper  interpretation 
and  application  of  existing  statute  laws. 

Would  you   be   willing  to  put   in   writing  for  my  use  and   in- 
formation substantially  what  you  said? 
Ever,  very   truly,   yours, 

(Signed)   O.  O.  Howard. 
Major-General  O.  O.  Howard,  U.  S.  A. 

Dear  General:  Complying  with  your  request.  I  have  much 
pleasure  in  recapitulating  the  views  expressed  by  me  the  other 
day  about  the  recent  pension  order  of  President  Roosevelt. 

The  Constitution  commands  the  President  to  "take  care  that 
the  laws  be  faithfully  executed."  Congress,  in  the  organization  of 
the  Pension  Office,  imposed  upon  the  President  the  duty  of  super- 
vising the  execution  of  the  pension  laws.  It  is  the  only  bureau 
in  the  Government  placed  under  the  immediate  direction  of  the 
President  by  an  act  of  Congress. 

Order  No.  78,  dated  March  15,  1904,  which  recognizes  old  age 
as  a  disability  incapacitating  a  soldier  or  sailor  to  earn  a  living 
by  manual  labor,  and  therefore  entitling  him  to  a  graduated  pen- 
sion under  the  act  of  June  27,  1890,  is  sustained  by  precedent  and 
law,  and  is  one  of  the  wisest  acts  of  President  Roosevelt's  Admin- 
istration. 

You  and  I  have  heard  this  order  denounced  as  a  usurpation  of 
legislative  authority  by  the  executive.  These  critics  forget  that 
Judge  IiOchran,  President  Cleveland's  Commissionere  of  Pensions, 
by  his  order  of  September  2,  1893,  gave  the  same  effect  to  the  act  of 
1890,  fixing,  however,  the  age  of  75  as  the  period  of  disability. 
The  legality  of  Judge  Lochran's  order  was  not  questioned. 

President  McKinley's  Secretary  of  the  Interior,  in  July,  1897, 
established  the  rule  that  "a  claimant  for  pension  under  the  act  of 
June  27,  1890,  who  has  attained  the  age  of  sixty-five  years,  shall 
be  entitled  to  at  least  the  minimum  rate  of  pension  (six  dollars  a 
month)  provided  by  that  act."  This  order  of  President  McKinley 
was  not  disputed. 

President  Roosevelt's  Commissioner  of  Pensions,  Col.  Ware,  in 
his  now  famous  Order  No.  78,  approved  by  the  Secretary  of  the 
Interior,  Mr.  Hitchcock,  directs  that  "when  a  claimant  under  the 
act  of  June  27,  1890,  has  passed  the  age  of  62  years'  he  is  disabled 
one-half  in  ability  to  perform  manual  labor  and  is  entitled  to  be 
rated  at  six  dollars  per  month,"  the  minimum  pension;  "after  65 
years  at  eight  dollars  per  month;  after  sixty-eight  years  at  ten 
dollars  per  month,  and  after  70  years  at  twelve  dollars  per  month," 
the  maximum. 

Each  of  these  orders  is  based  upon  the  same  interpretation  of 
the  act  of  June  27,  1890.  If  Cleveland  and  McKinley  were  right, 
Roosevelt  is  right. 

It  is  the  common  experience  of  mankind  that  old  age  unfits 
one  to  earn  a  living  by  manual  labor.  Who  will  give  a  job  of  hard 
work  to  a  man  over  sixty?  We  have  seen  that  our  Pension  Office 
has  for  many  years  recognized  old  age  as  a  legal  "disability," 
affecting  the  fitness  of  a  veteran  soldier  or  sailor  to  earn  a  sup- 
port. President  Roosevelt  declares  this  inability  begins  at  the 
age  of  sixty-two.  That  is  true, — and  Roosevelt  has  the  same  au- 
thority to  fix  the  pensionable  period  as  Cleveland  and  McKinley 
had  when  they  were  in  power.  Officers  of  the  Navy  are  retired 
from  service  at  that  age;  Army  officers  are  retired  at  sixty-four. 
Congress  determines  these  periods.  In  1887  Congress  directed  that 
all  of  our  soldiers  who  served  in  the  Mexican  War,  who  were  over 
sixty-two  years  of  age,  should  be  placed  on  the  pension  roll,  giv- 
ing them  eight  dollars  a  month — two  dollars  more  per  month  than 
is  allowed  by  Order  No.  78  to  the  civil  war  soldiers  of  the  same 
age.     The  President  followed  these  analogous  cases. 

The  Almighty  Ruler  has  enacted*  that  the  great  mass  of  man- 
kind are  seriously  disabled  from  earning  a  support  by  manual 
labor  at  sixty-two  years,  and  President  Roosevelt  and  the  Pension 
Bureau  have  only  recognized  that  law  in  determining  that  the 
pension  of  a  veteran  for  disability,  under  the  act  of  June  27,  1890. 
shall  begin  at  that  age,  at  the  rate  of  six  dollars  a  month  and  be 
increased  gradually,  until,  at  the  age  of  seventy,  twelve  dollars  a 
month  is  allowed.  As  Senator  Spooner  well  said:  "Service  in  the 
Army  is  a  draft  upon  the  future  which  must  be  honored  in  old 
age."  The  average  age  of  the  survivers  is  now  between  sixty-two 
and  sixty-five  years.  Many  a  soldier  or  sailor  in  one  day  of  battle 
does  the  work  of  years.  Veteran  soldiers  and  sailors  feel  the  in- 
firmities of  age  sooner  than  the  average  man. 

Is  the  Roosevelt  order  censurable  because  it  says  that  the  dis- 
abilities of  old  age  begin  at  sixty-two  and  culminate  at  seventy? 
Why  was  not  Cleveland  denounced  for  the  Pension  Office  Order 
of    1893? 

Is  it  because  seventy-five  years  was  fixed  as  the  pensionable 
age?  Why  was  not  McKinley  denounced  for  the  Pension  Office 
Order  of  1897?  Is  it  because  sixty-five  years  was  fixed  as  the 
pensionable   age?     If  Roosevelt's   order   is   a  usurpation   of  legis- 


PENSIONS.  413 

lative  authority,  then  Cleveland  and  McKinley  are  "particeps 
cnminis  — equally  guilty.  But  nobody  ever  complained  of  these 
acts  of  Roosevelt's  predecessors.  It  is  only  our  strenuous  young 
Hotspur,  now  President,  who  is  found  to  be  in  fa,ult  in  following 
the  footsteps  of  his  predecessors? 

Are  these  acts'  of  Cleveland,  McKinley,  and  Roosevelt  lawful? 
Yes.  It  is  a  long-established  rule  of  our  courts  that  in  construing 
a  law  which  is  to  be  applied  by  the  Executive  Department  of  the 
Government,  the  courts  will  sanction  and  accept  the  practical 
operation  and  effect  given  to  the  statute  by  those  charged  with 
the  duty  of  putting  it  in  force,  unless  such  interpretation  of  the 
law  is  repugnant  to  its  plain  intent  and  meaning.  For  ten  years 
the  Government  has  regarded  old  age  as  a  disability  entitling  a 
soldier  or  sailor  of  the  civil  war  to  a  pension  under  the  act  of 
June  27,  1890,  which  grants  pensions  to  those  who  are  unable  to 
support  themselves  by  manual  labor.  Congress  has  uniformly  ap- 
propriated the  money  necessary  to  pay  these  old  age  pensions 
These  appropriations  are  all  recognitions  and  approvals  of  the 
executive  action  granting  old  age  pensions.  The  courts  hold  that 
such  sanction  by  Congress  is  conclusive  on  judicial  tribunals- 
President  Roosevelt's  Order  No.  78,  of  March  15,  1904,  is  there- 
fore the  law  of  the  land — having  the  authority  of  the  executive, 
legislative,  and  judicial  departments  of  the  Government  The 
propositions  of  law,  maintained  in  this'  letter,  are  supported 
by  familiar  cases  to  be  found  in  the  reports  of  the  Supreme  Court 
of  the  United  States.  See  McKeen  vs.  Delany,  5  Cranch,  22;  Brown 
y^TT-TS-inLU-TS-' J68;  The  Laura,  114  U.  S.,  411;  U.  S.  vs.  Graham, 
110  U.  S.,  49;  U.  S.  vs.  Philbrick,  120  U.  S.,  52-  U  S  vs 
Johnston,  124  U.   S.,   236. 

It  is  said  that  Order  No  78  costs  money.  Yes,  that  is  true 
Time  is  responsible  for  this — not  Roosevelt.  The  veterans  are 
growing  old;  thousands!  of  them,  every  year,  pass  the  old  age 
period  of  sixty-two.  The  War  of  the  Rebellion  began  more  than 
forty  years  ago.  Most  of  the  men  who  fought  for  the  Union  are 
past  three-score  years.  The  critics  have  the  consolation  of  know- 
ing that  death  will  soon  terminate  the  pensions  granted  for  old 
age. 

Both  parties,  Democratic  and  Republican,  have  recognized  and 
adopted  this  humane  and  reasonable  interpretation  of  the  law 
The  courts  of  the  United  States  will  sustain  Order  No.  78  whenever 
one  of  the  critics  of  the  President  will  venture  to  go  into  court 
to  challenge  its  legality.  The  arrows  of  his  assailants  will  fall 
harmless  at  his  feet.  The  living  veterans  of  the  Civil  War — their 
children  and  kindred,  the  descendants  of  the  million  who  have 
died,  and  all  of  our  people  who  cherish  a  manly  sympathy  for  the 
needs  of  their  defenders,  now  tottering  towards  their  graves,  will 
bless  Roosevelt  for  his  kindly  and  just  action. 
Sincerely  yours, 

(Signed)   Daniel  E.  Sickles. 

Secretary  Hitchcock  on  Pension  Order  No.  78. 

[Order  No.   78.] 

Department  of  the  Interior, 

Washington,  March  28,  190%. 

The  President  pro  tempore,  United  States  Senate. 

Sir  :  Replying  to  Senate  resolution  No.  151,  I  have  the  honor 
to  state  that  an  order  has  recently  been  issued  regulating  the  ad- 
ministration of  the  act  of  June  27,  1890.  It  is  not  considered,  how- 
ever, that  this  Department  has  the  authority  to  enlarge  the  pro- 
visions of  that  act  or  in  any  way  to  affect  its  just  interpretation 
or  that  the  order  referred  to  does  either.  A  copy  of  the  order  is 
contained  in  the  report  of  the  Acting  Commissioner  of  Pensions, 
transmitted  herewith. 

As  some  misunderstanding  with  reference  to  the  interpretation 
and  purpose  of  this  order  has  existed,  a  brief  review  of  pension 
legislation  and  the  administration  thereof  in  this  Department  is 
submitted  for  the  purpose  of  showing  that  the  order  referred  to 
is  clearly  within  executive  authority  and  in  conformity  with  exist- 
ing law  and  the  methods  which  have  heretofore  prevailed  in  its 
administration. 

Before  the  act  of  June  27,  1890,  no  pensions  were  granted  ex- 
cept upon  proof  that  the  death  or  disability  for  which  the  pension 
was  sought  resulted  from  actual  service.  This  act,  however,  pro- 
vided that  any  person  who  had  served  ninety  days  or  more  and 
who  had  been  honorably  discharged  should  receive  a  pension  of 
not  less  than  six  nor  more  than  twelve  dollars  per  month,  if  proof 
were  furnished  that  he  was  suffering  from  a  permanent  disability, 
not  the  result  of  vicious  habits',  which  incapatiated  him  "from  the 
performance  of  manual  labor  in  such  a  degree  as  to  render  him 
unable  to  earn  a  support." 

Disability,  partial  or  complete,  to  perform  manual  labor  is  the 
sole  measure  of  the  right  to  a  pension  under  this  act.  The  element 
of  manual  labor  is  fundamental.  If  in  the  adjudication  of  a  pen- 
sion claim,  it  shall  be  determined  that  the  applicant's  pensionable 
disabilities  render  him  wholly  incapacitated  for  manual  labor,  his 
pension  rating  will  be  accordingly,  even  though  the  applicant  may 
be  then  occupied,  with  distinguished  usefulness,  in  some  field  of 
intellectual  endeavor. 

It  is  well  understood  that  there  is  a  natural  decay  of  the 
physical  powers,  due  solely  to  age,  which  impairs  man's  capacity 
to  "earn  a  support"  by  his  own  manual  labor.  Not  only  does 
the  act  itself  provide  that  "each  and  every  infirmity  shall  be  duly 


414  PENSIONS. 

considered,"   but   the   decisions   under   it   uniformly    recognize   the 
principle  that  disabilities  due  to  senility  alone  are  pensionable. 

By  an  order  (No.  241)  issued  by  the  Pension  Bureau  in  Sep- 
tember, 1893,  a  copy  of  which  is  transmitted  herewith,  it  was  de- 
termined that  "in  a  case  in  which  the  pensioner  has  reached  the 
age  of  75  years  his  rate  shall  not  be  disturbed  if  he  is  receiving 
the  maximum  ($12),  and  if  he  is  not  a  pensioner  he  shall  receive 
the  maximum  for  senility  alone,  if  there  are  no  special  disabili- 
ties shown." 

In  the  case  of  applicant  Patrick  Carroll  the  Department  in 
February,  1893,  decided  that  "old  age  or  senility  is  a  legal  disabil- 
ity under  the  act  of  June  27,  1890,  and  the  surgeons  should  have 
given  their  estimate  of  the  amount  of  disability  arising  therefrom 
for  the  performance  of  manual  labor  and  the  earning  of  a  support 
thereby.  In  July,  1895,  in  the  case  of  applicant  Jacob  Rinkle,  the 
Department  affirmed  the  above  named  order  No.  241. 

Later,  in  July,  1897,  in  the  case  of  Francis  Frank,  it  was  held 
by  the  Department  that  "a  claimant  for  pension  under  the  act  of 
June  27,  1890,  who  has  attained  the  age  of  65  years  shall  be  en- 
titled' to  at  least  the  minimum  rate  of  pension  provided  by  that 
act." 

Although  age,  in  connection  with  other  disabilities,  has  always 
been  considered  in  determining  pension  ratings  under  the  act, 
there  has  never  been  any  uniform  rule  for  rating  the  infirmities 
due  to  the  element  of  age  with  the  exception  of  the  two  classes 
named.  Such  ratings  therefore  seem  to  have  been  governed  by 
the  varying  opinions  of  the  many  who  have  been  occupied  with 
that  duty,  thereby  imparting  to  that  feature  of  pension  adminis- 
tration something  of  uncertainty  and  inequality. 

To  this  fact,  together  with  the  growing  importance  or  age 
conditions,  is  due  in  considerable  measure  the  necessity  for  action 
on  the  line  of  this  order  specifically  defining,  as  far  as  practicable, 
ratings  from  the  best  attainable  data  for  infirmities  due  to  senility. 
In  the  administration  of  the  pension  laws  and  the  consideration  of 
the  immense  number  of  cases  that  are  pending  under  every  act  it 
is'  impossible  to  secure  uniformity  and  expedition  in  decisions 
without  laying  down  conveinent  rules  for  the  weighing  of  evidence 
and  prima  facie  presumption  wheh  long  experience  justifies.  This 
has  been  the  uniform  course  of  the  Pension  Bureau  since  its  estab- 
lishment. 

The  order  in  question  merely  lays  down  as*  a  convenient  rule  of 
decision  and  a  rebuttable  presumption  of  fact  that  one  who  is 
otherwise  entitled  and  is  62  years  of  age  is  partially  disabled  from 
earning  a  livelihood  by  hisi  hands,  that  one  who  is  65  is  more  dis- 
abled for  manual  work,  that  one  who  is  68  is  in  a  still  greater 
degree  incapable  of  earning  a  support  by  manual  labor,  and  that 
one  of  70  is  completely  disabled  in  this  regard.  Certainly  such  a 
presumption  is  justified  by  general  experience  in  actual  life. 

When  it  is  understood  that  in  the  adjudications  under  this  act 
age  has  always  been  considered  a  factor  in  connection  with  other 
disabilities,  and  when  it  is'  further  considered  that  for  more  than 
ten  years  there  has  been  an  established  rating  (the  maximum  al- 
lowed by  law)  based  solely  on  the  age  of  75  years,  and  that  for  near- 
ly seven  years  there  has  been  an  established  rating  (minimum  pro- 
vided by  law)  based  alone  on  the  age  of  65  years,  it  will  be  appar- 
ent how  largely  problematical  must  be  any  estimate  of  increase  of 
expenditures  under  the  order  of  March  15,  1904. 

The  Acting  Commissioner  of  Pensions  has  given  attentive  con- 
sideration to  the  second  paragraph  of  the  resolution,  and  by  ref- 
erence to  his  report  it  will  be  seen  that  he  estimates  that  the  order 
of  March  15,  1904,  will  result  in  an  increased  expenditure  annually 
of  $5,400,000. 

Attention  is'  particularly  invited  to  this  branch  of  the  Commis- 
sioner's report,  wheh,  while  it  shows  the  processes  by  which  this 
result  is  reached  and  that  it  is  the  best  approximation  to  accuracy 
practicable,  reveals  the  fact  that  the  calculation  is  to  some  extent 
necessarily  speculative. 

Respectfully,  E.  A.  Hitchcock,  Secretary. 

The  Lochran  Old  Age  Pension  Order  of  1893. 

[Okdeb  No.  241.] 

Department  of  the  Interior, 

Bureau  of  Pensions, 
Washington,  D.  C,  September  2,  1893. 
The  circular  of  June  12,  1893,  in  respect  to  rating  cases  under 
the  act  of  June  27,  1890,  is  withdrawn.  Hereafter,  in  fixing  rates 
under  this  act,  the  medical  referee  or  the  medical  officer  in  the 
board  of  revision  shall  weigh  each  disability  and  determine  the 
degree  that  each  disability  or  the  combined  disabilites  disables  the 
claimant  from  earning  a  support  by  manual  labor,  and  a  rate  cor- 
responding to  this  degree  shall  be  allowed.  In  cases  in  which  the 
pensioner  has  reached  the  age  of  75  his  rate  shall  not  be  disturbed 
if  he  is  receiving  the  maximum,  and  if  he  is  not  a  pensioner,  he 
shall  receive  the  maximum  for  senility  alone  if  there  are  no  spe- 
cial pensionable  disabilities  shown. 

Wm.  Lochren,  Commissioner. 

Acting  Commissioner  Davenport  on  Order  No.  78. 

Department  of  the  Interior, 

Bureau  of  Pensions, 

Washington,  March  21,  190%. 
Sir  :    In   compliance   with   the   accompanying  resolution   of  the 
United  States  Senate,   I  have  the  honor   to  inclose  a  copy  of  the 


PENSIONS.  415 

\ 
order,  dated  March  15,  1904,  which  is  probably  the  one  referred  to 
by  that  honorable  body. 

This  order  does  not,  in  the  opinion  of  this  Bureau,  enlargo 
"the  pension  act  of  June  27,  1890,  and  amendments  as  to  disabilities 
of  applicants  for  pensions,"  but  simply  construes  said  act  in  its 
application  to  the  granting-  of  pensions  thereunder. 

Inability  to  earn  a  support  by  manual  labor  from  any  cause  is 
the  guide  to  rating.  "Pensions  not  exceeding  $12  per  month  and 
not  less  than  $6  per  month,  proportioned  to  the  degree  of  inability 
to  earn  a  support,"  is  the  wording  of  the  law. 

Special  diseases  and  disabilities  are  not  the  only  factors  that 
produce  inability  to  perform  manual  labor.  The  bodily  infirmities 
natural  to  advancing  age  must  be  recognized  in  considering  claims 
under  the  law.  Manual  labor  alone  enters  into  consideration,  and 
to  determine  the  degree  of  inability  to  earn  a  support  thereby  is  a 
difficult  problem  to  solve  in  such  a  way  as  to  distribute  pensions 
equitably  to  deserving  applicants  unless  some  rule  for  the  guidance 
of  the  Bureau  is  adopted. 

While  it  is  an  established  fact  that  men  of  great  age  retain 
their  intellectual  capacity  and  mental  activity  in  the  highest  degree 
it  is  also  an  established  fact  that  the  man  who  earns  his  support 
by  hard  manual  labor  finds  at  the  age  of  62  his  ability  diminishing 
and  employment  difficult  to  obtain. 

The  amount  the  order  will  "increase  pensions  annually,  and 
particularly  when  the  same  shall  become  fully  operative,"  can  be 
only  roughly  estimated. 

There  are  supposed  to  be  living  today  about  875,000  ex-Union 
soldiers  of  the  civil  war.  Of  these  there  are  pensioned  under  the 
act  of  July  14,  1862,  known  as  the  general  law,  about  265,000,  and 
under  the  act  of  July  27,  1890,  about  428,000,  aggregating  693,000, 
which,  deducted  from  the  whole  number  of  survivors,  leaves  182,- 
000  who  have  not  applied  for  pension.  To  state  definitely  how 
many  of  this  number  failed  to  serve  the  required  ninety  days  and 
receive  final  honorable  discharge  would  be  impossible.  One-fourth 
seems  a  fair  estimate  and  reduces  the  number  to  136,500.  To  say 
that  75,000  of  these  have  reached  the  age  of  62  and  will  apply 
seems'  a  reasonable  estimate.  If  these  75,000  are  all  placed  on  the 
rolls  at  $6  a  month,  or  $72  a  year,  the  output  for  pensions  will  be 
increased  $5,400,000  annually. 

The  pension  roll  is  diminishing  rapidly,  owing  to  deaths  of 
beneficiaries,  and  in  all  probability  this  decrease  will  offset  any 
gains  caused  by  claims  of  soldiers  who  have  reached  the  age  of  65 
and   upward. 

I  have  the  honor  to  remain,  your  obedient  servant, 

J.  L.  Davenport,  Acting  Commissioner. 
The  Secretary  of  the  Interior. 

Order  No.  78. 

Department  of  the  Interior, 

Bureau  op  Pensions, 

March  15,  190k- 

Whereas  the  act  of  June  27,  1890,  as  amended,  provides  that  a 
claimant  shall  "be  entitled  to  receive  a  pension  not  exceeding 
twelve  dollars  per  month  and  not  less  than  six  dollars  per  month 
proportioned  to  the  degree  of  inability  to  earn  a  support,  and  in 
determining  such  inability  each  and  every  infirmity  shall  be  duly 
considered,  and  the  aggregate  of  the  disabilities  shown  to  be  rated;" 
and 

Whereas  old  age  is  an  infirmity  the  average  nature  and  extent 
of  which  the  experience  of  the  Pension  Bureau  has  established 
with  reasonable  certainty;  and 

Whereas  by  act  of  Congress  in  1887,  when  thirty-nine  years 
had  elapsed  after  the  Mexican  war,  all  soldiers  of  said  war  who 
were  over  62  years  of  age  were  placed  on  the  pension  roll;  and 

Whereas  thirty-nine  years  will  have  elapsed  on  April  13,  1904, 
since  the  civil  war,  and  there  are  many  survivors  over  62  years 
of  age     Now  therefore, 

Ordered,  (1)  In  the  adjudication  of  pension  claims  under  said 
act  of  June  27,  1890,  as  amended,  it  shall  be  taken  and  considered 
as  an  evidential  fact,  if  the  contrary  does  not  appear,  and  if  all 
other  legal  requirements  are  properly  met,  that,  when  a  claimant 
has  passed  the  age  of  62  years,  he  is  disabled  one-half  in  ability 
to  perform  manual  labor,  and  is  entitled  to  be  rated  at  six  dollars 
per  month;  after  65  years,  at  eight  dollars  per  month;  after  68 
years,  at  ten  dollars  per  month,  and  after  70  years,  at  twelve  dol- 
lars per  month. 

(2)  Allowances  at  higher  rate,  not  exceeding  twelve  dollars 
per  month,  will  continue  to  be  made  as  heretofore  where  disabili- 
ties other  than  age  show  a  condition  of  inability  to  perform  manual 
labor. 

(3)  This  order  shall  take  effect  April  13,  1904,  and  shall  not  be 
deemed  retroactive.  The  former  rules  of  the  office  fixing  the  mini- 
mum and  maximum  at  65  and  75  years,  respectively,  are  hereby 
modified  as  above. 

E.  F.  Ware, 

Commissioner  of  Pensions. 
Approved.  * 

E.  A.  Hitchcock,  Secretary. 


416  THE  PROBLEM  OF  OUR  COLORED  CITIZENS. 


THE  PROBLEM  OF  OUR  COLORED 
CITIZENS. 

This  problem,  heretofore  a  subject  of  more  or  less  academic 
discussion,  has  been  made  a  political  question  by  the  recent  action 
of  most  of  the  Southern  States  in  so  amending  their  state  consti- 
tutions as  to  nullity  the  plain  intendment  of  the  Federal  Consti- 
tution as  modified  by  the  XlVth  and  XVth  Amendments  thereto. 
Article  XIV  provides  that  "All  persons  born  or  naturalized  in  the 
United  States,  and  subject  to  the  jurisdiction  thereof,  are  citizens 
of  the  United  States  and  of  the  state  wherein  they  reside.  No 
state  shall  make  or  enforce  any  law  which  shall  abridge  the  privi- 
leges or  immunities  of  citizens  of  the  United  States."  *  *  * 
Article  XV  provides  that  "The  right  of  citizens  of  the  United 
States  to  vote  shall  not  be  denied  or  abridged  by  the  United 
States  or  by  any  state  on  account  of  race,  color,  or  previous  condi- 
tion of  servitude."  It  is  provided,  also,  that  the  Congress  shall 
have  power  to  enforce  these  articles  by  appropriate  legislation. 

These  amendments,  the  recorded  judgment  and  will  of  the  na- 
tion, crystallize  the  patriotism  and  the  sacrifice  of  a  million  heroes 
who  fought  for  liberty  and  union. 

It  is  upon  the  practical  acceptance  of  the  great  principles  un- 
derlying these  constitutional  guaranties  that  the  two  leading  par- 
ties fundamentally  differ,  and  a  careful  reading  of  the  records  of 
the  Republican  party  and  of  the  Democracy  relative  thereto  will 
leave  little  room  for  choice  as  to  which  party  promises  most  for 
the  ultimate  strength  and  glory  of  the  Nation. 

No  more  striking  contrast  as  to  the  attitude  of  the  two  great 
parties  touching  their  adherence  to  the  principle  that  "all  men 
are  created  equal"  can  be  made  than  that  afforded  by  the  course 
of  events  Nor^h  and  South  during  the  past  quarter  of  a  century. 
In  the  North,  where  Republicanism  is  strongest,  colored  citizens, 
although  a  minority  of  the  population,  are  given  participation  in 
the  control  of  municipalities,  counties,  and  states,  and  are  fre- 
quently elected  to  public  office  in  these  respective  units  of  our 
governmental  system;  in  the  South,  the  stronghold  of  Democracy, 
the  colored  citizen  is  being  systematically  disfranchised  and  barred 
from  effective  participation  in  the  conduct  of  public  affairs,  and 
each  year  witnesses  a  narrowing  of  his  political  and  civil  rights. 
The  mere  mention  of  the  facts  well  known  to  every  observer  of 
the  times  will  suffice  to  indicate  the  relative  attitude  of  the  two 
great  political  parties  toward  the  colored  citizen.  The  Republican 
party  believes  in  the  political  equality  of  all  men  without  refer- 
ence to  race  or  nationality,  and  this  belief  it  has  supported  by 
the  most  costly  and  sanguinary  war  in  our  national  history. 
The  Democratic  party  believes  in  restricting  the  privilege  of 
citizenship  to  a  particular  class,  and  has  written  her  opinions  into 
the  statutes,  constitutions,  and  practices  of  nearly  every  Southern 
State  where  that  party  Is  dominant.  The  Republican  party  be- 
lieves in  the  doctrine  so  tersely  expressed  by  President  Roosevelt 
—"All  men  up  rather  than  some  men  down" — and  it  has  always 
encouraged  the  colored  citizen  in  his  efforts  and  ambition  to  rise 
higher  in  the  scale  of  civilization.  The  Democratic  party  would 
deny  to  the  negro  the  incentive  to  high  aspirations,  and  boasts 
through  its  representatives  of  its  purpose  to  exclude  colored  men 
from  any  voice  in  the  control  of  local  affairs.  Senator  Gorman, 
high  in  the  Democratic  counsels  of  his  party,  clearly  stated  the 
manifest  intention  of  the  Democracy  to  de-citizenize,  as  far  as 
possible,  the  colored  voters  of  the  country,  and  in  a  recent  speech 
declared :  "The  South  has  passed  through  scenes  of  turbulence 
and  disorder  and  rape  and  riot.  By  amendments  to  State  con- 
stitutions and  by  legislation  the  whites  (of  the  South)  have  se- 
cured control,  for  the  time  being,  of  their  own  local  governments, 
and  the  colored  race  is  no  longer  a  political  factor  in  any  State 
south  of  the  Potomac."  Here  is  a  frank  admission  that  Democ- 
racy no  longer  respects  the  time-honored  maxim  that  "govern- 
ments derive  their  just'p°wers  from  the  consent  of  the  governed," 
and  that  only  a  portion  of  the  citizenry  are,  in  the  opinion  of  its 
leaders,  entitled  to  a  voice  in  public  affairs. 


THE   PROBLEM    OF   OUR   COLORED   CITIZENS.  417 

The  Republican  party  encourages  the  highest  character  in 
the  negro ;  the  Democratic  party  seeks  to  degrade  it.  No  Re- 
publican legislature  has  ever  enacted  laws  inimical  to  the  progress, 
happiness,  and  comfort  of  any  class  of  citizens;  numerous  Demo- 
cratic legislatures,  on  the  other  hand,  have  enacted  laws  which 
make  it  impossible  for  a  colored  person  of  refinement  to  travel 
in  decency  or  comfort  from  one  part  of  a  State  to  another.  No 
Republican  governor  would  dare  veto  a  measure  for  the  education 
of  any  class  of  citizens  in  the  rudiments  of  knowledge.  Yet  that 
is  just  what  has  recently  been  done  by  the  chief  executive  of 
Mississippi.  The  Republican  party  is  on  record  as  being  in  favor 
of  the  most  liberal  policies  with  respect  to  negro  education,  be- 
lieving that  no  other  position  is  consistent  with  the  preservation 
of  popular  institutions. 

The  present  liberal  policy  of  the  Republican  party  is  in  keep- 
ing with  the  broad  statesmanship  which  has  characterized  it 
from  the  beginning.  Prior  to  the  accession  of  the  Republican 
party  to  power  a  race  of  4,000,000  souls  had  suffered  the  wrongs 
and  cruelties  of  human  slavery,  with  no  redress  either  in  the 
courts,  in  Congress,  or  at  the  bar  of  public  opinion.  In  all  the 
years  from  1619,  when  the  first  cargo  of  slaves  was  landed  at 
Jamestown,  Va.,  to  1856,  when  the  Republican  party  had  its 
birth,  both  organic  and  statutory  law  formed  an  impassable  bar 
to  negro  hopes  and  ambitions.  But  with  the  birth  of  that  party 
a  marked  change  occurred.  It  is  unnecessary  to  recount  the 
causes  which  led  up  to  the  war  of  the  rebellion.  Suffice  it  to 
say,  as  a  result  of  that  war,  under  the  leadership  of  a  Republican 
President,  supported  by  a  Republican  Congress,  4,000,000  negroes 
were  emancipated  from  slavery,  invested  with  citizenship,  and 
made  an  integral  part  of  this  great  Republic,  to  share  in  its 
glories  and  opportunities,  bound  only  by  the  limitations  of  in- 
dividual capacity  and  worth.  Unwilling,  however,  to  rest  the 
security  of  the  negro's  rights  upon  mere  legislative  enactment, 
the  Republican  party,  through  the  co-operation  of  Republican 
States,  gave  to  negro  citizenship  the  supreme  sanction  of  Con- 
stitutional guaranty.  It  was  only  then  that  the  Declaration 
of  Independence,  now  so  ostentatiously  quoted  by  the  Democracy 
as  the  embodiment  of  their  party  principles,  but  which  for  nearly 
100  years  had  been  ignored  and  repudiated  by  their  party 
practices,  first  became  the  true  expression  of  our  national  policy. 

Following  this  change  in  the  political  status  of  the  colored 
population  came  a  period  of  preparation  for  citizenship.  Thou- 
sands of  Northern  men  and  women,  schooled  under  the  tutelage 
of  Republican  environment  in  the  works  of  philanthropy  and 
justice,  dedicated  their  money,  their  time,  and  even  their  lives 
to  the  education  and  elevation  of  those  emancipated  millions. 
Hence  the  colored  school  and  the  colored  church  under  the 
guidance  of  white  philanthropists  sprang  into  existence,  only 
to  be  followed  by  similar  institutions  organized  and  controlled 
by  colored  citizens.  But  this  leaven  of  intelligence  could  never 
have  been  imparted  to  the  black  masses  of  the  South  but  for 
the  opportunities  first  opened  as  a  direct  result  of  Republican 
principles  and  policies. 

The  outbreak  of  hostilities  between  the  United  States  and 
Spain  afforded  another  opportunity  for  the  Republican  party  to 
demonstrate  its  loyalty  to  the  broad  principles  set  forth  in  the 
Declaration  of  Independence  and  given  legal  sanction  by  the 
XlVth  and  XVth  Amendments  to  the  Constitution,  already  quoted. 
In  that  war  over  15,000  black  soldiers  were  called  into  service, 
among  them  nearly  300  colored  officers,  a  fact  without  precedent 
in  all  our  national  history.  Their  service  was  characterized  by 
gallantry  and  bravery  which  aroused  the  admiration  of  the  world, 
the  valor  of  the  black  troops  at  San  Juan  Hill  contributing  largely 
to  the  victory  achieved  on  that  occasion.  As  a  mark  of  recogni- 
tion of  the  heroic  service  rendered  by  black  soldiers,  President 
McKinley,  in  1899,  issued  an  order  for  the  organization  of  two 
infantry  regiments  of  colored  men.  Despite  the  protests  of  the 
Democrats  this  was  done  and  the  regiments  have  been  designated 
respectively  the  Forty-eighth  and  Forty-ninth  Volunteer  Infantry, 
with  headquarters  at  Fort  Thomas,  Ky.,  and  Jefferson  Bar- 
racks, Mo. 

Thus  the  war  with  Spain,  in  addition  to  its  primary  object, 


418  THE  PROBLEM  OF  OUR  COLORED  CITIZENS. 

served  a  two-fold  purpose.  It  emphasized  the  policy  of  the  Re- 
publican party  in  honoring  the  colored  citizen  both  in  war  and 
peace;  and  the  black  soldier  in  that  war,  by  patriotism  and 
valor,  proved  to  the  world  that  citizenship  had  not  been  un- 
worthily bestowed. 

In  face  of  the  foregoing  facts,  the  colored  voter  and  others 
doubtful  of  the  wisdom  of  continuing  the  control  of  the  present 
Administration  may  well  be  asked  whether  or  not  the  rights  of  the 
American  negro  at  home  and  the  destinies  of  the  inhabitants  of 
those  islands  now  belonging  to  the  United  States  are  not  safer 
with  the  Republican  party,  which  by  tradition  and  legislation 
has  identified  itself  with  the  cause  of  human  freedom  and  uni- 
versal opportunity,  than  with  the  Democracy.  Upon  the 
record  of  its  treatment  of  American  citizens  of  whatever 
race,  color,  or  nativity,  the  Republican  party  rests  its  claim 
upon  the  confidence  of  the  country  as  to  its  intentions  in  the 
islands  recently  added  to  the  domain  of  the  United  States.  Nei- 
ther the  speciousness  of  Democratic  platform  deliverances,  the 
eloquence  of  Democratic  oratory,  nor  the  idle  generosity  of  Demo- 
cratic promises  can  obscure  the  Democracy's  unenviable  record 
upon  every  question  that  pertains  to  human  rights.  "Charity 
begins  at  home,"  and  until  that  party  accords  justice  to  all  the 
inhabitants  of  the  States  under  its  control  it  cannot  claim  the 
suffrages  of  the  colored  people  of  this  country  who  seek  ameliora- 
tion of  their  civil  and  political  status  nor  of  that  greater  body  of 
American  citizens  whose  only  interest  in  the  issue  of  the  present 
struggle  is  the  honor  and  stability  of  our  own  nation,  and  the 
welfare  and  advancement  of  those  peoples  who  have  recently  be- 
come the  wards  of  the  American  nation. 

The  following  are  a  few  expressions  from  leading  Democrats 
that  clearly  indicate  the  policy  of  their  party  respecting  the 
colored  citizen: 

"The  12,000,000  white  people  of  the  11  Southern  States  have 
irrevocably,  finally,  and  almost  unanimously  determined  that  they 
will  prevent,  by  every  constitutional  means  in  their  power,  these 
people  from  exercising1  the  elective  franchise." — Hon.  T.  W.  Hard- 
wick,  Democratic  Congressman,  Georgia, 

"I  am  opposed  to  the  nigger's  voting,  it  matters  not  what  his 
advertised  moral  and  mental  qualifications'  may  be.  I  am  just  as 
much  opposed  to  Booker  Washington's,  with  all  his  Anglo-Saxon 
reinforcements,  voting  as  I  am  to  voting  by  the  cocoanut  headed, 
chocolate  colored,  typical  little  coon  Andy  Dotson,  who  blacks  my 
shoes  every  morning.  Neither  one  is  fit  to  perform  the  supreme 
functions  of  citizenship." — Governor  Vardeman,  Democratic  Gover- 
nor of  Mississippi. 

"We  would  not  withhold  from  the  negro  any  of  his  'rights,' 
but  we  do  not  regard  the  right  of  suffrage  as  one  of  his  rights,  or 
as  being  essential  in  any  way  to  the  protection  of  his  life  or  prop- 
erty, or  to  his  pursuit  of  happiness." — Charleston  News  and  Courier. 


THE  PROPOSED  INVESTIGATION  OF  VIOLATIONS  OF  THE 
FOURTEENTH  AMENDMENT  TO  THE  CONSTITUTION. 

The  justification  of  this  plank  of  the  platform  rests  upon  a 
few  simple  though  important  facts  and  principles,  which  may  be 
briefly  stated: 

Under  the  Constitution  as  it  existed  before  the  civil  war  suf- 
frage was,  for  all  practical  purposes,  under  the  exclusive  control 
of  the  States.  Each  State  had  the  right  to  prescribe  such  quali- 
fications of  its  electors  as  it  deemed  best  suited  to  its  own  interest. 
The  State  could  confer  or  withhold  the  right  to  vote  according  to 
its  will  expressed  in  its  constitution  and  laws,  which  were  supreme 
in  that  respect.  The  only  limit  (if  there  be  a  limit)  to  this  abso- 
lute authority  suggested  by  the  Constitution  is  contained  in  the 
national  guaranty  to  every  State  of  a  republican  form  of  govern- 
ment, Article  IV,  Section  4,  of  the'  Constitution ;  the  only  condi- 
tion imposed  upon  its  exercise  is  that  the  electors  of  the  members 
of  the  House  of  Representatives  shall  have  the  qualifications  re- 
quired for  the  electors  of  the  most  numerous  branch  of  the  State 
legislature. 


THE  PROBLEM  OF  OUR  COLORED  CITIZENS.  419 

In  the  exercise  of  this  power  the  several  States  from  time  to 
time  fixed  and  determined  their  own  electorates,  sometimes  ex- 
cluding the  illiterate,  sometimes  excluding  those  without  a 
certain  amount  of  property,  and  almost  universally,  north 
and  south  alike,  excluding  the  negro  race.  This  was  done 
without  any  possibility  of  affecting  the  representation  in  Con- 
gress or  in  the  electoral  vote,  which  was  then,  by  Article  I, 
Section  2  of  the  Constitution,  proportioned  (as'*  direct  taxes  are 
proportioned)  to  the  number  of  free  persons  plus  three-fifths  of 
the  slaves.  But  the  civil  war  brought  about  two  radical  changes 
in  the  Constitution  with  respect  to  suffrage,  one  expressed  in  the 
14th  Amendment  to  the  "Constitution  and  the  other  expressed  in 
the  15th  Amendment  to  the  Constitution.  The  second  section  of 
the  14th  Amendment  to  the  Constitution,  which  deals  with  the 
suffrage  question,  is  as  follows: 

"Section  2.  Representatives  shall  be  apportioned  among  the 
several  States  according  to  their  respective  numbers,  counting  the 
whole  number  of  persons  in  each  State,  excluding  Indians  not 
taxed.  But  when  the  right  to  vote  at  any  election  for  the  choice 
of  electors  for  President  and  Vice-President  of  the  United  States, 
Representatives  in  Congress,  the  Executive  and  Judicial  officers 
of  a  State,  or  the  Members  of  the  Legislature  thereof,  is  denied  to 
any  of  the  male  citizens  of  such  State  being  twenty-one  years'  of 
age,  and  citizens  of  the  United  States,  or  in  any  way  abridged,  ex- 
cept for  participation  in  rebellion,  or  other  crime,  the  basis  of 
representation  therein  shall  be  reduced  in  the  proportion  which 
the  number  of  such  male  citizens  shall  bear  to  the  whole  number 
of  male  citizens  twenty-one  years  of  age  in  such  State." 

It  is  obvious  that  this  amendment  did  not  confer  the  right  of 
suffrage  upon  the  negro  race,  nor  in  any  way  limit  the  full  power 
of  each  State  to  fix  the  qualifications  of  its  voters  as  it  chose. 
Each  State  was  free  to  limit  the  right  of  suffrage  as  it  chose,  to 
disfranchise  those  who  were  illiterate  or  without  property,  or 
those  belonging  to  the  negro  race.  The  prevalent  opinion  in  the 
Republican  party  at  the  time  the  14th  Amendment  was  passed 
was,  that  the  negroes  lately  released  from  bondage  were  not  yet 
fitted  for  the  duties  of  citizenship.  But  this  amendment  for  the 
first  time  imposed  upon  any  State  which  should,  as  it  had  a  right 
to  do,  exclude  from  the  electorate  any  of  its  male  inhabitants 
twenty-one  years  of  age,  citizens  of  the  United  States,  and  guilt- 
less of  crime,  the  penalty  of  a  reduction  of  its  representation  in 
the  House  of  Representatives  and  in  the  electoral  college.  The 
amendment  provides  that  the  basis  of  apportionment  of  repre- 
sentation should  be  not  the  total  population  of  the  State,  but  that 
population  diminished  by  such  a  percentage  of  itself  as  the  num- 
ber of  citizens  denied  the  right  to  vote  constitute  of  the  whole 
number  of  male  citizens. 

As,  by  the  13th  Amendment  to  the  Constitution  slavery  had 
been  abolished,  under  the  Constitution  as  it  existed  before  the 
passage  of  the  14th  Amendment  the  States  wherein  slavery  had 
existed  would  have  received  a  considerable  increase  in  representa- 
tion in  the  House  of  Representatives  and  in  the  electoral  college, 
because  those  who  had  been  slaves  and  had  theretofore  counted 
as  three-fifths  of  a  man  in  escertaining  representation,  each 
counted  as  a  single  man  when  he  became  free.  As  there  were 
some  four  and  a  half  millions  of  slaves  who  were  freed  by  the 
13th  Amendment  to  the  Constitution,  the  extraordinary  spectacle 
would  have  been  presented  of  the  States  lately  at  war  with  the 
Union  returning  within  it  with  an  increased  political  power  meas- 
ured by  two-fifths  of  the  four  and  one-half  millions  of  freedmen, 
and  expressed  by  from  thirty  to  forty  additional  seats  in  Congress 
and  votes  in  the  electoral  college.  It  was  then  assumed  that  the 
Southern  States  would  continue  to  confine  the  right  of  suffrage  to 
the  white  race  and  accept  the  diminution  in  political  power  im- 
posed by  the  14th  Amendment.  It  was  hoped  that  the  temptation 
of  an  increase  of  political  power  would  result  in  the  States  grad- 
ually, from  time  to  time  as  they  judged  it  safe  to  do  so,  conferring 
the  right  of  suffrage  upon  freedmen  who  in  one  way  or  another 
should  prove  that  they  were  worthy  of  it.  But  the  slave  States 
rejected  contemptuously  the  14th  Amendment  and  passed  laws  for 
the  government  of  the  freedmen  which  caused  great  apprehension, 
well  described  in  Mr.  Blaine's  "Twenty  Years  in  Congress." 

Then  followed  the  15th  Amendment  to  the  Constitution,  which 
is  as  follows : 


420  THE  PROBLEM  OF  OUR  COLORED  CITIZENS. 

"Section  1.  The  right  of  citizens  of  the  United  States  to  vote 
shall  not  be  denied  or  abridged  by  the  United  States  or  by  any 
State  on  account  of  race,  color    or  previous  condition  of  servitude. 

"Section  2.  The  Congress  shall  have  power  to  enforce  this  ar- 
ticle by  appropriate  legislation." 

This  amendment  does  not  confer  the  right  of  suffrage  upon 
any  person.  It,  however,  for  the  first  time  limits  the  right  of  a 
State  to  deal  with  that  subject.  A  State  still  has  the  power  to 
prescribe  the  qualifications  for  suffrage.  It  may  at  will  exclude 
those  without  property.  It  may  still  at  will  exclude  the  illiterate, 
but  if  it  excludes  the  illiterate  negro  it  must  by  the  same  law 
exclude  the  illiterate  white  man.  In  the  eyes  of  the  15th  Amend- 
ment all  races  admitted  to  our  citizenship  are  entitled  to  impar- 
tial treatment  in  respect  of  suffrage. 

In  many  of  the  States  recently  new  constitutions  have  been 
adopted  with  the  avowed  purpose  of  excluding  as  many  as  possi- 
ble of  the  negro  race  from  the  right  of  suffrage  and  including  as 
many  as  possible  of  the  white  race  in  the  right  of  suffrage. 
Whether  these  constitutions,  examples  of  which  are  printed  below, 
are  violative  of  the  15th  Amendment  and  therefore  void  is  too 
large  a  question  for  discussion  here.  If  such  a  violation  has 
occurred,  by  Section  2  of  Article  XV  Congress  has  authority  to 
deal  with  the  subject.  Passing  by  that,  however,  it  is  a  matter 
of  common  knowledge  that  the  effect  of  these  new  constitutions 
is  to  exclude  voters,  mostly  of  the  negro  race,  by  the  tens  of 
thousands  from  the  electorate.  Thus  there  is  presented  the  exact 
condition  to  which  the  14th  Amendment  is  intended  to  apply. 

The  plank  of  the  platform  under  consideration  favors  an  in- 
vestigation by  Congress  of  the  subject,  and  after  the  facts  are 
ascertained  a  reduction  of  representation  in  accordance  with  the 
Constitution.  It  is  a  mistake  to  suppose  that  this  planlk  refers 
to  the  Southern  States  alone.  Many  other  States  exclude  from 
their  electorates  substantial  portions  of  their  male  citizens  wenty- 
one  years  of  age,  notably  the  States  of  Massachusetts,  Connecticut, 
and  California.  Extracts  from  the  constitutions  of  those  States 
are  printed  below.  It  is  clearly  just  that  any  reduction  under 
the  14th  Amendment  which  Congress  may  adopt  should  apply 
equally  to  all  of  the  States  of  the  Union.  Any  investigation  which 
Congress  undertakes  should  be  conducted  with  respect  to  all  the 
States  where  there  is  any  denial  of  the  right  of  suffrage  to  any 
of  their  citizens.  This  is  the  obvious  meaning  of  the  plank.  This 
utterance  of  the  convention  has  been  bitterly  attacked  as  sec- 
tional and  calculated  to  arouse  race  hatred.  It  is  neither.  The 
Republican  party  has  the  right  to  discuss  the  interpretation  and 
enforcement  of  any  part  of  the  Constitution  of  the  United  States. 
The  demand  is  made  that  we  stand  mute  by  men  who  themselves 
embrace  every  opportunity,  on  the  platform,  in  the  pulpit,  and  in 
the  press  to  put  forward  their  own  views  upon  this  great  subject. 
The  Republican  party  by  the  action  of  its  convention  has  declined 
to  comply  with  this  demand  and  has  brought  forward  the  subject 
for  discussion.  It  may  be  confidently  hoped  that  the  just  and 
constitutional  representation  of  the  people  of  the  several  States 
in  the  House  of  Representatives  and  the  electoral  college  may  re- 
ceive earnest  consideration  and  temporate  discussion.  That  each 
State  shall  receive  only  its  just  share  in  the  political  power  of  the 
nationnation  is  the  right  of  every  other  State,  because  the  power 
of  no  State  can  be  unlawfully  increased  except  at  the  expense  of 
unlawfully  decreasing  the  power  of  the  other  States.  We  may  be 
assured  that  any  action  which  may  hereafter  be  taken  will  be 
with  scrupulous  regard  to  the  rights  of  every  State,  and  will  seek 
to  impose  upon  none  any  other  law  or  rule  than  that  which  the 
Constitution  itself  commands. 

The  New  Election   Laws  In  the   South. 

The  following  are  the  sections  of  the  Mississippi,  Louisiana, 
and  North  Carolina  election  laws  framed  for  the  avowed  pur- 
pose of  depriving  colored  citizens  of  their  constitutional  right 
to  vote.  The  number  of  colored  males  of  voting  age  in  these 
three  States  was  in  1900  472,398  and  now  presumably  reaches 
500,000,  thus  representing  a  population  of  nearly  2,500,000  in  these 
States  alone.  It  will  be  seen  that  the  Louisiana  and  North  Caro- 
lina laws  are  especially  framed  for  the  purpose  of  making  the 


THE   PROBLEM    OF   OUR    COLORED   CITIZENS.  421 

educational  test  apply  only  to  the  colored  population,  and  all 
persons  who  were  voters  prior  to  January  1,  1867,  and  the  lineal 
descendants  of  all  persons  who  were  voters  prior  to  that  date  are 
exempt  from  the  provision  of  the  law  which  disqualifies  per- 
sons because  of  illiteracy. 

Mississippi. 

"Section  244.  On  and  after  the  first  day  of  January,  1892, 
every  elector  shall,  in  addition  to  the  foregoing  qualifications,  be 
able  to  read  any  section  of  the  Constitution  of  this  State;  or  he 
shall  be  able  to  understand  the  same  when  read  to  him,  or  give  a 
reasonable  interpretation  thereof.     *     *      * 

Louisiana. 

"Section  3.  He  (the  voter)  shall  be  able  to  read  and  write,  and 
shall  demonstrate  his  ability  to  do  so  when  he  applies  for  regis- 
tration, by  making,  under  oath  administered  by  the  registration 
officer  or  his  deputy,  written  application  therefor,  in  the  English 
language  or  his'  mother  tongue,  which  application  shall  contain 
the  essential  facts  necessary  to  show  that  he  is  entitled  to  register 
and  vote,  and  shall  be  entirely  written,  dated  and  signed  by  him, 
in  the  presence  of  the  registration  officer  or  his  deputy,  without 
assistance  or  suggestion  from  any  person  or  memorandum  what- 
ever, except  the  form  of  application  hereinafter  set  forth.     *     *     * 

"Section  5.  No  male  person  who  was  on  January  1st,  1867,  or  at 
any  date  prior  thereto,  entitled  to  vote  under  the  Constitution  or 
statutes  of  any  State  of  the  United  States,  wherein  he  then  re- 
sided, and  no  son  or  grandson  of  any  such  person  not  less'  than 
twenty-one  years  of  age  at  the  date  of  the  adoption  of  this  Con- 
stitution, and  no  male  person  of  foreign  birth,  who  was  natural- 
ized prior  to  the  first  day  of  January,  1885,  shall  be  denied  the 
right  to  register  and  vote  in  this'  State  by  reason  of  his  failure  to 
possess  the  educational  or  property  qualifications  prescribed  by 
this  Constitution;  provided,  he  shall  have  resided  in  this  State  for 
five  years  next  preceding  the  date  at  which  he  shall  apply  for 
registration,  and  shall  have  registered  in  accordance  with  the 
terms  of  this  article  prior  to  September  1,  1898,  and  no  person  shall 
be  entitled  to  register  under  this  section  after  said  date." 

North  Carolina. 

"Section  4.  Every  person  presenting  himself  for  registration 
shall  be  able  to  read  and  write  any  section  of  the  Constitution  in 
the  English  language.  *  *  But  no  male  person  who  was,  on 
January  1,  1867,  or  at  any  time  prior  thereto,  entitled  to  vote  under 
the  laws  of  any  State  in  the  United  States  wherein  he  then  re- 
sided, and  no  lineal  descendant  of  any  such  person  shall  be  de- 
nied the  right  to  register  and  vote  at  any  election  in  this  State 
by  reason  of  his  failure  to  possess  the  educational  qualifications 
herein  prescribed,  provided,  he  shall  have  registered  in  accordance 
with  the  terms  of  this  section  prior  to  December  1,  1908. 

"The  General  Assembly  shall  provide  for  the  registration  of  all 
persons  entitled  to  vote  without  the  educational  qualifications 
herein  prescribed,  and  shall,  on  or  before  November  1,  1908,  pro- 
vide for  the  making  of  a  permanent  record  of  such  registration, 
and  all  persons  so  registered  shall  forever  thereafter  have  the 
right  to  vote  in  all  elections  by  the  people  in  this  State,  unless  dis- 
qualified under  'section  2  of  this  article:  Provided,  such  person 
shall  have  paid  his  poll  tax  as  above  described." 

The  following  are  state  constitutional  provisions  regarding  the 
right  of  suffrage  in  certain  northern  states : 

/-■ 

Massachusetts. 

"Art.  XX.  No  person  shall  have  the  right  to  vote,  or  be  eligi- 
ble to  office  under  the  constitution  of  this  commonwealth,  who 
shall  not  be  able  to  read  the  constitution  in  the  English  language, 
and  write  his  name:  provided,  however,  that  the  provisions  of  this 
amendment  shall  not  apply  to  any  person  prevented  by  a  physical 
disability  from  complying  with  its'  requisitions,  nor  to  any  person 
who  now  has  the  right  to  vote,  nor  to  any  persons  who  shall  be 
sixty  years  of  age  or  upwards  at  the  time  this  amendment  shall 
take  effect." 

Connecticut. 

"Art.  VIII,"  as  amended.  "Every  male  citizen  of  the  United 
States  who  shall  have  attained  the  age  of  twenty-one  years,  who 
shall  have  resided  in  this  State  for  a  term  of  one  year  next  pre- 
ceding and  in  the  town  in  which  he  may  offer  himself  to  be  ad- 
mitted to  the  privileges  of  an  elector,  at  least  six  months'  next  pre- 
ceding the  time  he  may  so  offer  himself,  and  shall  sustain  a  good 
moral  character,  shall,  on  his  taking  such  oath  as  may  be  pre- 
scribed by  law,  be  an  elector." 

"Art  XI.  Every  person  shall  be  able  to  read  any  article  of 
the  Constitution  or  any  section  of  the  statutes  of  this  State  before 
being  admitted  an  elector." 


422 


THE   PROBLEM    OF   OUR   COLORED   CITIZENS. 


California. 

"Art.  ir  .Section  1.  Every  native  male  citizen  of  the  United 
States,  every  male  person  who  shall  have  acquired  the  rights  of 
citizenship  under  or  by  virtue  of  the  treaty  of  Queretaro,  and  every 
male  naturalized  citizen  thereof,  who  shall  have  become  such 
ninety  days  prior  to  any  election,  of  the  age  of  twenty-one  years', 
who  shall  have  been  resident  of  the  State  one  year  next  preceding 
the  election,  and  of  the  county  In  which  he  claims  his  vote  ninety 
days,  and  in  the  election  precinct  thirty  days,  shall  be  entitled  to 
vote  at  all  elections  which  are  now  or  may  hereafter  be  author- 
ized by  law:  provided,  no  native  of  China,  no  idiot,  no  insane  per- 
son, no  person  convicted  of  any  infamous'  crime,  no  person  here- 
after convicted  of  the  embezzlement  or  misappropriation  of  public 
money,  and  no  person  who  shall  not  be  able  to  read  the  constitu- 
tion in  the  English  language  and  write  his  name,  shall  ever  exer- 
cise the  privileges  of  an  elector  in  this  State:  provided,  that  the 
provisions'  of  this  amendment  relative  to  an  educational  qualifi- 
cation shall  not  apply  to  any  person  prevented  by  a  physical  dis- 
ability from  complying  with  its  requisitions,  nor  to  any  person 
who  now  has  the  right  to  vote,  nor  to  any  person  who  shall  be 
sixty  years'  of  age  and  upwards  at  the  time  this  amendment  shall 
take  effect." 

The  following  table,  compiled  from  official  data,  shows  the 
number  of  colored  employees  in  the  service  of  the  Government, 
exclusive  of  the  United  States  Capitol  and  the  judiciary : 

Colored  Officers,  Clerks,  and  Other  Employees  in  the  Service  of  the 
United  States  Government,  1904. 


Diplomatic  and  consular  service 

Departmental  service : 

State 

Treasury 

War 

Navy 

Post-Offlce 

Interior 

Justice 

Agriculture 

Commerce  and  labor 

Government  Printing  Office 

Interstate  Commerce  Commission 

District  government,  Washington,  D.  C 

Recorder  of  deeds 

Service  at  large : 

Customs  and  internal  revenue 

Post  office  at  large 

Land  office,  New  Orleans 

Miscellaneous 

Army  officers 

Total 

Recapitulation  by  localities : 

At  foreign  stations 

At  Washington,  D.  C 

At  New  York.  N.  Y 

At  New  Orleans,  La 

At  Atlanta.  Ga 

At  Savannah,  Ga 

At  Augusta,  Ga 

At  Baltimore,  Md 

At  Richmond.  Va 

At  miscellaneous  points 

Army  officers 

Total 


No. 


Salaries 


13 

$32,000 

10 

7.600 

596 

391,834 

122 

94.910 

42 

29,736 

103 

66,840 

219 

167,260 

17 

13.520 

100 

53,272 

125 

78,856 

320 

210.874 

4 

2,280 

1,891 

847,055 

22 

14,050 

258 

205,047 

750 

611,140 

3 

7,800 

5 

2.400 

10 

17,260 

4.610 

$2,853,734 

13 

$32,000 

3,663 

2,056,727 

188 

153,982 

108 

96,740 

94 

65,780 

42 

32,766 

12 

8,120 

40 

31.444 

50 

37,820 

390 

321,095 

10 

4,610 

$2,853,734 

The  fact  that  nearly  5,000  colored  citizens  are  in  the  public 
service  and  receiving  salaries  aggregating  about  three  million 
dollars  furnishes  further  evidence  of  the  broad  and  liberal  policy 
of  the  Republican  party,  while  the  further  fact  that  the  colored 
employees  are  proverbially  faithful,  courteous,  and  efficient  is  am- 
ple justification  of  the  attitude  of  the  party  toward  the  freedmen 
of  the  nation. 


We  ask  that  sober  and  sensible  men  compare  the  workings  of 
the  present  tariff  taw  and  the  conditions  which  obtain  under  it, 
with  the  workings  of  the  preceding  tariff  law  of  1894  and  the  con- 
ditions which  that  tariff  of  1894  helped  to  bring  about. — President 
Roosevelt's  speech  accepting  1904  nomination. 


VOTE  FOR  REPRESENTATIVES  IN  CONGRESS,  1900  AND  1902.        423 

Vote  for  Representatives  in  Congress,  1900  and  1902. 


State. 


1900. 


Rep. 


Dem. 


1902. 


Rep. 


Dem. 


Alabama 

Arizona 

Arkansas. 

California..... 

Colorado 

Connecticut 

Delaware 

Florida 

Georgia 

Hawaii 

Idaho..... 

Illinois 

Indiana 

Iowav 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts.. 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New  Hampshire 

New  Jersey 

New  Mexico 

New  York 

North  Carolina. 
North  Dakota... 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode  Island 

South  Carolina.. 
South  Dakota  .. 

Tennessee 

Texas „ 

Utah 

Vermont 

Virginia 

Washington 

West  Virginia.. 

Wisconsin 

Wyoming 

Total 


36,334 
7.716 

42,785 
180,549 

92,811 
102,559 

21,711 
5,254 

11,605 
(2)3.783 

26,860 
591,886 
330,775 
304,302 
180,979 
228,476 

14,554 

72,908 
135,404 
230,376 
312.902 
158,396 
2,579 
313,814 

34.887 

112,952 

4,190 

53,502 
250,822 

21,567 
808,474 
122,879 

35,891 
537,016 

38,253 

43  300 
683,941 

30.941 
3.100 

54.530 

96,921 

82,229 

46.180 

46,718 

98,730 
110,661 
118,213 
260,644 

14,539 


104,626 

8.664 

84.258 

142,321 

(1)121.011 

74,521 

18,529 

26,451 

83,504 

1.567 

28,087 

502,187 

310.847 

212.847 

162.652 

233.002 

52,925 

40.485 

122  778 

143,356 

216,664 

105,895 

47,549 

854,080 

21.175 

(1)109.988 

5.975 

34,918 

199,268 

17  857 

669  012 

162  260 

20  519 

479  168 

33,529 

30,902 

411  552 

18,715 

47,«27 

89,554 

116,030 

296,978 

45,939 

16,732 

165  069 

90  330 

100  598 

160,834 

10,017 


6,593 
152,363 
85.297 


6,636 
32,834 
406,560 
296,185 
223,021 
158,307 
122,746 

4,047 
63,481 
100,054 
192,580 
228,399 
158,843 

230,749 
24,626 
98,337 
5,101 
44,629 

183,576 
24,222 

651,838 
68,938 
32,986 

439,765 
45,763 
48,082 

619,805 
28,215 
742 
48,454 
53,618 
55,320 
43,710 
33.539 
38,129 
59,366 

100,223 

194,885 
15,808 


67,667 

9,716 

32,823 

126,290 

84,348 

70,589 

16,396 

16,340 

39,967 

4,696 

24,878 

373,488 

268,940 

158,849 

115,342 

168,652 

22,218 

38,633 

91,606 

150  055 

155,732 

90,791 

18,058 

274,220 

19,560 

89,214 

5,876 

30,204 

164,199 

14,576 

633,570 

135,819 

14,765 

337,656 

45,469 

31,811 

303,201 

27,853 

31,343 

21,113 

98,766 

286,787 

38,196 

8,544 

82,226 

34,315 

88,350 

137,056 

8.892 


.853,905 


6,163,311 


(1)  Fusion. 

(2)  Wilcox,  Ind.  Home  Ruler,  elected  Delegate  to  Congress  from  Hawaii  in  1900. 


In  twenty  yetirs  the  -workshop  of  the  world  has  become  the 
dumping  ground  of  the  world. — London  Daily  Telegraph,  December 
10,   1903. 

To  be  an  American  citizen  to-day  means  more  than  ever  be- 
fore; it  means  greater  opportunity  and  enlarged  responsibility.— 
Hon.  C.  W.  Fairbanks,  at  Baldwin,  Kas.,  June  7,  1901. 

The  question  of  human  rights  and  human  liberty  are  the  po- 
tential questions  which  have  summoned  our  mightiest  armies  and 
have  assembled  our  fleets  and  stirred  our  country  to  the  utmost 
depths. — Hon.  C.  W.  Fairbanks,  in  U.  S.  Senate,  February  22,  1902. 


The  foundation  of  our  whole  social  structure  rests  upon  the 
material  and  moral  well-being,  the  intelligence,  the  foresight,  the 
sanity,  the  sense  of  duty,  and  the  wholesome  patriotism  of  the 
wage-worker. — President  Roosevelt  at  Labor  Day  picnic,  Chicago, 
Sept.  3,  1900. 

The  menace  of  16  to  1  still  hangs  over  us  with  all  its  dire  con- 
sequences to  credit,  confidence,  business,  and  activity;  the  enemies 
of  sound  money  are  rallying  their  scattered  forces.  The  people 
must  once  more  unite  and  overcome  the  advocates  of  repudiation.- 
President  McKinley  to  the  Notification  Committee,  July  12,  1900. 


424  POPULAR  AND  ELECTORAL  VOTE  FOR  PRESIDENT  IN  1900. 


Popular  uml  electoral  vote  for  President  in  1900. 


Popular  vote. 


Electoral 
vote. 


Hep. 


Pro-         De^m.1      Labor       Pop-    PlBrallty' 


Dem.  Rep 


Alabama , 

Arkansas 

California 

Colorado , 

Connecticut. 

Delaware 

Florida 

Georgia 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky.... 
Louisiana.... 

Maine 

Maryland.... 
Massachusetts. 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

N.  Hampshire 

New  Jersey 

New  York 

North  Carolina 
North  Dakota. 

Ohio 

Oregon 

Pennsylvania. 
Rhode  Island. 
South  Carolina 
South  Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington.... 
West  Virginia 

Wisconsin 

Wyoming 


97,131 

81, 142 

124,986 

122,733 

73,997 

18,858 

28,007 

81,700 

29,414 

503,061 

309,584 

209,179 

162,601 

235,103 

68,671 

36,822 

122,271 

166,997 

211,685 

112,901 

61,706 

851,922 

37,146 

114,018 

6,347 

85,489 

164,808 

678,386 

167,752 

20.519 

474,882 

33,385 

424,232 

19,812 

47,286 

39,544 

144,751 

267,337 

45,006 

12,849 

146,080 

44,833 

98,807 

159,285 

10,164 


54,512 

14,800 
164,755 

93,072 
102,567 

22,529 
7,314 

85,085 

26,997 
697,985 
336,063 
807,785 
185,955 
227,128 

14,233 

65,435 
136,212 
238,866 
316,269 
190,461 
5,758 
314,092 

25,373 

131,835 

3,849 

54,803 
221,707 
821,992 
133,081 

35,891 
543,918 

46,526 
712,665 

38,784 
3,679 

64,530 
121,194 
121,173 

47,139 

42,568 
115,865 

57,456 
119,829 
265,866 

14,482 


2,762 

584 

6,024 

3,790 

1,617 

538 

1, 

1,396 

857 

17,623 

13,718 

9,479 

8,605 

8,780 


2,585 
4,582 
6,202 
11,859 
8,555 


5,965 

298 

3,655 


1,270 

7, 
22,043 

1,006 

731 

10,203 

2,536 
27,908 

1,529 


1,542 
3,900 
2,644 

209 

2,150 

2,368 

1,692 

10,124 


7,554 
651 

1,029 

57 

601 


9,687 
2,874 
2,778 
1,605 
646 

""878 
908 
9,607 
2,826 
3,065 


6,139 
708 


790 
4,609 
12,869 


518 
4,847 
1, 
4,831 


176 

410 

1,841 

720 


2,006 
268 
524 


4,178 
972 


387 


1,373 
663 
259 


1,070 
4,584 

2131 
1,141 
1,488 

618 


391 
2,699 

903 
1,829 


1,294 


1,644 
4,244 


1,104 


2,074 
12,622 


1,688 


no 

251 

208 


1,423 


16020,976 
106 

367 


274 


7,065 


41.619D 
86, 342 D 
89, 770 R 
29,661  D 
28,570 R 

3,671 R 
20,693 D 
26,665 D 

2,216 D 
94,924 R 
26,479 R 
98,606 R 
28,854 R 

7,975 D 
89,438 D 
28.613R 
18,941 R 
81,869 R 
104, 684 R 
77,560  R 
45,953 D 
37,830 D 
11,778 D 

7,822 R 

♦2.498D 

19, 814 R 

56,899 R 

143,606 R 

24,671 D 

15,372 R 

69,036 R 

13, 141 R 

288, 438 R 

13,972 R 

43,657 D 

14,986 R 

23,557 D 

146, 164 D 

2.183R 
29, 719 R 
30,215 D 
12,623 R 
21,022 R 
106,581 R 

4,318 R 


11 


12 

15 

3 

4 

12 

..... 



4 

6 

12 

3 

Total 6,358,133  7,207,923  208,914      87,814 


50,373  155     292 


Popular  vote,  McKinley  over  Bryan 849,790 

Popular  vote,  McKinley  over  all 456,259 

Electoral  vote,  McKinley  over  Bryan 137 

Total  popular  vote,  all  candidates 13,959,653 

Total  popular  vote,  including  scattering  votes. . .   13,961,566 

So  long:  as  labor  Is  deemed  honorable  there  need  be  no  con- 
cerns as  to  the  future. — Hon.  C.  W.  Fairbanks,  in  a  Labor  Day  ad- 
dress at  Kansas  City,  Mo.,  September  1,  1902. 

What  has  been  done  for  the  tin-plate  manufacturers  in  the 
United  States  can  be  done  for  American  shipbuilders  and  American 
shipowners. — Hon.  Wm.  S.  Greene,  in  Congress,  April  28,  1904. 

The  Republican  party  stands  now  as  ever,  for  honest  money 
and  a  chance  to  earn  it  by  honest  toil. — Prom  an  address  by  Hon. 
\\  m.  McKinley  before  the  Marquette  Club,  Chicago,  Feb.  12,  1896. 

It  is  no  longer  a  question  of  expansion  with  us;  we  have  ex- 
panded. If  there  is  any  question  at  all  it  is  a  question  of  contrac- 
tion; and  who  is  going  to  contract? — President  McKinley  at  Iowa 
Falls,  Iowa,  Oct.  16,  1899. 

In  the  Post-Office  investigation  the  source  of  corruption,  the 
fountain  head  from  which  flowed  the  whole  miserable  business, 
was  found  not  in  a  Republican,  but  in  a  Democratic  Administra- 
tion, and  it  was  a  Republican  Administration  which  applied  the 
lancet  and  let  free  the  poison.— Hon.  Albert  J.  Beveridge,  in  the 
Senate,,  April  1,  1904. 


PRESIDENTIAL  VOTE   1856-1900. 


425 


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Our  Government  should  be  as  exacting  from  foreigners  as  from 
Americans.  Make  them  pay  duty  -while  we  pay  taxes. — Hon.  P.  C. 
Cheney. 

I  fancy  the  people  will  be  found  pretty  well  content  with  an 
Administration  which  did  not  hesitate  to  say,  "Let  no  guilty  man 
escape,"  and  then  enforced  that  order* — Hon.  Albert  J.  Beveridge, 
in  the  Senate,  April  1,  1904. 

Those  who  denounce  the  gold  standard  and  assail  its  supporters 
must  have  read  to  no  profit  the  splendid  and  incomparable  history 

of   their   country Hon.   C.   W.   Fairbanks,   in   U.    S.   Senate,   March 

5,  1900. 

I  would  like  to  impress  upon  every  public  man,  upon  every 
writer  in  the  press,  the  fact  that  strength  should  go  hand  in  hand 
with  courtesy,  with  scrupulous  regard  in  word  and  deed,  not  only 
for  the  rights,  but  for  the  feelings,  of  other  nations. — President 
Roosevelt  at  Waukesha,  Wis.,  April  3,  1903. 


I  would  rather  have  my  boys  taught  to  think  the  finest  thing 
in  life  is  the  honesty  and  frankness,  the  truth  and  loyalty,  the 
honor  and  the  devotion  to  his  country  of  Theodore  Roosevelt  than 
to  have  them  in  possession  of  all  the  wealth  In  this  great  metropo- 
lis— Hop.  KHhu  Root,  at  New  York,  Feb,  3,  1904, 


426 


m'kinley  states  vs.  ijryan  states. 


THE  McKINUEY  STATES  VERSUS  THE  BRYAN  STATES. 


Educational,    Financial*    and    Industrial    Conditions    in    the    States 
Carried  by  McKinley  and  Bryan,  Respectively,  in  1000. 

The  table  presented  on  the  opposite  page  shows  conditions  in 
population,  literacy,  educational  facilities,  educational  expendi- 
tures, industries,  savings  bank  deposits,  and  other  measures  of 
conditions  in  each  of  the  states  carried  by  McKinley  and  Bryan, 
respectively,  in  1900.  It  will  be  noted  that  the  states  which  gave 
their  electoral  votes  to  McKinley  in  1900  had  60.2  per  cent,  of  the 
population  of  the  country,  and  those  which  gave  their  votes  to 
Bryan  33.8  per  cent.  The  McKinley  states,  although  they  had  two- 
thirds  of  the  population,  had  but  31  per  cent,  of  the  illiterate 
white  population,  while  those  giving  their  vote  to  Bryan  had  69 
per  cent.  The  McKinley  states  show  a  total  expenditure  for 
public  schools  amounting  to  189  million  dollars,  or  85  per  cent,  of 
the  total,  while  the  Bryan  states  show  a  total  of  but  33  million 
dollars,  or  only  15  per  cent,  of  the  total  public  school  expenditures 
of  the  United  States.  Of  the  value  of  the  real  property  of  the 
United  States,  amounting  to  25  billions  of  dollars,  84  per  cent,  was 
located  in  the  McKinley  states  and  but  16  per  cent,  in  the  Bryan 
states ;  and  of  the  personal  property  of  the  country,  amounting 
to  8  billions  of  dollars,  74  per  cent,  was  in  the  states  which  gave 
their  electoral  votes  to  McKinley  and  26  per  cent,  in  those  which 
gave  their  votes  to  Bryan.  Of  the  value  of  the  farm  products  of 
the  United  States  in  1899,  67.8  per  cent,  was  produced  in  the  states 
which  gave  electoral  votes  to  McKinley  and  32.8  per  cent,  in  the 
states  which  gave  their  votes  to  Bryan ;  while  of  the  total  value  of 
farm  lands,  including  buildings  and  improvements,  76.9  per  cent, 
was  located  in  the  McKinley  states  and  23.1  per  cent,  in  the 
Bryan  states.  Of  the  13  billion  dollars'  worth  of  manufactures 
produced  in  the  United  States  in  1900,  87.2  per  cent,  was  produced 
in  the  states  which  gave  their  electoral  votes  to  McKinley  and 
protection,  and  12.8  per  cent,  in  the  states  which  gave  their  votes 
to  Bryan  and  low  tariff ;  while  79.2  per  cent,  of  the  mineral  prod- 
ucts of  the  United  States  in  1900  was  produced  in  the  states 
which  gave  their  electoral  votes  to  McKinley,  and  20.8  per  cent, 
in  the  Bryan  states.  Of  the  savings  bank  depositors  in  savings 
banks,  98.9  per  cent,  were  located  in  the  McKinley  states  and  1.1 
per  cent,  in  the  Bryan  states ;  and  of  the  money  deposited  in  sav- 
ings banks,  99.5  per  cent,  was  in  the  McKinley  states  and  0.5  per 
cent,  in  the  Bryan  states. 


Conditions  in  States  carried  by  McKinley  and  Bryan,  respectively, 

in  1900. 


McKinley  States. 


Per  cent 
of  total 


Bryan  States. 


Per  cent 
of  total. 


Area  square  miles 

Population 

Illiterate  native  white  popu-    I 

lation  10  years  old  and  over.  \ 
School  expenditures  in  1900. . . . 
Assessed  value  of  real  estate. 
Assessed  value  of  personal 

property 

Value  of  farm  lands,  includ- 
ing buildings,  etc f 

Value  of  farm  products  1899. . . 
Total  value  of  manufactures    I 

in  1900 S 

Wages  and  salaries  paid  in     I 

manufacturing  in  1900 S 

Value  of  product  of  mines,     ( 

oil  and  gas  wells,  etc f 

Savings  banks  deposits  in  1900. . 
Number  of   depositors  in       I 

savings  banks f 


$189 
$21,598, 

$  6,036, 

$12,608, 
$  3,137, 
$11,274, 

$  2.392, 

$616, 

$  2,436. 

5, 


380.760 
390,585 

569,434 

246,785 


680,997 
963,575 
824,602 

173,372 

581,477 
212,780 


51.8 
66.2 


85 
84.1 

74 


77 
67.8 
87.2 


79.2 
99.5 


1.284.200 
25,216,640 

1,270.048 

$33,512,434 
$4,076,900,371 

$2,122,040,651 

$3,789,316,055 
$1,487,964,093 
$1,649,647,187 

$317,067,517 

$161,853,006 

$  12.913.792 

67,762 


15 
15.9 


23 
32.2 
12.8 

11.7 

20.8 

0.5 

1.1 


WORK  OF  THE  FIFTY-EIGHTH  CONGRESS.  427 


WORK  OF  THE  58th  CONGRESS. 


The  following  summarization  of  the  work  of  the  Fifty-eighth 
Congress,  covering  the  special  session  called  by  President  Roose- 
velt to  consider  the  Cuban  reciprocity  treaty,  and  the  regular  ses- 
sion which  closed  on  April  28,  1904,  is  from  the  New  York 
Tribune  of  April  29,  1904: 

Two  great  achievements  have  marked  the  first  two  sessions  of 
the  Fifty-eighth  Congress,  which  is  likely  to  go  down  in  history  as 
a  business  Congress,  characterized  by  economy  and  strict  adher- 
ence to  business  principles.  The  consummation  of  the  policy  of 
reciprocal  trade  relations  with  Cuba,  outlined  by  McKinley  and 
faithfully  adhered  to  by  Roosevelt,  by  the  enactment  of  an 
enabling  law  which  put  into  effect  the  provisions  of  the  Cuban 
treaty  ratified  by  the  Senate  last  spring  in  special  session,  con- 
stituted the  chief  work  of  the  first  session  of  the  current  Congress, 
which  met  on  November  9,  although  the  final  vote  was  not  taken 
until  December  16. 

Of  not  less  importance  was  the  ratification  at  the  regular 
session  of  the  Panama  treaty,  negotiated  under  the  direction  of 
President  Roosevelt,  which  paves  the  way  for  the  great  inter- 
oceanic  highway  designed  to  stand  throughout  the  ages  as  the 
greatest  monument  to  the  United  States,  as  well  as  to  the  fearless 
and  energetic  President  who,  overcoming  all  obstacles  and  quick  to 
perceive  a  favorable  opportunity,  recognized  the  Republic  of  Pan- 
ama, negotiated  a  treaty  giving  to  the  United  States  complete  con- 
trol over  the  canal  zone,  and  received  the  hearty  indorsement  of 
Congress  in  his  course. 

Both  of  these  measures  were  contested  inch  by  inch  by  Demo- 
crats in  Congress,  who,  bereft  of  any  issue  on  which  to  appeal  for 
support  to  the  voters  of  1904,  thought  they  perceived  an  oppor- 
tunity to  create  partisan  capital.  Under  the  rigid  rules  of  the 
House  little  difficulty  was  encountered  in  passing  the  Cuban 
enabling  act,  but  in  the  Senate-  persistent  antagonism  was  met, 
and  Senators  Teller,  Patterson,  and  other  Democrats  labored  con- 
tinually to  rally  their  colleagues  in  a  determined  opposition  to  the 
policy  of  the  Republican  administration.  The  result  was  the  post- 
ponement of  final  acton  until  after  the  beginning  of  the  regular 
session,  but  the  final  vote  was  57  to  18  in  favor  of  Cuban  reci- 
procity, this  being  the  first  indication  of  that  Democratic  lack 
of  harmony  and  that  disintegration  which  have  characterized  the 
opposition  throughout  the  session. 

Immediately  after  the  Christmas  holidays  the  discussions  of  the 
Panama  treaty  began  in  earnest.  The  Democrats,  seeking  to  make 
capital,  introduced  various  resolutions,  which  they  were  able  to 
discuss  in  open  sesion,  thus  avoiding  the  "closed  doors"  which  are 
the  usual  order  when  a  treaty  is  under  consideration.  In  this 
debate  Mr.  Gorman  believed  that  he  saw  an  opportunity  to  estab- 
lish beyond  peradventure  his  right  to  lead  his  party,  and  made 
Herculean  efforts  to  solidify  the  Democratic  opposition  and  to 
create  the  impression  that  President  Roosevelt  was  an  unsafe  man. 
Days  were  spent  in  denunciation  of  the  President's  policy. 

The  President  cheerfully  forwarded  to  the  Senate  every  docu- 
ment asked  for,  thus  laying  open  to  the  most  careful  scrutiny 
every  act  in  connection  with  the  recognition  of  the  Republic  of 
Panama  and  the  negotiation  of  the  canal  treaty.  No  impropriety 
was  revealed,  and  no  ground  of  criticism  could  be  discovered,  and 
gradually  the  Democrats  in  the  upper  chamber,  who  were  daily 
hearing  of  the  displeasure  of  their  States  at  their  unreasoning 
opposition,  lost  confidence  in  the  leadership  of  Mr.  Gorman.  At 
last,  on  January  27,  Senator  Simmons,  of  North  Carolina,  felt  com- 
pelled to  speak  in  favor  of  the  Panama  treaty.  He  was  followed 
by  Senator  Clark  of  Arkansas,  and  by  other  Democrats,  and  then 
the  Republicans,  perceiving  their  advantage,  followed  it  up. 
Senator  Gorman  found  himself  deserted  by  his  party  colleagues, 
and  on  February  23  the  Senate,  by  a  vote  which,  including  pairs, 
was  72  to  17,  ratified  the  Panama  treaty.  Sixteen  of  the  thirty- 
three  Democratic  Senators  repudiated  Mr.  Gorman's  leadership  and 
placed  themselves  on  record  as  indorsing  the  policy  of  President 
Roosevelt. 

With  the-  Panama  treaty  disposed  of,  an  early  adjournment 
immediately  became  the  subject  of  discusion,  and  the  leaders  of 
both  Houses  determined  to  accomplish  all  necessary  legislation 
with  unparalleled  expedition,  setting  April  1  as  their  goal  for  ad- 
journment. 

The  Post-office  Scandals. 

One  more  energetic  effort  was  made  by  the  Democrats  to 
create  campaign  material.  The  report  of  Fourth  Assistant  Post- 
master-General Bristow,  giving  every  detail  of  the  Post-Office 
investigation  of  last  summer,  had  been  called  for  by  a  committee 
of  the  House  and  had  been  made  public.  It  clearly  demonstrated 
the  thoroughness  with  which  every  clew  to  dishonesty  in  the 
postal  service  had  been  followed,  and  the  unremitting  and  inex- 
orable character  of  the  inquiry  which  Mr.  Bristow  had  conducted. 
Thirty    indictments    had    been     procured     and     eight     convictions 


428  WORK  OF  THE  FIFTY-EIGHTH  CONGRESS. 

obtained,  while  cases  brought  under  the  remaining  twenty-two 
indictments  were  still  in  the  courts,  with  no  diminution  in  the 
vigor  with  which  they  were  being  prosecuted.  There  was  nothing 
in  the  document  to  afford  comfort  or  consolation  to  the  Democratic 
politicians  and  they  quickly  perceived  that  fact. 

Driven  to  desperation  for  a  party  issue,  they  thought  that  a 
further  investigation  might  be  instituted,  which,  whether  it 
revealed  the  existence  of  any  irregularity  undiscovered  by  Mr. 
Bristow  or  not,  would  afford  abundant  and  fruitful  material  for 
the  partisan  press,  which  could  easily  send  out  from  Washington 
columns  of  unfounded  rumor  and  speculation,  were  such  an  inquiry 
in  progress.  Hours  of  debate  and  pages  of  the  Congressional 
Record  were  filled  "with  the  vociferous  demands  of  the  Democrats 
for  such  an  investigation.  The  nonpartisan  commission  consisting 
of  Holmes  Conrad  and  Charles  J.  Bonaparte,  called  by  the  Presi- 
dent to  the  assistance  of  the  Departments  of  Justice  and  Post-Office 
in  the  investigation,  was,  however,  still  in  existence,  looking  into  the 
few  remaining  unraveled  tangles  of  the  former  inquiry,  and 
authorized  to  bring  to  the  attention  of  the  grand  jury  any  evidence 
which  would  warrant  application  for  indictment;  and  Democrats  in 
Congress  who  had  been  making  wild  and  general  charges  of  mal- 
feasance were  invited  to  bring  to  the  attention  of  Messrs.  Conrad 
and  Bonaparte  any  evidence  which  they  believed  should  be  further 
investigated.  From  that  time  nothing  more  was  heard  of  a  gen- 
eral Post-Office  investigation,  even  from  those  Democrats  who  were 
loudest  in  proclaiming  in  debate  the  existence  of  irregularities  still 
unprobed. 

The   National   Finances. 

Early  in  the  session,  on  January  26,  Representative  Hemen- 
way,  chairman  of  the  Committee  on  Appropriations,  warned  Con- 
gress of  the  necessity  for  strict  economy.  He  drew  attention  to 
the  fact  that  the  total  estimates  for  the  approaching  fiscal  year 
called  for  an  expenditure  of  $724,474,000,  exclusive  of  $56,500,000 
required  to  meet  the  sinking  fund.  Adding  the  amount  included 
in  special  appropriation  bills,  Mr.  Hemenway  estimated  the  grand 
total  of  this  year's  appropriations  at  $747,317,922.  Deducting  from 
this  sum  $704,472,060,  Secretary  Shaw's  estimate  of  revenues  for 
the  next  fiscal  year,  Mr.  Hemenway  showed  an  estimated  deficit 
for  the  years  1904-5  of  $42,845,862.  Referring  to  the  treasury 
surplus  of  $224,000,000,  Mr.  Hemenway  predicted  its  rapid  reduc- 
tion. He  showed  that  $131,000,000  was  already  appropriated  for 
the  Panama  Canal  and  unexpended  balances  for  the  Navy,  rivers 
and  harbors,  and  the  House  building.  Basing  his  argument  on 
these  figures,  he  urged  the  most  rigid  economy  in  every  possible 
direction.  How  closely  the  advice  of  the  chairman  of  the  Com- 
mittee on  Appropriations  has  been  followed  and  how  businesslike 
has  been  the  conduct  of  this  Congress  are  shown  by  his  statement 
issued  to-day.  The  authorized  expenditures  of  the  session  amount 
to  $698,272,786,  which,  deducted  from  the  revenues,  estimated  at 
$704,472,060,  leaves  a  surplus  of  $6,199,274. 

Important  Laws  Enacted. 

Among  the  more  important  laws  enacted  at  the  session  may  be 
enumerated  one  deferring  application  of  the  coastwise  laws  of 
the  United  States  to  commerce  with  the  Philippines  until  July  1, 
1905,  and  relieving  the  interisland  trade  to  the  Philippines  from  the 
restrictions  of  those  laws;  another  providing  that  Government  sup- 
plies shall  be  carried  between  the  United  States  and  the  Philippines 
in  vessels  of  American  register;  the  creation  of  a  commission,  con- 
siting  of  Senators  Gallinger,  Lodge,  Penrose,  Mallory,  and  Martin 
and  Representatives  Grosvenor,  Minor,  Humphrey,  McDermott,  and 
Spight,  to  determine  the  best  method  of  assisting  the  American 
merchant  marine.  The  commission  will  meet  in  the  summer  and 
make  some  recommendation  to  Congress  at  the  next  session. 

The  legislation  giving  the  President  power  to  take  possession 
of  the  Panama  Canal  zone,  pay  the  $10,000,000  to  Panama,  establish 
such  government  there  as  may  be  necessary,  and  delegate  to  the 
Panama  Commission  such  powers  as  he  may  deem  best,  was 
enacted  in  the  closing  hours.  Rear-admiral  John  G.  Walker, 
Major-General  George  W.  Davis,  William  Barclay  Parsons,  Frank 
J.  Hecker,  William  H.  Burr,  Carl  Bwald  Grunsky  and  Benjamin  M. 
Harrod  were  confirmed  by  the  Senate  as  members  of  the  Panama 
Canal  Commission,  which  has  already  visited  the  Isthmus  and 
returned  to  make  plans  for  carrying  on  the  work. 

Some  question  having  been  raised  as  to  the  effectiveness  of  the 
existing  Chinese  exclusion  laws  after  the  denunciation  of  the 
treaty  with  China  of  December  7,  1894,  has  taken  effect,  a  brief 
clause  has  been  added  to  the  sundry  civil  appropriation  bill  pro- 
viding that  existing  laws  on  this  subject  shall  remain  in  force, 
regardless  of  the  expiration  of  that  treaty.  Further  immigration 
legislation  provides  that  citizens  of  Newfoundland  entering  the 
United  States  shall  be  exempt  from  the  payment  of  the  usual  head 
tax  of  $2. 

The  only  pension  legislation  enacted  was  a  law  fixing  the 
pension  of  any  person  who  lost  the  use  of  both  eyes  in  the  military 
or  naval  service  of  the  United  States  at  $100  a  month. 

Assistance  has  been  given  to  two  expositions,  $4,600,000  having 
been  advanced  to  the  Louisiana  Purchase  Exposition  and  $475,000 
provided  for  Alaskan  and  Government  exhibits  at  the  Lewis  and 
Clark  Exposition,  to  be  held  at  Portland,  Oregon,  next  year. 

By  joint  resolutions  Congress  extended  an  invitation  to  the 
Interparliamentary  Union  for  the  Promotion  of  International  Arbi- 


WOBK  OF  THE  FIFTY-EIGHTH  CONGRESS.  429 


tration  to  hold  its  session  next  fall  in  the  United  States,  appropri- 
ating- $50,000  for  the  expenses  of  the  conference;  provided  funds 
for  bringing-  to  the  United  States  600  Porto  Rican  teachers  to 
attend  summer  schools  at  the  universities  and  other  institutions 
of  learning  this  year,  and  united  in  a  request  to  the  President  to 
open  negotiations  with  Great  Britain  for  a  revision  of  the  Bering 
Sea  and  North  Pacific  Ocean  fur  seal  regulations,  and  if  possible  to 
conclude  similar  negotiations  with  Russia,  Japan,  and  other  mari- 
time nations. 

By  a  House  resolution  the  Secretary  of  Commerce  and  Labor 
was  instructed  to  investigate  the  alleged  beef  trust. 

The  "  Charges  Against   Members." 

One  incident  of  the  session  which  deserves  notice  in  passing 
was  the  "tempest  in  a  teapot",  caused  by  the  House  Committee  on 
Post-Offices  and  Post-Roads,  which,  believing  it  saw  in  Fourth 
Assistant  Postmaster-General  Bristow's  report  a  reflection  on  mem- 
bers of  Congress,  proceeded  to  call  for  documentary  evidence. 
The  documents  when  received  and  made  public  so  irritated  the 
members  of  the  House  as  to  cause  them  to  create  the  so-called 
"McCall  committee"  to  investigate  the  relations  qf  members  of 
Congress  with  the  Post-Office  Department.  This  committee  found 
no  serious  impropriety  in  the  conduct  of  men  then  members  of 
the  House,  but  recommended  greater  formality  and  discretion  on 
the  part  of  members  in  their  dealings  with  the  executive  depart- 
ments. 

Answers  to  Charges  of  Excessive  Appropriations. 

The  following  account  of  the  discussion  in  the  Senate  in  the 
closing  hours  of  the  session  regarding  the  appropriations  of  the 
year  is  also  from  the  New  York  Tribune  of  April  29 : 

Statement  of  Appropriations. 

Mr.  Allison,  chairman  of  the  Committee  on  Appropriations, 
submitted  a  series  of  tables,  prepared  by  the  clerks  of  the  Appro- 
priations Committtee,  showing  an  increase  of  $28,000,000  over  the 
propriations  for  last  session.  He  gave  the  principal  terns  of 
increase  as  follows: 

For   the  Navy $16,000,000 

On  account  of  the  postal  service,   including  rural  free 

delivery    8,000,000 

He  also  said  there  was  an  increase  of  $8,832,000  in  the  per- 
manent annual  appropriations,  the  chief  item  being  $5,000,000  for 
the  bank-note  redemption  fund  and  the  next  most  important  item 
being  $2,250,000  for  the  irrigation  reclamation  fund. 

Mr.  Allison  also  spoke  of  the  increase  in  the  deficiency  appro- 
priations, the  principal  item  being  the  loan  of  $4,600,000  made  to  the 
St.  Louis  Exposition.  Replying  to  an  inquiry  from  Mr.  Aldrich,  he 
said  that  outside  the  loan  to  the  exposition  the  cost  of  that  insti- 
tution to  the  national  Treasury,  including  the  cost  of  the  Govern- 
ment exhibit,  is  about  $6,500,000. 

Speaking  generally,  Mr.  Allison  said  the  appropriations  were 
in  the  main  for  the  conduct  of  the  Government,  and  he  expressed 
the  opinion  that  they  would  not  be  criticised.  He  also  referred  to 
obligations  assumed,  and  said  those  of  this  year  are  less  than  for 
many  years  previous. 

Comparing  Administrations. 

Resuming  Mr.  Allison  said  the  obligations  aside  from  appro- 
priations incurred  at  the  present  session  amounted  to  $24,000,000. 

Mr.  Culbertson  presented  a  review  of  appropriations  for  the 
last  twelve  years,  covering  the  last  administration  of  Mr.  Cleveland 
and  the  McKinley  and  Roosevelt  administrations.  He  said  the 
total  expenditures  under  the  Roosevelt  administration  had  been 
$2,640,000,000,  or  $211,000,000  greater  than  the  four  years  of  the 
McKinley  administration,  and  $883,000,000  greater  than  in  the  four 
years  of  the  Cleveland  administration.  These  increases  he  sub- 
divided as  follows: 

Civil   administration $160,000,000 

Naval    231,000,000 

Military 284,000,000 

He  also  said  that  for  1905  the  total  appropriation  on  account 
of  the  military,  including  pensions,  would  be  $387,000,000,  and  that 
excluding  the  expenses  of  the  Boer  war.  the  military  expenditures 
of  the  United  States  for  1903  were  $32,000,000  more  than  those  of 
Great  Britain  for  that  year,  $131,000,000  greater  than  those  of  Ger- 
many, and  $139,000,000  in  excess  of  those  of  France. 

Replying  to  Mr.  Allison.  Mr.  Gorman  placed  the  total  appropri- 
ations of  this  session  at  $781,000,000,  and  the  obligations  incurred 
at  over  $24,000,000,  or  more  than  $800,000,000  all  told,  not  includ- 
ing the  appropriation  for  the  Panama  Canal.  He  said  the  figures 
were  amazing,  and  predicted  that  it  would  be  impossible  to  continue 
expenditures  at  this  rate  without  increasing  taxes.  He  attributed 
the  rapid  increase  to  the  ambition  of  the  President  to  make  of  the 
United  States  "a  great  world  power,"  and  said  that  no  harvest  had 
been  reaped  except  the  loss  of  life  and  demoralization  in  every 
branch  of  the  Government  service. 

Mr.   Gorman   refered    to   the   increase   for   the    support   of   the 


430  WOBK  OF  THE  FIFTY-EIGHTH  CONGRESS. 

Army,  and  said  that  if  the  present  tendency  should  be  pursued,  the 
Army  would  become  an  instrument  of  tyranny.  He  charged  that  it 
was  now  being-  organized  on  the  plans  of  the  German  army,  and 
that  the  chief  reason  for  the  building  up  of  the  Army  and  Navy 
was  to  attract  the  attention  of  the  crowned  heads  of  Europe.  He 
again  charged  that  the  early  adjournment — "  the  earliest  in  the 
history  of  the  country" — had  been  due  to  influence  from  the 
"White  House,  and  said  that  while  delay  might  have  been  secured, 
it  would  not  have  changed  results,  and  delay,  therefore,  was  not 
sought  by  the  Democratic  Senators. 

Mr.  Allison  replied  to  Mr.  Gorman,  saying  he  was  surprised  to 
hear  from  him  that  the  adjournment  of  Congress  was  premature 
or  unduly  influenced. 

Mr.  Allison  also  characterized  Mr.  Culbertson's  tables  as  "old 
and  worn-out,"  as  at  the  time  covered  by  the  tables  the  conditions 
of  the  country  were  totally  different  from  present  conditions.  He 
said  the  extraordinary  expenditures  of  the  McKinley  administra- 
tion had  been  due  to  the  Spanish  war,  which  was  forced  on  the 
President.  He  also  combated  the  statement  that  the  expenses  of 
the  military  establishment  were  greater  than  those  of  the  Euro- 
pean nations,  saying  that  the  pension  expenditures  could  not 
properly  be  included  in  such  estimates. 

Mr.  CulbeYtson  said  the  figures  given  for  other  countries 
include  their  pension  lists,  and  Mr.  Gallinger  called  attention  to 
the  fact  that  European  countries  grant  limited  pensions. 

Mr.  Allison  admitted  that  there  had  been  an  increase  in  tk« 
strength  of  the  Army,  but  said  the  increase  had  been  a  nonpar- 
tisan measure.  He  also  said  that  per  capita  expenditures  on 
account  of  the  military  were  smaller  than  those  of  any  other 
country.  He  also  defended  the  administration  of  the  Post-Office 
Department  as  on  the  whole  economical  and  honest. 

Mr.  Aldrich  said  that  in  the  statement  made  by  Mr.  Allison 
many  items  were  included  which  were  never  expended,  and  that 
while  the  statement  was  valuable  for  comparison,  it  did  not 
indicate  the  exact  state  of  affairs.  In  1902,  for  instance,  when  the 
appropriations  were  $730,000,000,  the  expenditures  were  only 
$470,000,000.  In  1899  the  discrepancy  was  about  $400,000,000. 
Hence,  Mr.  Culbertson's  figures  did  not  show  expenditures  with 
even  approximate  correctness.  He  admitted,  however,  that  the 
expenditures  for  the  last  year  and  the  year  before  had  been  greater 
than  for  the  years  preceding  the  Spanish  war,  and  necessarily  so 
because  of  the  growth  of  the  country,  the  principal  items  of 
Increase  being  on  account  of  the  Army  and  Navy.  Mr.  Aldrich 
also  said  that  never  since  the  Spanish-American  war  had  the 
country  been  able  to  get  back  to  a  peace  footing,  although  he 
hoped  it  might. 

Referring  to  the  charge  of  undue  haste  in  adjourning,  Mr. 
Aldrich  said  that  Congress  was  about  to  adjourn  because  the  public 
business  had  been  completed.  He  thought  the  country  was  to  be 
congratulated. 

Senator  Allison's  Statement  About  Appropriations. 

[Extract  from  record  of  Senate  proceedings,  April  23,  1904.] 

Mr.  ALLISON.  Mr.  President,  I  was  very  much  interested,  as  1 
always  am,  in  the  plausible  statements  made  by  the  Senator  from 
Maryland  [Mr.  Gorman].  I  was  rather  surprised  to  learn  from  him 
that  we  are  closing  this  session  under  some  sort  of  compulsion, 
and  that  we  are  refraining  from  attending  to  the  necessary  busi- 
ness of  the  country. 

I  do  not  know  what  further  important  business  there  is  to  be 
transacted.  If  the  Senator  from  Maryland  or  any  of  his  colleagues 
have  presented  important  bills  that  ought  to  have  been  passed  and 
pressed  them  in  committee  and  in  this  Chamber  at  the  present  ses- 
sion, I  am  not  aware  of  it. 

I  think  the  session  about  to  adjourn  has  dealt  with  most,  if  not 
all,  of  the  important  questions  that  ought  to  be  dealt  with  at  this 
session.  This'  being  a  long  session,  and  another  session  coming 
later  this  year,  subjects  considered  at  this  session  go  over  on  the 
calendar  until  the  next  session.  I  have  been  here  a  good  many 
years',  and  I  do  not  know  an  instance  where  all  the  bills  that  were 
presented  by  committees  have  been  considered  and  passed  during 
the  first  session  of  a  Congress.  Many  of  them  go  over  for  want  of 
time,  whatever  the  length  of  the  session,  as'  many  of  them  fall  at 
the  close  of  a  Congress. 

Now,  Mr.  President,  I  wish  to  say  only  a  few  words  more  on 
the  question  of  approprations.  First,  let  me  call  attention  to  the 
tables  introduced  by  the  Senator  from  Texas  [Mr.  Culberson]. 
These  are  old  and  worn-out  tables  comparing  the  Administration 
of  Mr.  Cleveland  in  1885  to  1889  with  the  Administration  beginning 
in  1897. 

Mr.  CULBERSON.     No  tables  were  presented  by  me  for  1885. 

Mr.  ALLISON.  Very  well.  I  was  not  able  to  gather  from  the 
Senator's  remarks  amid  the  confusion  how  far  back  in  our  history 
he  went,  but  I  am  perfectly  certain  he  went  as  far  back  as  1893, 
and  he  compared  the  four  years  of  President  Cleveland,  beginning 
in  1893,  with  the  four  years  of  President  McKinley,  beginning  in 
1897,  and  he  compared  the  expenditures  for  those  first  four  years 
with  the  expenditures  under  President  McKinley,  when  the  situa- 
tion and  condition  of  our  country  was  wholly  different. 

I  am  surprised  that  the  Senator  from  Texas  made  no  allusion 
whatever  to  the  conditions  and  the  inheritance  of  President  McKin- 


WORK  OF  THE*  FIFTY-EIGHTH  CONGRESS.  431 

ley  after  four  years  of  President  Cleveland.  I  do  not  speak  now  of 
that  inheritance  which  spread  disaster  and  distress  in  our  country, 
but  I  speak  of  that  inheritance  which  was  derived  from  the  situa- 
tion in  Cuba  when  President  McKinley  came  into  power. 

The  situation  there  was  left  in  such  a  condition — I  will  not  un- 
dertake to  describe  it — as  made  it  necessary  for  President  Mc- 
Kinley  to  deal  with  it  on  the  very  threshold  of  his'  Administration. 
That  he  dealt  with  it  in  a  conservative  way  and  sOught  to  avoid 
the  expenditures  which  followed  no  one  now  will  deny;  and  that 
those  expenditures  were  brought  upon  our  country  not  by  the  Ad- 
ministration of  President  McKinley,  but  by  the  pressure  that  was 
made  upon  him  in  this  body  and  in  the  other  that  he  should  enter 
upon  a  war  with  Spain  unless  they  yielded  to  conditions'  that  they 
would  not  yield  to. 

If  you  go  back  to  the  debates  of  that  period,  you  will  see 
that  the  pressure  upon  President  McKinley  was  so  great  that  the 
situation  as  respects  that  war  was  a  situation  that  was  claimed 
for  the  Democrats  and  by  that  party  as  a  part  of  their  policy.  Mr. 
President,  enough  upon  that  point. 

The  Senator  from  Texas  also  undertakes  to  show  that  our  ex- 
penditures for  war  purposes  are  far  beyond  the  expenditures  of 
the  great  powers  of  Europe,  Germany,  France,  and  the  United 
Kingdom.  He  says  that  our  expenditures  for  this  current  year 
and  for  the  last  year  for  war  purposes  amount  to  $332,000,000,  if 
I  understood  the  table  he  brought  forth. 

Mr.  CULBERSON.  The  expenses  of  the  military  establishment 
for  1903  amounted  to  $339,000,000  in  the  United  States. 

Mr.  ALLISON.  The  military  establishment!  What  is  the  mili- 
tary establishment?  It  is  the  Army  and  the  Navy.  The  Senator 
speaks  of  a  military  establishment  and  then  includes  a  matter 
which  is  as  foreign  to  our  present  military  establishment  as  any- 
thing can  possibly  be.  Is  it  possible  that  he  charges'  the  military 
establishment  with  the  pensions  that  are  granted  to  the  surviv- 
ors of  the  war  of  1812,  to  the  survivors  of  the  war  with  Mexico,  to 
the  survivors'  of  the  great  civil  war  of  1861  to  1865,  for  which  we 
are  still  paying  pensions?  Mr.  President,  that  can  not  be  re- 
garded as  a  fair  statement  of  what  the  military  establishment  is. 

Mr.  CULBERSON.  Mr.  President,  if  the  Senator  will  pardon 
me  a  moment,  the  total  expenses  of  the  military  establishment  of 
Great  Britain,  Germany,  and  France  for  1903,  as  furnished  me  by 
the  War  Department,  included  pensions,  and  consequently  a  fair 
comparison  on  the  part  of  the  United  States  includes  pensions  also. 

Mr.  ALLISON.  I  do  not  know  what  the  pensions  of  Great 
Britain  may  be,  but  they  are  very  small  in  amount. 

Mr.  GALLINGER.  If  the  Senator  from  Iowa  will  permit  me, 
I  will  say  that  Great  Britain  pensions  her  soldiers  only  for  wounds, 
not  for  disabilities'  incurred  in  the  service;  and  I  think  the  German 
pension  system  is  even  more  restricted  than  that. 

Mr.  ALLISON.  So,  Mr.  President,  in  order  to  show  the  great 
extravagance  in  our  military  establishment  the  Senator  from  Texas 
includes  pensions,  which  are  a  gratuity  and  a  recognition  in  some 
degree  of  the  valuable  services'  rendered  by  that  great  body  of 
civilians  who  entered  our  Army  in  1861  for  purposes  of  preserva- 
tion of  the  Union.  So  when  we  leave  pensions  out  of  that  calcula- 
tion, amounting,  in  round  numbers,  to  $151,000,000,  we  have,  in- 
cluding every  expenditure  in  the  appropriations  for  the  Army  and 
Navy,  only  $189,000,000. 

Mr.  CULBERSON.  I  call  the  Senator's  attention  to  the  fact 
that  notwithstanding  the  total  expenditures  for  pensions  have  been 
reduced  yearly  in  the  last  four  years  there  has  been  an  enormous 
increase  in  the  military  establishment,  showing  that  the  increase 
is"  not  affected  by  an  increase  in  the  pension  list  at  all,  but  it  is  on 
account  of  the  War  and  Navy  Department  alone. 

Mr.  ALLISON.  Mr.  President,  the  fact  is  not  disputed  that  we 
have  increased  our  Army.  Who  increased  it?  It  was  not  in- 
creased as  a  partisan  measure.  The  measure  was  brought  into 
this  Chamber  and  carefully  considered  without  regard  to  party 
lines.  Nearly  every  Democrat  voted  for  that  increase  of  the  Army 
upon  conservative  lines.  Not  every  Democrat  voted  for  that  army 
bill;  there  were  thirteen  Senators',  if  I  recollect  rightly,  who 
voted  against  it;  but  this  Army  of  ours  was  regarded  as  a  neces- 
sary army  at  the  time  by  all  parties,  and  it  was  increased  to 
100,000   men. 

Mr.  President.  I  shall  not  go  further  into  this  question  except 
to  say  that  as  the  exigency  passed  away  our  Army  was  reduced 
from  100,000  men  to  59,000  men,  where  it  now  remains.  So  it  is 
that  in  the  bill  for  the  current  year,  the  regular  appropriation  for 
the  Army  is  less  than  it  was  last  year,  and  the  appropriation  for 
last  year  was  less'  than  for  the  year  before. 

Now,  Mr.  President,  I  want  to  call  the  attention  of  the  Sen- 
ator from  Texas  to  another  matter,  and  that  is  the  general  cost 
of  maintaining  the  Government  of  the  United  States  as  compared 
with  the  cost  of  maintaining  the  governments  of  those  countries 
of  which  he  spoke. 

I  have  here  an  extract  from  a  table  recently  published  by  the 
Bureau  of  Statistics,  which  discloses'  that  the  expenditures  per 
capita  of  the  United  Kingdom  for  the  last  year  were  $37.60,  the 
expenditures  per  capita  for  France  were  $17.84,  the  expenditures 
per  capita  for  the  German  Empire  were  $9.45,  and  the  expenditures 
for  the  United  States  were  $7.97  per  capita.  So,  Mr.  President,  it 
appears  that  the  appropriations  for  the  maintenance  of  our  Gov- 
ernment,  compared   with  similar  appropriations   of  other   govern- 


432  GERMAN    AMERICANS    FOR    ROOSEVELT. 

ments,  are  the  lowest  of  all  the  governments  of  which  I  have 
knowledge  who  maintain  armies  and  navies,  and  who  have  a  large 
civil  list. 

The  Senator  from  Maryland  seems  to  think  that  these  appro- 
priations and  these  expenditures  are  extravagant,  and  that  the  sev- 
eral Departments  of  the  Gevernment  ought  to  be  investigated. 
Mr.  President,  I  am  not  opposed  to  proper  investigation  of  any 
Department  of  the  Government,  but  the  Administration  itself  has 
investigated  the  irregularities  and  the  corruption  in  the  Post- 
Offlce   Department,   whatever  they  were. 

Mr.  President,  I  have  only  to  say  as  respects  the  Post-Office 
Department,  to  which  the  Senator  especially  alluded,  that,  consid- 
ering the  great  amount  of  labor  accomplished  in  that  service  and 
the  vast  number  of  people  who  are  employed  in  it,  I  do  not  be- 
lieve there  is  or  has  been  a  more  judicious,  economical,  and  hon- 
est administration  of  any  other  Department  of  the  Government 
than  that  of  the  Post-Office  Department. 


GERMAN  AMERICANS  FOR  ROOSEVELT. 

[From  Washington  Star,  May  2,  1904.] 
The  National  Roosevelt  League,  composed  of  prominent  Ameri- 
can citizens  of  German  descent  from  all  sections  of  the  United 
States  with  Richard  Bart&bldt  of  Missouri  as  president,  was 
organized  at  the  New  Willard  Hotel  Saturday  evening  and  plans 
were  laid  for  carrying  on  an  aggressive  campaign  to  give  Theodore 
Roosevelt  the  German-American  vote  in  the  approaching  Presi- 
dential nominating  convention  and  election  in  the  fall. 

The  meeting  was  an  enthusiastic  one,  and  at  its  conclusion  the 
following  statement  was  given  out  by  President  Bartholdt : 

"The  National  Roosevelt  League  issues  the  following  state- 
ment to  all  citizens  of  German  descent: 

"  'On  the  eve  of  national  election,  we  as  citizens  without  re- 
gard to  party  who  have  at  heart  the  welfare  and  the  continued 
development  of  the  United  States,  have  resolved:  To  urge  and 
support  the  nomination  of  the  best  and  most  able  man  available 
as  candidate  for  the  high  office  of  the  presidency.  This  man  is 
Theodore  Roosevelt. 

"  'The  man  Who  is  to  be  the  executive  head  of  this  great 
nation  must  possess  the  following  qualifications:  A  clear  head, 
•a  warm  heart,  a  strong  sense  of  justice,  persevering  diligence, 
large  experience  and  above  all  a  firm  character  and  a  pure  mind. 
No  one  can  deny  that  Theodore  Roosevelt  possesses  a  clear  head. 
He  has  proved  this  in  his  combats  with  the  enemies  of  our  coun- 
try, but  above  all  in  his  solution  of  the  difficult  diplomatic  prob- 
lems with  which  he  has  had  to  wrestle.  He  has  given  abundant 
evidence  that  he  possesses  a  warm  heart.  Whenever  the  poor 
and  the  powerless  needed  protection,  whether  they  were  mine 
workers,  helpless  immigrants  or  needy  veterans,  Theodore  Roose- 
velt was  always  ready  to  come  to  the  rescue.  When  the  mighty 
attempted  to  make  themselves  still  more  powerful  it  was  Theo- 
dore Roosevelt  who  staid  their  hands.  It  takes  a  strong  moral 
character  to  engage  in  combat  with  the  forces  of  prejudice  and 
with  powerful  interests.  Theodore  Roosevelt  has  never  recoiled 
from  the  struggle.  It  stands  to  reason  that  his  experience  of 
over  twenty  years  in  public  service  enables  him  more  expedi- 
tiously and  wisely  to  solve  important  problems  than  any  one  lack- 
ing that  experience. 

"  'His  greatest  glory,  however,  consists  in  this:  That  he  has 
faithfully  executed  the  political  testament  of  his  memorable 
predecessor,  the  immortal  martyr  President,  William  McKinley* 
for  only  in  his  spirit  has  Theodore  Roosevelt  administered  the 
presidential  office. 

"  'For  these  reasons,  to  which  we  may  add  the  purity  of  his 
life,  Theodore  Roosevelt  is  the  man  of  our  choice.  He  certainly 
is  to-day  the  first  in  the  hearts  of  his  countrymen.  No  mere 
politician  could  or  should  fill  his  place.  We  shall  therefore  use 
our  utmost  endeavors  to  secure  his  election." 

Many  addresses  were  made,  principal  among  which  was  that 
of  Mr.  Arthur  von  Briesen  of  New  York.  Mr.  von  Briesen  said 
in  part: 

MR.  VON  BRIESEN 'S  ADDRESS 

"We  have  met  here  in  our  double  capacity  of  Germans  and 
of  citizens  of  the  United  States  to  discuss  important  questions 


GERMAN    AMERICANS    FOR    ROOSEVELT.  433 

relating  to  the  welfare  of  the  country.  Millions  of  our  best  citi- 
zens came  from  Germany,  and  found  opportunities  for  develop- 
ment in  every  direction.  The  best  way  of  showing  our  gratitude 
and  our  appreciation  of  what  this  beautiful  country  has  offered 
us  is  to  incorporate  into  this  nation  the  best  that  is  in  us.  The 
German  element  in  America  has  already,  I  believe,  done  much 
in  this  direction.  We  have  softened  the  harsh  outlines  of  sober 
Puritanism  by  the  cultivation  of  the  arts,  particularly  that  of 
music.  We  have  thoroughly  adapted  ourselves  to  the  spirit  of 
earnest  endeavor  and  achievement  which  we  found  here,  but 
have  added  to  it  the  measure  of  gladness  and  joy  which  makes 
life  worth  living.  As  regards  the  Germanic  principle  of  personal 
liberty,  in  contrast  to  the  painful  surveillance  of  the  individual, 
we  can  show  progress.  In  political  matters  the  Germans  here 
have  attained  great  influence,  because  they  look  at  them  from 
the  idealistic  standpoint;  they  seek  neither  office  nor  emolu- 
ments of  office.  Their  only  aim  is  to  have  public  affairs  adminis-, 
tered  for  the  public  good.  In  regard  to  the  great  parties  our1 
position  differs  from  that  of  the  majority  of  the  citizens  in  that 
we  have  arrayed  ourselves  not  under  party  leadership,  but 
above  it. 

"The  Democrat  as  well  as  the  Republican  earnestly  strives 
to  serve  the  country,  to  improve  its  institutions,  and  to  enhance 
its  authority.  Both  must,  of  course,  be  properly  reined,  like  a 
team  of  spirited  horses,  and  must  be  so  guided  that  together 
they  draw  the  triumphal  chariot  of  the  republic,  even  though 
occasionally  one  of  the  lively  animals  may  snap  at  the  other. 
However  much  at  times  a  Republican  steed  wants  to  take  a  bite 
out  of  a  Democratic  charger,  both  are  in  the  service  of  the  com- 
monwealth and  must  be  guided  with  a  firm  hand  to  move  in  the 
direction  in  which  we,  not  they,  want  to  go.  In  control  of  such 
a  team  we  need  a  man  who  knows  the  road  before  him,  who 
knows  the  goal,  who  keeps  the  steeds  under  control,  however 
much  they  may  balk  or  try  to  run  away,  and  who.  without  con^ 
sidering  side  issues  or  self  interest,  devotes  himself  entirely  to 
the  great  duty  before  him.  Our  country  needs  a  President  who 
combines  within  himself  these  qualifications.  Our  country  has 
such  a  President — Theodore  Roosevelt.  With  remarkable  ability 
he  has  managed  to  hold  the  reins  of  government  firmly  in  hand. 
With  incomparable  tact  he  subordinated  apparently  contradic- 
tory local  interests  to  the  welfare  of  the  whole  country.  He  was 
aroused  to  serve  measures  only  when  confronted  with  corruption 
and  dishonesty.  To  the  oppressed  and  suffering  his  sympathy 
has  always  been  extended.  I  shall  never  forget  the  charm  of  his 
manner  when  he  met  the  poor  immigrants  at  Ellis  Island.  No 
President  before  him  has  ever  found  it  worth  his  while  person- 
ally to  inspect  Ellis  Island.  As  he  stood  among  the  newcomers 
and  scanned  their  faces  he  invariably  found  something  to  please 
him,  and  gave  expression  of  kindly  thoughts:  'Look  at  that  little 
blond-haired  woman  with  her  child  in  her  arms— what  a  pretty 
sight!'  'That  boy  over  there  without  parents  or  protection  enters 
the  new  world— how  promising  he  looks— he  will  become  a  good 
citizen!'    'See  those  stalwart  men— that  is  the  kind  we  need!' 

"When  the  situation  created  by  the  trouble  in  the  coal  regions 
because  almost  intolerable  and  a  solution  seemed  impossible  it 
was  our  President  who  devised  means  for  successfully  termi- 
nating the  conflict. 

"How  vast  a  power  the  President  wields!  He  presses  a  but- 
ton and  thousands  and  hundreds  of  thousands  are  set  in  motion. 
For  what  purpose?  For  works  of  peace— as  we  have  seen  it  to- 
day, as  we  have  seen  it  during  the  entire  period  of  his  incum- 
bency. With  the  aid  of  his  competent  advisers,  he  successfully 
avoided  conflict  of  every  kind  with  other  nations.  Courts  of 
arbitration  were  set  in  motion,  and  where,  as  in  Panama,  un- 
skilled action  would  have  engendered  inexpressible  misery  and 
bloodshed,  Theodore  Roosevelt,  in  the  face  of  the  severest  criti- 
cism, brought  about  a  solution  by  means  entirely  peaceful,  which 
has  been  accepted  by  all  parties  in  interest.  He  only  who  knows 
how  to  subordinate  to  the  interests  of  peace  great  power  which 
is  intrusted  to  him  deserves  the  full  confidence  of  a  people. 

"When  the  immortal  martyr-President,  McKinley,  fell  a  vie- 


434  GERMAN    AMERICANS    FOR    ROOSEVELT. 

tim  to  tin'  dastardly  act  of  an  assassin,  and  Theodore  Roosevelt 
had  to  take  up  the  reins  of  government  tliat  Cell  from  his  gentle 
liand,  ho  declared  that  to  the  utmost  of  his  ability  be  would  ad- 
minister the  office  in  the  spirit  of  his  great  predecessor.  Tins 
promise  Theodore  Roosevelt  has  fully  kept.  I  am  convinced 
that  before  reaching  any  important  decision  he  invariably  asks 
himself  what  President  McKinley  would  have  done,  ami  acts 
accordingly.  Fearless  and  true,  Roosevelt  stands  before  us! 
Able,  experienced,  kindly  and  pure  of  heart!  He  is  not  a  poli- 
tician in  the  ordinary  acceptation  of  the  term.  He  does  not  seek 
riches  or  personal  aggrandizement,  nor  has  he  ever  sought  public 
office.  As  far  as  I  can  recall  every  public  office  thus  far  held  by 
him  came  to  him  unsolicited.  The  fact  that  he  appointed  Demo- 
crats to  public,  office  where  he  found  them  more  competent  than 
available  Republicans,  proves  that  he  also  stands  above  party. 

"It  follows  that  if  we  want  to  give  this  country  the  best  man 
for  President  we  must  and  will  elect  Theodore  Roosevelt.  He 
shall  be  our  standard  bearer.  We  will  use  our  utmost  endeavors 
to  elect  him,  and  shall  then  return  to  our  ploughshares  confident 
that  public  affairs  are  in  the  best  of  hands.  I  ask  you  to  rise 
and  pledge  our  new  President  and  our  future  President— Theo- 
dore Roosevelt." 

Others  who  spoke  were  Messrs.  F.  C.  Winkle,  Mr.  F.  J.  Kauf- 
mann,  L.  Markbreit,  Representative  Bartholdt,  and  H.  C.  Kud- 
lich.  All  of  the  addresses  were  in  German,  except  that  of  Mr. 
Kudlich. 

Later  in  the  day  the  members  of  the  league  called  on  President 
Roosevelt  by  appointment  at  the  White  House.  Mr.  von  Briesen 
read  to  the  President  the  resolutions  adopted  by  the  league  and 
assured  him  of  the  hearty  support  of  the  German  Americans. 
The  President  listened  attentively  to  the  remarks  and  at  their 
conslusion   said  in  part: 

"My  friends  and  fellow-Americans:  I  cannot  well  express 
what  I  feel,  not  merely  at  your  action,  but  at  the  spirit  and 
words.  I  know  I  do  not  deserve  what  you  have  said,  but  the 
fact  of  your  having  said  it  will  make  me  more  and  more  try  to 
deserve  it.  I  want  to  express  my  thanks  for  the  heart  you  give 
me  when  you  speak  and  treat  me  as  you  have  to-day. 

"I  know  you  will  give  me  credit  for  speaking  the  truth  and 
not  vainglorious  flattery,  because  I  am  addressing  you  personally, 
when  I  say,  in  all  seriousness,  that  I  would  a  hundred — a  thou- 
sand— fold  rather  lose  this  office  and  retire  from  public  life  than 
to  forfeit  the  right  to  the  friendship  and  regard  you  have  shown. 

"I  want  to  express  my  feeling  of  the  gratitude  this  country 
owes  to  its  citizens  of  German  extraction  for  raising  the  level  of 
good  citizenship.  My  greatest  pleasure  in  the  support  you  are 
giving  me  comes  from  the  fact  that  the  support  is  due  not  be- 
cause of  what  I  have  done  for  you  as  German  citizens,  but  be- 
cause when  I  have  lifted  my  hand  in  the  cause  of  right  you  have 
tried  to  uphold  me,"  and  on  this  the  delegates  applauded  approv- 
ingly. "A  nation  can  go  forward  upon  but  one  condition,"  con- 
tinued the  President,  "and  that  is  treating  each  upon  his  record 
as  a  man— desiring  equality  for  all,  but  separating  the  go©d  from 
the  bad  citizens." 

The  President  told  of  the  debt  this  country  owes  to  its  citi- 
zens of  German  parentage,  notably  in  the  one  great  crisis  when 
the  Union  of  the  states  was  at  stake.  "There  was  dissension 
among  the  people  of  various  sections,"  he  said,  "but  there  was 
none  among  the  Germans.  With  them  the  application  for  sup- 
port of  the  Union  was  certain  of  meeting  unanimous  response." 

The  President  referred  feelingly  to  the  services  of  such  dis- 
tinguished German  Union  soldiers  as  General  Osterhaus,  and  ex- 
pressed the  happiness  it  gave  him  ho  meet  the  general  yester- 
day. 


Defense  against  injurious  importations  is  as  necessary  and 
justifiable  as  is  an  army  and  navy. — Hon.  B.  F.  Jones. 

The  United  States  is  a  continental  nation  and  should  adopt  a 
continental  policy.  Free  trade  is  adapted  only  to  insular  nations, 
and  no  continental  nation  has  adopted  a  free-trade  policy.— Ex- 
president  Hill,  of  the  University  of  Rochester. 


BUDGETS  OP  THE  PRINCIPAL  NATIONS  OF  THE  WORLD. 


435 


Expenditures  made  for  military  and  naval  purposes  in  the  United 
States,  Austria-Hungary,  France,  Germany,  Italy,  Russia,  and 
the  United  Kingdom  of  Great  Britain  and  Ireland. 

[Prepared  by  the  Bureau  of  Labor.  The  data  for  the  United  States 
are  taken  from  Digest  of  Appropriations,  published  by  the  United 
States  Treasury  Department,  and  for  foreign  countries  they  are 
taken  from  the  Statesman's  Year  Book.  The  figures  for  the 
United  States  include  deficiency  bills  for  preceding  years.] 


Country. 

Year 

War. 

Navy. 

Total. 

1903 
1903 
1903 
1903 
1903 
1903 
1903 

a  $92,794,619.35 
b  62.827,490.08 
b  137.228,000.00 
a  135.421,048.00 
b  54,405,687.33 
b  169,910,760.09 
C  319,154,803.00 

a  $75,049,781.29 
b  9,934,986.46 
b  59.212,156,43 
a  20.685,532.00 
b  24.543.031.05 
b  59.550,089.12 

d  140.946,492.90 

a  $167,844,300.64 

a  72,762,476.54 

b  196  435  156  43 

Austria-Hungary 

a  156,106,580.00 
b  78,948,718.38 
b  229,460,849.21 
C  460,101,295.90 

Italy 

a  Not  including  pensions. 

b  Report  does  not  state  whether 

c  Not  including  pensions,  retired 
142,312. 

d  Not  including  pensions,  retired 
158,397.85. 

e  Not  including  pensions,  retired 
300,709.85. 


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436  PROGRESS   OF   TI1K    UNITED   STATES. 

PROORESS  OF  THE  UNITED  STATES  IN  FINANCIAL,  COM- 
MERCIAL, AND  INDUSTRIAL  CONDITIONS, 
1890  TO  1904. 

The  tables  which  follow  are  an  extract  from  the  much-quoted 
table  of  the  Statistical  Abstract  of  the  United  States,  entitled 
"Progress  of  the  United  States  in  its  Material  Industries,  1800  to 
1903."  Obviously  it  would  be  impossible,  in  a  volume  of  this  size 
and  character,  to  give  the  figures  for  such  a  long  term  of  years 
and  for  all  of  the  subjects  discussed  in  that  table ;  but  a  section 
which  shows  conditions  in  1850,  1860,  1870,  1875,  1880,  1885, 
and  in  each  year  from  1890  to  date  is  reproduced  here- 
which  includes  the  period  from  1890  to  1903  is  reproduced  here- 
with. It  shows  the  progress  in  each  of  the  great  industries  and 
financial  operations  which  may  be  considered  a  measure  of  busi- 
ness conditions,  and  exhibits  in  plain  figures  the  effect  upon  these 
industries  and  business  undertakings  of  the  free-trade  experiment 
of  the  last  Cleveland  administration.  In  studying  these  it  should 
be  remembered  that  those  of  the  Government,  finance,  and  commerce 
are  usually  fiscal  years  (ending  June  30)  and  that  those  of  pro- 
duction in  most  cases  relate  to  calendar  years.  These  tables  have 
attracted  wide  attention  at  home  and  abroad  as  a  valuable  bird's- 
eye  view  of  the  prosperity  or  otherwise  of  the  country  in  the  long 
term  of  years  which  they  cover,  and  the  section  which  relates  to 
the  period  from  1890  to  1903  will  prove  convenient  to  those  who 
desire  to  contrast  conditions  under  the  three  tariffs  which  have 
existed  during  that  period. 

These  tables  occupy  several  successive  pages  following  the  one 
upon  which  these  words  are  printed.  They  will  repay  a  careful 
study.  It  will  be  seen  that  they  present  a  bird's-eye  view  of 
the  progress  of  the  financial  and  industrial  conditions  of 
the  country  since  a  period  ante-dating  that  at  which  the 
Republican  party  assumed  control  of  the  Government.  Neces- 
sarily this  could  only  be  pictured  in  outline  in  a  volume 
of  this  size,  but  it  is  sufficient  to  show  the  wonderful 
progress  which  the  country  has  made  under  protection.  But 
an  equally  important  view  is  that  presented  by  the  figures 
which  show  conditions  in  each  year  since  1890.  The 
downward  movement,  in  everything  except  national  indebtedness 
during  the  years  of  democracy  and  low  tariff,  is  pictured  in  the 
figures  of  1893,  1894,  1895,  and  1896,  and  will  repay  a  careful  study. 
National  debt  and  interest  charges,  government  receipts  and  ex- 
penditures, money  in  circulation,  bank  clearings,  bank  deposits, 
life  insurance  in  force,  imports,  exports,  the  commerce  with  the 
various  parts  of  the  World,  the  production  of  coal,  iron,  steel,  tin 
plates,  cotton  goods,  beet  sugar,  the  value  of  farm  animals,  rail- 
way building,  railway  earnings,  the  business  on  the  great  lakes, 
the  business  activity  of  the  country  as  measured  by  postal  re- 
ceipts, and  many  other  matters  are  shown  at  intervals  from  1850 
to  1890  and  in  each  year  from  1890  to  date. 

Another  series  of,  tables  immediately  following  these  shows 
conditions  in  the  more  important  factors  of  prosperity  in  each 
decennial  year  from  1800  to  1900  and  in  1903.  These  will  enable 
a  measurement  of  the  relative  growth  prior  to  1860  and  since 
the  beginning  of  the  period  of  protection  which  dates  from  that 
year,  while  the  first  mentioned  tables  showing  figures  for  each 
year  since  1890  will  show  the  conditions  during  the  low  tariff 
period  of  a  more  recent  date. 

Another  table  of  the  series  shows  conditions  of  the  railroads 
in  each  year  from  1883  to  1902,  (the  detailed  figures  for  1903 
being  not  yet  available).  This  table  will  repay  a  careful  study 
in  the  evidence  it  presents  in  regard  to  business  activities  in  the 
various  years  of  the  period  and  especially  those  of  the  period 
1893-6  compared  with  years  preceding  and  following  that  date. 

Following  these  are  tables  showing  financial,  commercial,  and 
industrial  conditions  in  the  principal  countries  of  the  world,  in- 
cluding the  United  States,  and  enabling  a  comparison  of  condi- 
tions in  this  country  with  those  in  other  countries. 

All  of  these  tables  are  from  the  official  publications  of  the 
Bureau  of  Statistics  of  the  Department  of  Commerce  and  Labor. 


PROGRESS  OP  THE  UNITED  STATES. 


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VALUE  TO  LABOR  OF  THE  DEVELOPMENT  OF  OUR  IRON 
AND  STEEL  INDUSTRIES. 

The  value  to  labor  and  to  1 1 1  *  *  Industrial  and  commercial  inter 
ests  of  the  United  States  of  the  development  of  the  iron  and 
steel  Industry  under  protection  will  be  apparent  when  it  is  real- 
ized that  the  wages  and  salaries  paid  in  iron  and  steel  manufac- 
ture in  the  United  States  have  increased  from  $#0,000,000  in  1870 
to  $132,000,000  in  1000.  The  growth  and  importance  to  labor  of 
the  iron  and  steel  industry  is  illustrated  by  the  following  table, 
the  figures  being  a  part  of  the  official  report  of  the  United  States 
Census  of  1900: 


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We  have  made  the  deed  square  with  the  word— From  President 
Roosevelt's  speech  of  acceptance. 


Our  opponents,  if  triumphant,  may  be  trusted  to  prove  false  to 
every  principle  which,  during  the  last  eight  years,  they  have  laid 
down  as   vital—- -From  President   Roosevelt's  speech  of  acceptance. 


447 


Iron  and- Steel   Production  In  the  United   States  and  Fall   of  Price* 
Under  Increased   Production. 

This  table  shews  the  production  of  iron  and  steel  from  1880 
to  1903,  the  imports  and  exports,  and  the  prices  of  certain  grades 
of  manufacture.  Attention  is  called  to  the  fact  that  in  this 
highly  protected  article  the  competition  within  the  United  States 
has  reduced  the  price  of  both  the  lower  and  the  higher  grades 
of  manufacture.  Attention  is  also  called  to  the  fact  that  the 
great  home  demand  in  1903,  which  was  in  excess  of  the  home 
production,  caused  a  large  increase  in  importation,  showing  that 
the  charge  that  the  tariff  is  prohibitive  is  not  sustained  by  the 
experience  of  the  year. 


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m'kinley's  speech.  449 

LAST  SPEECH  OF  WILLIAM  flcKINLEY. 

[At  Buffalo,  tf.  Y..  September  5,  1901.] 

I  am  glad  to  be  again  in  the  city  of  Buffalo  and  exchange 
greetings  with  her  people,  to  whose  generous  hospitality  I  am 
not  a  stranger,  and  with  whose  good  will  I  have  been  repeatedly 
and  signally  honored.  To-day  I  have  additional  satisfaction  in 
meeting  and  giving  welcome  to  the  foreign  representatives  as- 
sembled here,  whose  presence  and  participation  in  this  exposition 
have  contributed  in  so  marked  a  degree  to  its  interest  and  suc- 
cess. To  the  commissioners  of  the  Dominion  of  Canada  and  the 
British  colonies,  the  French  colonies,  the  Republics  of  Mexico  and 
i  of  Central  and  South  America,  and  the  commissioners  of  Cuba 
and  Porto  Rico,  who  share  with  us  in  this  undertaking,  we  give 
the  hand  of  fellowship  and  felicitate  with  them  upon  the  tri- 
umphs of  art,  science,  education,  and  manufacture  which  the  old 
has  bequeathPd  to  the  new  century. 

Expositions  are  the  timekeepers  of  progress.  They  record  the 
world's  advancement.  They  stimulate  the  energy,  enterprise  and 
intellect  of  the  people,  and  quicken  human  genius.  They  go  into 
the  home.  They  broaden  and  brighten  the  daily  life  of  the  peo- 
ple. They  open  mighty  storehouses  of  information  to  the  student. 
Every  exposition,  great  or  small,  has  helped  to  some  onward 
step.  Comparison  of  ideas  is  always  educational,  and  as  such  in- 
structs the  brain  and  hand  of  man.  Friendly  rivalry  follows, 
which  is  the  spur  to  industrial  improvement,  the  inspiration  to 
useful  invention  and  to  high  endeavor  in  all  departments  of 
human  activity.  It  exacts  a  study  of  the  wants,  comforts,  and 
even  the  whims  of  the  people,  and  recognizes  the  efficacy  of  high 
quality  and  low  prices  to  win  their  favor.  The  quest  for  trade 
is  an  incentive  to  men  of  business  to  devise,  invent,  improve,  and 
economize  in  the  cost  of  production.  Business  life,  whether 
among  ourselves  or  with  other  peoples,  is  ever  a  sharp  struggle 
for  success.  It  will  be  none  the  less  so  in  the  future.  Without 
competition  we  would  be  clinging  to  the  clumsy  and  antiquated 
processes  of  farming  and  manufacture  and  the  methods  of  busi- 
ness of  long  ago,  and  the  twentieth  would  be  no  further  advanced 
than  the  eighteenth  century.  But  though  commercial  competitors 
we  are,  commercial  enemies  we  must  not  be. 

The  Pan-American  Exposition  has  done  its  work  thoroughly; 
presenting  in  its  exhibits  evidences  of  the  highest  skill  and  il- 
lustrating the.  progress  of  the  human  family  in  the  Western  Hemi- 
sphere. This  portion  of  the  earth  has  no  cause  for  humiliation  for 
the  part  it  has  performed  in  the  march  of  civilization.  It  has  not 
accomplished  everything;  far  from  it.  It  has  simply  done  its 
best,  and  without  vanity  or  boastfulness,  and  recognizing  the 
manifold  achievements  of  others,  it  invites  the  friendly  rivalry 
of  all  the  powers  in  the  peaceful  pursuits  of  trade  and  com-* 
merce,  and  will  cooperate  with  all  in  advancing  the  highest  and 
best  interests  of  humanity.  The  wisdom  and  energy  of  all  the 
nations  are  none  too  great  for  the  world's  work.  The  success  of 
art,  science,  industry,  and  invention  is  an  international  asset  and 
a  common  glory. 

After  all,  how  near  one  to  the  other  is  every  part  of  the 
world.  Modern  inventions  have  brought  into  close  relation  widely 
separated  peoples  and  made  them  better  acquainted.  Geographic 
and  political  divisions  will  continue  .to  exist,  but  distances  have 
been  effaced.  Swift  ships  and  fast  trains  are  becoming  cosmo- 
politan. They  invade  fields  which  a  few  years  ago  were  impene- 
trable. The  world's  products  are  exchanged  as  never  before, 
and  with  increasing  transportation  facilities  come  increasing 
knowledge  and  larger  trade.  Prices  are  fixed  with  mathematical 
precision  by  supply  and  demand.  The  world's  selling  prices  are 
regulated  by  market  and  crop  reports.  We  travel  greater  dis- 
tances in  a  shorter  space  of  time  and  with  more  ease  than  was 
ever  dreamed  of  by  the  fathers. 

Isolation  is  no  longer  possible  or  desirable.  The  same  im- 
portant news  is  read,  though  in  different  languages,  the  same  day 
in  all  Christendom.  The  telegraph  keeps  us  advised  of  what  is 
occurring  everywhere,  and  the  press  foreshadows,  with  more  or 
less  accuracy,  the  plans  and  purposes  of  the  nations.  Market 
prices  of  products  and  of  securities  are  hourly  known  in  every 
commercial  mart,  and  the  investments  of  the  people  extend  be- 


k)0  m'kiniey's  speech. 

yond  ilicir  own  national  boundaries  into  the  remotest  parts  of  the 
earth.  Vast  transactions  are  conducted  ami  international  ex- 
changes arc  made  by  the  (i«k  of  the  cable.  Every  event  of  in- 
terest is  Immediately  bulletined.  The  quid*  gathering  and  trans- 
mission of  news,  like  rapid  transit,  are  of  recent  origin,  and  are 
only  made  possible  by  tbe  genius  of  the  inventor  and  the  courage 
of  the  investor.  It  took  a  special  messenger  of  the  Government, 
with  every  facility  known  at  tbe  time  for  rapid  travel,  nineteen 
days  to  go  from  the  city  of  Washington  to  New  Orleans  with  a 
message  to  General  Jackson  that  the  war  with  England  had 
eeased  and  a  treaty  of  peace  had  been  signed.  How  different 
now!  We  reached  General  Miles  in  Porto  Rico  by  cable,  and  he 
was  able  through  the  military  telegraph  to  stop  his  army  on  the 
firing  line  with  the  message  that  the  United  States  and  Spain 
had  signed  a  protocol  suspending  hostilities.  We  knew  almost 
instantly  of  the  first  shots  fired  at  Santiago,  and  the  subse- 
quent surrender  of  the  Spanish  forces  was  known  in  Washing- 
ton within  less  than  an  hour  of  its  consummation.  The  first  ship 
of  Cervera's  fleet  had  hardly  emerged  from  that  historic  harbor 
when  the  fact  was  flashed  to  our  capital  and  the  swift  destruc- 
tion that  followed  was  announced  immediately  through  the  won- 
derful medium  of  telegraphy.  So  accustomed  are  we  to  safe  and 
easy  communication  with  distant  lands,  that  its  temporary  inter- 
ruption, even  in  ordinary  times,  results  in  loss  and  inconvenience. 
We  shall  never  forget  the  days  of  anxious  waiting  and  awful 
suspense  when  no  information  was  permitted  to  be  sent  from 
Peking,  and  the  diplomatic  representatives  of  the  nations  in 
China,  cut  off  from  all  communication,  inside  and  outside  of  the 
walled  capital,  were  surrounded  by  an  angry  and  misguided  mob 
that  threatened  their  lives ;  nor  the  joy  that  thrilled  the  world 
when  a  single  message  from  the  Government  of  the  United  States 
brought  through  our  minister  the  first  news  of  the  safety  of 
the  besieged  diplomats. 

At  the  beginning  of  the  nineteenth  century  there  was  not  a 
mile  of  steam  railroad  on  the  globe.  Now  there  are  enough 
miles  to  make  its  circuit  many  times.  Then  there  was  not  a  line 
of  electric  telegraph ;  now  we  have  a  vast  mileage  traversing  all 
lands  and  all  seas.  God  and  man  have  linked  the  nations  to- 
gether. No  nation  can  longer  be  indifferent  to  any  other.  And 
as  we  are  brought  more  and  more  in  touch  with  each  other,  the 
less  occasion  is  there  for  misunderstandings,  and  the  stronger 
the  disposition,  when  we  have  differences,  to  adjust  them  in  the 
court  of  arbitration,  which  is  the  noblest  forum  for  the  settlement 
of  international  disputes. 

My  fellow-citizens,  trade  statistics  indicate  that  this  country 
is  in  a  state  of  unexampled  prosperity.  The  figures  are  almost 
appalling.  They  show  that  we  are  utilizing  our  fields  and  forests 
and  mines,  and  that  we  are  furnishing  profitable  employment  to 
the  millions  of  workingmen  throughout  the  United  States,  bring- 
ing comfort  and  happiness  to  their  homes,  and  making  it  pos- 
sible to  lay  by  savings  for  old  age  and  disability.  That  all  the 
people  are  participating  in  this  great  prosperity  is  seen  in  every 
American  community  and  shown  by  the  enormous  and  unprece- 
dented deposits  in  our  savings  banks.  Our  duty  in  the  care  and 
security  of  these  deposits  and  their  safe  investment  demands  the 
highest  integrity  and  the  best  business  capacity  of  those  in  charge 
of  these  depositories  of  the  people's  earnings. 

We  have  a  vast  and  intricate  business  built  up  through  years 
of  toil  and  struggle,  in  which  every  part  of  the  country  has  its 
stake,  which  will  not  permit  of  either  neglect  or  undue  selfish- 
ness. No  narrow,  sordid  policy  will  subserve  it.  The  greatest 
skill  and  wisdom  on  the  part  of  the  manufacturers  and  producers 
will  be  required  to  hold  and  increase  it.  Our  industrial  enter- 
prises which  have  grown  to  such  great  proportions  affect  the 
homes  and  occupations  of  the  people  and  the  welfare  of  the  coun- 
try. Our  capacity  to  produce  has  developed  so  enormously  and 
our  products  have  so  multiplied  that  the  problem  of  more  mar- 
kets requires  our  urgent  and  immediate  attention.  Only  a  broad 
and  enlightened  policy  will  keep  what  wre  have.  No  other  policy 
will  get  more.  In  these  times  of  marvelous  business  energy  and 
gain  we  ought  to  be  looking  to  the  future,  strengthening  the  weak 
places  in  our  industrial  and  commercial  systems,  that  we  may  be 
ready  for  any  storm  or  strain. 


m'kinley's  speech.  451 

By  sensible  trade  arrangements,  which  will  not  interrupt  our 
home  production,  we  shall  extend  the  outlets  for  our  increasing 
surplus.  A  system  which  provides  a  mutual  exchange  of  com- 
modities is  manifestly  essential  to  the  continued  and  healthful 
growth  of  our  export  trade.  We  must  not  repose  in  fancied  se- 
curity that  we  can  forever  sell  everything  and  buy  little  or  noth- 
ing. If  such  a  thing  were  possible  it  would  not  be  best  for  us 
or  for  those*  with  whom  we  deal.  We  should  take  from  our 
customers  such  of  their  products  as  we  can  use  without  harm  to 
our  industries  and  labor.  Reciprocity  is  the  natural  outgrowth 
of  our  wonderful  industrial  development  under  the  domestic 
policy  now  firmly  established. 

What  we  produce  beyond  our  domestic  consumption  must  have 
a  vent  abroad.  The  excess  must  be  relieved  through  a  foreign  out- 
let, and  we  should  sell  everywhere  we  can  and  buy  wherever  the 
buying  will  enlarge  our  sales  and  productions,  and  thereby  make 
a  greater  demand  for  home  labor. 

The  period  of  exclusiveness  is  past.  The  expansion  of  our 
trade  and  commerce  is  the  pressing  problem.  Commercial  wars 
are  unprofitable.  A  policy  of  good  will  and  friendly  trade  rela- 
tions will  prevent  reprisals.  Reciprocity  treaties  are  in  harmony 
with  the  spirit  of  the  times ;  measures  of  retaliation  are  not. 

If  perchance  some  of  our  tariffs  are  no  longer  needed  for  rev- 
enue or  to  encourage  and  protect  our  industries  at  home,  Why 
should  they  not  be  employed  to  extend  and  promote  our  mar- 
kets abroad?  Then,  too,  we  have  inadequate  steamship  service. 
New  lines  of  steamers  have  already  been  put  in  commission  be- 
tween the  Pacific  coast  ports  of  the  United  States  and  those  on 
the  western  coasts  of  Mexico  and  Central  and  South  America. 
These  should  be  followed  up  with  direct  steamship  lines  between 
the  eastern  coast  of  the  United  States  and  South  American  ports. 
One  of  the  needs  of  the  times  is  direct  commercial  lines  from  our 
vast  fields  of  production  to  the  fields  of  consumption  that  we  have 
but  barely  touched.  Next  in  advantage  to  having  the  thing  to 
sell  is  to  have  the  conveyance  to  carry  it  to  the  buyer.  We  must 
increase  our  merchant  marine.  We  must  have  more  ships.  They 
must  be  under  the  American  flag,  built  and  manned  and  owned 
by  Americans.  These  will  not  only  be  profitable  in  a  commercial 
sense;  they  will  be  messengers  of  peace  and  amity  wherever  they 
go.  We  must  build  the  Isthmian  Canal,  which  will  unite  the  two 
oceans  and  give  a  straight  line  of  water  communication  with  the 
western  coasts  of  Central  and  South  America  and  Mexico.  The 
construction  of  a  Pacific  cable  cannot  be  longer  postponed. 

In  the  furtherance  of  these  objects  of  national  interest  and 
concern  you  are  performing  an  important  part.  This  exposition 
would  have  touched  the  heart  of  that  American  statesman  whose 
mind  was  ever  alert  and  thought  ever  constant  for  a  larger  com- 
merce and  a  truer  fraternity  of  the  republics  of  the  New  World. 
His  broad  American  spirit  is  felt  and  manifested  here.  He  needs 
no  identification  to  an  assemblage  of  Americans  anywhere,  for 
the  name  of  Blaine  is  inseparably  associated  with  the  Pan-Ameri- 
can movement  which  finds  here  practical  and  substantial  expres- 
sion, and  which  we  all  hope  will  be  firmly  advanced  by  the  Pan- 
American  Congress  that  assembles  this  autumn  in  the  capital  of 
Mexico.  The  good  work  will  go  on.  It  cannot  be  stopped. 
These  buildings  will  disappear;  this  creation  of  art  and  beauty 
and  industry  will  perish  from  sight,  but  their  influence  will  re- 
main to 

"Make  it  live  beyond  its  too  short  living 
With  praises  and  thanksgiving." 

Who  can  tell  the  new  thoughts  that  have  been  awakened,  the 
ambitions  fired,  and  the  high  achievements  that  will  be  wrought 
through  this  exposition?  Gentlemen,  let  us  ever  remember  that 
our  interest  is  in  concord,  not  conflict;  and  that  our  real  emi- 
nence rests  in  the  victories  of  peace,  not  those  of  war.  May  all 
who  are  represented  here  be  moved  to  higher  and  nobler  effort  for 
their  own  and  the  world's  good,  and  out  of  this  city  may  there  come 
not  only  greater  commerce  and  trade  for  us  all,  but,  more  es- 
sential than  these,  relations  of  mutual  respect,  confidence,  and 
friendship  which  will  deepen  and  endure. 

Our  earnest  prayer  is  that  God  will  graciously  vouchsafe  pros- 
perity, happiness,  and  peace  to  all  our  neighbors,  and  like  blessings 
to  all  the  peoples  and  powers  of  earth. 


452  hanna's  speech. 


MR.  HANNA'S  LAST  WORDS  OF  ADVICE 
TO  HIS  PARTY  AND  THE  PEOPLE. 


"Compare  the  condition*  by  your  flrefttde  with  those  which 
existed  el&ht  years  :in«,  and  then  make  up  your  minds." 

[Address  by  Hon.  M.   A.   Hanna  at  Chillicothe,  Ohio,  Sep- 
tember 19,  1903,  in  opening  the  Ohio  Campaign.] 

Mr.  President,  Ladies  and  Gentlemen,  and  Fellow  Republicans: 

A  political  campaign  is  always  interesting,  and  it  is  peculiarly 
so  this  year  because  of  conditions  which  can  not  be  understood 
from  observation.  It  is  unique.  The  Republican  party,  with  its 
proud  record  behind  it,  with  present  conditions  which  have  re- 
deemed every  promise  made,  and  which  holds  out  bright  hopes  for 
the  future,  is  our  position  before  the  people  today.  We  have 
opposed  to  us  the  Democratic  party.  I  don't  recognize  it. 
(Laughter,  and  cries  of  "nobody  else.")  I  think  we  may  natural- 
ly ask  ourselves  the  question,  "What  is  it?"  (Laughter.)  A 
nondescript  party  with  a  crazy-quilt  ticket  and  without  a  single 
flavor  of  Thomas  Jefferson  in  its  platform.  We  are  in  alignment, 
then.  The  position,  I  say,  and  the  situation  are  unique,  and  I  am 
glad  to  say  that  we  have  the  advantage. 

We  hold  the  fort.  We  have  strengthened  our  position  year  af- 
ter year  by  adhering  to  the  fundamental  principles  upon  which 
the  foundation  of  this  party  rested.  We  never  have  swerved  from 
those  principles  since  the  day  the  party  was  born.  We  have 
grown  stronger  in  their  advocacy  because  we  have  appealed  to  the 
reason  of  the  people  and  from  them  have  received  the  response 
that  we  were  right.  And  they  have  upheld  us  and  convinced 
others  that  we  were  right.  I  said,  my  friends,  that  this  cam- 
paign is  a  unique  one,  and  so  it  is.  There  seems  to  have  come 
a  change  over  the  condition  of  our  old-time  adversaries,  the 
Democratic  party.  Either  they  have  lost  heart  in  repeated  de- 
feats at  the  polls  or  else  they  have  stood  and  fought.  *  *  * 
Now,  there  are  other  issues,  my  friends,  and,  briefly,  I  want 
to  touch  upon  those  regarding  national  questions. 

THE  COUNTRY   NOT    IN   DANGER   OF   COLLAPSE. 

Mr.  Clarke,  whether  he  did  it  thoughtlessly  or  intentionally, 
in  a  public  utterance  at  Akron,  Ohio,  I  believe  it  was,  made  this 
statement :  "This  country  is  on  the  verge  of  financial  and  indus- 
trial collapse."  lie  sounded,  that  note  of  danger.  Why  so,  God 
only  knows.  But  to  my  mind  it  was  a  criminal  act,  because  it 
it  not  true.  As  far  as  the  financial  and  industrial  interests  of 
this  country  are  concerned,  they  never  have  been  in  any  better 
shape  than  to-day.  There  is  nothing  to  interfere  with  the  onward 
progress  of  this  development,  except  one  thing,  and  that  one 
thing  is  to  shake  the  confidence  of  the  people  in  the  principles 
and  policies  exercised  by  the  party  in  power.       *     *     * 

Either  Mr.  Clarke  knows  absolutely  nothing  about  business 
affairs  or  else  that  single  utterance,  standing  alone,  as  affecting 
the  results  of  this  campaign,  should  condemn  him  and  the  party 
he  represents  to  oblivion  forever.  (Long-continued  applause.) 
It  is  worse  than  criminal.  For  a  man  who  assumes  to  speak  for  a 
great  party  and  who  has  at  heart  the  best  interests  of  the  men 
who  have  been  associated  with  that  party  and  who  are  inclined 
to  take  the  utterances  that  fall  from  the  lips  of  their  leaders  as 
truth,  it  is,  I  say,  worse  than  criminal  for  that  man  to  thus  de- 
ceive ignorant  men. 

Suppose  that,  predicated  upon  that  speech,  an  alarm  had  been 
sounded,  that  would  have  had  practical  effect.  Suppose  even — 
which  is  not  true — that  conditions  of  this  country  had  been  such 
that  a  spark  like  that  would  have  ignited  the  dynamite,  and 
then  after  the  harm'  was  done,  after  wretchedness  and  woe  had 
come  to  thousands  of  families,  after  it  had  been  demonstrated 
that  there  was  no  cause  for  alarm,  but  merely  the  vaporingg  of 


hanna's  speech.  453 

a  politician  seeking  to  bewilder  the  minds  of  honest  people — what 
ought  to  be  done  with  such  a  man?  Is  he  fit,  or  is  any  such  man  fit 
to  stand  before  an  intelligent  people,  such  as  we  have,  and  be 
called  a  leader,  or  an  adviser  as  to  the  best  methods  and  best 
policies  to  be  adopted  in  the  interests  of  our  country?  Oh,  my 
friends,  you  have  had  experiences.  You  have  had  object  les- 
sons, and  the  results  of  those  experiences  and  those  lessons  have 
not  yet  faded  from  your  memories.  There  is  not  a  working  man 
in  this  country  nor  in  this  State  who  has  not  had  them  vividly  im- 
pressed upon  him,  through  avenues  that  reached  his  heart,  because 
they  have  caused  misery  at  his  fireside. 

The  change  came,  and  it  became  the  privilege,  as  well  as  the 
duty  of  our  own  dear  William  McKinley  to  come  to  the  front 
with  the  confidence  of  the  whole  people  behind  him,  and  assum- 
ing the  reins  of  government  at  that  opportune  time,  not  only  by 
his  living  example,  not  only  as  a  result  of  those  principles  which 
had  guided  him  all  his  life,  but  preeminently  because  during  that 
public  life  he  had  stood  the  friend  of  the  working  man  and  had 
taught  the  principles  which  had  filled  their  minds  and  filled  their 
hearts  with  gratitude,  until  confidence  grew  so  that  they  were 
willing  to  follow  him,  and,  to  a  man,  they  did  follow  him  in  1896 
and  in  1900.     (Long-continued  applause.) 

Those  principles  are  living  today,  although  he  has  gone  from 
us  forever.  (Applause.)  But  he  has  left  behind  a  record  which 
every  Ohio  man  cherishes  as  a  heritage  to  himself.  He  has  left 
behind  an  example  to  that  class  of  which  I  speak,  and  if  he 
could  speak  to-day  it  would  be  to  remind  every  man  in  the  State 
of  Ohio  who  works  with  his  hands,  "remember  all  that  you  have 
passed  through  in  years  gone  by ;  remember  how,  step  by  step, 
you  learned  those  lessons  of  economic  policy  which  have  brought 
prosperity  and  happiness  to  your  hearthstones,  and,  remembering 
that,  remember  the  party  and  the  teachers  of  these  policies,  who 
have  been  your  friends  in  all  the  past  and  stand  to-day  where 
they  stood  in  1896,  when  the  millennium  came.     (Great  applause.) 

CHANGE   OF  POLICY   THE   ONLY   DANGER. 

I  say,  my  friends,  that  the  only  danger  that  can  possibly  come 
— and  I  make  this  statement  from  the  standpoint  of  a  business 
man — and  I  think  I  know  my  business  (great  laughter  and  ap- 
plause)— better  at  least  than  my  friend  Clarke  does  anyway. 
(Renewed  laughter  and  great  applause.)  The  only  danger  that 
can  possibly  come  to  the  people  of  this  country  is  through  their 
own  acts,  by  their  own  power,  and  the  will  to  change  those  poli- 
cies which  have  made  us  what  we  are  to-day. 

If  it  were  thought  that  the  heresies  of  Tom  Johnson  and  his 
Socialistic  followers  could  make  any  impression  upon  the  people 
of  Ohio,  so  as  to  change  the  political  conditions  here,  I  will  tell 
you  what  would  happen.  The  men  who  control  these  great  in- 
dustries, the  men  whose  power  and  money  are  moving  all  this 
enormous  trade,  the  men  who  are  associated  with  them  as  part- 
ners, together  with  the  men  who  work  with  their  hands  in  this 
great  business  development,  would  be  the  first  ones  to  take  notice 
of  that  change,  if  it  were  imminent,  and  they  would  act  upon  the 
hypothesis  that  it  is  better-  to  wait  and  know  the  truth  than  to 
surmise  it  and  speculate  upon  it.  The  result  would  be — and  I 
tell  you  it  is  true — that  if  a  single  cloud  came  into  the  com- 
mercial sky  of  this  country,  which  looked  to  any  change  of  policy 
different  from  what  we  have  had  in  the  last  six  or  seven  years, 
the  change  would  come,  the  wheels  of  industry  would  slow  down, 
and  there  would  be  a  waiting  policy.  Waiting  to  know  what  the 
result  might  be;  waiting  to  know  whether  the  American  people 
would  tire  of  the  conditions  which  have  brought  to  them  wealth 
and  prosperity,  just  for  the  sake  of  a  change,  as  it  did  in  1892, 
and  were  prepared  to  throw  aside  ..the  benefits  and  experiences 
of  those  principles  and  try  new  pastures  or  not. 

On  this  great  national  proposition,  as  Senator  Foraker  has 
said,  the  whole  country  stands  to-day  at  "Attention,"  watching 
Ohio.     (Long-continued  applause.) 

The  time  has  always  been,  during  our  political  history  of 
fifty  years,  when  Ohio  seemed  to  be  the  initiatory  State,  and 
when  the  people  of  Ohio  had  registered  their  verdict,  even  in  the 
October  election  days  of  bygone  years,  it  was  looked  upon  as  a 


46  l  hanna's  speech. 

barometer  of  whal  we  might  exped  as  to  the  future  policy  of 
that  state  and  its  effect  upon  national  affairs.    (Applause.) 

I  say  the  whole  country  has  its  eyes  upon  Ohio,  knowing  that 
this  is  the  skirmish  battle  of  1*04,  and  I  join  with  Senator 
Iforaker  in  making  the  appeal  to  our  people  under  these  circura- 
staiuvs.  to  send  a  word  of  greeting  and  confidence  to  the  young 
President  at  Washington,  and  let  him  know  that  Ohio  never  fal- 
ters in  the  right,  and  will  not  this  time,  and  that  we  will  lead  in 
the  campaign  of  1904.  (Long-continued  applause.)  Do  that. 
Show  by  your  action,  show  by  your  votes,  that  you  intend  to 
stand  by  those  principles;  that  you  intend  that  the  men  who  rep- 
resent you  in  the  halls  of  Congress  and  in  the  legislative  body  of 
the  State  shall  be  sent  there  with  instructions  to  carry  out  these 
principles,  and  that  you  will  have  no  other  kind  of  representation^ 
(Prolonged  applause.)  Do  that  and  this  country  is  just  as  far 
from  any  prospect^  of  distress — to  say  nothing  of  panic — as  it  was 
three  years  ago. 

OUR   NATIONAL   PROSPERITY    NORMAL. 

These  conditions,  my  fellow-citizens,  in  this  country  are  noi- 
mal.  That  is  to  say,  they  are  not  abnormal.  There  is  no  re;  - 
son  why  we  should  not  have  long  and  continued  periods  of  pros- 
perity in  this  country,  because  our  natural  resources  are  beyond 
those  of  any  nation  in  the  world.  This  great  cosmopolitan  people 
have  shown  themselves  better  as  a  nation,  industrially,  commer- 
cially, politically,  than  any  other  nation  in  the  world.  (En- 
thusiastic cheering.)  We  have  achieved  that  position  upon  pure 
merit,  and  that  merit  is  exemplified  in  the  fact  that  under  these 
influences  and  during  the  times  of  peace  we  are  making  such 
rapid  progress  in  industrial  development  that  we  can  enter  tfce 
markets  of  the  world  with  our  products,  and  still  maintain  t^ie 
American  price  of  wages.     (Great  applause.) 

That  is  even  a  prouder  prestige,  my  friends,  than  the  new 
political  power  which  has  come  to  us  since  the  Spanish  War,  be- 
cause that  prestige  is  an  inspiration  to  every  man  who  works  with 
his  hands  to  every  man  who  has  the  ingenuity,  which  God  may 
have  given  him,  to  prepare  for  himself  conditions,  within  the 
limits  of  his  ability,  along  the  line  of  those  industries  which  gives 
him  equal  opportunity  with  any  other  man.  And  when  I  hear 
the  men  who  are  pretending  to  lead  the  Democracy  of  Ohio  today 
talk  about  capturing  the  labor  vote — well,  I  smile.  (Great  ap- 
plause, and  voices,  "We  all  smile.")  Were  it  not  in  some  phases 
of  it  a  serious  question,  I  should  even  laugh.  But  there  is  a  ser- 
ious side  to  it,  my  friends. 

There  is  a  serious  side  to  it,  because  if,  through  ignorance 
of  the  true  conditions  or  through  any  undue  excitement  created 
during  a  campaign,  the  laboring  men  of  this  State  should  be  led 
away  from  the  party  and  the  principles  which  have  done  so  much 
for  them,  then  it  would  be  serious,  because  that  element  which 
leads  and  dominates  the  Democratic  party  today  stands  not  for 
tariff  for  revenue,  but  absolute  free  trade.  Mr.  Clarke  qualifies  his 
position  on  the  tariff  by  saying  that  he  would  take  the  tariff  en- 
tirely off  every  article  manufactured  by  trusts.  What  does  that 
mean?  Every  iron  and  steel  industry  in  the  United  States,  every- 
thing connected  with  the  metal  trades,  with  the  cotton  trades, 
and  in  fact  nearly  all  of  our  great  industries  would  come  within 
the  scope  of  his  proposition. 

WHAT    FREE    TRADE    WOULD    DO. 

Why,  is  there  any  intelligent  man  among  the  workingmen  of 
my  State  who  does  not  know  what  would  be  the  result  of  that 
policy?  Absolute  free  trade,  through  all  the  schedules  of  our 
tariff,  would  shut  up  seventy-five  per  cent,  of  the  industrial  in- 
stitutions of  the  United  States  until  we  could  get  labor  down  to 
the  price  where  we  could  compete  with  Europe.  That  is  what 
you  are  up  against,  boys.  (Laughter,  and  long  continued  cheer- 
ing.) They  fooled  you  in  1892,  by  the  "clack"  about  "tin  cans." 
They  pulled  the  wool  over  your  eyes  about  the  McKinley  bill. 

But  McKinley,  although  his  bill  was  defeated,  never  lost  cour- 
age, and  I  have  heard  him  say  many  times,  "Yes,  it  is  hard,  but 
jt  is  no  humiliation  to  me,  because  I  know  I  am  right,  and  I 


HANNA'S    SPEECH.  455 

know  that  soon  the  people  will  be  right.  I  am  only  thinking  of 
those  homes  where  suffering  and.  want  will  enter  during  the 
period  which  must  pass  before  the  men  come  to  their  sober  senses, 
and  learn  from  bitter  experience  what  it  means  to  have  this 
great  structure  of  protection,  built  up  in  their  interests  more  than 
any  other,  stricken  to  the  ground,  and  all  through  the  influences 
of  demagogy."     (Long-continued  applause.) 

No,  as  far  as  your  interests  lie,  in  the  direction  of  national 
questions,  let  me  repeat,  the  questions  have  not  changed,  the 
principles  have  not  changed,  the  results  have  not  changed,  and 
you  stand  here  to-day  just  exactly  where  you  stood  years  ago 
in  this  State,  when,  under  the  leadership  of  the  gallant  man  who 
believed  in  the  protective  policy  and  in  safe  money,  you  followed 
him  to  the  polls  and  year  after  year  registered  your  verdict,  and 
that  was  the  policy  for  the  working  classes  of  this  State  and 
country.     (Enthusiastic  applause.) 

Now,  in  conclusion,  my  friends,  I  want  to  sound  a  note,  of 
varning,  not  only  to  my  Republican  friends,  but  to  every  man  who 
owns  a  home  in  this  and  all  other  counties,  in  this  State.  If  the 
Socialistic  doctrines  advocated  by  this  new  form  of  Democracy 
should,  by  any  possibility,  become  a  law,  or  that  policy  could,  by 
any  possibility,  become  established,  then  God  help  us.  When- 
ever that  socialistic,  anarchistic,  populistic  doctrine  seizes  the 
ninds  of  the  people  of  this  or  any  other  State  so  as  to  dominate 
heir  reason  and  their  judgment,  and  lead  them  to  do  almost  what 
I  would  call  an  act  of  political  suicide,  then  God  help  us.  Because, 
al  that  we  have  sought  for  in  the  past,  all  that  we  have  gained 
through  our  efforts  and  industry,  all  the  battles  we  have  fought' 
fcr  liberty  to  man,  all  the  efforts  that  we  have  made  to  make 
this  country  what  it  is — an  example  to  the  world — the  most 
powerful  Christian  influence  in  the  world — to  build  up  a  govern- 
ment which  belongs  to  the  people,  and  which  looks  to  the  people 
fo*  its  enactment,  and  for  the  enforcement  of  the  laws  which 
wll  protect  it,  when  such  "isms"  as  that  can  prevail,  then  all 
is  lost.  It  is  a  serious  thought  that  I  want  you  to  take  home. 
Republican  or  Democrat,  take  it  home  tonight  and  think  it  over. 
Compare  the  conditions  by  your  fireside  today  with  those  which 
exsted  eight  years  ago,  and  then  make  up  your  minds,  and  when 
yot  have  reached  a  decision,  "STAND  PAT."  Good  bye.  (Pro- 
longed applause.) 

THINGS  TO  BE  REMEMBERED. 

Remember  1893-1896  and  the  days  of  industrial  gloom. 

Remember  1893-1896  and  the  home  comforts  which  were  want- 
ing 

Remember  1893-1896  and  the  wives  and  children  wanting 
clothes. 

Remember  1893-1896  and  the  thousands  of  capable  mechanics 
locking  in  vain   for   work. 

Remember  1893-1896  and  the  fulfilled  promises  made  by  the 
Reiublican  party  in  the  campaign  of  1896. 

Remember  1893-1896  and  the  delusive  promises  made  by  the 
Democratic  party  in  the  campaign  of  1892. 

Remember  1893-1896  and  the  landlord  waiting  at  the  door  for 
th»  rent  money,  which  could  not  be  provided. 

Remember  1893-1896,  when  the  factory  whistle  failed  to  blow 
for  another  day's  work,  another  day's  pay. 

Remember  1893-1896  and  the  countless  number  of  women  and 
chidren   waiting,    faint    with    hunger,    for   the   bread   which    never 


Remember  1893-1896  and  the  heartsickness,  the  worry,  the  un- 
pall  and  unpayable  debts,  and  all  the  many  ills  that  attend  the 
mai  out  of  work. 

Remember  1893-1896  and  the  hundreds  of  thousands  of  laborers 
waiting  the  streets  from  sunrise  to  sunset  looking  for  the  work 
which  could  not  be  found. 

Remember  1893-1896  and  the  un-American  soup  houses  and 
other  forms  of  charity  necessary  to  relieve  those  who  need  no 
relief  when  they  can  get  work. 


•456  hay's  speech. 


FIFTY    YEARS     OF     THE    REPUBLICAN 
PARTY. 


An  Address  Delivered  by  the  Hon.  John  Hay,  Secretary  of  State,  at  Jack- 
son, Mich.,  July  6,  1904. 

A  century  is  but  a  moment  of  history;  it  has  often  happened 
that  several  of  them  have  passed  away,  since  men  began  to  record 
their  deeds,  with  little  change  in  the  physical  aspect  or  the  moral 
progress  of  the  world.  But  at  other  times' — of  intense  action  and 
spiritual  awakening — a  single  generation  may  form  an  epoch;  and 
few  periods  of  equal  duration  in  political  annals  have  been  so 
crowded  with  great  events  as  the  fifty  years  we  celebrate  to-day. 
Under  the  oaks  of  Jackson  on  the  6th  of  July,  1854,  a  party  was 
brought  into  being  and  baptized,  which  ever  since  has  answered 
the  purposes  of  its  existence  with  fewer  follies  and  failures  and 
more  magnificent  achievements  than  ordinarily  fall  to  the  lot  of 
any  institution  of  mortal  origin.  And  even  the  beginning  of  the 
end  is  not  yet.  This  historic  party  is  only  now  in  the  full  maturity 
of  its  power  and  its  capacity  for  good.  We  look  back  upon  a  past 
of  unparalleled  usefulness  and  glory  with  emotions  of  thankfulness 
and  pride;  we  confront  the  future  and  its  exacting  problems'  with 
a  confidence  born  of  the  experience  of  difficulties  surmounted  and 
triumphs  achieved  in  paths  more  thorny  and  ways  more  arduous 
than  any  that  are  likely  to  challenge  the  courage  and  the  con- 
science of  the  generation  which  is  to  follow  us.  It  is  meet  thai 
at  this  stage  of  our  journey  we  should  review  the  past  and  reac 
its  lessons,  and  in  its  light  take  heart  for  what  lies  beyond. 

A  Party  of  Noble  Origin. 

The  Republican  party  had  a  noble  origin.  It  sprang  directly 
from  an  aroused  and  indignant  national  conscience.  Questions  q 
finance,  of  political  economy,  of  orderly  administration,  passel 
out  of  sight  for  the  moment,  to  be  taken  up  and  dealt  with  later 
on.  But  in  1854  the  question  that  brought  the  thinking  men  tc- 
gether  was  whether  there  should  be  a  limit  to  the  aggressions  (f 
slavery;  and  in  1861  that  solemn  inquiry  turned  to  one  still  moie 
portentous,  Should  the  nation  live  or  die?  The  humblest  old  Re- 
publican in  America  has  the  right  to  be  proud  that  in  the  days 
of  his'  youth  in  the  presence  of  these  momentous  questions  le 
judged  right;  and  if  he  is  sleeping  in  his  honored  grave  his  chil- 
dren may  justly  be  glad  of  his  decision. 

It  was  not  so  easy  fifty  years  ago  to  take  sides  against  tie 
slave  power  as  it  may  seem  to-day.  Respect  for  the  vested  rights 
of  the  Southern  people  was  one  of  our  most  sacred  traditions.  It 
was  founded  on  the  compromises  of  the  Constitution,  and  upon  a 
long  line  of  legal  and  legislative  precedents.  The  men  of  the  Rev- 
olution made  no  defense  of  slavery  in  itself;  Washington,  Adams, 
Jefferson,  and  Franklin  deplored  its'  existence,  but  recognized  the 
necessity  of  compromise  until  the  public  mind  might  rest  in  the 
hope  of  its  ultimate  extinction.  But  after  they  had  passed  awa/, 
improvements  in  the  culture  and  manufacture  of  cotton  made  ths 
uneconomic  form  of  labor  for  the  time  profitable,  and  what  hid 
been  merely  tolerated  as  a  temporary  necessity  began  to  >e 
upheld  as  a  permanent  system.  Slavery  entrenched  itself  in  every 
department  of  our  public  life.  Its  advocates  dominated  Congreo 
and  the  State  legislatures;  they  even  invaded  the  pulpit  aid 
grotesquely  wrested  a  few  texts  of  Scripture  to  their  purpose.  Thiy 
gave  the  tone  to  society;  even  the  Southern  accent  was  imitated 
in  our  schools  and  colleges. 

If  the  slaveholders  had  been  content  with  their  unquestioned 
predominance,  they  might  for  many  years  have  controlled  cur 
political  and  social  world.  It  was  natural  for  the  conservative 
people  of  the  North  to  say:  "We  deplore  the  existence  of  slavery, 
but  we  are  all  to  blame  for  it;  we  should  not  cast  upon  our  bretl- 
ren  in  the  South  the  burdens  and  perils  of  its  abolition.  We  must 
bear  with  the  unfortunate  condition  of  things  and  take  our  sha-e 
of  its  inconveniences."  But  the  slaveholding  party  could  not  rst 
content.  The  ancients  said  that  madness  was  the  fate  of  these 
judged  by  the  gods.  Continual  aggression  is  a  necessity  of  a  fase 
position.  They  felt  instinctively  that  if  their  system  were  perma- 
nently to  endure  it  must  be  extended,  and  to  attain  this  objtct 
they  were  ready  to  risk  everything.  They  rent  in  twain  the  corn- 
promises  which  had  protected  them  s'o  long.  They  tore  down  the 
bulwarks  which  had  at  once  restricted  and  defended  them;  and 
confiding  in  their  strength  and  ,  our  patience  they  boldly  an- 
nounced and  inaugurated  the  policy  of  the  indefinite  extension  of 
their  "peculiar  institution." 

Once  embarked  upon  this  fatal  enterprise  they  left  nothhg 
undone  which  could  contribute  to  the  catastrophe  upon  which  tley 
were  rushing.  The  Whig  party  had  gone  to  ruin  in  1852  on  tc- 
count  of  the  impossibility  of  combining  the  scattered  elemeits 
of  opposition  to  the  party  of  pro-slavery  aggression;  but  they 
themselves  furnished  the  weapon  which  was  to  defeat  them.  In 
May,    1854,   after   several   months   of   passionate   debate,    to   which 


hay's  speech.  457 

the  country  listened  with  feverish  interest,  Congress  passed  the 
bill  organizing  the  territories  of  Kansas  and  Nebraska,  omitting  the 
restrictions  of  the  Missouri  Compromise,  which  excluded  slavery 
from  them.  This  action  at  once  precipitated  the  floating  anti- 
slavery  sentiment  of  the  country.  A  mighty  cry  of  resolute  in- 
dignation arose  from  one  end  of  the  land  to  the  other.  The  hol- 
low truce,  founded  upon  the  legitimate  compromises  which  had 
been  observed  in  good  faith  by  one  side  and  ruthlessly  violated  by 
the  other,  was  at  an  end.  Men  began  to  search  their  consciences' 
instead  of  the  arguments  of  political  expediency.  A  discussion  of 
the  right  and  wrong  of  slavery  became  general;  the  light  was  let 
in,  fatal  to  darkness.  A  system  which  degraded  men,  dishonored 
women,  deprived  little  children  of  the  sacred  solace  of  home, 
was  doomed  from  the  hour  it  passed  into  the  arena  of  free  debate. 
And  even  if  we  shut  our  eyes  to  the  moral  aspects  of  that  heart- 
less' system,  and  confined  ourselves  to  the  examination  of  its  eco- 
nomic merits,  it  was  found  to  be  wasteful  and  inefficient.  The 
Americans  are  at  once  the  most  sentimental  and  the  most  prac- 
tical of  peoples — and  when  they  see  that  an  institution  is  mor- 
ally revolting,  and,  besides,  does'  not  pay,  its  fate  is  sealed. 

The  Constitution  and  Law  Always  Respected. 

Yet  the  most  wonderful  feature  of  that  extraordinary  cam- 
paign which  then  began,  and  which  never  ceased  until  the  land 
was  purged  of  its  deadly  sin,  was  that  even  in  the  very  "tempest 
and  whirlwind  of  their  passion"  the  great  leaders  of  the  Republi- 
can party  kept  their  agitation  strictly  within  the  limits  of  the 
Constitution  and  the  law.  There  was  no  general  demand  for  even 
an  amendment  to  the  organic  instrument.  They  pleaded  for  the 
repeal  of  unjust  statutes  as  inconsistent  with  the  Constitution, 
but  did  not  advocate  their  violation.  Only  among  the  more  ob- 
scure and  ardent  members  of  the  party  was  there  any  demand  for 
the  abolition  of  slavery,  but  the  whole  party  stood  like  a  rock 
for  the  principle  that  the  damnable  institution  must  be  content 
with  what  it  had  already  got,  and  must  not  be  allowed  to  pollute 
another  inch  of  free  soil.  On  this  impregnable  ground  they  made 
their  stand;  and  the  mass  convention  which  assembled  here  in 
1854,  while  the  vibration  of  the  thunder  of  the  guns  and  the  shout- 
ings of  the  birthday  of  Liberty  yet  lingered  in  the  air,  gave  a 
nucleus  and  a  name  to  the  new  party  destined  to  a  great  and  be- 
neficent career.  Before  the  month  ended  the  anti-slavery  men  of 
five  more  great  states  adopted  the  name  "Republican,"  and  under 
that  banner  Congress  was  carried  and  two  years  later  a  national 
party  assembled  at  Pittsburg  and  nominated  Fremont  and  Day- 
ton, who  failed  by  a  few  votes  of  sweeping  the  North. 

Who  of  us  that  was  living  then  will  ever  forget  the  ardent 
enthusiasm  of  those  days?  It  was  one  of  those  periods,  rare  in  the 
life  of  any  nation,  when  men  forgot  themselves,  and,  in  spite  of 
habit,  of  interest,  and  of  prejudice,  follow  their  consciences 
wHerever  they  may  lead.  In  the  clear,  keen  air  that  was  abroad 
the  best  men  of  the  country  drew  deeper  breaths  and  rose  to  a 
moral  height  they  had  not  before  attained.  The  movement  was 
universal.  Sumner  in  the  East,  Seward  in  New  York,  Chase  in 
Ohio,  Bates  in  Missouri,  Blair  in  Maryland,  all  sent  forth  their 
identical  appeal  to  the  higher  motive;  and  in  Illinois,  where  the 
most  popular  man  in  the  state  boldly  and  cynically  announced, 
"I  don't  care  whether  slavery  is  voted  up  or  voted  down,"  a  voice, 
new  to  the  nation,  replied,  "There  are  some  of  us  who  do  care. 
If  slavery  is  not  wrong  nothing  is  wrong" — and  Abraham  Lincoln 
came  upon  the  field,  not  to  leave  it  until  he  was'  triumphant  in 
death. 

I  have  no  right  to  detain  you  at  this  hour  in  recounting  the 
history  of  those  memorable  days.  Two  incidents  of  the  long  battle 
will  never  be  forgotten.  One  was  the  physical  and  political  contest 
for  the  possession  of  Kansas,  carried  on  with  desperate  courage 
and  recklessness  of  consequences  by  the  pro-slavery  party  on  the 
one  side,  and,  on  the  other,  by  the  New  England  farmers'  whose 
weapons  of  aggression  were  Bible  texts  and  the  words  of  Jeffer- 
son, and  whose  arms  of  defense  were  Sharpe's  rifles.  With  words 
that  ring  even  now  when  we  read  them,  like  the  clashing  of 
swords,  the  Slave  State  men  claimed  Kansas  as  their  right  and  the 
Free  State  men  replied  in  the  words  of  the  prophet  before  Herod, 
It  is  not  lawful  for  you  to  have  her.  And  when  the  talking 
sharpened  to  the  physical  clinch,  the  praying  men  fought  with  the 
same  ferocity  as  the  men  who  cursed.  In  the  field  of  political  dis- 
cussion the  most  dramatic  incident  of  the  fight  was  the  debate 
between  Lincoln  and  Douglas.  Not  many  of  you  saw  that  battle  of 
the  strong,  where  each  of  the  gladiators  had  an  adversary  worthy 
of  his  steel,  where  the  audiences  were  equally  divided,  where  the 
combatants  were  fairly  matched  in  debating  skill  and  address, 
and  where  the  superiority  of  Lincoln  was  not  so  much  personal 
as  it  was  in  the  overwhelming  strength  of  his'  position.  He  was 
fighting  for  freedom  and  could  say  so;  Douglas  was  fighting  for 
slavery  and  could  not  avow  it.  The  result  of  the  contest  is  now 
seen  to  have  been  inevitable.  Douglas  was  re-elected  to  the  Senate 
but  had  gained  als'o  the  resentful  suspicion  of  the  South,  which 
two  years  later  disowned  him  and  defeated  his  lifelong  ambition. 
Lincoln  became  at  once  the  foremost  Republican  of  the  West,  and 
a  little  later  the  greatest  political  figure  of  the  century. 

Our  First  Republican  President. 

If  there  is'  one  thing  more  than  another  in  which  we  Repub- 
licans are  entitled  to  a  legitimate  pride  it  is  that  Lincoln  was  our 


458  hay's  speech. 

first  President;  that  we  believed  In  him,  loyally  supported  him 
while  he  lived,  and  that  we  have  never  tost  the  right  to  call  our- 
selves his  followers'.  There  is  not  a  principle  avowed  by  the  Re- 
fmbllcan  party  to-day  which  is  out  of  harmony  with  his  teachi- 
ngs or  inconsistent  with  his  character.  We  do  not  object  to  our 
opponents  quoting  him,  praising  him — even  claiming  him  as  their 
own.  If  it  is  not  sincere,  it  is  still  a  laudable  tribute  to  acknowl- 
edged excellence.  If  it  is  genuine,  it  is  still  better,  for  even  a 
Nebraska  Populist  who  reads  his  Lincoln  is  in  the  way  of  salvation. 
But  only  those  who  believe  in  human  rights  and  are  willing  to 
make  sacrifices'  to  defend  them;  who  believe  in  the  nation  and  its 
beneficent  power;  who  believe  in  the  American  system  of  protec- 
tion championed  by  a  long  line  of  our  greatest  and  best,  running 
back  from  McKinley  to  Washington,  and,  as  Senator  Dolliver  so 
truthfully  said,  "to  the  original  sources  of  American  common 
sense;"  only  those  who  believe  in  equal  justice  to  labor  and  to 
capital;  in  hone3t  money  and  the  right  to  earn  it,  have  any  title  to 
name  themselves  by  the  name  of  Lincoln,  or  to  claim  a  moral  kin- 
ship with  that  august  and  venerated  spirit.  I  admit  it  would  be 
little  less  than  sacrilege  to  try  to  trade  upon  that  benignant 
Renown,  whose  light  "folds  in  this'  orb  o'  the  earth."  But  we  who 
have  always  tried  to  walk  in  the  road  he  pointed  out  can  not  be 
deprived  of  the  tender  pride  of  calling  ourselves  his  disciples,  and 
of  doing  in  his  name  the  work  allotted  to  us  by  Providence.  And 
I  hope  I  am  violating  neither  the  confidence  of  a  friend  nor  the 
proprieties  of  an  occasion  like  this  when  I  refer  to  the  ardent 
and  able  young  statesman  who  is  now,  and  is  to  be,  our  President 
to  let  you  know  that  in  times  of  doubt  and  difficulty  the  thought 
oftenest  in  his  heart  is,  "What,  in  such  a  case,  would  Lincoln  have 
done?" 

As  we  are  removed  further  and  further  from  the  founders  of 
our  party  and  their  mighty  work,  their  names  and  their  fame  rise 
every  year  higher  in  the  great  perspective  of  history.  The  clamor 
of  hatred  and  calumny  dies  away.  The  efforts'  made  to  weaken  the 
hands  of  Lincoln  and  his  associates  are  forgotten.  The  survivors 
of  those  who  so  bitterly  attacked  him  and  his  cause,  which  was  the 
cause  of  the  country,  are  now  themselves  astonished  when  con- 
fronted with  the  words  they  then  uttered.  But  it  was  against  a 
political  opposition  not  less  formidable  and  efficient  than  the 
armed  force  beyond  the  Potomac  that  the  Union  men  of  that  day, 
and  their  President,  had  to  struggle.  It  was  not  merely  the  losses 
in  battle,  the  waste  of  our  wealth,  the  precious'  blood  of  our  young 
men,  that  filled  Lincoln's  heart  with  anguish  and  made  him  old 
before  his  time,  but  it  was  the  storm  of  partisan  hostility  that 
raged  against  him,  filling  the  air  with  slanders  and  thwarting  his 
most  earnest  and  unselfish  efforts  for  the  country's  good.  But  in 
spite  of  it  all  he  persevered,  never  for  a  moment  tempted  by  the 
vast  power  he  wielded  to  any  action  not  justified  by  the  moral 
and  the  organic  law.  I  have  always  liked  the  inscription  on  the 
medal  which  the  workmen  of  France,  by  one-cent  subscriptions, 
caused  to  be  struck  after  his  death:  "Abraham  Lincoln,  the  honest 
man.  Waged  war.  Abolished  slavery.  Twice  elected  President 
without  veiling  the  face  of  Liberty."  This  was  an  achievement 
new  to  the  world;  that  a  man  and  a  party,  armed  with  an  author- 
ity so  unquestioned  and  so  stupendous,  in  the  very  current  of  a 
vast  war,  should  have  submitted  themselves  so  rigidly  to  the  law — 
and  never  have  dreamed  there  was  anything  meritorious  about  it. 
Then,  if  never  before,  we  proved  we  were  as  fit  to  be  free  as  the 
men  who  achieved  our  freedom. 

The  world  learned  other  lessons  in  swift  succession.  We  dis- 
banded our  army — sent  them  home  to  earn  their  livings'  as  simple 
citizens  of  the  land  they  had  saved,  without  terms  or  conditions; 
they  asked  none;  they  wanted  peace;  they  were  glad  to  get  to 
work.  And  there  were  no  reprisals,  not  a  man  punished  for  re- 
bellion or  treason;  not  an  act  of  violence  sullied  the  glory  of  vic- 
tory. The  fight  had  been  fierce,  but  loyal;  we  at  least  wished 
the  reconciliation  to  be  perfect.  Then  came  the  paying  of  our 
debts.  To  whom  is'  the  credit  due  of  that  enormous  task,  that 
sublime  effort  of  common  honesty,  if  not  to  the  party  which, 
against  every  assault  of  open  and  covert  repudiation,  stood  by  the 
country's  honor  and  kept  it  free  from  stain? 

"Why  the  Party  is  Entitled  to  Public  Confidence. 

Let  me  hurriedly  enumerate  a  few  of  the  events  in  the  long 
and  fruitful  career  of  the  Republican  party  which  seem  to  us  to 
entitle  it  to  the  confidence  of  the  country  and  the  final  approval  of 
history.  After  the  war  was  ended  and  peace  re-established  with  no 
damage  to  the  structure  of  the  Government,  but,  on  the  contrary, 
with  added  strength  and  with  increased  guaranties  of  its  perpetu- 
ity, it  remained  to  be  shown  whether  the  power  and  success  of 
the  Republican  party  were  to  be  permanent,  or  whether,  born  of  a 
crisis,  it  was  fitted  to  cope  with  the  problems  of  daily  national 
life.  It  had  destroyed  slavery,  or.  perhaps  we  might  better  say, 
it  had  created  the  conditions  by  which  slavery  had  committed  sui- 
cide. In  the  absence  of  this  great  adversary,  could  the  party  hold 
together  against  the  thousand  lesser  evils  that  beset  the  public 
life  of  modern  peoples — the  evils  of  ignorance,  corruption,  avarice, 
and  lawlessness,  the  prejudices  of  race  and  of  class,  the  voices  of 
demagogues,  the  cunning  of  dishonest  craft,  the  brutal  tyranny  of 
the  boss,  the  venality  of  the  mean?  I  think  it  is  not  too  much  to 
say  that  the  last  forty  years  have  given  an  answer,  full  of  glory 
and  honor,  to  that  question.  The  Republican  party,  in  the  mass 
and  in  detail,  has  shown  its  capacity  to  govern.  By  the  homestead 
law,   with   equal   generosity   and  wisdom,   it   distributed  the   im- 


HAY'S    SPEECH.  459 

mense  national  domain  among  the  citizens  who  were  willing  to 
cultivate  it  and  who  have  converted  wide  stretches  of  wilderness 
into  smiling-  homes.  It  built  the  Pacific  Railroad,  which  has  bound 
the  Union  together  from  East  to  West  by  bands  of  steel  and  made 
the  states  beyond  the  mountains  among  our  most  loyal  and  pros- 
perous commonwealths.  It  redeemed  our  paper  currency  and 
made  all  our  forms  of  money  exactly  of  equal  value,  and  our  credit 
the  best  in  the  world.  By  persistent  honesty  in  our  finances — in 
the  face  of  obstacles  which  might  have  daunted  the  hardiest 
statesmen — it  has  reduced  our  interest  charges  so  that  in  any  mart 
on  earth  we  can  borrow  money  cheaper  than  any  other  people. 
In  the  financial  revulsions  to  which  all  communities  are  subject 
we  are  able,  thanks  to  our  laws  and  our  administrative  system, 
to  meet  and  pass  the  most  violent  crises  without  lasting  damage  to 
our  prosperity.  We  have,  by  the  patient  labor  of  years,  so  suc- 
ceeded in  reforming  and  regulating  our  civil  service  that  patronage 
has  almost  ceased  to  cast  its  deadly  blight  upon  the  work  of  our 
public  servants.  Human  nature  is  weak  and  offenses  happen; 
but  they  are  almost  always  found  out  and  are  punished  without 
mercy  when  detected.  By  persistent  adherence  to  the  policy  of 
protection,  we  have  given  to  our  industries  a  development  which 
the  fathers  of  the  Republic  never  dreamed  of;  which,  besides  sup- 
plying our  home  market,  has  carried  our  manufactures  to  the  ut- 
termost ends  of  the  earth. 

A   Prosperity   Unparalleled   In    History. 

History  affords'  no  parallel  to  the  vast  and  increasing  prosper- 
ity which  this  country  has  enjoyed  under  Republican  rule.  I 
hasten  to  say  we  do  not  claim  to  have  invented  seedtime  and  har- 
vest, and  industry  and  thrift.  We  are  a  great  people  and  success 
is  our  right;  God  is  good  to  those  who  behave  themselves.  But  we 
may  justly  claim  that  the  Republican  party  has  been  in  power 
during  these  years  of  marvelous  growth,  and  we  can  at  least 
bring  proof  that  we  have  not  prevented  it — and  this  is  no  slight 
honor  for  a  party  to  claim.  I  will  not  at  this  moment  speak  of 
the  important  acquisitions  of  territory  we  have  made,  which  ren- 
der us  in  many  ways  the  predominant  power  in  the  Pacific.  But 
out  of  the  territory  we  already  possessed,  fourteen  new  states 
have  entered  the  Union.  The  census  of  1850  gave  us  23,000,000  of 
population — the  last  one  76,000,000.  The  number  of  our  farms — 
the  total  of  our  cultivated  acreage — has  increased  fourfold.  Our 
corn  crop  is  five  times  what  it  was;  our  wheat  crop,  six  times. 
The  'capital  invested  in  manufacturing  has  grown  from  five  hun- 
dred millions  to  ten  billions;  where  it  employed  less  than  a  mil- 
lion artisans,  it  now  employs  more  than  five  millions;  and  while 
the  number  of  workingmen  has  increased  five  times,  their  wages 
have  increased  tenfold.  The  value  of  manufactured  property  is 
thirteen  times  what  it  was  when  the  Republicans  of  Michigan  met 
under  the  oaks.  The  real  and  personal  wealth  of  the  country  has 
grown  in  this'  amazing  half  century  from  seven  thousand  millions 
to  ninety-four  thousand  millions.  Our  railroads  have  grown  from 
a  mileage  of  16,000  to  one  of  200,000.  Our  imports  and  exports 
have  gone  up  by  leaps  and  bounds  to  the  same  monstrous  propor- 
tions. And  finally,  let  us  hasten  to  say,  as'  the  other  side  will  say  it 
for  us,  instead  of  the  $47,000,000  which  supplied  our  modest  needs 
in  1850  we  now  collect  and  spend  some  $700,000,000  annually.  I 
can  only  add  what  Speaker  Reed  replied  to  a  Democratic  states- 
man who  complained  of  a  billion-dollar  Coflgress':  "Well,  this  is  a 
billion  dollar  country." 

Of  course,  our  opponents,  who  have  got  far*  enough  from  the 
men  and  the  events  of  the  great  war  period  to  admit  they  were 
not  without  merit,  will  say — for  they  must  say  something — that  we 
have  fallen  away  from  that  high  level.  Now,  I  am  grieved  to  con- 
fess that  I  am  old  enough  to  have  seen  something  of  the  beginning, 
rs  well  as  of  the  present,  of  Republican  Administrations,  and  I  ven- 
ture to  say  that  no  eight  years  of  government  in  our  history  have 
been  purer  from  blame  or  have  conferred  greater  benefits  upon  the 
country  than  the  eight  years  of  McKinley  and  Roosevelt  which 
claim  your  approval  to-day.  I  need  not  hesitate  to  refer  to  it, 
although  I  have  been  associated  with  both  Administrations;  so 
little  of  their  merit  is'  mine  that  I  may  speak  of  them  without 
false  modesty.  Our  national  finances  have  never  in  our  history 
been  so  wisely  and  successfully  administered;  our  credit  never 
stood  on  a  basis  so  broad  and  so  strong.  Our  two-percents  com- 
mand a  premium  in  all  markets — no  other  country  on  earth  can 
say  as  much.  We  paid  abroad  the  other  day  fifty  millions  of  gold 
in  a  single  transaction  without  producing  a  ripple  in  exchange. 
The  vast  expenditure  made  necessary  by  our  enormous  increase  in 
every  element  of  national  growth  is  collected  with  the  utmost 
ease  and  expended  with  perfect  honesty.  Our  protective  system, 
loyally  and  intelligently  carried  out  and  improved  in  the  last  seven 
years,  not  only  fills  our  Treasury  with  the  means  of  national  ex- 
penditure, but  has  carried  our  industries  and  our  commerce  to  a 
height  of  prosperity  which  is  the  wonder  and  envy  of  our  neigh- 
bors, who  are  trying  to  emulate  our  progress. 

The    Republican   Party   Always    the   Friend   of   Labor. 

In  the  relations  between  labor  and  capital,  always  a  subject 
of  deep  concern  in  democratic  governments',  we  have  improved  both 
in  the  letter  and  the  spirit.  How  could  it  be  otherwise  when  labor 
knows  that  McKinley  and  Roosevelt  have  watched  over  its  inter- 
ests as  a  brother  might,  and  capital  knows  that  its  rights  will  be 
sacredly  guarded  so  long  as  it  is'  true  to  Us  duties?     As  to  our 


460  hay's  speech. 

place  In   the  world,   It  has  simply  followed  and  naturally  comple- 
mented the  steady  Improvement  in  our  domestic  condition. 

Our  Relation  to  the  World. 

A  country  growing  so  fast  must  have  elbow  room — must  have 
its  share  of  the  sunshine.  In  the  last  seven  years,  without  aggres- 
sion, without  undue  self-assertion,  we  have  taken  the  place  that 
belonged  to  us.  Adhering  with  religious  care  to  the  precepts  of 
Washington  and  the  traditions  of  a  century,  and  avoiding  all  en- 
tangling alliances,  professing  friendship  to  all  nations  and  parti- 
ality to  none,  McKinley  and  Roosevelt  have  gone  steadily  forward 
protecting  and  extending  American  interests  everywhere  and  gain- 
ing, by  deserving  it,  the  good  will  of  all  the  world.  Their  advice 
has  been  constantly  sought  and  sparingly  given.  By  constant  iter- 
ation their  policy  has  been  made  plain.  We  do  not  covet  the 
territory  nor  the  control  of  any  other  people.  We  hold  ourselves 
absolutely  apart  from  any  combinations  or  groups  of  powers.  We 
favor  no  national  interests  but  our  own.  In  controversies  among 
our  neighbors  we  take  no  part,  not  even  tendering  good  offices 
unless  at  the  request  of  both  parties'  concerned.  When  our  advice 
is  given,  it  is  always  on  the  side  of  peace  and  conciliation.  We 
have  made,  it  is  true,  great  acquisitons,  but  never  of  set  purpose 
nor  from  greed  of  lantf.  In  the  case  of  Hawaii,  the  will  of  the 
people  of  those  islands  coincided  with  the  important  interests  we 
have  to  guard  in  the  Pacific.  In  the  Samoan  treaty  we  freed  our- 
selves from  a  useless  and  dangerous  entanglement,  and  in  place  of 
an  undesirable  condominium  we  gained  possession  of  the  best 
harbor  in  the  South  Seas,  retaining,  at  the  same  time,  all  our  com- 
mercial rights  in  the  archipelago.  The  diplomacy  of  McKinley 
and  Roosevelt  has  been  directed  principally  to  our  present  and  fu- 
ture interests  in  the  Pacific,  on  whose  wide  shores  so  much  of  the 
world's  work  is  to  be  done.  They  have  constantly  kept  in  view 
the  vast  importance  of  that  opening  field  of  our  activities.  The 
long  negotiations  for  the  "open  door"  in  China;  the  steadfast  fight 
we  made  for  the  integrity  of  that  ancient  empire;  President  Mc- 
Kinley's  attitude  throughout  the  Boxer  troubles,  so  severely  crit- 
icized at  the  time  and  so  splendidly  approved  by  the  result;  the 
position  President  Roosevelt  has'  since  held  and  now  holds  in  re- 
gard to  the  neutrality  of  China  in  the  present  war — have  all  been 
dictated  by  one  persistent  policy,  of  taking  care  that  our  interests 
receive  no  detriment  in  the  Pacific;  that  while  we  wish  no  harm 
to  anyone  else,  we  shall  see  that  no  damage  is  done  to  our  peo- 
ple, no  door  is  shut  in  our  face. 

The  negotiations  begun  by  McKinley  and  successfully  com- 
pleted by  Roosevelt  for  the  abrogation  of  the  Clayton-Bulwer 
treaty,  which  impeded  our  freedom  of  action  in  building  an  isth- 
mian canal,  was  a  part  of  the  same  general  plan  of  opening  a 
field  of  enterprise  in  those  distant  regions  where  the  Far  West 
becomes'  the  Par  East.  In  this  matter  we  were  met  in  the  most 
frank  and  friendly  spirit  by  the  British  Government,  as  also  in 
the  matter  of  the  Alaskan  boundary,  which  was  settled  for  all 
time  by  a  high  judicial  tribunal  removing  a  cloud  upon  our  title 
to  another  great  Pacific  possession.  And  to  close  this  record  of 
success — monotonous  because  gained  by  appeals  to  reason  rather 
than  force,  without  parade  or  melodrama — came  the  treaty  with 
Panama,  by  which  we  finally  gained  the  pathway  across  the  Isth- 
mus' by  a  perpetual  grant,  insuring  the  construction  of  an  Ameri- 
can canal  under  American  control,  built  primarily  for  American 
needs,  but  open  on  equal  terms  to  all  the  people  of  good  will  the 
world  over. 

All  the  foreign  policy  of  McKinley  and  Roosevelt  has  been 
marked  with  the  same  stamp  of  honesty  and  fair  dealing,  con- 
fessedly in  American  interests,  but  treating  our  friends  with 
equity  and  consideration.  They  have  made  more  treaties  than  any 
two  preceding  Presidents;  and  the  conclusion  of  the  whole  matter 
is  that  we  stand  to-day  in  independent  though  amicable  relations 
to  all  the  rest  of  the  world — without  an  ally  and  without  an 
enemy. 

The  War  With  Spain  and  Its  Results. 

If  the  Government  for  the  last  seven  years  had  done  nothing 
else,  it  would  have  entitled  itself  to  an  honorable  place  in  history 
by  the  manner  in  which  it  has  handled  the  questions'  of  the  islands 
whose  destiny  has  been  so  interwoven  with  our  own.  The  war 
with  Spain  was  carried  through  with  incredible  swiftness  and  en- 
ergy, without  a  shadow  of  corruption,  without  a  moral  or  a  tech- 
nical fault.  A  hundred  days  sufficed  for  the  fighting.  Diplomacy 
then  did  its  work,  and  our  commissioners  brought  home  a  treaty 
so  just  and  so  beneficial  that  it  was  impossible  to  unite  the  oppo- 
sition against  it.  Then  came  the  far  more  difficult  and  delicate 
task  of  administration.  You  remember  the  doleful  prophesies  of 
evil  with  which  the  air  was  filled;  that  we  had  not  the  habit  nor 
the  ability  to  govern  outlying  possessions;  that  the  islands  would 
be  cesspools  of  jobbery  and  fraud;  that  the  enterprise  was  con- 
ceived in  violence  and  would  go  out  in  disaster.  And  now  you 
know  the  result.  The  Republic  never  is  in  default  of  men  to  serve 
it  worthily  when  the  Chief  of  the  State  is  honest  and  able;  when 
he  has  the  eye  and  the  will  to  choose  the  best  men  and  will  be 
satisfied  with  no  less.  So  in  Cuba,  Porto  Rico,  and  the  Philippines 
we  got  the  best  we  had.  Wood,  Allen  and  Hunt,  and  Taft  have 
each  in  his  place  wrought  a  great  work  and  gained  a  righteous 
fame.  Cuba  and  Porto  Rico  are  free  and  enjoying— the  one  under 
her  own  banner,  the  other  under  the  Stars  and  Stripes — a  degree 


hay's  speech.  461 

of  prosperity  and  happiness'  never  known  before  in  all  their  trou- 
bled story.  As  to  the  Philippines,  the  work  done  there  by  Judge 
Taft  and  his  associates  will  rank  among1  the  highest  achievements 
of  colonial  administration  recorded  in  history.  Never  since  their 
discovery  has  there  been  such  general  peace  and  order;  so  thorough 
•  a  protection  of  the  peaceable  and  restraint  of  evil  doers;  so  wide 
a  diffusion  of  education;  so  complete  a  guaranty  to  industry  of  the 
fruit  of  its  labors.  And  when  they  see  this  energetic  and  efficient 
government  carried  on,  free  from  the  venality  and  bribery  which 
formerly  seemed  to  them  a  necessity  of  existence,  then,  indeed, 
they  are  like  them  that  dream.  The  principal  evil  from  which 
they  still  suffer  has  its  origin  here.  Some  well-meaning  people — 
and  others  not  so  well  meaning — are  constantly  persuading  them 
that  they  are  oppressed  and  that  they  will  be  given"  their  liberty, 
as  they  choose  to  call  it,  as  soon  as  the  Republican  party  is  over- 
thrown in  this  country.  These  are  the  true  enemies  of  the  Fil- 
ipinos, and  not  the  men  who  are  striving  with  whole-hearted 
energy  and  with  consummate  success  to  ameliorate  their  condition 
and  to  make  them  fit  for  self-government  and  all  its  attendant 
advantages.  The  so-called  anti-imperialists  confound  in  their 
daily  speeches  and  writings  two  absolutely  unrelated  ideas — the 
liberty,  the  civil  rights,  the  self-government  which  we  have  given 
the  Filipinos,  and  the  independence  which  the  best  of  them  do 
not  want  and  know  they  are  unable  to  maintain.  To  abandon 
them  now,  to  cast  them  adrift  at  the  mercy  of  accident,  would 
be  an  act  of  cowardice  and  treachery  which  would  gain  us  th« 
scorn  and  reproach  of  civilization. 

Democrats  Who  Aided  the  Republican  Party  in  Its  Great  "Under- 
takings. 

Our  opponents  sometimes  say  we  have  no  right  to  claim  the 
credit  of  the  great  deeds  of  the  last  half  century — that  we  could 
not  have  accomplished  them  without  the  aid  of  Democrats.  Noth- 
ing truer  was  ever  said;  and  it  is  one  of  the  chief  glories  of  our 
annals,  and  it  forms  the  surest  foundation  of  our  hopes  for  the 
future.  The  principles  upon  which  our  party  is  built  are  so  sound, 
they  have  so  irresistible  an  attraction  to  patriotic  and  fair-minded 
men,  that  whenever  a  time  of  crisis  comes,  when  the  national 
welfare  is  clearly  at  stake,  when  voters  must  decide  whether  they 
shall  follow  their  prejudices  or  their  consciences,  we  draw  from 
other  parties'  their  best  men  by  thousands.  Bright  among  the 
brightest  of  those  who  founded  our  party  shine  the  name  of  Dem- 
ocrats; and  when  the  war  came  on,  the  picked  men  of  that  party 
rallied  to  the  colors.  Douglas,  shortly  before  he  died,  declared 
his  unfaltering  support  of  Lincoln.  The  sun  would  go  down  be- 
fore I  could  name  the  Democrats  who  fought  like  heroes  for  the 
country.  Grant,  Sherman,  Sheridan,  Dix,  Sickles,  Logan — in  short, 
an  innumerable  host,  Democrats  all,  rushed  into  the  field  and 
thereafter  fought  and  worked  with  the  Republicans  while  life 
lasted,  and  that  vast  majority  of  Lincoln's  in  1864  would  have 
been  impossible  had  not  myriads  of  Democrats,  casting  their  life- 
long associations  to  the  winds,  listened  to  the  inward  monitor 
which  s'ad,  "Choose  you  this  day  whom  ye  will  serve."  As  it  was 
then,  so  it  has  been  in  after  years.  When  the  attempt  was  made 
to  repudiate,  in  whole  or  in  part,  the  national  debt;  or  to  abolish 
the  system  of  protection  to  American  industries,  founded  by 
Washington  and  Hamilton,  and  approved  by  the  experience  of  a 
hundred  years;  or  to  degrade  our  currency  at  the  demand  of  mere 
ignorance  and  greed — in  all  these  cases  we  saw  the  proof  of  the 
homely  adage  that  you  may  lead  a  horse  to  the  water  but  may 
not  make  him  drink.  In  spite  of  organizations  and  platforms,  in 
spite  of  the  frantic  adjurations  of  gifted  orators,  hosts  of  pa- 
triotic Democrats  walked  quietly  to  the  polls  and  voted  as'  their 
consciences  dictated,  in  the  interests  of  the  public  welfare  rather 
than  of  a  party.  Even  in  so  lofty  and  restricted  an  arena  as  our 
Senate,  we  have  seen  the  ablest  and  most  adroit  organizer  of  his 
party  fail  in  the  most  energetic  effort  of  his'  life  to  induce  his 
party  to  reject  a  great  national  benefit  because  it  was  offered  by 
Republican  hands.  Half  the  Democratic  Senators  said  this  was  no 
question  for  pettifogging  politics  and  voted  for  an  American 
canal  across  the  isthmus.  4t        ._  .   .  .. 

We  are  not  claiming  that  we  monopolize  the  virtue  or  the 
patriotism  of  the  country.  There  are  good  men  in  all  parties,  r 
know  far  better  men  than  I  am  who  are  Democrats.  But  we  are 
surely  allowed  in  a  love-feast  like  this,  to  talk  of  what  has  been 
done  by  the  family  and  at  least  to  brag  a  little  of  the  Democrats 
who  have  helped  us.  We  get  their  votes  for  one  reason  only— 
because  we  started  right  and  in  the  main  have  kept  right.  We  in- 
vite accessions'  from  the  ranks  of  our  patriotic  opponents^  and  we 
shall  get  them  in  the  future,  as  we  have  in  the  past  whenever 
we  deserve  them.  We  shall  get  them  this  year,  because  this  year 
we  do  deserve  them.  We  come  before  the  country  in  a  position 
which  can  not  be  successfully  attacked  in  front  or  fl«mk  or  war 
What  we  have  done,  what  we  are  doing  and  what  we  intend  to 
do— on  all  three  we  confidently  challenge  the ]  verdict  o  !  the  Ameri- 
can people.  The  record  of  fifty  years  will  show  whether  as  a 
party  we  are  fit  to  govern;  the  state  of  our  domestic  and  foreign 
affairs  will  show  whether  as  a  party  we  have  fallen  off ;  and  both 
together  will  show  whether  we  can  be  trusted  for  a  while  longer. 

The  Platform  ©*  1904. 

Our  platform  is  before  the  country.     Perhaps-  it  is  lacking  in 
novelty,     There   is   certainly   nothing   sensational   about   it.     It   ii 


462  hay's  speech. 

substantially  the  platform  on  which  we  won  two  great  victories  In 
the  name  of  McKlnley,   and  it  is  still  sound  and  serviceable.     Its 

Srinciples  have  been  tested  by  eight  years  of  splendid  success  and 
ave  received  the  approval  of  the  country.  It  is  in  line  with  all 
our  platforms  of  the  past  except  where,  prophecy  and  promise  in 
those  days  have  become  history  in  these.'  We  stand  by  the  ancient 
ways  which  have  proved  good. 

The  Opposition  Party. 

It  would  take  a  wizard  to  guess  what  a  dainty  dish  our  ad- 
versaries will  set  before  the  sovereign  people  to-morrow.  Their 
State  conventions  have  given  them  a  rich  variety  to  choose  from. 
As  to  money,  they  range  all  the  way  from  Bedlam  to  Belmont; 
as  to  tariff,  the  one  wing  in  Maryland  is  almost  sane,  the  other 
wants  raving  tree  trade  and  dynamite  for  the  custom-houses. 
When  they  discuss  our  island  possessions,  some  want  to  scuttle 
away  and  abandon  them  out  of  hand;  others  agree  with  that  sensi- 
ble Southerner  who  said:  '"What's  the  use  talking  about  expansion. 
Great  Scott!  we've  done  expanded!"  One  thing  is  reasonably  sure: 
they  will  get  as  near  to  our  platform  as  they  possibly  can  and  they 
will  by  implication  approve  everything  McKinley  and  Roosevelt 
have  done  in  the  last  four  years.  They  will  favor  sound  finance 
and  a  tariff  which  will  not  disturb  business;  rigid  honesty  in  ad- 
minstraton  and  prompt  punishment  of  the  dishonest;  the  Monroe 
Doctrine  and  an  isthmian  canal.  To  be  logical  they  ought  to  go 
on  and  nominate  the  Republican  candidates  who  are  pledged  to 
all  these  laudable  policies. 

But  they  will  not  be  logical.  They  do  not  care  to  oppose  our 
policy;  they  merely  deny  our  sincerity  in  avowing  it.  They  cannot 
deny  the  soundness  of  our  principles;  they  pretend  themselves  to 
hold  them.  But  the  function  of  an  opposition  is  to  oppose,  and  as 
they  are  otherwise  destitute  of  an  issue  they  seek  to  make  a  few 
by  attributing  to  us  principles  we  have  never  dreamed  of  holding 
and  policies  which  are  abhorrent  to  us.  And  distrusting  the  effect 
of  these  maneuvers  in  advance,  they  announce  their  plan  of  cam- 
paign to  be  not  pro-anything,  but  anti-Roosevelt.  This  is  a  mere 
counsel  of  desperation  and  the  Republicans  will  gladly  accept  the 
issue. 

Theodore   Roosevelt. 

Even  on  this  narrow  issue  they  will  dodge  most  of  the  details. 
Ask  them,  Has  the  President  been  a  good  citizen,  a  good  soldier, 
a  good  man  in  all  personal  relations?  Is  he  a  man  of  intelligence, 
of  education?  Does  he  know  this  country  well?  Does  he  know  the 
world  outside?  Has  he  studied  law,  history,  and  politics?  Has  he 
had  great  chances  to  learn,  and  has  ho  improved  them?  Is  he 
sound  and  strong  in  mind,  body,  and  soul?  Is  he  accessible  and 
friendly  to  all  sorts  and  conditions  of  men?  Has  he  the  courage 
and  the  candor,  and  the  God-given  ability  to  speak  to  the  people 
and  tell  them  what  he  thinks?  To  all  these  questions  they  will 
answer,  Yes.  Then  what  is  your  objection  to  him?  They  will 
either  stand  speechless  or  they  will  answer  with  the  parrot  cry 
which  we  have  heard  so  often:  He  is  unsafe! 

In  a  certain^  sense  we  will  have  to  admit  this  to  be  true.  To 
every  grade  of  lawbreaker,  high  or  low;  to  a  man  who  would  rob 
a  till  or  a  ballot  box;  to  the  sneak  or  the  bully;  to  the  hypocrite 
and  the  humbug,  Theodore  Roosevelt  is  more  than  unsafe;  he  is 
positively  dangerous. 

But  let  us  be  serious  with  these  good  people.  What  are  the 
coefficients  of  safety  in  a  Chief  of  State?  He  should  have  courage; 
the  wisest  coward  that  ever  lived  is  not  fit  to  rule.  And  intelli- 
gence; we  want  no  blunder-headed  hero  in  the  White  House. 
And  honesty;  a  clever  thief  would  do  infinite  mischief.  These 
three  are  the  indispensables.  With  them  a  man  is  all  the  more 
safe  if  he  has  a  sense  of  proportion,  a  sense  of  humor,  a  wide 
knowledge  of  men  and  affairs;  If  he  seeks  good  counsel;  and, 
finally,  if  he  is  a  patriot,  if  he  loves  his  country,  believes  in  it,  and 
seeks  in  all  things  its  interest  and  its  glory.  Any  man  may  make 
mistakes;  but  such  a  man  as  this  will  make  few,  and  no  grave 
ones. 

Such  a  man  is  our  President  and  our  candidate.  He  is  prompt 
and  energetic,  but  he  takes  infinite  pains  to  get  at  the  facts  before 
he  acts.  In  all  the  crises  in  which  he  has  been  accused  of  undue 
haste,  his  action  has  been  the  result  of  long  meditation  and  well- 
reasoned  conviction.  If  he  thinks  rapidly,  that  is  no  fault;  he 
thinks  thoroughly,  and  that  is  the  esential.  When  he  made  peace 
between  the  miners  and  the  operators,  it  was  no  sudden  caprice 
but  the  fruit  of  serious  reflection,  and  this  act  of  mingled  philan- 
thropy and  common  sense  was  justified  by  a  great  practical  result. 
When  he  proclaimed  anew  the  Monroe  Doctrine  in  the  Venezuela 
case  his  action  was  followed  by  the  most  explicit  acceptance  of  that 
saving  policy  which  has  ever  come  to  us  from  overseas.  He  acted 
very  swiftly,  it  is  true,  in  Mississippi,  when  the  best  citizens  of  a 
town  threatened  the  life  of  a  postmistress  for  no  fault  but  her 
color.  He  simply  said,  "Very  well,  gentlemen;  you  may  get  your 
letters  somewhere  else  for  a  while." 

As  to  the  merger  suits,  now  that  people  have  come  to  their 
senses  fehey  see  that  his  action  in  that  case  was  as  regular  as  the 
equinox.  He  was  informed  through  legal  channels  that  a  statute 
had  been  violated.  He  did  not  make  the  statute,  but  he  was  bound 
by  his  oath  to  execute  It.  He  brought  the  proceeding  which  it 
was  his  duty  to  bring.  The  courts,  from  the  lowest  to  the  highest, 
sustained  his  action.  He  did  what  It  would  have  been  a  high  misde- 
meanor not  to  have  done.  The  laws  in  this  country  are  made  to 
be  obeyed,  whether  it  is  safe  or  ndt.  It  is  always  unsafe  to  disobey 
tbfem. 


hay's  speech.  463 

But  there  has  been  more  noise  made  over  his  suddenness  on 
the  Isthmus  of  Panama  than  elsewhere.  It  is  difficult  to  treat  this 
charge  with  seriousness.  The  President  had  made  a  treaty  with 
Colombia  at  her  own  solicitation,  which  was  infinitely  to  her  ad- 
vantage, to  inaugurate  an  enterprise  which  was  to  be  for  the 
benefit  of  the  world.  He  waited  with  endless  patience  while 
Bogota  delayed  and  trifled  with  the  matter,  and  finally  rejected  it, 
and  suggested  new  negotiations  for  a  larger  sum.  Panama,  out- 
raged by  this  climax  of  the  wrongs  she  had  already  suffered,  de- 
clared and  established  her  independence.  The  President,  following 
an  unbroken  line  of  precedents,  entered  into  relations  with  the 
new  Republic,  and,  obeying  his  duty  to  protect  the  transit  of  the 
Isthmus  as  all  other  Presidents  had  done  before  him,  gave  orders 
that  there  should  be  no  bloodshed  on  the  line  of  the  railway.  He 
said,  like  Grant,  "Let  us  have  peace,"  and  we  had  it.  It  will  seem 
incredible  to  posterity  that  any  American  could  have  objected  to 
this.  He  acted  wisely  and  beneficently,  and  all  some  people  can 
find  to  criticise  in  his  action  is  that  he  was  too  brisk  about  it. 
If  a  thing  is  right  and  proper  to  do,  it  does  not  make  it  criminal 
to  do  it  promptly.  No,  gentlemen!  That  was  a  time  when  the 
hour  and  the  man  arrived  together.  He  struck  while  the  iron  was 
white  hot  on  the  anvil  of  opportunity  and  forged  as  perfect  a  bit 
of  honest  statecraft  as  this  generation  has  seen. 

We  could  desire  no  better  fortune,  in  the  campaign  upon  which 
we  are  entering,  than  that  the  other  side  should  persist  in  their 
announced  intention  to  make  the  issue  upon  President  Roosevelt. 
What  a  godsend  to  our  orators!  It  takes  some  study,  some  re- 
search, to  talk  about  the  tariff,  or  the  currency,  or  foreign  policy. 
But  to  talk  about  Roosevelt!  it  is  as  easy  as  to  sing  "the  glory  of 
the  Graeme."  Of  gentle  birth  and  breeding,  yet  a  man  of  the  peo- 
ple in  the  best  sense;  with  the  training  of  a  scholar  and  the  breezy 
accessibility  of  a  ranchman;  a  man  of  the  library  and  a  man  of 
the  world;  an  athlete  and  a  thinker;  a  soldier  and  a  statesman; 
a  reader,  a  writer,  and  a  maker  of  history;  with  the  sensibility  of  a 
poet  and  the  steel  nerve  of  a  rough  rider;  one  who  never  did,  and 
never  could,  turn  his  back  on  a  friend  or  an  enemy.  A  man  whose 
merits  are  so  great  that  he  could  win  on  his  merits  alone;  whose 
personality  is  so  engaging  that  you  lose  sight  of  his  merits.  Make 
their  fight  on  a  man  like  that!  What  irreverent  caricaturist  was 
it  that  called  them  the  Stupid  party? 

In  our  candidate  for  the  Vice-Presidency  we  have  followed 
the  old  and  commendable  custom  of  the  Republic  and  have  nom- 
inated a  man  in  every  way  fit  for  the  highest  place  in  the  nation, 
who  will  bring  to  the  Presidency  of  the  Senate  an  ability  and 
experience  rarely  equaled  in  its  history. 

A  Word   to   Young   Men. 

I  have  detained  you  too  long;  yet  as  I  close  I  want  to  say  a 
word  to  the  young  men  whose  political  life  is  beginning.  Anyone 
entering  business  would  be  glad  of  the  chance  to  become  one  of  an 
established  firm  with  years  of  success  behind  it,  with  a  wide  con- 
nection, with  unblemished  character,  with  credit  founded  on  a  rock. 
How  infinitely  brighter  the  future  when  the  present  is  so  sure, 
the  past  so  glorious.  Everything  great  done  by  this  country  in  the 
last  fifty  years  has  been  done  under  the  auspices  of  the  Republican 
party.  Is  not  this  consciousness  a  great  asset  to  have  in  your 
mind  and  memory?  As  a  mere  item  of  personal  comfort  is  it  not 
worth  having?  Lincoln  and  Grant,  Hayes  and  Garfield,  Harrison 
and  McKinley — names  secure  in  the  heaven  of  fame — they  all  are 
gone,  leaving  small  estates  in  worldly  goods,  but  what  vast  pos- 
sessions in  principles,  memories,  sacred  associations!  It  is  a  start 
in  life  to  share  that  wealth.  Who  now  boasts  that  he  opposed  Lin- 
coln? who  brags  of  his  voting  against  Grant?  though  both  acts 
may  have  been  from  the  best  of  motives.  In  our  form  of  government 
there  must  be  two  parties,  and  tradition,  circumstances,  tempera- 
ment, will  always  create  a  sufficient  opposition.  But  what  young 
man  would  not  rather  belong  to  the  party  that  does  things,  in- 
stead of  one  that  opposes  them;  to  the  party  that  looks  up,  rather 
than  down;  to  the  party  of  the  dawn,  rather  than  of  the  sunset. 
For  fifty  years  the  Republican  party  has  believed  in  the  country 
and  labored  for  it  in  hope  and  joy;  it  has  reverenced  the  flag  and 
followed  it;  has  carried  it  under  strange  skies  and  planted  it  on 
far-receding  horizons.  It  has  seen  the  nation  grow  greater  every 
year  and  more  respected;  by  just  dealing,  by  intelligent  labor,  by 
a  genius  for  enterprise,  it  has  seen  the  country  extend  its  inter- 
course and  its  influence  to  regions  unknown  to  our  fathers.  Yet 
it  has  never  abated  one  jot  or  tittle  of  the  ancient  law  imposed 
on  us  by  our  God-fearing  ancestors.  We  have  fought  a  good  fight, 
but  also  we  have  kept  the  faith.  The  Constitution  of  our  fathers 
has  been,  the  light  to  our  feet;  our  path  is,  and  will  ever  remain, 
that  of  ordered  progress,  of  liberty  under  the  law.  The  country 
has  vastly  increased,  but  the  great-brained  statesmen  who  preceded 
us  provided  for  infinite  growth.  The  discoveries  of  science  have 
made  miraculous  additions  to  our  knowledge.  But  we  are  not 
daunted  by  progress;  we  are  not  afraid  of  the  light.  The  fabric 
our  fathers  builded  on  such  sure  foundations  will  stand  all  shocks 
of  fate  or  fortune.  There  will  always  be  a  proud  pleasure  in  look- 
ing back  on  the  history  they  made;  but,  guided  by  their  example, 
the  coming  generation  has  the  right  to  anticipate  work  not  less 
important,  days  equally  memorable  to  mankind.  We  who  are  pass- 
ing off  the  stage  bid  you,  as  the  children  of  Israel  encamping  by 
the  sea  were  bidden,  to  Go  Forward;  we  whose  hands  can  no  longer 
hold  the  flaming  torch  pass  it  on  to  you  that  its  clear  light  may 
show  th.e  truth  to  the  ages  that  are  to  come. 


464  SENATOR   FAIRBANKS'   SPEECH. 


SPEECH  BY  SENATOR  FAIRBANKS  AT  JACKSON,  MICH., 

JULY  6th,   1904,  ON  THE  50th  ANNIVERSARY  OF 

THE  BIRTH  OF  THE  REPUBLICAN  PARTY. 

Senator  Burrows  and  Fellow  Citizens: 

We  are  met  to  commemorate  no  ordinary  event,  for  here  a  half 
century  ago  American  patriots  solemnly  pledged  themselves  to 
vindicate  the  first  principles  of  republican  government,  to  chal- 
lenge the  aggressions  of  the  slave  power.  Here  was  issued  the 
second  declaration  of  freedom.  Here  was  taken  the  initial  step 
which  led  to  the  overthrow  of  slavery  and  the  establishment  of 
the  government  upon  truly  national  lines.  We  freely  pay  the 
tribute  of  our  grateful  appreciation  to  the  memory  of  those  who 
raised  here  the  standard  of  republicanism. 

The  Republican  party  was  born  of  the  conscience  of  the  people, 
and  it  was  here  dedicated  to  as  high  and  holy  a  service  as  ever 
summoned  men  to  heroic  duty. 

The  appeal  to  the  people  of  Michigan  which  was  issued  by 
Zachariah  Chandler,  that  stalwart  among  stalwarts,  and  his  asso- 
ciates, was  like  a  clarion  call  to  exalted  service.  It  was  conceived 
in  the  same  spirit  which  inspired  our  fathers  in  the  morning  of 
the  American  Revolution. 

The  resolutions  here  adopted  were  put  upon  a  high  plane.  Dif- 
ferences of  individual  opinion  upon  all  other  subjects  of  state  or 
domestic  policy  were  subordinated  to  the  one  overmastering  ques- 
tion of  the  hour.  It  was  solemnly  "Resolved,  That,  postponing  and 
suspending  all  differences  with  regard  to  political  economy  or 
administrative  policy,  in  view  of  the  imminent  danger  that  Kansas 
and  Nebraska  will  be  grasped  by  slavery,  we  will  act  cordially 
and  fathfully  in  unison  to  avert  and  repeal  this  gigantic  wrong 
and  shame." 

Integrity  of  the  Nation. 

Thus  consecrated,  the  Republican  party  was  here  christened 
and  sent  forth  to  accomplish  a  more  vital  mission  than  ever  chal- 
lenged the  consideration  of  the  people  since  the  foundation  of  the 
Government. 

To  the  Republican  party  was  committed,  in  God's  providence, 
the  stupendous  responsibility  of  preserving  the  integrity  of  the 
nation  itself.  We  would  not  here  kindle  anew  the  fires  of  past 
hates  or  reopen  the  debate  of  long-buried  differences  which  divided 
section  against  section,  for  we  stand  united  under  the  acknowl- 
edged supremacy  of  one  flag  and  one  Constitution.  But  we  may 
appropriately  recall  the  history  of  a  great  generation  in  which 
American  contested  with  American  for  the  triumph  of  opposing 
theories.  In  that  contest  the  Republican  party  stood  for  the 
national  solidarity.  It  stood  for  the  nation  above  the  state,  and 
the  victory  it  achieved  blessed  both  the  victor  and  the  vanquished. 
American  opposed  American  with  titanic  power.  American  met 
American  upon  the  field  of  glory  and  the  God  of  battles  was  with 
the  cause  espoused  by  the  Republican  party.  The  hates  and  the 
enmities  which  ignorance  and  false  teaching  engendered  have  hap- 
pily perished  and  perished  forever. 

The  memory  of  the  valor  of  those  who  fought  for  conscience 
sake  beneath  opposing  flags  remains  as  a  rich  national  inheri- 
tance. The  impartial  verdict  of  history  is  that  the  Republican 
party  was  everlastingly  right,  and  its  further  verdict  is  that  no 
American  ever  surrendered  his  sword  save  to  an  American.  Every 
grave,  whether  it  is  tenanted  by  the  heroic  youth  who  wore  the 
blue,  or  by  him  who  wore  the  gray,  is  an  enduring  pledge  of  the 
solidity  and  unity  of  the  Republic. 

Out  of  the  unhappy  divisions  which  followed  quickly  upon  the 
accession  to  power  of  the  Republican  party  came  a  new  national 
birth,  a  fusing  of  national  strength  beyond  the  dreams  of  our 
fathers. 

Amidst   Stirring  Events. 

Fifty  years  is  a  brief  period  when  compared  with  the  life  of 
the  older  nations,  yet  it  embraces  the  entire  life  of  the  Republican 
party,  a  party  whose  achievements  are  among  the  most  lasting 
and  luminous  of  the  deeds  done  by  any  party  since  the  beginning 


senator  Fairbanks'  speech.  465 

of  the  Government.  It  has  not  lived  the  life  of  repose  and  inac- 
tivity, for  its  career  has  been  characterized  by  restless  energy  and 
serious  work.  Its  lines  have  been  cast  amidst  stirring  events,  when 
great  problems  were  to  be  solved  and  mighty  deeds  were  to  be 
done.  It  has  met  upon  a  high  level  domestic  questions  of  far- 
reaching  significance,  and  it  has  increased  our  national  prestige 
abroad.  Our  primacy  among  the  nations  of  the  world  is  generally 
acknowledged.  It  is  a  cause  for  congratulation  to  us  that  the 
orator  of  this  historic  occasion  should  be  one  who  has  done  more 
than  any  other  to  establish  our  prestige  among  foreign  courts,  the 
wise,  able,  modest,  loyal,  trusted  friend  of  Abraham  Lincoln, 
William  McKinley,  and  Theodore  Roosevelt — the  Hon.  John  Hay. 

The  span  of  the  last  fifty  years  is,  indeed,  the  golden  age  of  the 
Republic.  During  the  greater  part  of  this  period  the  Republican 
party  was  in  the  ascendency.  Its  principles  and  its  policies  were 
in  full  operation  in  the  nation  and  our  country  advanced  as  never 
before.  Its  growth  during  the  existence  of  the  Republican  party 
verges  on  the  marvelous.  While  the  tremendous  progress  that  has 
been  made  can  not  be  ascribed,  of  course,  entirely  to  the  wisdom 
and  beneficence  of  its  policies,  yet  it  has  contributed  immeasurably 
to  the  results  which  have  been  attained. 

Human  Liberty  Extended. 

It  has  given  security  and  protection  to  capital  and  labor.  It 
has  been  the  wise  and  loyal  friend  of  each,  for  it  has  realized  that 
our  greatest  development  must  come  through  their  harmonious  co- 
operation. It  has  inspired  confidence  among  the  people  in  the 
\  integrity  and  soundness  of  its  administration,  all  of  which  is  essen- 
tial to  the  highest  development  and  progress.  No  duty  has  been 
|  laid  upon  it,  now  matter  how  sudden  or  grave,  but  that  it  has 
[met  it  wisely  and  bravely.  It  has  never  capitulated  to  mere  ex- 
i  pediency  or  made  a  truce  with  wrong.  It  has  taken  the  moral  side 
|  of  every  great  question  and  has  confidently  trusted  in  the  sober 
and  ultimate  judgment  of  the  American  people.  It  has  taught  the 
unity  of  the  Republic,  the  oneness  of  the  American  people,  and 
their  interdependency.  It  has  stood  against  socialistic  tendencies 
and  opposed  those  malign  teachings  which  would  establish  class 
distinctions,  which  are  the  very  life  of  monarchical  institutions 
and  which  are  baneful  to  the  Republic. 

The  country  of  fifty  years  ago  stands  in  marked  contrast  to 
what  we  behold  to-day.  Then  there  were  thirty-two  States  with 
some  25,000,000  of  people,  part  slave  and  part  free.  To-day  we 
have  forty-five  States,  with  80,000,000  of  freemen.  Then  there 
was  division  among  the  States.  To-day  there  is  unity  of  senti- 
ment. Then  there  was  slavery.  To-day  it  is  dead  and  buried  be- 
yond the  possibility  of  resurrection.  The  zone  of  human  liberty 
has  been  extended  beyond  the  limits  of  our  borders  by  the  valor 
of  our  arms,  and  established  among  alien  peoples  in  the  distant 
seas. 

Worthy  of  Our  Fathers. 

The  progress  of  our  people  has  been  manifest  in  every  avenue 
of  human  effort.  It  has  been  marked  in  art  and  science,  in 
philanthropy  and  charity,  in  school  and  church,  in  industry  and 
commerce.  While  we  have  developed  in  the  material  world  be- 
yond the  most  optimistic  dreams  of  those  who  fifty  years  ago 
assembled  here  beneath  the  historic  oaks,  we  have  expanded  in 
all  of  the  higher  and  better  qualities  which  excite  the  pride  and 
admiration  of  the  most  advanced  people. 

We  stand  at  the  morning  of  a  new  century  which  is  to  be 
greater  than  the  past  with  all  of  its  glorious  achievement.  It  is 
a  happy  augury  that  we  enter  upon  it  with  the  Republican  party 
in  the  ascendency,  under  Republican  policies  which  are  suited  to 
the  largest  national  growth. 

The  Republican  party  has  given  to  history  many  statesmen  of 
great  eminence,  whose  names  have  become  a  part  of  the  immeas- 
urable glory  of  the  Republic.  We  will  enter  upon  the  half  century 
which  opens  before  us  with  such  hopeful  promise  under  a  bravo, 
patriotic,  wise  American  whose  ideals  are  in  harmony  with  the 
best  traditions  of  the  Republic,  and  whose  ambition  is  to  lead  our 
countrymen  and  our  country  in  the  paths  of  peace,  prosperity,  and 
honor— Theodore  Roosevelt. 

Let  us  take  hence  new  inspiration  from  this  hallowed  spot  and 
prove  ourselves  worthy  of  the  virtue  and  courage  of  our  fathers. 


466  BOOT'S    SPEECH. 


SPEECH   OF  HON.  ELIHU  ROOT. 


Temporary   Chairman   of   Republican   National   Convention,  at   Chi- 
cago,  June   21,    1904. 

The  responsibility  of  the  Government  rests  upon  the  Republican 
party.  The  complicated  machinery  through  which  the  80,000,000 
people  of  the  United  States  govern  themselves  answers  to  no 
single  will.  The  composite  government  devised  by  the  framers  of 
the  Constitution  to  meet  the  conditions  of  national  life  more  than 
a  century  ago,  requires  the  willing  co-operation  of  many  minds, 
the  combination  of  many  independent  factors,  in  every  forward 
step  for  the  general  welfare. 

The  President  at  Washington  with  his  cabinet,  the  ninety  sena- 
tors representing  forty-five  sovereign  states,  the  386  representatives 
in  Congress  are  required  to  reach  concurrent  action  upon  a  multi- 
tude of  questions  involving  varied  and  conflicting  interests  and  re- 
quiring investigation,  information,  discussion,  and  reconciliation 
of  views.  From  all  our  vast  territory  with  its  varieties  of  climate 
and  industry,  from  all  our  great  population  active  in  production 
and  commerce  and  social  progress  and  intellectual  and  moral  life — 
to  a  degree  never  before  attained  by  any  people — difficult  prob- 
lems press  upon  the  National  Government. 

Within  the  past  five  years  more  than  sixty-six  thousand  bills 
have  been  introduced  in  Congress.  Some  method  of  selection  must 
be  followed.  There  must  be  some  preliminary  process  to  ascer- 
tain the  general  tenor  of  public  judgment  upon  the  principles  to  be 
applied  in  government,  and  some  organization  and  recognition  of 
leadership  which  shall  bring  a  legislative  majority  and  the  Execu- 
tive into  accord  in  the  practical  application  of  those  principles, 
or  effective  government  becomes  impossible. 

The  practical  governing  instinct  of  our  people  has  adapted  the 
machinery  devised  in  the  eighteenth  to  the  conditions  of  the  twen- 
tieth century  by  the  organization  of  national  political  parties.  In 
them  men  join  for  the  promotion  of  a  few  cardinal  principles 
upon  which  they  agree.  For  the  sake  of  those  principles  they 
lay  aside  their  differences  upon  less  important  questions.  To 
represent  those  principles  and  to  carry  on  the  Government  in  ac- 
cordance with  them,  they  present  to  the  people  candidates  whose 
competency  and  loyalty  they  approve.  The  people  by  their  choice 
of  candidates  indicate  the  principles  and  methods  which  they  wish 
followed  in  the  conduct  of  their  government.  They  do  not  merely 
choose  between  men,  they  choose  between  parties — between  the 
principles  they  profess,  the  methods  they  follow,  the  trustworthi- 
ness of  their  professions,  the  inferences  to  be  drawn  from  the 
records  of  their  past,  the  general  weight  of  character  of  the  body 
of  men  who  will  be  brought  into  participation  in  government 
by  their  ascendency. 

A  Great  Record. 

When  the  course  of  the  next  administration  is  but  half  done 
the  Republican  party  will  have  completed  the  first  half  century 
of  its  national  life.  Of  the  eleven  administrations  since  the  first 
election  of  Abraham  Lincoln,  nine — covering  a  period  of  thirty- 
six  years — have  been  under  Republican  Presidents.  For  the 
greater  part  of  that  time  the  majority  in  each  House  of  Congress 
has  been  Republican.  History  affords  no  parallel  in  any  age  or 
country  for  the  growth  in  national  greatness  and  power  and  honor, 
the  wide  diffusion  of  the  comforts  of  life,  the  uplifting  of  the 
great  mass  of  the  people  above  the  hard  conditions  of  poverty, 
the  common  opportunity  for  education  and  individual  advance- 
ment, the  universal  possession  of  civil  and  religious  liberty,  the 
protection  of  property  and  security  for  the  rewards  of  industry 
and  enterprise,  the  cultivation  of  national  morality,  respect  for 
religion,  sympathy  with  humanity,  and  love  of  liberty  and  justice 


ROOT'S    SPEECH.  4f>7 

which  have  marked  the  life  of  the  American  people  during  this 
long  period  of  Republican  control. 

With  the  platform  and  the  candidates  of  this  convention  we 
are  about  to  ask  a  renewed  expression  of  popular  confidence  in 
the  Republican-  party. 

We  shall  ask  it  because  the  principles  to  which  we  declare  our 
adherence  are  right  and  the  best  interests  of  our  country  require 
that  they  should  be  followed  in  its  government. 

We  shall  ask  it  because  the  unbroken  record  of  the  Republican 
party  in  the  past  is  an  assurance  of  the  sincerity  of  our  declara- 
tions and  the  fidelity  with  which  we  shall  give  them  effect.  Be; 
cause  we  have  been  constant  in  principle,  loyal  to  our  beliefs', 
and  faithful  to  our  promises  we  are  entitled  to  be  believed  and 
trusted  now. 

We  shall  ask  it  because  the  character  of  the  party  gives  as- 
surance of  good  government.  A  great  political  organization,  com- 
petent to  govern,  is  not  a  chance  collection  of  individuals  brought 
together  for  the  moment  as  the  shifting  sands  are  piled  up  by  wind 
and  sea,  to  be  swept  away  to  be  formed  and  re-formed  again.  It 
is  a  growth.  Traditions  and  sentiments  reaching  down  through 
struggles  of  years  gone,  and  the  stress  and  heat  of  old  conflicts, 
and  the  influence  of  leaders  passed  away,  and  the  ingrained  habit 
of  applying  fixed  rules  of  interpretation  and  of  thought  all  give 
to  a  political  party  known  and  inalienable  qualities  from  which 
must  follow  in  its  deliberate  judgment  and  ultimate  action  like 
results  for  good  or  bad  government.  We  do  not  deny  that  other 
parties  have  in  their  membership  men  of  morality  and  patriotism, 
but  we  assert  with  confidence  that,  above  all  others,  by  the  in- 
fluences which  gave  it  birth  and  have  maintained  its  life,  by  the 
causes  for  which  it  has  striven,  the  ideals  which  it  has  followed, 
the  Republican  party  as  a  party  has  acquired  a  character  which 
makes  its  ascendency  the  best  guaranty  of  a  government  loyal 
to  principle  and  effective  in  execution.  Through  it  more  than  any 
other  political  organization  the  moral  sentiment  of  America  finds 
expression.  It  cannot  depart  from  the  direction  of  its  tendencies. 
From  what  it  has  been  may  be  known  certainly  what  it  must  be. 
Not  all  of  us  rise  to  its  standard,  not  all  of  us  are  worthy  of  its 
glorious  history,  but  as  a  whole  this  great  political  organization 
— the  party  of  Lincoln  and  McKinley — cannot  fail  to  work  in 
the  spirit  of  its  past  and  in  loyalty  to  great  ideals. 

We  shall  ask  the  continued  confidence  of  the  people  because 
the  candidates  whom  we  present  are  of  proved  competency  and 
patriotism,  fitted  to  fill  the  offices  for  which  they  are  nominated 
to  the  credit  and  honor  of  our  country. 

We  shall  ask  it  because  the  present  policies  of  our  Government 
are  beneficial  and  ought  not  to  be  set  aside ;  and  the  people's 
business  is  being  well  done  and  ought  not  to  be  interfered  with. 

A  Few  Questions. 

Have  not  the  American  people  reason  for  satisfaction  and 
pride  in  the  conduct  of  their  Government  since  the  election  of 
1900,  when  they  rendered  their  judgment  of  approval  upon  the 
first  administration  of  President  McKinley?  Have  we  not  had  an 
honest  government?  Have  not  the  men  selected  for  office  been  men 
of  good  reputation  who  by  their  past  lives  had  given  evidence 
that  they  were  honest  and  competent?  Can  any  private  business 
be  pointed  out  in  which  lapses  from  honesty  have  been  so  few 
and  so  trifling,  proportionately,  as  in  the  public  service  of  the 
United  States?  And  when  they  have  occurred  have  not  the  of- 
fenders been  relentlessly  prosecuted  and  sternly  punished  without 
regard  to  political  or  personal  relations? 

Have  we  not  had  an  effective  government?  Have  not  the  laws 
been  enforced?  Has  not  the  slow  process  of  legislative  discussion 
upon  many  serious  questions  been  brought  to  practical  conclu- 
sions embodied  in  beneficial  statutes?  And  has  not  the  executive 
proceeded  without  vacillation  or  weakness  to  give  these  effect? 
Are  not  the  laws  of  the  United  States  obeyed  at  home,  and  does 
not  our  Government  command  respect  and  honor  throughout  the 
world? 

Have  we  not  had  a  safe  and  conservative  Government?  Has 
not  property  been  protected?  Are  not  the  fruits  of  enterprise  and 
industry  secure?    What  safeguard  of  the  constitution  for  vested 


468  BOOT'S    SPEECH. 

right  or  individual  freedom  has  not  been  scrupulously  observed? 
When  has  any  American  administration  ever  dealt  more  consider- 
ately and  wisely  with  questions  which  might  have  been  the  cause 
of  conflict  with  foreign  powers?  When  have  more  just  settle- 
ments been  reached  by  peaceful  means?  When  has  any  adminis- 
tration wielded  a  more  powerful  influence  for  peace  and  when 
have  we  rested  more  secure  in  friendship  with  all  mankind? 

Four  years  ago  the  business  of  the  country  was  loaded  with 
burdensome  internal  taxes,  imposed  during  the  war  with  Spain. 
By  the  acts  of  March  2,  1901,  and  April  12,  1902,  the  country  has 
been  wholly  relieved  of  that  annual  burden  of  over  one  hundred 
lhillion  dollars ;  and  the  further  accumulation  of  a  surplus,  which 
was  constantly  withdrawing  the  money  of  the  country  from  cir- 
culation, has  been  prevented  by  the  reduction  of  taxation. 

Between  the  30th  of  June,  1900,  and  the  1st  of  June,  1904, 
our  Treasury  Department  collected  in  revenues  the  enormous  sum 
of  $2,203,000,000  and  expended  $2,028,000,000,  leaving  us  with  a 
surplus  of  over  $170,000,000  after  paying  the  $50,000,000  for  the 
Panama  canal  and  loaning  $4,000,000  to  the  St.  Louis  Exposition. 
Excluding  these  two  extraordinary  payments,  which  are  invest- 
ments from  past  surplus  and  not  expenditures  of  current  income, 
the  surplus  for  this  year  will  be  the  reasonable  amount  of  about 
$12,000,000. 

The  Financial  Policy. 

The  vast  and  complicated  transactions  of  the  Treasury,  which 
for  the  last  fiscal  year  show  actual  cash  receipts  of  $4,250,290,262 
and  disbursements  of  $4,113,199,414,  have  been  conducted  with 
perfect  accuracy  and  fidelity  and  without  the  loss  of  a  dollar. 
Under  wise  management  the  financial  act  of  March  14,  1900, 
which  embodied  the  sound  financial  principles  of  the  Republican 
party  and  provided  for  the  maintenance  of  our  currency  on  the 
stable  basis  of  the  gold  standard,  has  wrought  out  beneficent 
results.  On  the  1st  of  November,  1899,  the  interest-bearing  debt 
of  the  United  States  was  $1,046,049,020.  On  the  1st  of  May  last 
the  amount  of  that  debt  was  $895,157,440,  a  reduction  of  $150,- 
891,580.  By  refunding,  the  annual  interest  has  been  still  more 
rapidly  reduced  from  $40,347,884  on  the  1st  of  November,  1899, 
to  $24,176,745  on  the  1st  of  June,  1904,  an  annual  saving  of  over 
$16,000,000.  When  the  financial  act  was  passed  the  thinly  settled 
portions  of  our  country  were  suffering  for  lack  of  banking  fa- 
cilities because  the  banks  were  in  the  large  towns,  and  none  could 
be  organized  with  a  capital  of  less  than  $50,000.  Under  the  pro- 
visions of  that  act  there  were  organized  down  to  the  1st  of  May 
last  1,296  small  banks  of  $25,000  capital,  furnishing,  under  all 
the  safeguards  of  the  national  banking  system,  facilities  to  the 
small  communities  of  the  west  and  south.  The  facilities  made 
possible  by  that  act  have  increased  the  circulation  of  national 
banks  from  $254,402,730  on  the  14th  of  March,  1900,  to  $445,988,- 
565  in  the  1st  of  June,  1904.  The  money  of  the  country  in  circula- 
tion has  not  only  increased  in  amount  with  our  growth  in  business, 
but  it  has  steadily  gained  in  the  stability  of  the  basis  on  which 
it  rests.  On  the  1st  of  March,  1897,  when  the  first  administra- 
tion of  McKinley  began,  we  had  in  the  country  including  bullion 
in  the  Treasury,  $1,806,272,076.  This  was  $23.14  per  capita  for  our 
population,  and  of  this  38.893  per  cent,  was  gold.  On  the  1st  of 
March,  1901,  when  the  second  administration  of  McKinley  began, 
the  money  in  the  country  was  $2,467,295,228.  This  was  $28.34  per 
capita,  and  of  this  45.273  per  cent,  was  gold.  On  the  1st  of  May 
last  the  money  in  the  country  was  $2,814,985,446,  which  was  $31.02 
per  capita,  and  of  it  48.028  per  cent,  was  gold.  This  great  increase 
of  currency  has  been  arranged  in  such  a  way  that  the  large 
government  notes  in  circulation  are  gold  certificates,  while  the 
silver  certificates  and  greenbacks  are  of  small  denominations.  As 
the  large  gold  certificates  represent  gold  actually  on  deposit,  their 
presentation  at  the  Treasury  in  exchange  for  gold  can  never  in- 
fringe upon  the  gold  reserve.  As  the  small  silver  certificates  and 
greenbacks  are  always  in  active  circulation,  no  large  amount  of 
them  can  be  accumulated  for  the  purpose  of  drawing  on  the  gold 
reserve;  and  thus,  while  every  man  can  get  a  gold  dollar  for 
every  dollar  of  the  Government's  currency,  the  endless  chain 
which  we  were  once  taught  to  fear  so  much  has  been  effectively 


root's  speech.  469 

put  out  of  business.  The  Secretary  of  the  Treasury  has  shown 
himself  mindful  of  the  needs  of  business  and  has  so  managed  our 
finances  as  himself  to  expand  and  contract  our  currency  as  occa- 
sion has  required.  When  in  the  fall  of  1902  the  demand  for  funds 
to  move  the  crops  caused  extraordinary  money  stringency,  the 
Secretary  exercised  his  lawful  right  to  accept  state  and  municipal 
bonds  as  security  for  public  deposits,  thus  liberating  United  States 
bonds  which  were  used  for  additional  circulation.  When  the  crops 
were  moved  and  the  stringency  was  over  he  called  for  a  with- 
drawal of  the  state  and  municipal  securities,  and  thus  contracted 
the  currency.  Again,  in  1903,  under  similar  conditions,  he  pro- 
duced similar  results.  The  payment  of  the  $50,000,000  for  the 
Panama  Canal  made  last  month  without  causing  the  slightest 
disturbance  in  finance  showed  good  judgment  and  a  careful  con- 
sideration of  the  interests  of  business  upon  which  our  people  may 
confidently  rely. 

Regulation  of  Trusts. 

Four  years  ago  the  regulation  by  law  of  the  great  corporate 
combinations  called  "trusts"  stood  substantially  where  it  was 
when  the  Sherman  Anti-Trust  Act  of  1890  was  passed.  President 
Cleveland,  in  his  last  message  of  December,  1896,  had  said : 

"Though  Congress  has  attempted  to  deal  with  this  matter  by- 
legislation,  the  laws  passed  for  that  purpose  thus  far  have  proved 
ineffective  not  because  of  any  lack  of  disposition  or  attempt  to 
enforce  them,  but  simply  because  the  laws  themselves  as  inter- 
preted by  the  courts  do  not  reach  the  difficulty.  If  the  insufficien- 
cies of  existing  laws  can  be  remedied  by  further  legislation,  it 
should  be  done.  The  fact  must  be  recognized,  however,  that  all 
Federal  legislation  on  this  subject  may  fall  short  of  its  purpose 
because  of  inherent  obstacles  and  also  because  of  the  complex 
character  of  our  governmental  system,  which,  while  making  Fed- 
eral authority  supreme  within  its  sphere,  has  carefully  limited 
that  sphere  by  metes  and  bounds  that  cannot  be  transgressed." 

At  every  election,  the  regulation  of  trusts  had  been  the  football 
of  campaign  oratory  and  the  subject  of  many  insincere  declara- 
tions. 

Our  Republican  administration  has  taken  up  the  subject  in  a 
practical,  sensible  way  as  a  business  rather  than  a  political  ques- 
tion, sayipg  what  it  really  meant,  and  doing  what  lay  at  its  hand 
to  be  done  to  accomplish  effective  regulation.  The  principles  upon 
which  the  government  proceeded  were  stated  by  the  President  in 
his  message  of  December,  1902.    He  said : 

"A  fundamental  base  of  civlization  is  the  inviolability  of  prop- 
erty; but  this  is  in  no  wise  inconsistent  with  the  right  of  society 
to  regulate  the  exercise  of  the  artificial  powers  which  it  confers 
upon  the  owners  of  property,  under  the  name  of  corporate  fran- 
chises, in  such  a  way  as  to  prevent  the  misuse  of  these  pow- 
ers.    *     *     * 

"We  can  do  nothing  of  good  in  the  way  of  regulating  and 
supervising  these  corporations  until  we  fix  clearly  in  our  minds 
that  we  are  not  attacking  the  corporations,  but  endeavoring  to  do 
away  with  any  evil  in  them.  We  are  not  hostile  to  them;  we  are 
merely  determined  that  they  shall  be  so  handled  as  to  subserve  the 
public  good.  We  draw  the  line  against  misconduct,  not  against 
wealth.     *     *     * 

"In  curbing  and  regulating  the  combinations  of  capital  which 
are  or  may  become  injurious  to  the  public  we  must  be  careful  not 
to  stop  the  great  enterprises  which  have  legitimately  reduced  the 
cost  of  production,  not  to  abandon  the  place  which  our  country  has 
won  in  the  leadership  of  the  international  industrial  world,  not  to 
strike  down  wealth  with  the  result  of  closing  factories  and  mines, 
of  turning  the  wage-worker  idle  in  the  streets  and  leaving  the 
farmer  without  a  market  for  what  he  grows.      *     *     * 

"I  believe  that  monopolies,  unjust  discriminations  which  pre- 
vent or  cripple  competition,  fraudulent  over-capitalization,  and 
other  evils  in  trust  organizations  and  practices  which  injuriously 
affect  interstate  trade,  can  be  prevented  under  the  power  of  the 
Congress  to  'regulate  commerce  with  foreign  nations  and  among 
the  several  States'  through  regulations  and  requirements  operating 
directly  upon  such  commerce,  the  instrumentalities  thereof,  and 
those  engaged  therein." 

After  long  consideration,  Congress  passed  three  practical  stat- 
utes :  On  the  11th  of  February,  1903,  an  act  to  expedite  hearings 
in  suits  in  enforcement  of  the  Anti-Trust  Act ;  on  the  14th  of  Feb- 
ruary, 1903,  the  act  creating  a  new  Department  of  Commerce  and 
Labor  with  a  Bureau  of  Corporations,  having  authority  to  secure 
systematic  information  regarding  the  organization  and  operation 
of  corporations  engaged  in  interstate  commerce;  and  on  the  19th 
of  February,  1903,  an  act  enlarging  the  powers  of  the  Interstate 
Commerce  Commission  and  of  the  court,  to  deal  with  secret  re- 


470  root's  speech. 

bales  in  transportation  charges,  which  are  the  chief  means  by 
which  the  trusts  crush  out  their  smaller  competitors. 

The  Attorney-Genera]  has  gone  in  the  same  practical  way,  not 
to  talk  about  the  trusts,  but  to  proceed  against  the  trusts  by  law 
for  their  regulation.  In  separate  suits  fourteen  of  the  great  rail- 
roads of  the  country  have  been  restrained  by  injunction  from 
giving  illegal  rebates  to  the  favored  shippers,  who  by  means  of 
thorn  were  driving  out  the  smaller  shippers  and  monopolizing  the 
grain  and  meat  business  of  the  country.  The  beef  trust  was  put 
under  injunction.  The  officers  of  the  railroads  engaged  in  the  cot- 
ton carrying  pool,  affecting  all  that  great  industry  of  the  South, 
were  indicted  and  have  abandoned  their  combination.  The  North- 
ern Securities  Company,  which  undertook  by  combining  in  one 
ownership  the  capital  stocks  of  the  Northern  Pacific  and  Great 
Northern  Railroads  to  end  traffic  competition  in  the  Northwest, 
has  been  destroyed  by  a  vigorous  prosecution,  expedited  and 
brought  to  a  speedy  and  effective  conclusion  in  the  Supreme  Court 
under  the  act  of  February  11th,  1903.    The  Attorney-General  says : 

"Here,  then,  are  four  phases  of  the  attack  on  the  combinations 
in  restraint  of  trade  and  commerce — the  railroad  injunction  suits, 
the  cotton  pool  cases,  the  beef  trust  cases,  and  the  Northern  Se- 
curities case.  The  first  relates  to  the  monopoly  produced  by  secret 
and  preferential  rates  for  railroad  transportation;  the  second  to 
railroad  traffic  pooling;  the  third  to  a  combination  of  independent 
corporations  to  fix  and  maintain  extortinate  prices  for  meats,  and 
the  fourth  to  a  corporation  organized  to  merge  into  itself  the 
control  of  parallel  and  competing  lines  of  railroad  and  to  eliminate 
compettion  in  their  rates  of  transportation." 

Lawful  Concerns  Protected. 

The  right  of  the  Interstate  Commerce  Commission  to  compel 
the  production  of  books  and  papers  has  been  established  by  the 
judgment  of  the  Supreme  Court  in  a  suit  against  the  coal-carrying 
roads.  Other  suits  have  been  brought  and  other  indictments  have 
been  found  and  other  trusts  have  been  driven  back  within  legal 
bounds.  No  investment  in  lawful  business  has  been  jeopardized, 
no  fair  and  honest  enterprise  has  been  injured ;  but  it  is  certain 
that  wherever  the  constitutional  power  of  the  National  Govern- 
ment reaches,  trusts  are  being  practically  regulated  and  curbed 
within  lawful  bounds  as  they  never  have  been  before,  and  the  men 
of  small  capital  are  finding  in  the  efficiency  and  skill  of  the  na- 
tional Department  of  Justice  a  protection  they  never  had  before 
against  the  crushing  effect  of  unlawful  combinations. 

We  have  at  last  reached  a  point  where  the  public  wealth  of 
farm  land,  which  has  seemed  so  inexhaustible,  is  nearly  gone,  and 
the  problem  of  utilizing  the  remainder  for  the  building  of  new 
homes  has  become  of  vital  importance. 

The  present  administration  has  dealt  with  this  problem  vigor- 
ously and  effectively.  Great  areas  had  been  unlawfully  fenced  in 
by  men  of  large  means,  and  the  home-builder  had  been  excluded. 
Many  of  these  unlawful  aggressors  have  been  compelled  to  relin- 
quish their  booty  and  more  than  2,000,000  acres  of  land  have  been 
restored  to  the  public.  Extensive  frauds  in  procuring  grants  of 
land,  not  for  homesteads  but  for  speculation,  have  been  investi- 
gated and  stopped,  and  the  perpetrators  have  been  indicted  and 
are  being  actively  prosecuted.  A  competent  commission  has  been 
constituted  to  examine  into  the  defective  working  of  the  existing 
laws  and  to  suggest  practical  legislation  to  prevent  further  abuse. 
That  commission  has  reported,  and  bills  adequate  to  accomplish 
the  purpose  have  been  framed  and  are  before  Congress.  The  fur- 
ther denudation  of  forest  areas,  producing  alternate  floods  and 
dryness  in  our  river  valleys,  has  been  checked  by  the  extension  of 
forest  reserves,  which  have  been  brought  to  aggregate  more  than 
63,000,000  acres  of  land.  The  reclamation  by  irrigation  of  the  vast 
arid  regions  forming  the  chief  part  of  our  remaining  public  do- 
main has  been  provided  for  by  the  National  Reclamation  Law  of 
June  17,  1903.  The  execution  of  this  law,  without  taxation  and  by 
the  application  of  the  proceeds  of  public  land  sales  alone,  through 
the  construction  of  storage  reservoirs  for  water,  will  make  many 
millions  of  acres  of  fertile  lands  available  for  settlement.  Over 
$20,000,000  from  these  sources  has  been  already  received  to  the 
credit  of  the  reclamation  fund.  Over  33,000,000  acres  of  public 
lands  in  fourteen  states  and  territories  have  been  embraced  in  the 
sixty-seven  projects  which  have  been  devised  are  under  examina- 


root's  speech.  471 

tion,  and  on  eight  of  these  the  work  of  actual  construction  has 
begun. 

The  postal  service  has  been  extended  and  improved.  Its  reve- 
nues have  increased  from  $76,000,000  in  1895  to  $95,000,000  in 
1899,  and  $144,000,000  in  1904.  In  dealing  with  these  vast  sums 
a  few  cases  of  peculation,  trifling  in  amount,  and  by  subordinate 
officers,  have  occurred  there  as  they  occur  in  every  business. 
Neither  fear  nor  favor,  nor  political  or  personal  influence,  has 
availed  to  protect  the  wrongdoers.  Their  acts  have  been  detected, 
investigated,  laid  bare;  they  have  been  dismissed  from  their 
places,  prosecuted  criminally,  indicted,  many  of  them  tried,  and 
many  of  them  convicted.  The  abuses  in  the  carriage  of  second- 
class  mail  matter  have  been  remedied.  The  rural  free  delivery  has 
been  widely  extended.  It  is  wholly  the  creation  of  Republican  ad- 
ministration. The  last  Democratic  Postmaster-General  declared 
it  impracticable.  The  first  administration  of  McKinley  proved  the 
contrary.  At  the  beginning  of  the  fiscal  year  1899  there  were  about 
200  routes  in  operation.  There  are  now  more  than  25,000  routes, 
bringing  a  daily  mail  service  to  more  than  12,000,000  of  our  people 
in  rural  communities,  enlarging  the  circulation  of  the  newspaper 
and  the  magazine,  increasing  communication  and  relieving  the 
isolation  of  life  on  the  farm. 

For  the  Farmer. 

The  Department  of  Agriculture  has  been  brought  to  a  point  of 
efficiency  and  practical  benefit  never  before  known.  The  Oleo- 
margarine Act  of  May  9,  1902,  now  sustained  in  the  Supreme 
Court,  and  the  Act  of  July  1,  1902,  to  prevent  the  false  branding 
of  food  and  dairy  products,  protect  farmers  against  fraudulent 
imitations.  The  Act  of  February  2,  1903,  enables  the  Secretary 
of  Agriculture  to  prevent  the  spread  of  contagious  and  infectious 
diseases  of  live  stock.  Rigid  inspection  has  protected  our  cattle 
against  infection  from  abroad,  and  has  established  the  highest 
.credit  for  our  meat  products  in  the  markets  of  the  world.  The 
earth  has  been  searched  for  weapons  with  which  to  fight  the  ene- 
mies that  destroy  the  growing  crops.  An  insect  brought  from  near 
the  Great  Wall  of  China  has  checked  the  San  Jose  scale,  which 
was  destroying  our  orchards;  a  parasitic  fly  brought  from  South 
Africa  is  exterminating  the  black  scale  in  the  lemon  and  orange 
groves  of  California  ;  and  an  ant  from  Guatemala  is  about  offering 
battle  to  the  boll  weevil.  Broad  science  has  been  brought  to  the 
aid  of  limited  experience.  Study  of  the  relations  between  plant 
life  and  climate  and  soil  has  been  followed  by  the  introduction  of 
special  crops  suited  to  our  varied  conditions.  The  introduction  of 
just  the  right  kind  of  seed  has  enabled  the  Gulf  States  to  increase 
our  rice  crop  from  115,000,000  pounds  in  1898  to  400,000,000 
pounds  in  1903,  and  to  supply  the  entire  American  demand,  with 
a  surplus  for  export.  The  right  kind  of  sugar  beet  has  increased 
our  annual  production  of  beet  sugar  by  over  200,000  tons.  Seed 
brought  from  countries  of  little  rainfall  is  producing  millions  of 
bushels  of  grain  on  lands  which  a  few  years  ago  were  deemed  a 
hopeless  part  of  the  arid  belt. 

The  systematic  collection  and  publication  of  information  re- 
garding the  magnitude  and  conditions  of  our  crops  is  mitigating 
the  injury  done  by  speculation  to  the  farmer's  market. 

To  increase  the  profit  of  the  farmer's  toil,  to  protect  the 
farmer's  product  and  extend  his  market,  and  to  improve  the  con- 
ditions of  the  farmer's  life ;  to  advance  the  time  when  America 
shall  raise  within  her  own  limits  every  product  of  the  soil  con- 
sumed by  her  people,  as  she  makes  within  her  own  limits  every 
necessary  product  of  manufacture — these  have  been  cardinal  ob- 
jects of  Republican  administration;  and  we  show  a  record  of 
practical  things  done  toward  the  accomplishment  of  these  objects 
never  before  approached. 

That  Pledge  to  Cuba. 

Four  years  ago  we  held  the  Island  of  Cuba  by  military  occupa- 
tion. The  opposition  charged,  and  the  people  of  Cuba  believed, 
that  we  did  not  intend  to  keep  the  pledge  of  April  20,  1898,  that 
when  the  pacification  of  Cuba  was  accomplished  we  should  leave 
the  government  and  control  of  the  island  to  its  people.  The  new 
policy  towards  Cuba  which  should  follow  the  fulfillment  of  that 


472  root's  speech. 

pledge  was  unformed.  During  the  four  years  it  has  been  worked 
out  in  detail  and  has  received  effect.  It  was  communicated  by 
executive  order  to  tiio  .Military  Governor,  it  was  embodied  In  the 
Act  of  Congress  known  as  the  Halt  Amendment  It  was  accepted 
by  the  Cuban  Constitutional  Convention  on  the  12th  of  October, 
1901.  It  secured  to  Cuba  her  liberty  and  her  independence,  but  it 
required  her  to  maintain  them.  It  forbade  her  ever  to  use  the 
freedom  we  had  earned  lor  her  by  so  great  a  sacrifice  of  blood  and 
treasure,  to  give  the  island  to  any  other  power;  it  required  her 
to  maintain  a  government  adequate  for  the  protection  of  life  and 
property  and  liberty,  and  should  she  fail,  it  gave  us  the  right  to 
intervene  for  the  maintenance  of  such  a  government.  And  it  gave 
us  the  right  to  naval  stations  upon  her  coast  for  the  protection 
and  defense  alike  of  Cuba  and  the  United  States. 

On  the  20th  of  May,  1902,  under  a  constitution  which  embodied 
these  stipulations,  the  government  and  control  of  Cuba  were  sur- 
rendered to  the  President  and  Congress  elected  by  her  people,  and 
the  American  army  sailed  away.  The  new  republic  began  its 
existence  with  an  administration  of  Cubans  completely  organized 
in  all  its  branches  and  trained  to  effective  service  by  American 
officers.  The  administration  of  President  Palma  has  been  wise 
and  efficient.  Peace  and  order  have  prevailed.  The  people  of 
Cuba  are  prosperous  and  happy.  Her  finances  have  been  honestly 
administered,  and  her  credit  is  high.  The  naval  stations  have 
been  located  and  bounded  by  Guantanamo  and  Bahia  Honda,  and 
are  in  the  possession  of  our  navy.  The  Piatt  Amendment  is  the 
sheet  anchor  of  Cuban  independence  and  of  Cuban  credit  No 
such  revolutions  as  have  afflicted  Central  and  South  America  are 
possible  there,  because  it  is  known  to  all  men  that  an  attempt  to 
overturn  the  foundations  of  that  government  will  be  confronted  by 
the  overwhelming  power  of  the  United  States.  The  treaty  of  reci- 
procity and  the  Act  of  Congress  of  December  6,  1903,  which  con- 
firmed it,  completed  the  expression  of  our  policy  towards  Cuba ; 
which  with  a  far  view  to  the  future  was  to  bind  us  by  ties  of 
benefit  and  protection,  of  mutual  interest  and  genuine  friendship 
to  that  island  which  guards  the  Caribbean  and  the  highway  to  the 
isthmus,  and  must  always  be,  if  hostile,  an  outpost  of  attack,  and, 
if  friendly,  an  outpost  of  defense  for  the  United  States.  Rich  as 
we  are,  the  American  people  have  no  more  valuable  possession 
than  the  sentiment  expressed  in  the  dispatch  which  I  will  now 
read: 

HAVANA.  May  20, 1902. 
Theodore  Roosevelt,  President,  Washington. 

The  government  of  the  island  having-  been  just  transferred,  I, 
as  Chief  Magistrate  of  the  Republic,  faithfully  interpreting  the 
sentiment  of  the  whole  people  of  Cuba,  have  the  honor  to  send 
you  and  the  American  people  testimony  of  our  profound  gratitude 
and  the  assurance  of  an  enduring  friendship,  with  wishes  and 
prayers  to  the-  Almighty  for  the  welfare  and  prosperity  of  the' 
United  States. 

T.  Estrada  Palma. 

As    to    the   Philippines. 

When  the  last  national  convention  met  the  Philippines  also 
were  under  military  rule.  The  insurrectos  from  the  mountains 
spread  terror  among  the  peaceful  people  by  midnight  foray  and 
secret  assassination.  Aguinaldo  bided  his  time  in  a  secret  re- 
treat. Over  seventy  thousand  American  soldiers  from  more  than 
five  hundred  stations  held  a  still  vigorous  enemy  in  check.  The 
Philippine  Commission  had  not  yet  begun  its  work. 

The  last  vestige  of  insurrection  has  been  swept  away.  With 
their  work  accomplished,  over  55,000  American  troops  have  been 
brought  back  across  the  Pacific.  Civil  government  has  been  estab- 
lished throughout  the  archipelago,  peace  and  order  and  justice 
prevail.  The  Philippine  Commission,  guided  at  first  by  executive 
order  and  then  by  the  wise  legislation  of  Congress",  in  the  Philip- 
pine Government  Act  of  July  1,  1902,  have  established  and  con- 
ducted a  government  which  has  been  a  credit  to  their  country  and 
a  blessing  to  the  people  of  the  islands.  The  body  of  laws  which 
they  have  enacted  upon  careful  and  intelligent  study  of  the  needs 
of  the  country  challenges  comparison  with  the  statutes  of  any 
country.  The  personnel  of  civil  government  has  been  brought 
together  under  an  advanced  and  comprehensive  civil  service  law, 
which  has  been  rigidly  enforced.     A  complete  census  has  been 


boot's  speech.  473 

taken,  designed  to  be  there  as  it  was  in  Cuba  the  basis  for  repre- 
sentative government;  and  the  people  of  the  islands  will  soon 
proceed  under  provisions  already  made  by  Congress  to  the  election 
of  a  representative  assembly,  in  which  for  the  first  time  in  their 
history  they  may  have  a  voice  in  the  making  of  their  own  laws. 
In  the  meantime  the  local  and  provincial  governments  are  in  the 
hands  of  officers  elected  by  the  Filipinos ;  and  in  the  great  central 
offices,  in  the  Commission,  on  the  bench,  in  the  executive  depart- 
ments, the  most  distinguished  men  of  the  Filipino  race  are  taking 
their  part  in  the  government  of  their  people.  A  free  school  system 
has  been  established  and  hundreds  of  thousands  of  children  are 
learning  lessons  which  will  help  fit  them  for  self-government.  The 
seeds  of  religious  strife  existing  in  the  bitter  controversy  between 
the  people  and  the  religious  orders  have  been  deprived  of  potency 
for  harm  by  the  purchase  of  the  friars'  lands,  and  their  practical 
withdrawal.  By  the  Act  of  Congress  of  March  2,  1903,  a  gold 
standard  has  been  established  to  take  the  place  of  the  fluctuating 
silver  currency.  The  unit  of  value  is  made  exactly  one-half  the 
value  of  the  American  gold  dollar,  so  that  American  money  is 
practically  part  of  their  currency  system.  To  enable  the  Philip- 
pine Government  to  issue  this  new  currency  $6,000,000  was  bor- 
rowed by  them  in  1903  in  the  city  of  New  York ;  and  it  was  bor- 
rowed at  a  net  interest  charge  of  1%  per  cent  per  annum.  The 
trade  of  the  islands  has  increased  notwithstanding  adverse  con- 
ditions. During  the  last  five  years  of  peace  under  Spanish  rule 
the  average  total  trade  of  the  islands  was  less  than  $36,000,000. 
During  the  fiscal  year  ending  June  30,  1903,  the  trade  of  the 
islands  was  over  $66,000,000.  There  is  but  one  point  of  disturb- 
ance, and  that  is  in  the  country  of  the  Mohammedan  Moros,  where 
there  is  an  occasional  fitful  savage  outbreak  against  the  enforce- 
ment of  the  law  recently  made  to  provide  for  adequate  supervision 
and  control  to  put  an  end  to  the  practice  of  human  slavery. 

When  Governor  Taft  sailed  from  Manila  in  December  last  to 
fill  the  higher  office  where  he  will  still  guard  the  destinies  of  the 
people  for  whom  he  has  done  such  great  and  noble  service,  he  was 
followed  to  the  shore  by  a  mighty  throng,  not  of  repressed  and 
sullen  subjects,  but  of  free  and  peaceful  people,  whose  tears  and 
prayers  of  affectionate  farewell  showed  that  they  had  already 
begun  to  learn  that  "our  flag  has  not  lost  its  gift  of  benediction 
in  its  world-wide  journey  to  their  shores." 

None  can  foretell  the  future;  but  there  seems  no  reasonable 
cause  to  doubt  that,  under  the  policy  already  effectively  inaugu- 
rated, the  institutions  already  implanted,  and  the  processes  al- 
ready begun  in  the  Philippine  Islands,  if  these  be  not  repressed 
and  interrupted,  the  Philippine  people  will  follow  in  the  footsteps 
of  the  people  of  Cuba ;  that  more  slowly  indeed,  because  they  are 
not  as  advanced,  yet  as  surely,  they  will  grow  in  capacity  for  self- 
government,  and  receiving  power  as  they  grow  in  capacity,  will 
come  to  bear  substantially  such  relations  to  the  people  of  the 
United  States  as  do  now  the  people  of  Cuba,  differing  in  details 
as  conditions  and  needs  differ,  but  the  same  in  principle  and  the 
same  in  beneficent  results. 

The  Panama  Canal. 

In  1900  the  project  of  an  isthmian  canal  stood  where  it  was 
left  by  the  Clayton-Bulwer  Treaty  of  1850.  For  half  a  century 
it  had  halted,  with  Great  Britain  resting  upon  a  joint  right  of 
control,  and  the  great  undertaking  of  de  Lesseps  struggling  against 
the  doom  of  failure  imposed  by  extravagance  and  corruption.  On 
the  18th  of  November,  1901,  the  Hay-Pauncefote  Treaty  with 
Great  Britain  relieved  the  enterprise  of  the  right  of  British  con- 
trol and  left  that  right  exclusively  in  the  United  States.  Then 
followed  swiftly  the  negotiations  and  protocols  with  Nicaragua; 
the  Isthmian  Canal  Act  of  June  28,  1902 ;  the  just  agreement  with 
the  French  canal  company  to  pay  them  the  value  of  the  work  they 
had  done;  the  negotiation  and  ratification  of  the  treaty  with 
Colombia ;  the  rejection  of  that  treaty  by  Colombia  in  violation  of 
our  rights  and  the  world's  right  to  the  passage  of  the  isthmus ; 
the  seizure  by  Panama  of  the  opportunity  to  renew  her  oft-re- 
peated effort  to  throw  off  the  hateful  and  oppressive  yoke  of 
Colombia  and  resume  the  independence  which  once  had  been  hers, 
and  of  which  she  bad  been  deprived  by  fraud  and  force ;  the  sue- 


474  BOOT'S    SPEECH. 

cess  of  the  revolution;  our  recognition  of  the  new  republic,  fol- 
lowed by  recognition  from  substantially  all  the  civilized  powers 
of  the  world;  the  treaty  with  Panama  recognizing  and  confirming 
our  right  to  construct  the  canal ;  the  ratification  of  the  treaty  by 
the  Senate ;  confirmatory  legislation  by  Congress ;  the  payment 
of  the  $50,000,000  to  the  French  company  and  to  Panama ;  the 
appointment  of  the  Canal  Commission  in  accordance  with  law, 
and  its  organization  to  begin  the  work. 

The  action  of  the  United  States  at  every  step  has  been  in  ac- 
cordance with  the  law  of  nations,  consistent  with  the  principles  of 
justice  and  honor,  in  discharge  of  the  trust  to  build  the  canal  we 
long  since  assumed  by  denying  the  right  of  every  other  power  to 
build  it,  dictated  by  a  high  and  unselfish  purpose,  for  the  common 
benefit  of  all  mankind.  That  action  was  wise,  considerate,  prompt, 
vigorous  and  effective;  and  now  the  greatest  of  constructive  na- 
tions stands  ready  and  competent  to  begin  and  to  accomplish  the 
great  enterprise  which  shall  realize  the  dreams  of  past  ages,  bind 
together  our  Atlantic  and  Pacific  coasts,  and  open  a  new  highway 
for  that  commerce  of  the  Orient  whose  course  has  controlled  the 
rise  and  fall  of  civilizations.  Success  in  that  enterprise  greatly 
concerns  the  credit  and  honor  of  the  American  people,  and  it  is  for 
them  to  say  whether  the  building  of  the  canal  shall  be  in  charge 
of  the  men  who  made  its  building  possible,  or  of  the  weaklings 
whose  incredulous  objections  would  have  postponed  it  for  another 
generation. 

For  Peace  and  Justice. 

Throughout  the  world  the  diplomacy  of  the  present  adminis- 
tration has  made  for  peace  and  justice  among  nations.  Clear- 
sighted to  perceive  and  prompt  to  maintain  American  interests, 
it  has  been  sagacious  and  simple  and  direct  in  its  methods,  and 
considerate  of  the  rights  of  the  feelings  of  others. 

Within  the  month  after  the  last  national  convention  met  Sec- 
retary Hay's  circular  note  of  July  3,  1900,  to  the  great  powers  of 
Europe  had  declared  the  policy  of  the  United  States 

"to  seek  a  solution  which  may  bring  about  permanent  safety  and 
peace  to  China,  preserve  China's  territorial  and  administrative 
entity,  protect  all  rights  guaranteed  to  friendly  powers  by  treaty 
and  international  law,  and  safeguard  for  the  world  the  principle  of 
equal  and  impartial  trade  with  all  parts  of  the  Chinese  Empire." 

The  express  adherence  of  the  powers  of  Europe  to  this  declara- 
tion was  secured.  The  open  recognition  of  the  rule  of  right  con- 
duct imposed  its  limitations  upon  the  conduct  of  the  powers  in 
the  Orient.  It  was  made  the  test  of  defensible  action.  Carefully 
guarded  by  the  wise  statesman  who  had  secured  its  acceptance,  it 
brought  a  moral  force  of  recognized  value  to  protect  peaceful  and 
helpless  China  from  dismemberment  and  spoliation,  and  to  pre- 
serve the  open  door  in  the  Orient  for  the  commerce  of  the  world. 
Under  the  influence  of  this  effective  friendship,  a  new  commercial 
treaty  with  China,  proclaimed  on  the  8th  of  October  last,  has  en- 
larged our  opportunities  for  trade,  opened  new  ports  to  our  com- 
merce, and  abolished  internal  duties  on  goods  in  transit  within 
the  Empire.  There  were  indeed  other  nations  which  agreed  with 
this  policy  of  American  diplomacy,  but  no  other  nation  was  free 
from  suspicion  of  selfish  aims.  None  other  had  won  confidence 
in  the  sincerity  of  its  purpose,  and  none  other  but  America  could 
render  the  service  which  we  have  rendered  to  humanity  in  China 
during  the  past  four  years.  High  evidence  of  that  enviable  posi- 
tion of  our  country  is  furnished  by  the  fact  that  when  all  Europe 
wa.s  in  apprehension  lest  the  field  of  war  between  Russia  and 
Japan  should  so  spread  as  to  involve  China's  ruin  and  a  universal 
conflict,  it  was  to  the  American  Government  that  the  able  and  far- 
sighted  German  Emperor  appealed,  to  take  the  lead  again  in  bring- 
ing about  an  agreement  for  the  limitation  of  the  field  of  action, 
and  the  preservation  of  the  administrative  entity  of  China  outside 
of  Manchuria ;  and  that  was  accomplished. 

Upon  our  own  continent  a  dispute  with  Canada  over  the 
boundary  of  Alaska  had  been  growing  more  acute  for  30  years. 
A  multitude  of  miners,  swift  to  defend  their  own  rights  by  force, 
were  locating  mining  claims  under  the  laws  of  both  countries  in 
the  disputed  territory.  At  any  moment  a  fatal  affray  between 
Canadian  and  American  miners  was  liable  to  begin  a  conflict  in 
which  all  British  Columbia  would  be  arrayed  on  one  side  and 


root's  speech.  475 

all  our  Northwest  upon  the  other.  Agreement  was  impossible. 
But  the  Alaskan  Boundary  Treaty  of  January  24,  1903,  provided  a 
tribunal  for  the  decision  of  the  controversy  ;  and  upon  legal  proofs 
and  reasoned  argument,  an  appeal  has  been  had  from  prejudice 
and  passion  to  judicial  judgment ;  and  under  the  lead  of  a  great 
Chief  Justice  of  England,  who  held  the  sacred  obligations  of  his 
judicial  office  above  all  other  considerations,  the  dispute  has  been 
settled  forever  and  substantially  in  accordance  with  the  American 
contention. 

International  Arbitration. 

In  1900  the  first  administration  of  McKinley  had  played  a 
great  part  in  establishing  the  Hague  Tribunal  for  international 
arbitration.  The  prevailing  opinion  of  Europe  was  incredulous  as 
to  the  practical  utility  of  the  provision  and  anticipated  a  paper 
tribunal  unsought  by  litigants.  It  was  the  example  of  the  United 
States  which  set  at  naught  this  opinion.  The  first  international 
case  taken  to  the  Hague  Tribunal  was  under  our  protocol  with 
Mexico  of  May  22,  1902,  submitting  our  contention  for  the  rights 
of  the  Roman  Catholic  Church  in  California  to  a  share  of  the 
Church  moneys  held  by  the  Mexican  Government  before  the  cession 
and  known  as  the  Pious  Fund;  and  the  first  excision  of  the  tri- 
bunal was  an  award  in  our  favor  upon  that  question. 

When  in  1903  the  failure  of  Venezuela  to  pay  her  just  debts 
led  England,  Germany  and  Italy  to  warlike  measures  for  the  col- 
lection of  their  claims,  an  appeal  by  Venezuela  to  our  Government 
resulted  in  agreements  upon  arbitration  in  place  of  the  war,  and 
in  a  request  that  our  President  should  act  as  arbitrator.  Again 
he  promoted  the  authority  and  prestige  of  the  Hague  Tribunal  and 
was  able  to  lead  all  the  powers  to  submit  the  crucial  questions  in 
controversy  to  the  determination  of  that  court.  It  is  due  greatly 
to  support  by  the  American  Government  that  this  agency  for  peace 
has  disappointed  the  expectations  of  its  detractors,  and  by  demon- 
strations of  practical  usefulness  has  begun  a  career  fraught  with 
possibilities  of  incalculable  benefit  to  mankind. 

On  the  11th  of  April,  1903,  was  proclaimed  another  convention 
between  all  the  great  powers,  agreeing  upon  more  humane  rules 
for  the  conduct  of  war ;  and  these  in  substance  incorporated  and 
gave  the  sanction  of  the  civilized  world  to  the  rules  drafted  by 
Francis  Lieber  and  approved  by  Abraham  Lincoln  for  the  conduct 
of  the  armies  of  the  United  States  in  the  field. 

All  Americans  who  desire  safe  and  conservative  administration 
which  shall  avoid  cause  of  quarrel,  all  who  abhor  war,  all  who 
long  for  the  perfect  sway  of  the  principles  of  that  religion  which 
we  all  profess,  should  rejoice  that  under  this  Republican  adminis- 
tration their  country  has  attained  a  potent  leadership  among  the 
nations  in  the  cause  of  peace  and  international  justice. 

The  respect  and  moral  power  thus  gained  has  been  exercised 
in  the  interests  of  humanity  where  the  rules  of  diplomatic  inter- 
course have  made  formal  intervention  impossible.  When  the 
Roumanian  outrages,  and  when  the  appalling  massacre  at  Kishi- 
neff  shocked  civilization  and  filled  thousands  of  our  own  people 
with  mourning,  the  protest  of  America  was  heard  through  the 
voice  of  its  Government,  with  full  observance  of  diplomatic  rules, 
but  with  moral  power  and  effect. 

We  have  advanced  the  authority  of  the  Monroe  Doctrine.  Our 
adnerence  to  the  convention  which  established  the  Hague  Tribunal 
was  accepted  by  the  other  powers,  with  a  formal  declaration  that 
nothing  therein  contained  should  be  construed  to  imply  the  relin- 
quishment by  the  United  States  of  its  traditional  attitude  toward 
purely  American  questions.  The  armed  demonstration  by  the 
European  powers  against  Venezuela  was  made  the  occasion  for 
disclaimers  to  the  United  States  of  any  intention  to  seize  the  ter- 
ritory of  Venezuela,  recognizing  in  the  most  unmistakable  way  the 
rights  of  the  United  States  expressed  in  the  declaration  of  that 
traditional  policy. 

In  the  meantime,  mindful  that  moral  powers  unsupported  by 
physical  strength  do  not  always  prevail  against  selfishness  and 
aggression,  we  have  been  augmenting  the  forces  which  command 
respect. 

The  Army  and  Navy. 

We  have  brought  our  navy  to  a  high  state  of  efficiency  and  have 
exercised  both  army  and  navy  in  the  methods  of  seacoast  defense. 


476  root's  speech. 

The  joint  army  and  navy  board  has  been  bringing  the  two  serv- 
ices together  in  good  understanding  and  the  common  study  of  the 
strategy,  the  preparation  and  the  co-operation  which  will  make 
tlu>ni  effective  in  time  of  need.  Our  ships  have  been  exercised  in 
fleet  and  squudron  movements,  have  been  improved  in  marksman- 
ship and  mobility,  and  have  been  constantly  tested  by  use.  Since 
the  last  national  convention  met  we  have  completed  and  added  to 
our  navy  5  battleships,  4  cruisers,  4  monitors,  34  torpedo  destroy- 
ers and  torpedo  boats;  while  we  have  put  under  construction  13 
battleships  and  13  cruisers. 

Four  years  ago  our  army  numbered  over  100,000  men,  regulars 
and  volunteers,  75  per  cent  of  them  in  the  Philippines  and  China. 
Under  the  operation  of  statutes  limiting  the  period  of  service,  it 
was  about  to  lapse  back  into  its  old  and  insufficient  num- 
ber of  27,000  and  its  old  and  insufficient  organization  under 
the  practical  control  of  permanent  staff  departments  a*-  Wash- 
ington, with  the  same  divisions  of  counsel  and  lack  of  co- 
ordinating and  directing  power  at  the  head  that  led  to  confusion 
and  scandal  in  the  war  with  Spain.  During  the  past  four  years 
the  lessons  taught  by  that  war  have  received  practical  effect.  The 
teachings  of  Sherman  and  of  Upton  have  been  recalled  and  re- 
spected. Congress  has  fixed  a  maximum  of  the  army  at  100,000 
and  a  minimum  at  60,000,  so  that  maintaining  only  the  minimum 
in  peace,  as  we  now  do,  when  war  threatens  the  President  may 
begin  preparations  by  filling  the  ranks  to  the  maximum,  without 
waiting  until  after  war  has  begun,  as  he  had  to  wait  in  1898. 
Permanent  staff  appointments  have  been  changed  to  details  from 
the  line,  with  compulsory  returns  at  fixed  intervals  to  service 
with  troops,  so  that  the  requirements  of  the  field  and  the  camp 
rather  than  the  requirements  of  the  office  desk  shall  control  the 
departments  of  administration  and  supply.  A  corps  organization 
has  been  provided  for  our  artillery,  with  a  chief  of  artillery  at 
the  head,  so  that  there  may  be  intelligent  use  of  our  costly  sea- 
coast  defenses.  Under  the.  Act  of  February  14,  1903,  a  General 
Staff  has  been  established,  organized  to  suit  American  conditions 
and  requirements  and  adequate  for  the  performance  of  the  long- 
neglected  but  all-important  duties  of  directing  military  education 
and  training,  and  applying  the  most  advanced  principles  of  mili- 
tary science  to  that  necessary  preparation  for  war  which. is  the 
surest  safeguard  of  peace.  The  command  of  the  army  now  rests 
where  it  is  placed  by  the  Constitution — in  the  President.  His 
power  is  exercised  through  a  military  chief  of  staff  pledged  by 
the  conditions  and  tenure  of  his  office  to  confidence  and  loyalty 
to  his  commander.  Thus  civilian  control  of  the  military  arm, 
upon  which  we  must  always  insist,  is  reconciled  with  that  mili- 
tary efficiency  which  can  be  obtained  only  under  the  direction  of 
the  trained  military  expert. 

New  Military  System. 

Four  years  ago  we  were  living  under  an  obsolete  militia  law 
more  than  a  century  old,  which  Washington  and  Jefferson  and 
Madison,  and  almost  every  President  since  their  time,  had  declared 
to  be  worthless.  We  presented  the  curious  spectacle  of  a  people 
depending  upon  a  citizen  soldiery  for  protection  against  aggression, 
and  making  practically  no  provision  whatever  for  training  its 
citizens  in  the  use  of  warlike  weapons  or  in  the  elementary  duties 
of  the  soldier.  The  mandate  of  the  Constitution  which  required 
Congress  to  provide  for  organizing,  arming  and  disciplining  the 
militia  had  been  left  unexecuted.  In  default  of  national  provi- 
sions, bodies  of  state  troops,  created  for  local  purposes  and  sup- 
ported at  local  expense,  had  grown  up  throughout  the  Union. 
Their  feelings  towards  the  Regular  Army  were  rather  of  distrust 
and  dislike  than  of  comradeship.  Their  arms,  equipment,'  disci- 
pline, organization  and  methods  of  obtaining  and  accounting  for 
supplies  were  varied  and  inconsistent.  They  were  unsuited  to  be- 
come a  part  of  any  homogeneous  force,  and  their  relations  to  the 
Army  of  the  United  States  were  undefined  and  conjectural.  By 
the  Militia  Act  of  January  20,  1903,  Congress  performed  its  duty 
under  the  Constitution.  Leaving  these  bodies  still  to  perform 
their  duties  to  the  States,  it  made  them  the  organized  militia  of 
the  United  States.  It  provided  for  their  conformity  in  armament, 
organization  and  discipline  to  the  Army  of  the  United  States;  it 


BOOT'S    SPEECH.  477 

provided  the  ways  in  which,  either  strictly  as  militia  or  as  volun- 
teers, they  should  become  an  active  part  of  the  Army  when  called 
upon ;  it  provided  for  their  training,  instruction  and  exercise  con- 
jointly with  the  Regular  Army ;  it  imposed  upon  the  Regular 
Army  the  duty  of  promoting  their  efficiency  in  many  ways.  In 
recognition  of  the  service  to  the  nation  which  these  citizen  soldiers 
would  be  competent  to  render,  the  nation  assumed  its  share  of  the 
burden  of  their  armament,  their  supply  and  their  training.  The 
workings  of  this  system  have  already  demonstrated,  not  only  that 
we  can  have  citizens  outside  of  the  Regular  Army  trained  for  duty 
in  war,  but  that  we  can  have  a  body  of  volunteer  officers  ready 
for  service,  between  whom  and  the  officers  of  the  Regular  Army 
have  been  created  by  intimate  association  and  mutual  helpfulness 
those  relations  of  confidence  and  esteem  without  which  no  army 
can  be  effective.    , 

The  first  administration  of  McKinley  fought  and  won  the  war 
with  Spain,  put  down  the  insurrection  in  the  Philippines,  an- 
nexed Hawaii,  rescued  the  legations  in  Pekin,  brought  Porto  Rico 
into  our  commercial  system,  enacted  a  protective  tariff,  and  estab- 
lished our  national  currency  on  the  firm  foundations  of  the  gold 
standard  by  the  financial  legislation  of  the  Fifty-sixth  Congress. 

The  present  administration  has  reduced  taxation,  reduced  the 
public  debt,  reduced  the  annual  interest  charge,  made  effective 
progress  in  the  regulation  of  trusts,  fostered  business,  promoted 
agriculture,  built  up  the  navy,  reorganized  the  army,  resurrected 
the  militia  system,  inaugurated  a  new  policy  for  the  preservation 
and  reclamation  of  public  lands,  given  civil  government  to  the 
Philippines,  established  the  Republic  of  Cuba,  bound  it  to  us  by 
ties  of  gratitude,  of  commercial  interest  and  of  common  defense, 
swung  open  the  closed  gateway  of  the  Isthmus,  strengthened  the 
Monroe  Doctrine,  ended  the  Alaskan  boundary  dispute,  protected 
the  integrity  of  China,  opened  wider  its  doors  of  trade,  advanced 
the  principle  of  arbitration,  and  promoted  peace  among  the  na- 
tions. 

More   Work  Ahead. 

We  challenge  judgment  upon  this  record  of  effective  perform- 
ance in  legislation,  in  execution  and  in  administration. 

The  work  is  not  fully  done ;  policies  are  not  completely  wrought 
out ;  domestic  questions  still  press  continually  for  solution ;  other 
trusts  must  be  regulated ;  the  tariff  may  presently  receive  revision, 
and  if  so,  should  receive  it  at  the  hands  of  the  friends  and  not  the 
enemies  of  the  protective  system ;  the  new  Philippine  Government 
has  only  begun  to  develop  its  plans  for  the  benefit  of  that  long- 
neglected  country ;  our  flag  floats  on  the  Isthmus,  but  the  canal 
is  yet  to  be  built ;  peace  does  not  yet  reign  on  earth,  and  consid- 
erate firmness  backed  by  strength  are  still  needful  in  diplomacy. 

The  American  people  have  now  to  say  whether  policies  shall  be 
reversed  or  committed  to  unfriendly  guardians ;  whether  perform- 
ance, which  now  proves  itself  for  the  benefit  and  honor  of  our 
country,  shall  be  transferred  to  unknown  and  perchance  to  feeble 
hands. 

No  dividing  line  can  be  drawn  athwart  the  course  of  this  suc- 
cessful administration.  The  fatal  14th  of  September,  1901,  marked 
no  change  of  policy,  no  lower  level  of  achievement.  The  bullet  of 
the  assassin  robbed  us  of  the  friend  we  loved ;  it  took  away  from 
the  people  the  President  of  their  choice ;  it  deprived  civilization  of 
a  potent  force  making  always  for  righteousness  and  for  humanity, 
but  the  fabric  of  free  institutions  remained  unshaken.  The  gov- 
ernment of  the  people  went  on.  The  great  party  that  William 
McKinley  led  wrought  still  in  the  spirit  of  his  example.  His  true 
and  loyal  successor  has  been  equal  to  the  burden  cast  upon  him. 
Widely  different  in  temperament  and  methods,  he  has  approved 
himself  of  the  same  elemental  virtues — the  same  fundamental 
beliefs.  With  faithful  and  revering  memory,  he  has  executed  the 
purposes  and  continued  unbroken  the  policy  of  President  McKinley 
for  the  peace,  prosperity  and  honor  of  our  beloved  country.  And 
he  has  met  all  new  occasions  with  strength  and  resolution  and 
far-sighted  wisdom. 

As  we  gather  in  this  convention,  our  hearts  go  back  to  the 
friend — the  never-to-be-forgotten  friend,  whom  when  last  we  met 
we  acclaimed  with  one  accord  as  our  universal  choice  to  bear  a 


478  ROOT'S    SPEECH. 

second  time  the  highest  honor  in  the  nation's  gift;  and  back  still, 
memory  goes  through  many  a  year  of  leadership  and  loyalty. 

HOW  wist»  ami  how  skillful  he  was;  how  modest  and  self-effac- 
ing; how  deep  his  insight  into  the  human  heart;  how  swift  the 
intuitions  of  his  sympathy;  how  Compelling  the  charm  of  hts 
gracious  presence.  He  was  so  unselfish,  so  thoughtful  of  the  hap- 
piness of  others,  so  genuine  a  lover  of  his  country  and  his  kind. 
And  he  was  the  kindest  and  teuderest  friend  who  ever  grasped 
another's  hand.  Alas,  that  his  virtues  did  plead  in  vain  against 
cruel  fate. 

Yet  we  may  rejoice  that  while  he  lived  he  was  crowned  with 
honor ;  that  the  rancor  of  party  strife  had  ceased ;  that  success  in 
his  great  tasks,  the  restoration  of  peace,  the  approval  of  his 
countrymen,  the  affection  of  his  friends  gave  the  last  quiet  months 
in  his  home  at  Canton  repose  and  contentment. 

McKinley  and  Himnn. 

And  with  McKinley  we  remember  Ilanna  with  affection  and 
sorrow — his  great  lieutenant.    They  are  together  again. 

But  we  turn  as  they  would  have  us  turn,  to  the  duties  of  the 
hour,  the  hopes  of  the* future;  we  turn  as  they  would  have  us 
turn,  to  prepare  ourselves  for  struggle  under  the  same  standard 
borne  in  other  hands  by  right  of  true  inheritance.  Honor,  truth, 
courage,  purity  of  life,  domestic  virtue,  love  of  country,  loyalty  to 
high  ideals — all  these  combined  with  active  intelligence,  with 
learning,  with  experience  in  affairs,  with  the  conclusive  proof  of 
competency  afforded  by  wise  and  conservative  administration,  by 
great  things  already  done  and  great  results  already  achieved — all 
these  we  bring  to  the  people  with  another  candidate.  Shall  not 
these  have  honor  jn  our  land?  Truth,  sincerity,  courage;  these 
underlie  the  fabric  of  our  institutions.  Upon  hypocrisy  and  sham, 
upon  cunning  and  false  pretense,  upon  weakness  and  cowardice, 
upon  the  arts  of  the  demagogue  and  the  devices  of  the  mere  poli- 
tician no  government  can  stand.  No  system  of  popular  govern- 
ment can  endure  in  which  the  people  do  not  believe  and  trust. 
Our  President  has  taken  the  whole  people  into  his  confidence.  In- 
capable of  deception,  he  has  put  aside  concealment.  Frankly  and 
without  reserve  he  has  told  them  what  their  government  was 
doing,  and  the  reasons.  It  is  no  campaign  of  appearances  upon 
which  we  enter,  for  the  people  know  the  good  and  the  bad,  the 
success  and  failure,  to  be  credited  and  charged  to  our  account.  It 
is  no  campaign  of  sounding  words  and  specious  pretenses,  for  our 
President  has  told  the  people  with  frankness  what  he  believed  and 
what  he  intended.  He  has  meant  every  word  he  said,  and  the 
people  have  believed  every  word  he  said,  and  with  him  this  con- 
vention agrees  because  every  word  has  been  sound  Republican 
doctrine.  No  people  can  maintain  free  government  who  do  not  in 
their  hearts  value  the  qualities  which  have  made  the  present  Presi- 
dent of  the  United  States  conspicuous  among  the  men  of  his  time 
as  a  type  of  noble  manhood.  Come  what  may  here — come  what 
may  in  November,  God  grant  that  those' qualities  of  brave,  true 
manhood  shall  have  honor  throughout  America,  shall  be  held  for 
an  example  in  every  home,  and  that  the  youth  of  generations  to 
come  may  grow  up  to  feel  that  it  is  better  than  wealth,  or  office, 
or  power,  to  have  the  honesty,  the  purity,  and  the  courage  of 
Theodore  Roosevelt. 

A  party  is  of  worth  only  so  far  as  it  promotes  the  national  in- 
terest.—From   President  Roosevelt's  speech  of  acceptance. 

Our  domestic  trade  must  be  won  hack  and  our  idle  working: 
people  employed  in  gainful  occupations  at  American  wages. — Major 
McKinley  to  the  Notification  Committee,  1806. 

President  Roosevelt  was  the  greatest  conservative  force  for 
the  protection  of  property  and  of  capital  in  the  city  of  Washington 
during  the  years  that  have  elapsed  since  President  McKinley's 
death — Hon.  Elihu  Root,  at  New  York,  Feb.  3,  1904. 

If  a  tariff  law  has  on  the  whole  worked  well,  and  if  business 
has  prospered  under  it  and  is  prospering,  it  may  be  better  to  endure 
some  inconveniences  and  inequalities  for  a  time  than,  by  making 
changes,  to  risk  causing  disturbance  and  perhaps  paralysis  in  the 
industries  and  business  of  the  country. — President  Roosevelt  at 
Minneapolis,  April  4,  1903. 


cannon's  speech.  479 

SPEECH  OF  HON.  J.  Q.  CANNON. 

Permanent  Chairman  of  the  Republican  National  Convention. 

For  the  first  time  in  iny  life  I  have  in  black  and  white  enough 
sentences  to  contain  2,500  words  to  say  to  you.  I  have  tried  to 
memorize  it  (laughter),  but  I  cannot.  I  have  given  it  out  through 
the  usual  channels  to  the  great  audience,  and  now  I  must  either 
beg  to  be  excused  entirely  or  I  must  do  as  we  do  down  in  the 
House  of  Representatives  under  the  five-minute  rule  and  make  a 
few  feeble  remarks.  But  that  no  man  shall  say  that  I  have  not 
made  a  great  speech,  I  will  set  that  matter  at  rest  by  saying  that 
from  beginning  to  end  I  heartily  indorse  every  statement  of  fact 
and  every  sentiment  that  was  given  you  yesterday  from  the  tem- 
porary presiding  officer  in  the  greatest  speech  ever  delivered  at  a 
convention.      (Applause.)  • 

Now  let  me  go  on  and  ramble.  (Laughter.)  And  first  they  say 
that  there  is  no  enthusiasm  in  this  convention.  Gentlemen,  the 
great  river  that  has  its  30  feet  of  water,  rising  ip  the  mountains 
and  growing  in  depth  and  breadth  down  to  the  ocean,  bears  upon 
its  bosom  the  commerce  of  that  section  of  land  that  it  drains  and 
pours  it  out  to  the  world.  It  is  a  silent  river,  and  yet  the  brawling 
river  that  is  like  to  the  River  Platte  out  in  Nebraska,  that  is  four- 
teen miles  wide  and  four  inches  deep,  makes  more  noise  than  the 
bigger  rivers.  (Applause.)  When  we  were  young  folks  twenty 
years  ago  (laughter)  we  went  to  see  our  best  girls.  We  were 
awfully  enthusiastic  if  she  would  give  us  a  nod  of  the  head  or  the 
trip-away,  catch  me  if  you  can  (laughter),  to  enter  upon  the 
chase ;  that  was  awfully  strenuous  and  awfully  enthusiastic. 
(Laughter.)  But  when  she  said  "Yes,"  then  good  relations  were 
established  and  we  went  on  evenly  throughout  the  balance  of  our 
lives.  (Laughter  and  applause.)  It  is  a  contest  that  makes  en- 
thusiasm. In  1904  as  in  1900  everybody  has  known  for  twelve 
months  past  who  is  to  be  our  standard-bearer  in  this  compaign. 
(Loud  applause  and  cheering.)  We  are  here  for  husiness.  (Laugh- 
ter.) I  wonder  if  our  friends,  the  enemy,  would  not  be  glad  of  a 
little  of  our  kind  of  enthusiasm.  (Prolonged  laughter  and  ap- 
plause.) 

I  might  illustrate  further ;  I  don't  know  that  it  is  necessary. 
I  see  some  of  my  former  friends  before  me — my  colleague.  Col. 
Lowden,  and  various  others.  (Applause.)  Now,  there  is  not  one 
of  you  that  raises  chickens,  as  I  do,  but  what  understands  that 
when  the  hen  comes  off  the  nest  with  one  chicken  she  does  more 
scratching  and  makes  more  noise  than  the  motherly  hen  that  is 
fortunate  with  twenty-three.  (Laughter.)  Our  friends,  the  enemy, 
will  have  the  enthusiasm,  we  will  take  the  votes  in  November. 
(Applause.) 

To  be  serious  for  a  moment.  The  Republican  party  is  a  gov- 
ernment through  party  and  through  organization — oh,  you  find 
people  once  in  a  while  who  do  not  want  any  parties.  As  long  as 
you  have  80,000,000  of  people  competent  for  self-government  they 
will  organize  and  will  call  the  organization  a  party.  The  Repub- 
lican party,  born  of  the  declaration  that  slavery  is  sectional  and 
freedom  national  (applause),  achieved  its  first  success  in  1800 
with  Abraham  Lincoln.  (Applause.)  Secession,  the  war  of  the 
Union,  you  older  men  recollect  it  well.  We  have  one  of  the  sur- 
vivors here.  I  was  glad  to  see  the  convention  give  him  the  cour- 
tesies of  the  convention.  He  helped  to  make  it  possible  that  we 
could  have  this  convention.  (Applause.)  Forty-four  years  ago, 
just  about  now,  1904,  what  a  contrast !  A  divided  country,  a 
bankrupt  treasury,  no  credit.  The  Republican  party  got  power, 
and  under  its  great  leadership  wrote  revenue  legislation  upon  the 
statute  books  and  went  back  to  the  principles  of  Washington  and 
Hamilton,  and  legislation  that  would  produce  revenue,  while  fixing 
duties  upon  imports  was  so  adjusted  as  to  encourage  every  Ameri- 
can citizen  to  take  part  in  the  diversified  industries  and  resources 
of  the  country. 

Our  Great  Factory  Product. 

Will  you  bear  with  me  for  five  minutes  while  I  speak  of  the 
comparison  as  it  was  then  upon  the  one  hand  of  facts  and  the 


480  cannon's  .speech. 

condition  to-day.  In  18G0  we  had  been  substantially  dominated  for 
inn ny  years  by  the  free-trade  party,  insignificant  in  manufactures, 
great  In  agriculture.  Under  our  policy,  which  has  been  followed, 
with  the  exception  of  four  years,  from  that  time  to  this  the  United 
Stat«  remains  first  in  agriculture,  but  by  leaps  and  bounds  has 
diversified  her  industries  until  to-day  we  are  the  greatest  manu- 
facturing country  on  God's  footstool.  One-third  of  all  the  world's 
products  that  come  from  the  factory  are  made  in  the  United  States 
by  the  operation  and  cooperation  of  American  capital  and  Ameri- 
can labor  and  skill.  Let  me  make  one  other  statement :  Our  prod- 
uct every  year  is  greater  than  the  entire  combined  manufactured 
product  of  Great  Britain,  of  Germany,  and  of  France.  Where  do 
we  get  .the  market  for  it?  Ninety-seven  per  cent  of  this  great 
product — one-third  the  world's  product — finds  a  market  among 
ourselves  in  the  United  States.  And  yet  of  this  product  last  year 
we  sold  to  foreign  countries — I  am  speaking  now  of  the  manufac- 
tured product — over  $400,000,000 — 29  per  cent  of  our  total  exports 
and  our  total  exports  made  and  make  us  the  'greatest  exporting 
nation  on  earth.     (Applause.) 

Made?  Made  by  labor?  Yes.  Made  by  labor  that  works  less 
hours  than  any  labor  on  earth.  Made  by  labor  that,  conservatively 
stated,  receives  one  dollar  and  three-quarters  as  against  the  aver- 
age of  the  competitive  labor  in  the  world  of  one  dollar.  (Ap- 
plause.) Oh,  gentlemen,  it  is  not  a  few  rich  men  that  make  mar- 
kets; nay,  nay.  It  is  the  multiplied  millions  on  the  farm,  in  the 
mine,  and  in  factory  that  work  to-day  and  consume  to-morrow, 
and  with  steady  employment  and  good  wage  give  us,  with  80,000,- 
000  people,  a  market  equal  to  200,000,000  of  consuming  people  "any- 
where else  on  earth.  The  farmer  buys  the  artisan's  product.  The 
artisan,  being  employed,  buys  the  farmer's  product.  The  wheels 
go  round.  You  cannot  strike  one  great  branch  of  labor  in  the 
Republic  without  the  blow  reacting  on  all  producers. 

Well,  are  you  satisfied  with  the  comparison  from  the  manu- 
facturing standpoint?  If  not,  let  me  give  you  another  illustration 
that  will  perhaps  go  home  to  the  minds  of  men  more  quickly  than 
the  illustration  I  have  given.  Take  the  Post-Office  Department 
that  reaches  all  of  the  people,  and  no  man  is  compelled  to  pay  one 
penny.  It  is  voluntary  taxation.  From  March,  1860,  the  year  that 
Lincoln  came  into  power,  to  March,  1861,  in  the  twelve  months 
the  total  revenue  of  the  Post-Office  Department  in  all  the  United 
States  was  $8,500,000.  Keep  that  in  your  minds— $8,500,000.  How 
much  do  you  suppose  it  cost  to  run  the  department?  Nineteen 
million.  It  took  all  the  revenue  and  as  much  more  and  one-quarter 
as  much  more  from  the  treasury  to  pay  for  that  postal  service. 
Why,  gentlemen,  the  city  post-office  of  Chicago  last  year  collected 
more  revenues  by  almost  $1,000,000  than  was  collected  by  the 
whole  department  in  the  United  States  in  1860.     (Applause.) 

How  is  it  now?  We  have  reduced  postage  over  one-half  since  1860 
on  the  average.  Last  year  the  postal  revenues  were  $134,000,000, 
as  against  $8,000,000  in  1860.  Keep  that  in  your  minds— $134,'- 
000,000.  Arid  the  whole  service  cost  only  $138,000,000.  We  had  a 
deficit  of  $4,000,000  (3  per  cent),  and  we  would  not  have  had  that 
deficit  had  it  not  been  that,  under  the  lead  of  the  Republican 
party,  looking  out  for  the  welfare  of  all  the  people  and  conducting 
the  government  from  a  business  standpoint,  under  the  lead  of  Mc- 
Kinley,  followed  by  Roosevelt,  there  was  established  rural  free 
delivery  that  cost  $10,000,000.  (Applause.)  Great  heaven!  The 
Republican  party  from  1860  until  this  moment  moves  on — does 
what  good,  common  sense  dictates,  and  the  country  grows  to  it. 

Protection  and  the  Democrats. 

Well,  now  I  will  drop  that  department.  The  Republican  is  a 
national  party  and  believes  in  diversification  of  our  industries  and 
the  protection  of  American  capital  and  American  labor  as  against 
the  cheaper  labor  elsewhere  on  earth.  (Applause.)  What  do  the 
other  people  believe  in?  For  sixty  years  went  out  the  cry  of  free 
trade  throughout  the  world,  free  ships  upon  the  sea;  on  other 
questions  a  tariff  for  revenue  only.  The  free-trade  party  has 
always  denounced  the  Republican  policy  of  protection  as  robbery, 
and  whenever  clothed  with  power,  whatever  its  pretenses,  it  has 
thrust  a  dagger  into  the  very  heart  of  protection. 

Oh,  well,  aren't  they  going  to  change?    Let  us  see.    Just  before 


cannon's  speech.  481 

the  close  of  the  last  Congress,  New  York's  eloquent  son,  Bourke 
Cockran,  now  a  member  of  the  House  of  Representatives,  got  the 
floor  and  he  preached  an  old-fashioned  Democratic  sermon,  free 
trade  and  all  that  kind  of  thing,  and  he  did  it  well ;  and  there  came 
from  the  minority  side  of  that  House  without  exception  such  cheer- 
ing and  crying  and  hurrahing  and  applauding  as  I  never  witnessed 
before  in  that  House  of  Representatives,  because  at  last  they  had 
the  pure  Democratic  faith  delivered  to  them. 

They  are  trying  to  do  what?  Trying  to  convince  the  people 
that  they  ought  to  come  into  power,  under  the  lead  of  Gorman  of 
the  Senate  and  Williams  of  the  House.  They  have  been  trying  to 
give  the  country  dovers'  powders.  (Laughter.)  "Oh,"  said  a  dis- 
tinguished colleague,  following  the  astute  Senator  Gorman,  "If  we 
come  into  power,  while  protection  is  robbery,  we  will  say  to  you 
that  we  will  journey  in  the  direction  of  free  trade,  but  we  will 
not  destroy  your  industries  over  night."  Great  God!  think  of  it! 
They  won't  kill  you  outright,  but  they  will  starve  you  to  death 
day  by  day.  (Laughter  and  applause.)  They  want  to  be  put  on 
guard  to  protect  the  people,  who  are  dwelling  in  peace  and  pros- 
perity under  a  Republican  policy.  It  reminds  of  the  fable  of 
Aesop.  You  know  he  records  in  one  of  his  fables  that  the  wolves 
said  to  the  sheep,  "Discharge  the  dogs" — :who  were  their  natural 
protectors — "and  employ  us,  and  we  will  take  care  of  you." 
(Laughter  and  applause.)  Does  the  capital  of  this  country  and 
the  labor  of  this  country  want  to  go  under  the  care  of  wolf  Gor- 
man and  wolf  Williams  and  their  fellows?    I  think  not. 

What  a  country  this  is !  and,  Republicans,  we  have  got  to  out- 
line the  policy  and  lead  the  people  in  caring  for  it.  Why,  we  are 
like  the  women ;  we  not  only  have  to  take  care  of  ourselves,  but 
more,  as  one  of  our  women  said,  we  have  to  take  care  of  the  men. 
(Laughter  and  applause.)  The  Republican  party  not  only  has  to 
care  for  itself,  but  has  to  care  for  the  minority  by  a  wise  policy. 
How  it  has  been  doing  it!  We  preserved  the  Union  under  the 
policy  and  leadership  of  this  party.  Do  you  recollect  that  the 
opposition  party,  on  a  demand  for  an  armistice  and  negotiation 
and  compromise,  nominated  McClellan  in  1864  and  moved  heaven 
and  earth  to  defeat  Lincoln?  Do  you  recollect  -hen  the  constitu- 
tional amendments  were  submitted  they  said  nay,  nay,  and  then, 
after  they  were  adopted,  the  Democrats  came  into  power  tempo- 
rarily in  Indiana  and  Ohio,  they  passed  acts  taking  back  the 
assent  of  the  states?  When  the  first  batti^  was  fought  against 
greenback  or  fiat  money,  back  in  the  '70s,  out  In  the  middle  West, 
whatever  they  were  on  the  Atlantic  coast,  they  were  fiatists  in 
the  West.  From  step  to  step  through  all  these  forty-four  years 
where,  if  you  measure  time  by  advance,  we  have  lived  two  cen- 
turies as  compared  with  any  other  period  of  the  world's  history, 
they  have  pulled  back,  pulled  back,  and  when  we  accomplish — and 
it  is  necessary  to  march  forward  and  try  to  accomplish  again — 
they  move  into  our  old  quarters  and  squat  down  there  and  make 
a  face  and  say,  "You  are  going  to  send  the  country  to  hell."  (Loud 
cheering  and  applause.) 

McKinley   and   Roosevelt. 

But  we  do  not  mind  it.  We  move  on.  (Applause.)  Why,  gen- 
tlemen, why  multiply  words  about  ancient  or  recent  conditions? 
Take  the  country  under  the  administration  of  Grover  Cleveland, 
and  compare  it  with  the  country  under  the  administration  of 
William  McKinley  and  under  Theodore  Roosevelt.  (Applause.) 
If  a  man  will  dwell  on  comparison  for  a  moment  and  make  a  fair 
comparison,  if  he  would  not  indorse  the  policies  of  the  Republican 
party  he  would  not  believe  one  though  he  were  raised  from  the 
dead.  (Laughter.)  McKinley'  Roosevelt!  the  Dingley  act  that 
restored  us  economic  prosperity!  the  gold  standard  act  that  set- 
tled for  all  time  the  matter  of  sound  currency!  the  short,  trium- 
phant war  with  Spain!  the  Philippines  and  Porto  Rico  coming 
under  our  flag,  and  freedom  to  Cuba  is  a  record  that  will  stand 
in  the  future  second  only  to  the  record  made  by  George  Washing- 
ton and  Abraham  Lincoln.     (Applause.) 

Imported  anarchy  struck  down  our  great  President  when  par- 
tisan strife  had  almost  ceased ;  the  world  paused  in  wonder  and  in 
indignation — not  in  fear,  because  as  life  went  from  our  great 
leader  and  our  great  President  there  was  a  young,  active,  honest, 
i 


482  cannon's  speech. 

courageous  man  standing  by  the  bedside  who,  under  the  Constitu- 
tion, was  his  successor,  and  he  there  said :  "I  am  to  be  President, 
to  carry  out  the  policies  of  the  Republican  party,  and  I  will  jour 
ney  in  the  footsteps  of  William  McKinley  and  of  Abraham  Lin- 
coln."    (Applause.) 

To  your  coming  President  great  things  have  happened  in  the 
last  three  years.  In  the  old  world  a  single  great  polity  in  a  gen- 
eration is  the  exception.  We  have  more  than  that  in  our  pro- 
gressive country.  I  have  given  you  the  great  achievements  under 
McKinley.  Under  his  great  successor  we  have  had  the  consum- 
mation of  freedom  to  Cuba,  wrought  out  by  superior  statesman- 
ship. Imperialism,  talked  about  under  McKinley,  has  disappeared 
with  growing  civil  government  and  peace  in  the  Philippines.  Aye, 
it  has  disappeared  from  the  face  of  the  earth.  Did  I  say  from  the 
face  of  the  earth?  I  will  stick  to  it,  because  the  doctrinaire  here 
and  the  doctrinaire  there,  whether  in  New  York  or  in  Boston, 
draws  his  toga  about  him,  saying,  "I  am  wiser  than  thou,"  and 
still,  after  this  great  question  is  settled  by  the  conscience  and  the 
intelligence  of  all  the  people,  cries,  "Wolf,  wolf !"  Well,  under  the 
Constitution  of  the  United  States  he  has  a  right  to.  (Laughter.) 
Let  them  ask  what  is  going  to  become  of  the  Philippines?  At 
last  we  have  peace,  at  last  we  have  growing  civil  government,  and 
as  our  80,000,000  in  this  twentieth  century  shall  increase  to  250,- 
000,000,  as  we  shall  go  out  with  production  and  commerce,  in  the 
fullness  of  time,  that  territory  will  be  useful  to  the  United  States, 
whereas  in  the  meantime  we  will  be  like  a  benediction  to  them. 
(Applause.) 

The  United  States  is  great  in  production  and  wealth.  How 
great  in  wealth?  In  1850  $300  in  round  numbers  was  the  per 
capita  wealth.  In  1000  $1,235  was  the  per  capita  wealth.  In  1800 
the  wealth  was  measured  by  $10,000,000,000;  in  1000,  $04,000,- 
000,000;  now  a  hundred  billions.  Great  Brifaih  only  has  an  aggre- 
gate of  wealth  of  $00,000,000,000,  and  she  has  been  HviHg  and 
gathering  it  for  the  last  500  years,  yet  in  a  generation  we  sprang 
from  $10,000,000,000  to  $100,000,000,000.  The  world's  wealth  is 
$400,000,000,000.    The  United  States  has  one-fourth  of  it. 

The   Trusts. 

But  our  friends,  the  enemy,  some  of  them  little  politicians,  vex 
the  air,  crying  "trusts,  trusts,  trusts !"  Oh,  they  come  out  strong 
with  good  lungs  as  trust-busters.  Since  1800  have  they  ever  done 
any  busting?  (Laughter.)  Oh,  no.  There  is  no  Jericho  now,  and 
if  there  was  it  would  never  happen  again  that  people  would  march 
about  the  walls  blowing  rams'  horns  seven  times  until  the  walls 
fell  down.  That  is  what  the  Democrats  are  trying  to  do.  Trusts? 
Yes.  Great  combinations  of  capital  against  public  policy?  Yes. 
But  the  Republican  party,  always  true  to  the  people  arid  its  tradi- 
tions, made  haste  to  provide  under  the  Constitution  legislation 
that  would  prohibit  these  combinations.  The  "do  something" 
party !  It  slept  under  Cleveland.  McKinley  had  the  war  with 
Spain  and  the  restoration  of  prosperity,  but  that  young,  enthusias- 
tic, true  man  took  an  oath  to  see  to  it  that  the  laws  were  exe- 
cuted and  has  executed  them.  And  in  his  opinion  trusts  are  un- 
lawful and  should  be  dissolved.  That  is  the  difference  between 
the  Democrats  and  Roosevelt.  One  bursts  by  wind,  the  other 
bursts  by  law.     (Laughter  and  applause.) 

There  is  no  country  on  earth  that  has  so  much  wealth  as  ours. 
Why,  interest  rates  are  cheapening  and  cheapening,  until  to-day 
the  credit  of  the  United  States  commands  money  at  a  permium  at 
2  per  cent,  which  is  1  per  cent  lower  than  any  nation  on  earth 
can  command  it. 

Foreign  combinations?  But  all  the  while  these  great  wealth- 
seeking  individuals,  desiring  favorable  investments  month  by 
month  and  year  by  year,  enterprising  citizens  desiring  gain,  found 
additional  industries.  Take  the  census  of  1000.  The  figures  are 
correctly  tabulated  and  made  according  to  the  facts,  and  the 
census  of  1000  shows  that  from  the  establishments  of  the  so-called 
trusts  in  the  United  States  only  14  per  cent  of  the  factory  product 
came,  whereas  80  per  cent  of  the  factory  product  came  from  their 
competitor  individuals  and  small  ownerships. 

And  it  is  bound  to  be  that  way  if  yon  will  stop  and  think. 
There  are  80,000,000  of  our  people.     If  some  man  conceives  the 


cannon's  speech.  483 

Idea  that  when  he  dies  wisdom  will  have  departed,  and  that  he  can 
corner  the  air  and  the  water  and  the  sunlight,  he  will  And  80,000,- 
000  of  people  who  make  our  civilization  that  will  not  only  make 
a  law  and  put  it  into  force,  but  by  competition  and  enterprise  will 
swear  that  the  admitted  declaration  of  the  enemy  is  a  falsehood. 
Can  you  prove  it?  Yes.  Just  a  minute.  In  the  last  two  years  the 
wind  and  the  water  that  came  from  overcapitalization  in  forming 
the  so-called  trusts  have  been  squeezed  out,  and  there  are  people 
who  make  "mouth  bets"  about  the  price  of  watered  companies  and 
companies  that  have  gas  on  top  of  the  water,  made  by  the  print- 
ing-press certificates.  .  Oh,  they  stand  around  and  say,  "Why,  these 
is  the  most  extraordinary  shrinkage  in  values  that  was  ever 
known."  "How  much?"  "Oh,  a  good  many  hundreds  of  millions; 
the  Wall  Street  Journal  says  over  a  billion,  600  million."  (Laugh- 
ter and  applause.) 

And  yet  every  dollar  of  property,  every  particle  of  property 
that  was  represented  by  this  overcapitalization  two  years  ago  is 
yet  with  us.  (Laughter  and  applause.)  Now,  all  the  fools  that 
bet  it  to  go  down  and  the  fools  that  bet  it  to  go  up  can  fight  it 
out.  It  doesn't  make  one  particle  of  difference  to  the  80  millions 
of  people  who  live  on  the  sweat  of  their  faces  and  do  a  legitimate 
business.  (Applause.)  Oh,  gentlemen,  the  law,  public  opinion, 
public  sentiment,  the  desire  for  good  investments,  dollar  for  dol- 
lar in  the  factory  where  a  dollar  costs  100  cents,  goes  into  compe- 
tition against  the  factory  that  costs  %  hundred  cents  and  is  bur- 
dened with  another  hundred  cents  common  and  another  hundred 
cents  gas  and  another  hundred  cents  moonshine.  Work  it  out. 
It  is  all  right.     (Laughter  and  applause.) 

Strikes. 

"Oh,  but,"  says  our  enemy,  "my  goodness,  look  at  the  strikes 
you  are  having  in  this  country!"  That  is  their  strong  suit — 
strikes!  Strikes!  (Laughter  and  applause.)  Now,  what  is  a 
strike?  The  strike  is  an  effort  by  the  employer  and  the  employee 
to  agree  how  the  profit  should  be  divided.  If  the  employee  doesn't 
get  as  much  as  he  thinks  he  ought  to  get  after  arbitration  has 
been  tried,  he  strikes.  A  quarrel  about  something.  The  division 
of  something.  Well,  then,  it  is  absolutely  necessary  to  have  a 
strike  that  there  should  be  a  profit.  Great  God !  how  many  strikes 
were  there  under  Cleveland,  when  the  Democrats  had  the  running 
of  things?  (Laughter  and  applause.)  When  money  became  scarce 
the  profits  were  scarce.    There  is  the  whole  story. 

Oh,  but  outrageous  things  are  done  by  the  employer  when  he 
oppresses  the  laborer,  and  outrageous  things  are  done  by  some 
laborers  when  they  go  on  a  strike.  Yes,  outrageous  things  are 
done  in  some  of  our  best-governed  churches  and  amongst  those 
who  do  not  belong  to  any  church.  Once  in  a  while  a  citizen  com- 
mits larceny.  Once  in  a  while  a  man  commits  arson.  Once  in  a 
while  a  man  is  guflty  of  homicide.  Why,  the  law  is  made  to  pro- 
tect society  against  the  man  whfS  will  not  obey  the  law  and  who 
makes  war  on  his  neighbors.  Yes,  there  is  lawbreaking  and  dis- 
order— lawbreaking  in  the  formation  of  trusts,  lawbreaking  at 
times  in  the  organization  of  labor  when  it  goes  on  strike.  But  the 
great  body  of  the  American  people  that  own  the  wealth  are  not 
for  the  trusts,  and  the  great  body  of  labor,  honest  men  who  live  by 
the  sweat  of  their  faces,  are  not  for  lawbreaking  in  the  strikes. 
(Applause.)  The  law,  the  sheet  anchor  of  civilization,  is  strong 
enough  to  pull  down  the  strongest,  strong  enough  to  curb  the 
wicked  and  the  vicious,  strong  enough,  like  the  grace  of  God,  to 
throw  its  arms  about  the  weak  and  the  poorest  and  bring  him 
under  its  protection.  (Applause.)  All  must  obey  under  Theodore 
Roosevelt  as  the  national  representative  of  the  law.  (Applause.) 
lie  is  and  wiH  continue  to  be,  without  favor  or  affection,  the  rep- 
resentative of  law,  supreme  and  universal  in  our  borders. 

Party    Should    Have    Full    Poyver. 

A  few  words  more,  and  I  will  conclude.  Our  Government  is 
of  the  people.  It  is  divided  into  co-ordinate  branches.  The  judges 
of  the  United  States  courts,  who  hold  office  for  life  or  during 
good  behavior;  the  Executive;  the  Congress,  which  consists  of 
two  co-ordinate  branches — the  House  and  the  Senate — great  legis- 


484  cannon's  speech. 

lative  bodies;  they  could  not  be  otherwise,  born  as  they  are  of 
80,000,000  of  people  who  are  competent  for  self-government. 
(Applause.)  In  the  Senate  the  tenure  is  for  six  years.  The  great 
popular  body,  near  to  the  people,  that  reflects  the  sentiment  of 
the  people,  is  chosen  every  two  years.  Now,  then,  you  know, 
under  our  form  of  government,  the  party  in  power  is  held 
responsible.  The  function  of  the  minority  is  to  put  it  on  good 
behavior  by  being  ever  ready  to  appeal  to  the  people. 

Let  me  tell  you  something.  If  our  •government  has  a  fault, 
it  is,  after  an  election  one  party  is  placed  in  power — only  one 
leg.  It  may  have  the  Senate.  It  may  have  the  Presidency.  It 
may  have  the  House.  It  goes  along  on  crutches.  Yet  you  want 
to  hold  it  responsible  for  public  sentiment.  If  I  had  the  power 
I  would  so  change  our  constitution  that  at  every  quadrennial 
election  the  party  that  received  the  popular  approval  should  go 
fully  into  power  and  let  the  public  have  a  government 
according  to  the  sentiment  expressed  at  the  ballot-box. 
(Applause.)  But  we  have  not  got  it  arranged  quite  that  way. 
What  is  the  next  best  thing?  You  like  Theodore  Roosevelt?  Yes. 
Stronger  than  his  party,  he  will  be  triumphantly  elected.  Do 
you  like  the  Senate  of  the  United  States?  Yes.  Its  condition 
cannot  be  changed  in  November.  It  could  be  changed  at  the  end 
of  four  years,  electing  a  third  every  two  years.  You  like  the 
electoral  colleges  of  the  great  political  party,  386  strong,  coming 
with  the  warrants  of  attorney  from  the  people  to  cast  their 
votes  for  your  candidates,  if  you  approve  of  them,  if  you  approve 
of  the  Republican  policies.  You  are  short-sighted  if  you  refuse 
a  working  majority  in  the  House  of  Representatives,  because  you 
cannot  keep  a  Republican  House  without  it. 

I  am  done.  I  have  already  detained  you  longer  than  I 
expected.  In  conclusion,  let  me  again  say  that  we  are  proud  of 
the  president,  we  are  proud  of  the  future.  The  20th  century  is 
to  bring  more  of  good  or  evil  to  the  human  race  than  the  19th 
century  brought.  Under  what  party  banner  will  you  enlist? 
Under  that  of  the  re-actionist?  Under  that  of  the  people  who  sit 
still  or  tear  down?  Or  will  you  take  service  with  the  party  of 
Lincoln  and  Grant  and  Garfield  and  Harrison  and  McKinley  and 
Roosevelt?   (cheers  and  applause)  and  help  us  march  on  to  victory. 

Speaking  to  the  living  in  the  presence  of  the  dead,  we  have 
tears  for  them  and  admiration  for  the  great  things  that  they 
accomplished,  but  the  glory  of  our  race,  of  our  civilization,  is 
that  each  generation  works  out  its  own  salvation  and  marches 
forward  to  success  and  the  betterment  of  the  condition  of  man- 
kind, and,  as  they  drop  into  the  grave,  their  successors  move  on 
to  the  stage  of  action,  holding  fast  all  that  the  past  has  given 
us  and  going  in  turn  a  generation's  march  further  on  for  the 
benefit  of  the  race  and  of  civilization.     (Applause.) 


So  long  as  the  Republican  party  Is  In  power  the  sold  standard 
Is   settled.— From  President  Roosevelt's  speech  of  acceptance. 

The  American  people  hold  the  financial  honor  of  our  Govern- 
ment as  sacred  as  our  flag,  and  can  be  relied  upon  to  guard  It  with 
the  same  sleepless  vigilance. — Maj.  McKinley  to  the  Notification 
Committee,   1896. 

So  long  as  the  Republican  party  is  in  power  the  gold  standard 
Is  settled,  not  as  a  matter  of  temporary  political  expediency,  not 
because  of  shifting  conditions  in  the  production  of  gold  in  certain 
mining  centers,  but  in  accordance  with  what  we  regard  as  tbe 
fundamental  principles  of  national  morality  and  wisdom. — Presi- 
dent Roosevelt's  speech  accepting  1904  nomination. 

Above  all»  the  administration  of  the  government^  the  enforce- 
ment of  the  laws,  must  be  fair  and  honest.  The  laws  are  not  to 
be  administered  either  in  the  interest  of  the  poor  man  or  the  in- 
terest of  the  rich  man.  They  are  simply  to  be  administered  justly 
—In  the  Interest  of  justice  to  each  man,  be  he  rich  or  be  he  poor — 
giving  immnnity  to  no  violator,  -whatever  form  tbe  violation  may 
assume.  Such  Is  the  obligation  which  every  public  servant  takes, 
and  to  it  he  must  be  true  under  penalty  of  forfeiting  the  respect 
both  of  himself  and  of  his  fellows. — President  Roosevelt  at  Charles- 
ton, S.  C,  April  9,  1902. 

• 


PLATFOBM  OF  THE  REPUBLICAN  PABTY.  485 


PLATFORM   OF   THE    REPUBLICAN 
PARTY,   1904. 


Adopted  by  National  Convention  at  Chicago  June  22,  1904. 

Fifty  years  ago  the  Republican  party  came  into  existence 
dedicated  among  other  purposes  to  the  great  task  of  arresting 
the  extension  of  human  slavery.  In  1860  it  elected  its  first  Presi- 
dent. During  24  of  the  44  years  which  have  elapsed  since  the 
election  of  Lincoln  the  Republican  party  has  held  complete  con- 
trol of  the  government.  For  18  more  of  the  44  ^ears  it  has  held 
partial  control  through  the  possession  of  one  or  two  branches  of 
the  government,  while  the  Democratic  party  uuring  the  same 
period  has  had  complete  control  for  only  two  years.  This  long 
tenure  of  power  by  the  Republican  party  is  not  due  to  chance. 
It  is  a  demonstration  that  the  Republican  party  has  commanded 
the  confidence  of  the  American  people  for  nearly  two  generations 
to  a  degree  never  equaled  in  our  history,  and  has  displayed  a 
high  capacity  for  rule  and  government  which  has  been  made  even 
more  conspicuous  by  the  incapacity  and  infirmity  of  purpose 
shown  by  its  opponents. 

Conditions  In  1807. 

The  Republican  party  entered  upon  its  present  period  of  com- 
plete supremacy  in  1897.  We  have  every  right  to  congratulate 
ourselves  upon  the  work  since  then  accomplished,  for  it  has  added 
luster  even  to  the  traditions  of  the  party  which  carried  the 
government  through  the,  storms  of  civil  war. 

We  then  found  the  country  after  four  years  of  Democratic 
rule  in  evil  plight,  oppressed  with  misfortune  and  doubtful 
of  the  future.  Public  credit  had  been  lowered,  the  revenues  were 
declining,  the  debt  was  growing,  the  administration's  attitude 
toward  Spain  was  feeble  and  mortifying,  the  standard  of  values 
was  threatened  and  uncertain,  labor  was  unemployed,  business 
was  sunk  in  the  depression  which  had  succeeded  the  panic  of 
1893,  hope  was  faint  and  confidence  was  gone. 

We  met  these  unhappy  conditions  vigorously,  effectively,  and 
at  once. 

The  Tariff  Law. 

We  replaced  a  Democratic  tariff  law  based  on  free  trade  prin- 
ciples and  garnished  with  sectional  protection  by  a  consistent 
protective  tariff,  and  industry,  freed  from  oppression  and  stimu- 
lated by  the  encouragement  of  wise  laws;  has  expanded  to  a 
degree  never  before  known,  has  conquered  new  markets,  and  has 
created  a  volume  of  exports  which  has  surpassed  imagination. 
Under  tbe  Dingley  tariff  labor  has  been  fully  employed,  wages 
have  risen,  and  all  industries  have  revived  and  prospered. 

We  firmly  established  the  gold  standard  which  was  then  men- 
aced with  destruction.  Confidence  returned  to  business,  and  with 
confidence  an  unexampled  prosperity. 

Revenues. 

For  deficient  revenues,  supplemented  by  improvident  Issues  of 
bonds,  we  gave  the  country  an  income  which  produced  a  large 
surplus  and  which  enabled  us  only  four  years  after  the  Spanish 
war  had  closed  to  remove  over  $100,000,000  of  annual  war  taxes, 
reduce  the  public  debt,  and  lower  the  interest  charges  of  the 
government. 

The   Public   Credit   Restored. 

The  public  credit,  which  had  boon  so  lowered  that  in  time  of 
pence  a  Democratic  administration  made  large  loans  at  extrava- 
gant rates  of  interest  in  order  to  pay  current  expenditures,  rose 
under  Republican  administration  to  its  highest  point  and  enabled 
us  to  borrow  at  2  per  cent  even  in  time  of  war. 

Cuba. 

We  refused  to  palter  longer  with  the  miseries  of  Cuba.  We 
fought  a  quick  and  victorious  war  with  Spain.  We  set  Cuba 
free,  governed  the  island  for  three  years,  and  then  gave  it  to  the 


486  PLATFORM  OF  THE  REPUBLICAN  PARTY. 

Cuban  people  with  order  restored,  with  ample  revenues,  with  edu- 
cation and  public  health  established,  free  from  debt,  and  con- 
nected with  the  United  States  by  wise  provisions;  for  our  mutual 
interests. 

Porto  Rico* 

We  have  organized  the  government  of  Porto  Rico„  and  Its 
people  now  enjoy  peace,  freedom,  order,  and  prosperity. 

The  Philippines. 

In  the  Philippines  we  have  suppressed  insurrection,  established 
order,  and  given  to  life  and  property  a  security  never  known 
there  before.  We  have  organized  civil  government,  made  it  ef- 
fective and  strong  in  administration,  and  have  conferred  upon  the 
people  of  those  islands  the  largest  civil  liberty  they  have  ever 
enjoyed. 

By  our  possession  of  the  Philippines  we  were  enabled  to  take 
prompt  and  effective  action  in  the  relief  of  the  legations  at  Peking 
and  a  decisive  part  In  preventing  the  partition  and  preserving  the 
integrity  of  China. 

The  Isthmian  Canal. 

The  possession  of  a  route  for  an  isthmian  canal,  so  long  the 
dream  of  American  statesmanship,  is  now  an  accomplished  fact. 
The  great  work  of  connecting  the  Pacific  and  Atlantic  by  a 
canal  is  at  last  begun,  and  It  is  due  to  the  Republican  party. 

The  Arid  Lands. 

We  have  passed  the  laws  which  will  bring  the  arid  lands 
of  the  United  States  within  the  area  of  cultivation. 

The  Army  and  Nary. 

We  have  reorganized  the  army  and  put  it  In  the  highest  state 
of  efficiency. 

We  have  passed  laws  for  the  improvement  and  support  of 
the  militia. 

We  have  pushed  forward  the  building  of  the  navy,  the  defense 
and  protection  of  our  honor  and  our  interests. 

Our  administration  of  the  great  departments  of  the  govern- 
ment has  been  honest  and  efficient,  and  wherever  wrongdoing  has 
been  discovered  the  Republican  -administration  has  not  hesitated 
to  probe  the  evil  and  bring  offenders  to  justice  without  regard 
to  party  or  political  ties. 

The  Great  Corporations. 

Laws  enacted  by  the  Republican  party  which  the  Democratic 
party  failed  to  enforce  and  which  were  intended  for  the  protection 
of  the  public  against  the  unjust  discrimination  or  the  illegal  en- 
croachment of  vast  aggregations  of  capital,  have  been  fearlessly 
enforced  by  a  Republican  President  and  new  laws  insuring  rea- 
sonable publicity  as  to  the  operations  of  great  corporations,  and 
providing  additional  remedies  for  the  prevention  of  discrimina- 
tion in  freight  rates,  have  been  passed  by  a  Republican  Congress. 
In  this  record  of  achievement  during  the  past  eight  years  may 
be  read  the  pledges  which  the  Republican  party  has  fulfilled. 
We  promise  to  continue  these  policies,  and  we  declare  our  con- 
stant adherance  to  the  following  principles : 

Protection  to  American  Industries. 
Protection  which  guards  and  develops  our  industries,  is  a 
cardinal  policy  of  the  Republican  party.  The  measure  of  protec- 
tion should  always  at  least  equal  the  difference  in  the  cost  of 
production  at  home  and  abroad.  We  insist  upon  the  maintenance 
of  the  principle  of  protection,  and,  therefore,  rates  of  duty  should 
be  readjusted  only  when  conditions  have  so  changed  that  the 
public  interest  demands  their  alteration,  but  this  work  cannot 
safely  be  committed  to  any  other  hands  than  those  of  the  Re- 
publican party.  To  intrust  it  to  the  Democratic  party  is  to  invite 
disaster.  Whether,  as  in  1892,  the  Democratic  party  declares 
the  protective  tariff  unconstitutional,  or  whether  it  demands 
tariff  reform  or  tariff  revision,  its  real  object  is  always  the  de- 
struction of  the  protective  system.  However  specious  the  name 
the  purpose  is  ever  the  same.  A  Democratic  tariff  has  always 
been  followed  by  business  adversity ;  a  Republican  tariff  by  busi- 
ness prosperity.     To  a   Republican   Congress   and  a  Republican 


PLATFORM  OF  THE  REPUBLICAN  PARTY.  487 

President  this  great  question  can  be  safely  intrusted.  When  the 
only  free  trade  country  among  the  great  nations  agitates  a  re- 
turn to  protection  the  chief  protective  country  should  not  falter 
in  maintaining  it 

Foreign  Markets  Extended. 

We  have  extended  widely  our  foreign  markets,  and  we  believe 
in  the  adoption  of  all  practicable  methods  for  their  further  ex- 
tension, including  commercial  reciprocity  wherever  reciprocal  ar- 
rangements can  be  eifected  consistent  with  the  principles  of  pro- 
tection and  without  injury  to  American  agriculture,  American 
labor,  or  any  American  industry. 

The   Gold   Standard. 

We  believe  it  to  be  the  duty  of  the  Republican  party  to  uphold 
the  gold  standard  and  the  integrity  and  value  of  our  national 
currency.  The  maintenance  of  the  gold  standard,  established  by 
the  Republican  party,  cannot  safely  be  committed  to  the  Demo- 
cratic party,  which  resisted  its  adoption  and  has  never  given  any 
iproof  since  that  time  of  belief  in  it  or  fidelity  to  it. 

American  Shipping;. 

While  every  other  industry  has  prospered  under  the  fostering 
aid  of  Republican  legislation,  American  shipping  engaged  in  for^ 
eign  trade  in  competition  with  the  low  cost  of  construction,  low 
wages,  and  heavy  subsidies  of  foreign  governments,  has  not  for 
many  years  received  from  the  government  of  the  United  States 
adequate  encouragement  of  any  kind.  We  therefore  favor  leg- 
islation which  will  encourage  and  build  up  the  American  mer- 
chant marine,  and  we  cordially  approve  the  legislation  of  the  last 
Congress  which  created  the  Merchant  Marine  Commission  to  in- 
vestigate and  report  upon  this  subject. 

A  navy  powerful  enough  to  defend  the  United  States  against 
any  attack,  to  uphold  the  Monroe  doctrine,  and  watch  over  our 
commerce,  is  essential  for  the  safety  and  the  welfare  of  the 
American  people.  To  maintain  such  a  navy  is  the  fixed  policy  of 
the  Republican  party.  *" 

Chinese  Labor. 

We  cordially  approve  the  attitude  of  President  Roosevelt  and 
Congress  in  regard  to  the  exclusion  of  Chinese  labor,  and  pBomise 
a  continuance  of  the  Republican  policy  in  that  direction. 

Civil    Service. 

The  civil-service  law  was  placed  on  the  statute  books  by  the 
Republican  party,  which  has  always  sustained  it,  and  we  renew 
©ur  former  declarations  that  it  shall  be  thoroughly  and  honestly 
^enforced. 

The  Soldiers  and   Sailors. 

We  are  always  mindful  of  the  country's  debt  to  the  soldiers 
and  sailors  of  the  United  States,  and  we  believe  in  making  ample 
provision  for  them  and  in  the  liberal  administration  of  the  pen- 
sion laws. 

Arbitration. 

We  favor  the  peaceful  settlement  of  international  differences 
hy  Arbitration. 

Protection  of  Citizens  Abroad. 

We  commend  the  vigorous  efforts  made  by  the  administration 
to  protect  American  citizens  in  foreign  lands,  and  pledge  our- 
selves to  insist  upon  the  just  and  equal  protection  of  all  our 
citizens  abroad.  It  is  the  unquestioned  duty  of  the  government 
to  procure  for  all  our  citizens,  without  distinction,  the  rights  of 
travel  and  sojourn  in  friendly  countries,  and  we  declare  ourselves 
in  favor  of  all  proper  efforts  tending  to  that  end. 

The  Orient. 

Our  great  interests  and  our  growing  commerce  in  the  Orient 
render  the  condition  of  China  of  high  importance  to  the  United 
States.  We,  cordially  commend  the  policy  pursued  in  that  direc- 
tion by  the  administrations  of  President  McKinley  and  Presi- 
dent Roosevelt. 

The  Elective  Franchise. 

We  favor  such  Congressional  action  as  shall  determine  whether 
by  special  discriminations  the  elective  franchise  in  any  State  has 


488  PLATFORM  OF  THE  REPUBLICAN  PARTY. 

been  unconstitutionally  limited,  and\  if  such  Is  the  case,  we  de- 
maud  that  representation  In  Congress  and  in  the  electoral  col- 
leges shall  be  proportionally  reduced  as  directed  by  the  Consti- 
tution of  the  United  States. 

Combinations  of  Capital  and  of  Labor. 
I  Combinations  of  capital  and  of  labor  are  the  results  of  the 
economic  movement  of  the  age,  but  neither  must  be  permitted  to 
infringe  upon  the  rights  and  interests  of  the  people.  Such  com- 
binations, when  lawfully  formed  for  lawful  purposes,  are  alike 
entitled  to  the  protection  of  the  laws,  but  both  are  subject  to 
the  laws  and  neither  can  be  permitted  to  break  them. 

Our  Lamented  President. 

The  great  statesman  and  patriotic  American,  William  Mc- 
Kinley,  who  was  re-elected  by  the  Republican  party  to  tbc  Presi- 
dency four  years  ago,  was  assassinated  just  at  the  threshold  of 
his  second  term.  The  entire  nation  mourned  his  untimely  death 
and  did  that  justice  to  his  great  qualities  of  mind  and  character 
which  history  will  confirm  and  repeat. 

President  Roosevelt. 

The  American  people  were  fortunate  in  his  successor,  to  whom 
they  turned  with  a  trust  and  confidence  which  have  been  fully 
justified.  President  Roosevelt  brought  to  the  great  responsibilities 
thus  sadly  forced  upon  him  a  clear  head,  a  brave  heart,  an 
earnest  patriotism,  and  high  ideals  of  public  duty  and  public  ser- 
vice. True  to  the  principles  of  the  Republican  party  and  to  the 
policies  which  that  party  had  declared,  he  has  also  shown  him- 
self ready  for  every  emergency  and  has  met  new  and  vital  ques- 
tions with  ability  and  with  success. 

The  confidence  of  the  people  in  his  justice,  inspired  by  his 
public  career,  enabled  him  to  render  personally  an  inestimable 
service  to  the  country  by  bringing  about  a  settlement  of  the  coal 
strike,  which  threatened  such  disastrous  results  at  the  opening 
of  winter  in  1902. 

Our  foreign  policy  under  his  adminstration  has  not  only  been 
able,  vigorous,  and  dignified,  but  in  the  highest  degree  successful. 

The  complicated  questions  which  arose  in  Venezuela  were 
settled  in  such  a  way  by  President  Roosevelt  that  the  Monroe 
doctrine  was  signally  vindicated  and  the  cause  of  peace  and  ar- 
bitration greatly  advanced. 

His  prompt  and  vigorous  action  in  Panama,  which  we  commend 
in  the  highest  terms,  not  only  secured  to  us  the  canal  route,  but 
avoided  foreign  complications  which  might  have  been  of  a  very 
serious  character. 

He  has  continued  the  policy  of  President  McKinley  in  the 
Orient,  and  our  position  in  China,  signalized  by  our  recent  com- 
mercial treaty  with  that  empire,  has  never  been  so  high. 

He  secured  the  tribunal  by  which  the  vexed  and  perilous 
question  of  the  Alaskan  boundary  was  finally  settled. 

Whenever  crimes  against  humanity  have  been  perpetrated 
which  have  shocked  our  people,  his  protest  has  been  made,  and 
our  good  offices  have  been  tendered,  but  always  with  due  regard  to 
international  obligations. 

Under  his  guidance  we  find  ourselves  at  peace  with  all  the 
world,  and  never  were  we  more  respected  or  our  wishes  more  re- 
garded by  foreign  nations. 

Pre-eminently  successful  in  regard  to  our  foreign  relations,  he 
has  been  equally  fortunate  in  dealing  with  domestic  questions. 
The  country  has  known  that  the  public  credit  and  the  national 
currency  were  absolutely  safe  in  the  hands  of  his  administration. 
In  the  enforcement  of  the  laws  he  has  shown  not  only  courage, 
but  the  wisdom  which  understands  that  to  permit  laws  to  be 
violated  or  disregarded  opens  the  door  to  anarchy,  while  the  just 
enforcement  of  the  law  is  the  soundest  conservatism.  He  has 
held  firmly  to  the  fundamental  American  doctrine  that  all  men 
must,  obey  the  law;  that  there  must  be  no  distinction  between 
rich  and  poor,  between  strong  and  weak,  but  that  justice  and 
equal  protection  under  the  law  must  be  secured  to  every  citizen 
without  regard  to  race,  creed,  or  condition. 

His  administration  has  been  throughout  vigorous  and  honor- 
able, high-minded  and  patriotic. .  We  commend  it  without  reser-. 
vation  to  the  considerate  judgment  of  the  American  people. 


PLATFORM    OF    THE   DEMOCRATIC    PARTY.  489 


PLATFORM  OF  THE  DEMOCRATIC  PARTY 

1904. 

The  Democratic  party  of  the  United  States,  in  national  conven- 
tion assembled,  declares  its  devotion  to  the  essential  principles  of 
the  Democratic  faith  which  bring  us  together  in  party  com- 
munion. 

Under  these  principles,  local  self-government  and  national  unity 
and  prosperity  were  alike  established.  They  underlaid  our  inde- 
pendence, the  structure  of  our  free  republic,  and  every  Democratic 
expansion  from  Louisiana  to  California,  and  Texas  to  Oregon, 
which  preserved  faithfully  in  all  the  States  the  tie  between  taxa- 
tion and  representation.  They  yet  inspirit  the  masses  of  our  peo- 
ple, guarding  jealously  their  rights  and  liberties,  and  cherishing 
their  fraternity,  peace,  and  orderly  development.  They  remind 
us  of  our  duties  and  responsibilities  as  citizens,  and  impress  upon 
us,  particularly  at  this  time,  the  necessity  of  reform  and  the  res- 
cue of  the  administration  of  government  from  the  headstrong, 
arbitrary,  and  spasmodic  methods  which  distract  business  by  un- 
certainty, and  pervade  the  public  mind  with  dread,  distrust,  and 
perturbation. 

Fundamental  Principles. 

The  application  of  these  fundamental  principles  to  the  living 
issues  of  the  day  constitutes  the  first  step  toward  the  assured  peace, 
safety,  and  progress  of  our  nation.  Freedom  of  the  press,  of  con- 
science, and  of  speech  ;  equality  before  the  law  of  all  citizens  ;  right 
of  trial  by  jury ;  freedom  of  the  person  defended  by  the  writ  of 
habeas  corpus ;  liberty  of  personal  contract  untrammeled  by  sumpt- 
uary laws ;  supremacy  of  the  civil  over  military  authority ;  a  well 
disciplined  militia ;  the  separation  of  church  and  state ;  economy 
in  expenditures ;  low  taxes,  that  labor  may  be  lightly  burdened ; 
prompt  and  sacred  fulfillment  of  public  and  private  obligations; 
fidelity  to  treaties;  peace  and  friendship  with  all  nations;  en- 
tangling alliances  with  none;  absolute  acquiescence  in  the  will  of 
the  majority,  the  vital  principle  of  republics— these  are  doctrines 
which  Democracy  has  established  as  proverbs  of  the  nation,  and 
they  should.be  constantly  invoked  and  enforced. 
Economy  of  Administration. 

Large  reductions  can  easily  be  made  in  the  annual  expendi- 
tures of  the  government  without  impairing  the  efficiency  of 
any  branch  of  the  public  service,  and  we  shall  insist  upon  the 
strictest  economy  and  frugality  compatible  with  vigorous  and 
efficient  civil,  military,  and  naval  administration  as  a  right  of  the 
people  too  clear  to  be  denied  or  withheld. 

Honesty  in  the  Public  Service. 

We  favor  the  enforcement  of  honesty  in  the  public  service, 
and  to  that  end  a  thorough  legislative  investigation  of  those 
executive  departments  of  the  government  already  known  to  teem 
with  corruption,  as  well  as  other  departments  suspected  of  har- 
boring corruption,  and  the  punishment  of  ascertained  corruption- 
ists  without  fear  or  favor  or  regard  to  persons.  The  persistent 
and  deliberate  refusal  of  both  the  Senate  and  House  of  Repre- 
sentatives to  permit  such  investigation  to  be  made  demonstrates 
that  only  by  a  change  in  the  executive  and  in  the  legislative  de- 
partments can  complete  exposure,  punishment,  and  correction  be 
obtained. 

Federal   Government   Contract   with   Trusts. 

We  condemn  the  action  of  the  Republican  party  in  Congress  in 
refusing  to  prohibit  an  executive  department  from  entering  into 
contracts  with  convicted  trusts  or  unlawful  combinations  in  re- 
straint of  interstate  trade.  We  believe  that  one  of  the  best 
methods  of  procuring  economy  and  honesty  in  the  public  service 
is  to  have  public  officials,  from  the  occupant  of  the  White  House 
down  to  the  lowest  of  them,  returned  as  nearly  as  may  be,  to 
Jeffersonian  simplicity  of  living. 

Executive   Usurpation. 

We  favor  the  nomination  and  election  of  a  President  im- 
bued with  the  principles  of  the  Constitution  who  will  set  his 


490  PLATINUM   or   i  in:  m:mocuatic  pakty. 

face  sternly  against  Executive  usurpation  of  legislative  and  judi- 
cial functions,  whether  thai  usurpation  be  veiled  under  the  guise 
of  Executive  construction  of  existing  taws,  <>r  whether  it  take 
refuge  in  the  tyrant's  picas  of  necessity,  or  superior  wisdom. 

Imperialism. 

Wo  favor  the  preservation,  so  far  as  we  can,  of  an  open  door 
lor  the  world's  commerce  in  the  Orient,  without  an  unnecessary 
entanglement  in  Oriental  and  European  affairs  and  without  arbi- 
trary, unlimited,  irresponsible,  and  absolute  government  any- 
where within   our  jurisdiction.       We  oppose,   as   fervently  as  did 

George    Washington,    an    indefinite)    Irresponsible,    discretionary 

and  vague  ahsolutisin  and  a  policy  of  colonial  exploitation,  no 
matter  where  or  by  whom  invoked  or  exercised;  we  believe  with 
Thomas  .Jefferson  and  John  Adams,  that  no  government  has  a 
right  to  make  one  set  of  laws  for  those  "at  home,"  and  another 
and  a  different  set  of  laws,  absolute  in  their  character,  for  those 
"ill  the  colonies."  All  men  under  the  American  flag  are  entitled 
tu  the  protection  of  the  institutions  whose  emblem  the  flag  is;  if 
they  arc  inherently  unfit  for  those  institutions  then  they  are  in- 
herently unfit  to  be  members  Of  the  American  body  politic. 
Wherever  there  may  exist  a  people  incapable  of  being  governed 
under  American  laws,  in  consonance  with  the  American  consti- 
tution, the  territory  of  that  people  ought  not  to  be  part  of  the 
American  domain. 

We  insist  that  we  ought  to  do  for  the  Filipinos  what  we  have 
done  already  for  the  'Cubans,  and^it  is  our  duty  to  make  that 
promise  now  and  upon  suitable  guarantees  of  protection  to  citi- 
zens of  our  own  and  other  countries  resident  there  at  the  time  of 
our  withdrawal,  set  the  Filipino  people  upon  their  feet,  free  and 
independent  to  work  out  their  own  destiny. 

The  endeavor  of  the  Secretary  of  War,  by  pledging  the  govern- 
ment's indorsement  for  "promoters"  in  the  Philippine  Islands  to 
make  the  United  States  a  partner  in  the  speculative  exploitation 
of  the  archipelago,  which  was  only  temporarily  held  up  by  the 
Opposition  of  the  Democratic  Senators  in  the  last  session,  will,  if 
successful,  lead  to  entanglements  from  which  it  will  be  difficult 
to  escape. 

Tariff. 

The  Democratic  party  has  been,  and  will  continue  to  be,  the 
consistent  opponent  of  that  class  of  tariff  legislation  by  which 
certain  interests  have  been  permitted,  through  Congressional  favor, 
to  draw  a  heavy  tribute  from  the  American  people.  This  mon- 
strous perversion  of  those  equal  opportunities  which  our  political 
institutions  were  established  to  secure  has  caused  what  may  once 
have  been  infant  industries  to  become  the  greatest  combinations 
of  capital  that  the  world  has  ever  known.  These  especial  favor- 
ites of  the  government  have,  through  trust  methods,  been  con- 
verted into  monopolies,  thus  bringing  to  an  end  domestic  com- 
petition, which  was  the  only  alleged 'check  upon  the  extravagant 
profits  made  possible  by  the  protective  system.  These  industrial 
combinations,  by  the  financial  assistance  they  can  give,  now  con- 
trol the  policy  of  the  Republican  party. 

We  denounce  protectionism  as  a  robbery  of  the  many  to  enrich 
the  few,  and"  we  favor  a  tariff  limited  to  the  needs  of  the  govern- 
ment, economically,  effectively,  and  constitutionally  administered, 
and  so  levied  as  not  to  discriminate  Against  any  industry,  class, 
or  section,  to  the  end  that  the  burdens  of  taxation  shall  be  dis- 
tributed as  equally  as  possible. 

We  favor  a  revision  and  a  gradual  reduction  of  the  tariff  by 
the  friends  of  the  masses  and  for  the  common  weal,  and  not  by 
the  friends  of  its  abuses,  its  extortions,  and  its  discriminations, 
keeping  in  view  the  ultimate  end  of  "equality  of  burdens  and 
equality  of  opportunities"  and  the  constitutional  purpose  of  raising 
a  revenue  by  taxation,  to-wit,  the  support  of  the  Federal  govern- 
ment in  all  its  integrity  and  virility,  but  in  simplicity. 
Trusts  and  Unlawful  Combinations. 

We  recognize  that  the  gigantic  trusts  and  combinations  de- 
signed to  enable  capital  to  secure  more  than  its  just  share  of  the 
joint  products  of  capital  and  labor,  and  which  have  been  fostered 
and  promoted  under  Republican  rule,  are  a  menace  to  beneficial 
competition  and  an  obstacle  to  permanent  business  prosperity.  A 
private  monopoly  is  indefensible  and  intolerable. 


PLATFORM   OF  THE  DEMOCRATIC  PARTY.  491 

Individual  equality  of  opportunity  and  free  competition  are 
essential  to  a  healthy  "and  permanent  commercial  prosperity  and 
any  trust,  combination,  or  monopoly  tending  to  destroy  these  by 
controlling  production,  restricting  competition,  or  fixing  prices  and 
wages  should  be  prohibited  and  punished  by  law.  We  especially 
denounce  rebates  and  discrimination  by  transportation  companies 
as  the  most  potent  agency  in  promoting  and  strengthening  these 
unlawful  conspiracies  against  trade. 

We  demand  an  enlargement  of  the  powers  of  the  Interstate 
Commerce  Commission,  to  the  end  that  the  traveling  public  and 
shippers  of  this  country  may  have  prompt  and  adequate  relief 
from  the  abuses  to  which  they  are  subjected  in  the  matter  of 
transportation.  We  demand  a  strict  enforcement  of  existing  civil 
and  criminal  statutes  against  all  such  trusts,  combinations,  and 
monopolies ;  and  we  demand  the  enactment  of  such  further  legis- 
lation as  may  be  necessary  to  effectually  suppress  them. 

Any  trust  or  unlawful  combination  engaged  in  interstate  com- 
merce which  is  monopolizing  any  branch  of  business  or  produc- 
tion should  not  be  permitted  to  transact  business  outside  of  the 
State  of  its  origin.  Whenever  it  shall  be  established  in  any  court 
of  competent  jurisdiction  that  such  monopolization  exists,  such 
prohibition  should  be  enforced  through  comprehensive  laws  to  be 
enacted  on  the  subject. 

Capital  and  Labor. 

We  favor  enactment  and  administration  of  laws  giving  labor 
and  capital  impartially  their  just  rights.  Capital  and  labor  ought 
not  to  be  enemies.  Each  is  necessary  to  the  other.  Each  h$~  its 
rights,  but  the  rights  of  labor  are  certainly  no  less  "vested,"  no 
less  "sacred,"  and  no  less  "inalienable"  than  the  rights  of  capital. 

WTe  favor  arbitration  of  differences  between  corporate  em- 
ployers and  their  employees,  and  a  strict  enforcement  of  the  eight- 
hour  law  on  all  government  work. 

We  approve  the  measure,  which  passed  the  United  States  Sen- 
ate in  189C),  but  which  a  Republican  Congress  has  ever  since  re- 
fused to  enact,  relating  to  contempts  in  Federal  courts,  and  pro- 
viding for  trial  by  jury  in  cases  of  indirect  contempt. 
Constitutional   Guaranties. 

Constitutional  guaranties  are  violated  whenever  any  citizen  is 
denied  the  right  to  labor,  acquire  and  enjoy  property,  or  reside 
where  interests  or  inclination  may  determine.  Any  denial  thereof 
by  individuals,  organizations,  or  governments  should  be  summarily 
rebuked  and  punished. 

We  deny  the  right  of  any  Executive  to  disregard  or  suspend 
any  constitutional  privilege  or  limitation.  Obedience  to  the  laws 
and  respect  for  their  requirements  are  alike  the  supreme  duty  of 
the  citiezn  and  the  official. 

The  military  should  be  used  only  to  support  and  maintain  the 
law.  We  unqualifiedly  condemn  its  employment  for  the  sum- 
mary banishment  of  citizens  without  trial  at  or  for  the  control  of 
elections.  Waterways. 

We  favor  liberal  appropriations  for  the  care  and  improvement 
of  the  waterways  of  the  country.  When  any  waterway,  like  the 
Mississippi  River,  is  of  sufficient  importance  to  demand  special 
aid  of  the  government,  such  aid  should  be  extended  with  a  defi- 
nite plan  of  continuous  work  until  permanent  improvement  is 
secured. 

We  oppose  the  Republican  policy  of  starving  home  develop- 
ment in  order  to  feed  the  greed  for  conquest  and  the  appetite  for 
national  "prestige"  and  display  of  strength. 

Reclamation  of  Arid  Lands  and  Domestic  Development. 

We  congratulate  our  Western  citizens  upon  the  passing  of  the 
measure  known  as  the  new  lands  irrigation  act  for  the  irrigation 
and  reclamation  of  the  arid  lands  of  the  West ;  a  measure  framed 
by  a  Democrat,  passed  in  the  Senate  by  a  non-partisan  vote,  and 
passed  in  the  House  against  the  opposition  of  almost  nil  the  Re- 
publican leaders  by  a  vote  the  majority  of  which  was  Demo- 
cratic. 

We  call  attention  to  this  great  Democratic  measure,  broad 
and  comprehensive  as  it  is,  working  automatically  throughout 
all  time  without  further  action  6f  Congress,  Until  the  reclama- 
tion of  all  the  lands  in  the  arid  West  capable  of  reclamation 


493  PLATFORM    OF   THE   DEMOCRATIC   PABTT. 

is  accomplished,  reserving  the  lands  reclaimed  for  homeseekers 
in  small  tracts,  and  rigidly  guarding  agahist  land  monopoly,  as 
an  evidence  of  the  policy  of  domestic  development  contemplated 
by  the  Democratic  party,  should  it  be  placed  in  power. 
Isthmian  Canal. 
The  Democracy,  when  intrusted  with  power,  will  construct 
the  Panama  Canal  speedily,  honestly,  and  economically,  thereby 
giving  to  our  people  what  Democrats  have,  always  contended  for 
— a '  great  inter-oceanic  canal,  furnishing  shorter  and  cheaper 
lines  of  transportation,  and  broader  and  less  trammeled  trade 
relations  with  the  other  peoples  of  the  world. 

American   Citizenship. 

We  pledge  ourselves  to  insist  upon  the  just  and  lawful  pro- 
tection of  our  citizens  at  home  and  abroad,  and  to  use  all 
proper  measures  to  secure  for  them,  whether  native  born  or 
naturalized,  and  without  distinction  of  race  or  creed,  the  equal 
protection  of  laws  and  the  enjoyment  of  all  rights  and  privileges 
open  to  them  under  the  covenants  of  our  treaties  of  friendship 
and  commerce;  and  if  under  existing  treaties  the  right  of  travel 
and  sojourn  is  denied  to  American  citizens  or  recognition  is  with- 
held from  American  passports  by  any  countries  on  the  ground 
of  race  or  creed,  we  favor  the  beginning  of  negotiations  with  the 
government  of  such  countries  to  secure  by  new  treaties  the  re- 
moval of  these  unjust  discriminations. 

We  demand  that  all  over  the  world  a  duly  authenticated  pass- 
port issued  by  the  goveacment  of  the  United  States  to  an  Ameri- 
can citizen  shall  be  proof  of  the  fact  that  he  is  an  American 
citizen  and  shall  entitle  him  to  the  treatment  due  him  as  such. 
Election  of  Senators  by  the  People.  <a 

We  favor  the  election  of  United  States  Senators  by  the  direct 
vote  of  the  people. 

Statehood  for  Territories. 

We  favor  the  admission  of  the  Territories  of  Oklahoma  and 
Indian  Territory.  We  also  fayor  the  immediate  admission  of 
Arizona  and  New  Mexico  as  separate  States  and  a  Territorial 
government  for  Alaska  and  Porto  Rico. 

We  hold  that  the  officials  appointed  to  administer  the  govern- 
ment of  any  Territory,  as  well  as  with  the  district  of  Alaska, 
should  be  bona  fide  residents  at  the  time  of  their  appointment  of 
the  Territory  or  district  in  which  their  duties  are  to  be  performed. 

Condemnation  of  Polygamy. 

We  demand  the  extermination  of  polygamy  within  the  juris- 
diction of  the  United  States  and  the  complete  separation  of  church 
and  state  in  political  affairs. 

Merchant  Marine. 

We  denounce  the  ship  subsidy  bill  recently  passed  by  the 
United  States  Senate  as  an  iniquitous  appropriation  of  public 
funds  for  private  purposes,  and  a  wasteful,  illogical,  and  useless 
attempt  to  overcome  by  subsidy  the  obstructions  raised  by  Re- 
publican legislation  to  the  growth  and  development  of  American 
commerce  on  the  sea. 

We  favor  the  upbuilding  of  a  merchant  marine  without  new 
or  additional  burdens  upon  the  people  and  without  bounties  from 
the  public  Treasury. 

Reciprocity. 

We  favor  liberal  trade  arrangements  with  Canada  and  with 
peoples  of  other  countries  where  they  can  be  entered  into  with 
benefit  to  American  agriculture,  manufactures,  mining,  or  com- 
merce. 

Monroe  Doctrine. 

We  favor  the  maintenance  of  the  Monroe  doctrine  in  its  full 
integrity. 

Army. 

We  favor  the  reduction  of  the  army  and  of  army  expenditures 
to  the  point  historically  demonstrated  to  be  safe  and  sufficient. 

Pensions  for  Our  Soldiers  and   Sailors. 

The  Democracy  would  secure  to  the  surviving  soldiers  and 
sailors  and  their  dependents  generous  pensions,  not  by  an  arbi- 
trary Executive  order,  but  by  legislation,  which  a  grateful  people 
stand  ready  to  enact. 


PLATFOBM    OF   THE  DEMOCRATIC   PARTY.  493 

Our  soldiers  and  sailors  who  defend  with  their  lives  the  Con- 
stitution and  the  laws  have  a  sacred  interest  in  their  just  adminis- 
tration. They  must,  therefore,  share  with  us  the  humiliation 
with  which  we  have  witnessed  the  exaltation  of  court  favorities, 
without  distinguished  service,  over  the  scarred  heroes  of  many 
battles ;  or  aggrandizement  by  Executive  appropriations  out  of  the 
treasuries  of  prostrate  peoples  in  violation  of  the  act  of  Congress 
which  fixed  the  compensation  of  allowances  of  the  military  officers. 

Civil    Service. 

The  Democratic  party  stands  committed  to  the  principle  of 
civil  service  reform,  and  we  demand  its  honest,  just,  and  impartial 
enforcement. 

We  denounce  the  Republican  party  for  its  continuous  and 
sinister  encroachments  upon  the  spirit  and  operation  of  civil- 
service  rules,  whereby  it  has  arbitrarily  dispensed  with  examina- 
tions for  office  in  the  interests  of  favorites  and  employed  all  man- 
ner of  devices  to  overreach  and  set  aside  the  principles  upon 
which  the  civil  service  was  based. 

Sectional  and  Race  Agitation. 

The  race  question  has  brought  countless  woes  to  this  country. 
The  calm  wisdom  of  the  American  people  should  see  to  it  that 
it  brings  no  more. 

To  revive  the  dead  and  hateful  race  and  sectional  animosities 
in  any  part  of  our  common  country  means  confusion,  distraction 
of  business,  and  the  reopening  of  wounds  now.  happily  healed. 
North,  South,  East,  and  West  have  but  recently  stood  together 
in  line  of  battle  from  the  walls  of  Peking  to  the  hills  of  Santiago, 
and  as  sharers  of  a  common  glory  and  a  common  destiny  we  should 
share  fraternally  the  common  burdens. 

We  therefore  deprecate  and  condemn  the  Bourbon-like,  selfish, 
and  narrow  spirit  of  the  recent  Republican  convention  at  Chicago, 
which  sought  to  kindle*  anew  the  embers  of  racial  and  sectional 
strife,  and  we  appeal  from  it  to  the  sober,  common  sense  and 
patriotic  spirit  of  the  American  people. 

The  Republican  Administration. 

The  existing  Republican  administration  has  been  spasmodic, 
erratic,  sensational,  spectacular,  and  arbitrary.  It  has  made  itself 
a  satire  upon  the  Congress,  courts,  and  upon  the  settled  practices 
and  usages  of  national  and  international  law. 

It  summoned  the  Congress  in  hasty  and  futile  extra  session, 
and  virtually  adjourned  it,  leaving  behind  its  flight  from  Wash- 
ington uncalled  calendars  and  unaccomplished  tasks. 

It  made  war,  which  is  the  sole  power  of  Congress,  without 
its  authority,  thereby  usurping  one  of  its  fundamental  preroga- 
tives. It  violated  a  plain  statute  of  the  United  States  as  well 
as  plain  treaty  obligations,  international  usages  and  constitutional 
law ;  and  has,  done  so  under  pretense  of  executing  a  great  public 
policy  which  could  have  been  more  easily  effected  lawfully,  con- 
stitutionally, and  with  honor.  — - 

It  forced  strained  and  unnatural  constructions  upon  statutes, 
usurping  judicial  interpretation,  and  substituting  for  Congressional 
enactment  Executive  decree. 

It  withdrew  from  the  Congress  its  customary  duties  of  investi- 
gation, which  have  heretofore  made  the  representatives  of  the 
people  and  the  States  the  terror  of  evil  doers. 

It  conducted  a  secretive  investigation  of  its  own,  and  boast- 
ing of  a  few  sample  convicts,  it  threw  a  broad  coverlet  over 
the  bureaus  which  had  been  then*  chosen  field  of  operative  abuses 
and  kept  in  power  the  superior  officers  under  whose  administra- 
tion the  crimes  had  been  committed. 

It  ordered  assault  upon  some  monopolies,  but,  paralyzed  by  its 
first  victory,  it  flung  out  the  flag  of  truce  and  cried  out  that  it 
would  not  "run  amuck" — leaving  its  future  purposes  beclouded 
by  its  vacillations. 

Appeal  to  the  People. 

Conducting  the  campaign  upon  this  declaration  of  our  prin- 
ciples and  purposes",  we  invoke  for  our  candidates  the  support 
not  only  of  our  great  and  time-honored  organization,  but  also 
the  active  assistance  of  all  of  our  fellow-citizens,  who,  disregarding 
past  differences,  desire  the  perpetuation  of  our  constitutional  gov- 
ernment, as  framed  and  established  by  the  fathers  of  the  Republic. 


494  PLATFORM  OK  Till*   PKOPLliS'    PARTY, 


PLATFORH  OF  THE  PEOPLE'S  PARTY 


rial  form  of  the  People's   Party    11)01,   Adopted  In  National  Conven- 
tion  at    Springfield,   HI.,   July  4,   1001. 

[Republished  from  Lincoln   (Neb.)   Independent.] 

The  People's  party  reaffirms  its  adherence  to  the  basic  truths 
of  the  Omaha  platform  of  1892,  and  of  the  subsequent  platforms 
of  18P<;  and  1900.  In  session  in  its  fourth  national  convention  on 
July  4.  1904,  in  the  city  of  Springfield,  111.,  it  draws  inspiration 
from  the  day  that  saw  the  birth  of  the  nation,  as  well  as  its  own 
birth  as  a  party,  and  also  from  the  soul  of  him  who  lived  at  its 
present  place  of  meeting. 

We  renew  our  allegiance  to  the  old-fashioned  American  spirit 
that  gave  .this  nation  existence,  and  made  it  distinctive  among 
the  peoples  of  the  earth.  We  again  sound  the  keynote  of  the 
Declaration  of  Independence,  that  all  men  are  created  equal  in  a 
political  sense,  which  is  the  sense  in  which  that  instrument,  be- 
ing a  political  document,  intended  that  the  utterance  should  be 
understood.  We  assert  that  the  departure  from  this  fundamental 
truth  is  responsible  for  the  ills  from  which  we  suffer  as  a  nation; 
that  the  giving  of  special  privileges  to  the  few  has  enabled  them 
to  dominate  the  many,  thereby  tending  to  destroy  the  political 
equality  which  is  the  corner  stone  of  democratic  government. 

We  call  for  a  return  to  the  truths  of  the  fathers,  and  we  vig- 
orously protest  against  the  spirit  of  mammonism  and  of  thinly- 
veiled  monarchy,  that  Is  invading  certain  sections  of  our  national 
life,  and  of  the  very  administration  itself.  This  is  a  nation  of 
peace,  and  we  deplore  the  appeal  to  the  spirit  of  force  and  mili- 
tarism which  is  shown  in  ill-advised  and  vainglorious  boasting 
and,  in  more  harmful  ways,  in  the  denial  of  the  rights  of  man 
under  martial  law. 

A  politic?1 '.  democracy  and  an  industrial  despotism  cannot  exist 
side  by  side ;  and  nowhere  is  this  truth  more  plainly  shown 
than  in  the  gigantic  monopolies  which  have  bred  all  sorts  of 
kindred  trusts,  subverted  the  governments  of  many  of  the  States, 
and  established  their  official  agents  In  the  national  government. 
We  submit  that  it  is  better  for  the  government  to  own  the  rail- 
roads than  for  the  railroads  to  own  the  government ;  and  that  one 
or  the  other  alternative  seems  inevitable. 

We  call  the  attention  of  our  fellow  citizens  to  the  fact  that 
the  surrender  of  both  of  the  old  parties  to  corporate  influences 
leaves  the  People's  party  the  only  party  of  reform  in  the  nation. 

Therefore,  w£  submit  the  following  platform  of  principles  to 
the  American  people : 

The  issuing  of  money  is  a  function  of  government,  and  should 
never  be  delegated  to  corporations  or  individuals.  The  constitu- 
tion gives  to  Congress  alone  power  to  coin  money  and  regulate 
its   value. 

We  demand,  therefore,  that  all  money  shall  be  issued  by  the 
Government  in  such  quantity  as  shall  maintain  stability  in  prices, 
every  dollar  to  be  a  full  legal  •ender,  none  of  which  shall  be  a 
debt  redeemable  in  other  money. 

We  demand  that  postal  savi.igs  banks  be  established  by  the 
Government  for  the  safe  deposit  of  the  savings  of  the  people. 

We  believe  in  the  right  of  labor  to  organize  for  the  benefit 
and  protection  of  those  who  toil :  and  pledge  the  efforts  of  the 
People's  party  to  preserve  this  right  inviolate.  Capital  is  organ- 
ized and  has  no  right  to  deny  to  labor  the  privilege  which  it 
claims  for  itself.  We  feel  that  intelligent  organization  of  labor 
is  essential ;  that  it  raises  the  standard  of  workmanship,  and  pro- 
motes the  efficiency,  intelligence,  independence  and  character  of 
the  wage-earner.  We  oelieve  with!  Abraham  Lincoln  that  labor 
is  prior  to  capital,  and  is  not  its  slave,  but  its  companion  :  and  we 
plead  for  that  broad  spirit  of  toleration  and  justice  which  will 


PLATFORM   OF  THE  PEOPLE'S  PARTY.  495 

promote  industrial  peace  through  the  observance  of  the  principles 
of  voluntary  arbitration. 

We  favor  the  enactment  of  legislation  looking  to  the  improve- 
ment of  conditions  for  wage-earners,  the  abolition  of  child  labor, 
the  suppression  of  sweat  shops  and  of  convict  labor,  in  competi- 
tion with  free  labor,  and  the  exclusion  from  American  shores  of 
foreign  pauper  labor. 

We  favor  the  shorter  work  day,  and  declare  that  if  eight 
hours  constitutes  a  day's  labor  in  government  service,  that  eight 
hours  should  constitute  a  day's  labor  in  factories,  work  shops, 
and  mines. 

As  a  means  of  placing  all  public  questions  directly  under  the 
control  of  the  people,  we  demand  that  legal  provision  be  made 
under  which  the  people  may  exercise  the  initiative,  referendum 
and  proportional  representation,  and  direct  vote  for  all  public 
officers,  with  the  right  of  recall. 

Land,  including  all  the  natural  sources  of  wealth,  is  a  heri- 
tage of  all  the  people,  and  should  not  be  monopolized  for  specu- 
!  lative  purposes;  and  alien  ownership  of  land  should  be  pro- 
.   hibited. 

We  demand  a  return  to  the  original  interpretation  of  the  con- 
stitution and  a  fair  and  impartial  enforcement  of  laws  under  it ; 
and  denounce  government  by  injunction  and  imprisonment  with- 
out the  right  of  trial  by  jury. 

To  prevent  unjust  discrimination  and  monopoly,  the  Govern- 
ment should  own  and  control  the  railroads ;  and  those  public 
utilities,  which  in  their  nature  are  monopolies.  To  perfect  the 
postal  service,  the  Government  should  own  and  operate  the  gen- 
eral telegraph  and  telephone  systems,  and  provide  a  parcels 
post. 

As  to  those  trusts  and  monopolies  which  are  not  public  utili- 
ties or  natural  monopolies,  we  demand  that  those  special  privi- 
leges which  they  now  enjoy,  and  which  alone  enable  them  to 
exist,  should  be  immediately  withdrawn.  Corporations  being  the 
creatures  of  government  should  be  subjected  to  such  govern- 
mental regulations  and  control  as  will  adequately  protect  the 
public.  We  demand  the  taxation  of  monopoly  privileges,  while 
they  remain  in  private  hand^,  to  the  extent  of  the  value  of  the 
privileges  granted. 

We  demand  that  Congress  shall  enact  a  general  law  uni- 
formly regulating  the  power  and  duties  of  all  incorporated  com- 
panies* doing  interstate  business. 


Changes  in  tariff  schedules  can  with  safety  be  made  only  by 
those  whose  devotion  to  the  principle  of  protection  is  beyond 
question. — From   President   Roosevelt's    speech   of   acceptance. 

The  poorest  motto  upon  which  an  American  can  act  is  the 
motto  of  "Some  men  down"  and  the  safest  to  follow  is  that  of  "All 
men  up." — Vice-President  Roosevelt  at  opening  of  Pan-American 
Exposition,  May  20,  1901. 

Protection  furnishes  an  opportunity  for  every  person  to  find 
the  employment  best  adapted  to  his  or  her  genius  and  capacity 
that  will  secure  the  largest  income  or  the  greatest  happiness.-— 
Hon.  J.  S.  Morrill,  in  the  American  Economist. 

We  are  no  more  against  organizations  of  capital  than  against 
organizations  of  labor.  We  welcome  both,  demanding  only  that 
each  shall  do  right  and  shall  remember  its  duty  to  the  Republic.— 
President  Roosevelt  at  Milwaukee,  Wis.,  April  3,  1003. 

We  do  not  have  to  avoid  a  definite  and  conclusive  committal  on 
the  most  important  issues  which  has  recently  been  before  the 
people,  and  which  may  at  any  time  in  the  near  future  be  before 
them  again. — President  Roosevelt's  speech  accepting  1004  nomi- 
nation. 

Reciprocity  must  be  treated  as  the  handmaiden  of  protection. 
Our  first  duty  Is  to  see  that  the  protection  granted  by  the  tariff  in 
every  case  where  It  is  needed  is  maintained,  and  that  reciprocity 
be  sought  for  so  far  as  it  can  safely  be  done  withont  injury  to  our 
home  industries.— President  Roosevelt's  Annual  Message,  Fifty- 
seventh  Congress,  first  session. 


496  THE    DEMOCRATIC   PLATFORM    AND   CANDIDATE. 


The  Democratic  Platform  and  Candidate. 


An  Analysis  of  the  Platform— The  St.  Louls-Esopus  Episode— The  Rejected  Oold 
Plank— The  Silver  Planks,  which  remain  the  Party's  Latest  Expression  on 
the  Money  Question— Judge  Parker's  Utterances  and  Record  on  the  Cur- 
rency Issue  —  Record    of   the    Democratic    Party    on    the  Currency 
Question— The  Vote  on  the   Gold  Standard  Act   of  1900. 


A   Discussion,    of   the    Democratic    Platform    of   1004. 

The  very  remarkable  performance  of  the  Democratic  National 
Convention  respecting  its  platform  consisted  of  a  drama  of  four 
acts.  All  four  must  be  considered  to  measure  its  character  and 
import.  Ii  might  be  called  a  tragedy,  so  serious  and  deadly  were 
some  if  its  developments ;  it  might  be  called  a  comedy,  so 
humorous  were  some  of  its  phases ;  it  might  be  called  a  melo- 
drama, so  spectacular  and  emotional  were  some  of  its  touches. 

WEAK   GOLD   PLANK   REJECTED  BY    COMMITTEE. 

The  first  act  was  that  of  the  subcommittee  of  the  Committee 
on  Resolutions;  the  second  was  that  of  the  full  committee,  ap- 
proved by  the  convention;  the  third  was  that  of  Judge  Parker, 
the  candidate  for  President ;  the  fourth  was  that  of  the  convention* 
in  response  to  him.  Only  by  reviewing  all  four  in  their  proper 
relations  and  meaning  can  the  true  spirit  of  the  platform  and  the 
party  behind  it  be  justly  understood.  When  the  Committee  on 
Resolutions,  consisting  of  one  member  from  each  State  and  Terri- 
tory, entered  on  its  duty  of  making  the  platform  a  subcom- 
mittee was  appointed  to  do  the  actual  work  of  framing  it. 
This  subcommittee  included  ex-Senator  David  B.  Hill  of  New 
York,  John  Sharp  Williams  of  Mississippi,  William  J.  Bryan  of 
Nebraska,  Senator  Daniel  of  Virginia,  and  ex-Senator  Henry  G. 
Davis  of  West  Virginia,  who  was  afterwards  nominated  for  Vice- 
President.  After  a  long  discussion,  in  the  absence  of  Mr.  Bryan 
who  was  otherwise  engaged,  it  adopted  the  following  plank  on  the 
gold  standard,  which  had  been  presented  by  Mr.  Williams : 

"The  discoveries  of  gold  within  the  past  few  years  and  the 
great  increase  in  the  production  thereof,  adding  two  thousand 
million  dollars  to  the  world's  supply,  of  which  seven  hundred  mil- 
lion falls  to  the  share  of  the  United  States  has  contributed  to  the 
maintenance  of  a  money  standard  of  value,  no  longer  open  to 
question,  removing  that  issue  from  the  field  of  political  conten- 
tion." 

This  plank  only  recognized  the  existing  standard  as  "no  longer 
open  to  question."  The  Democratic  platforms  of  1896  and  1900 
had  declared  for  the  free  and  unlimited  coinage  of  silver  at  16  to 
1,  which  would  have  made  the  silver  standard.  The  Williams 
plank  did  not  directly  repudiate  this  declaration,  but  only  acknowl- 
edged the  gold  standard  as  established  by  events  and  bowed  to  it. 

Even  this  moderate  concession  was  too  much  for  the  full  com- 
mittee. That  committee  met  on  the  evening  of  July  7  to  receive 
the  draft  prepared  by  the  subcommittee,  and  was  in  session  all 
night  to  consider  it.  Note  the  composition  of  this  full  committee. 
It  included  Senator  Daniel  of  Virginia,  Senator  Bailey  of  Texas, 
Senator  Tillman  of  South  Carolina,  Senator  Carmack  of  Tennes- 
see, Senator  Foster  of  Louisiana,  Senator  Dubois  of  Idaho,  and 
Senator  Newlands  of  Nevada.  Besides  these  seven  present  mem- 
bers of  the  United  States  Senate  it  contained  four  ex-Senators 
and  leading  men  from  every  State.  It  was  a  conspicuously  repre- 
sentative committee  which  fairly  reflected  the  Democratic  party 
vof  the  country. 

This  committee  had  a  protracted  debate  on  the  money  ques- 
tion, one  side  standing  for  the  moderate  Williams  plank  and  the 
other  standing  against  any  declaration  whatever.  Finally  about 
5  o'clock  on  the  morning  of  July  8  it  struck  out  the  Williams 
plank  by  the  decisive  vote  of  35  to  15.  Thus  the  free-silver  planks, 
of  1896  and  1900  were  left  as  the  last  authoritative  expression  of 
the  party  without  any  counter  or  modifying  declaration. 


THE   DEMOCRATIC    PLATFOBM    AND    CANDIDATE.  497 


SIGNIFICANCE  OP  VOTE  IN  COMMITTEE. 

Thus,  after  full  deliberation  and  discussion,  was  the  decision 
of  the  committee,  which  not  only  represented  the  party  but 
showed  in  its  composition  that  it  could  mould  and  shape  the 
party's  action.  The  division  of  the  vote  was  significant.  In  the 
present  House  of  Representatives  the  Democrats  have  176  mem- 
bers. The  15  votes  for  the  Williams  plank  represented  States 
which  have  only  Jfi  of  those  members.  Throwing  out  New  York 
they  have  only  30.  Five  of  them  have  no  Democratic  member  at 
all.  On  the  other  hand,  the  35  votes  against  the  Williams  plank 
and  against  any  money  declaration  represented  States  which  have 
129  of  the  170  Democratic  members  of  the  House.  In  other  words, 
the  35  votes  against 'recognizing  the  gold  standard  not  only  re- 
flected the  committee  and  the  convention  by  more  than  two  to  one, 
BUT  REPRESENTED  THE  VOTING  STRENGTH  OF  THE 
PARTY  IN  THE  HALL  OF  LEGISLATION  IN  THE  PROPOR- 
TION OF  NEARLY  THREE  TO  ONE. 

CONVENTION    APPBOVES. 

The  platform  thus  prepared  by  the  Committee  on  Resolutions 
was  reported  to  the  convention  on  the  early  evening  of  July  8  and 
immediately  adopted  by  a  unanimous  vote. 

JUDGE   PABKEB'S    HALTING   PBOTEST. 

The  convention  proceeded  at  once  to  make  a  nomination  for 
President,  and  Judge  Parker  was  nominated  about  2  o'clock 
on  the  morning  of  the  9th.  The  action  of  the  Committee  on 
Resolutions  in  striking  out  the  gold  standard  plank  was  known 
throughout  the  country  on  the  forenoon  of  the  8th.  The  even- 
ing New  York  papers  of  that  date  and  the  morning  New  York 
Democratic  papers  of  the  9th  all  treated  that  action  as  abso- 
lutely fatal  to  any  chance  of  Democratic  success.  Then  at  11 
o'clock  on  the  9th — about  30  hours  after  the  commHtee  had  taken 
the  fatal  step,  about  18  hours  after  the  convention  had  ratified 
it,  about  9  hours  after  he  had  been  nominated — Judge  Parker 
sent  the  following  telegram  to  the  convention,  addressed  to  his 
friend,  William  F.  Sheehan: 

"I  regard  the  gold  standard  as  firmly  and  irrevocably  estab- 
lished, and  shall  act  accordingly  if  the  action  of  the  convention 
to-day  shall  be  ratified  by  the  people.  As  the  platform  is  silent 
on  the  subject,  my  view  should  be  made  known  to  the  convention, 
and  if  it  is  proved  to  be  unsatisfactory  to  the  majority  I  request 
you  to  decline  the  nomination  for  me  at  once,  so  that  another  may 
be  nominated  before  adjournment." 

This  telegram  must  be  considered  in  the  light  of  the  antecedent 
and  surrounding  facts.  Judge  Parker  voted  for  Bryan  both  times 
he  was  a  candidate,  in  1890  and  in  1900.  He  had  thus  done  all 
within  his  power  as  a  citizen  to  establish  the  silver  standard. 
But  this  is  not  all.  The  New  York  State  Democratic  Convention 
which  formally  presented  him  as  a  Presidential  candidate  was 
held  in  April.  Its  platform  was  understood  to  be  the  platform, 
prepared  under  his  own  eye,  on  which  he  desired  to  stand  as  a 
candidate  and  on  which  his  candidacy  was  to  be  pressed.  That 
platform  was  absolutely  silent  on  the  money  question,  like  the 
national  platform.  For  three  months,  while  he  was  being  advo- 
cated on  this  silent  platform,  Judge  Parker  saw  no  occasion  for 
saying,  "As  the  platform  is  silent  on  the  question  my  view  should 
be  made  known ;"  and  it  was  only  after  he  had  been  finally  nomi- 
nated, after  even  the  Democratic  papers  within  his  reach  had 
publicly  declared  that  the  deliberate  exclusion  of  the  money  plank 
at  St.  Louis  was  suicide,  and  after  it  was  too  late  to  change  the 
nomination  without  utter  demoralization  that  the  telegram  was 
sent. 

Even  as  it  was,  the  telegram,  with  the  remembrance  of  all 
these  facts,  naturally  produced  great  confusion.  After  several 
hours'  delay  and  conference  it  was  presented  to  the  convention, 
and  after  a  further  stormy  discussion  that  body  sent  the  following 
answer : 

The  subcommittee  had  inserted  the  money  plank  because  it  was 
deemed  necessary  to  make  an  expression  on  the  subject,  and  the 
full  committee  had  fought  for  many  hours  on  the  question.  How 
this  is  to  be  reconciled  with  the  statement  that  the  platform  is 
silent  because  the  question  ia  not  in  issue  may  be  left  to  the 


498  THE    DEMOCRATIC    PLATFORM    AND   CANDIDATE. 

Imagination.  The  facts  thus  set  forth  show  plainly  the  spirit  and 
feeling  of  the  large  majority  of  the  i  onvention  and  indicate  clearly 
whither  the  Democratic  party  can  be  trusted  on  the  money 
standard. 

THE    TARIFF   DECLARATION. 

On  other  questions  besides  that  of  the  money  standard  the 
action  of  the  Committee  on  Resolutions  shows  dangerous  tenden- 
cies and  the  platform  is  full  of  peril.  This  is  especially  true  of 
the  tariff.  The  subcommittee  had  sought  to  allay  apprehension  of 
violent  disturbance  in  the  event  of  Democratic  success.  Its  draft 
declared  in  favor  of  a  revision  of  the  tariff,  but  indicated  that  it 
should  be  a  "conservative  revision,"  "keeping  also  in  view,  as  men 
of  common  sense  should,  existing  conditions,  however  wrongfully, 
mistakenly,  or  unjustly  brought  about,  and  the  danger  to  the  cause 
of  tariff  reform  itself  of  abrupt  and  revolutionary  reversal  of 
policy."  This  saving  clause,  designed  to  reassure  the  business 
interests  against  fear  of  sweeping  changes,  was  repeated  in  the 
further  declaration  in  the  same  connection:  "We  should  bear  in 
mind  the  equal  truth  that  in  the  assertion  of  any  general  principle 
and  in  reaching  any  ultimate  end,  however  sacred  and  logically 
unavoidable,  due  regard,  but  only  due  regard,  must  and  should  be 
paid  to  actually  existing  conditions." 

-  These  reservations  respecting  the  character  of  the  tariff  re- 
vision were  embodied  in  the  draft  of  the  subcommittee  with  the 
plain  purpose  of  winning  the  confidence  of  the  business  elements. 
But  when  they  were  reported  to  the  full  committee  that  body 
deliberately  struck  out  all  of  these  saving  clauses,  and  not  only 
that,  but  it  adopted  the  most  extreme  and  unqualified  denuncia- 
tion of  the  whole  protective  principle.  That  declaration,  as  re- 
ported to  and  accepted  by  the  convention  and  as  it  now  stands 
in  the  platform,  is  in  these  words :  "We  denounce  protection  as  a 
robbery  of  tho  many  to  enrich  the  few,  and  we  favor  a  tariff 
limited  to  the  needs  of  the  Government  economically  admin- 
istered." 

No  more  radical  utterance  could  be  made.  The  denunciation 
is  directed  not  merely  against  a  particular  tariff  or  schedule  in 
which  it  might  be  claimed  there  were  wrongs,  but  against  the 
whole  idea  and  purpose  of  protection.  It  condemns  any  and  all 
protection  and  insists  that  the  tariff  should  be  framed  solely  for 
revenue  without  any  protective  effect.  There  is  no  reservation  or 
qualification.  All  protection  is  assailed  as  "robbery."  The  policy 
under  which  the  greatness  and  prosperity  of  the  Republic  have 
been  created  is  stigmatized  as  "robbery  of  the  many  to  enrich 
the  few."  The  declaration  commits  the  Democratic  party  to  the 
overthrow  of  the  whole  protective  system,  and,  in  the  event  of 
Democratic  success,  means  just  such  a  destruction  of  confidence 
and  paralysis  of  industry  and  stagnation  of  business  as  followed 
the  election  of  Cleveland  in  1892. 

TO  DESTROY  POWER  OF  THE  COURTS. 

The  dangerous  spirit  of  the  Committee  on  Resolutions  em- 
bodied in  the  platform  was  shown  in  another  matter.  One  of  the 
most  reprehensible  and  obnoxious  declarations  of  the  Democratic 
platforms  of  1896  and  1900  was  the  denunciation  of  what  was 
called  "government  by  injunction."  The  time-honored  right  of 
the  courts  to  guard  against  and  prevent  the  perpetration  of 
wrongs  by  the  process  of  injunction  or  mandamus  is  one  of  the 
sacred  defenses  of  liberty  and  social  order.  The  power  to  punish 
for  contempt  is  the  indispensable  accompaniment  and  bulwark  of 
this  right.  The  Democratic  platforms  of  1896  and  1900,  under 
Mr.  Bryan's  influence,  condemned  such  judicial  process  and  added; 
"We  approve  the  bill  passed  at  the  last  session  of  the  United 
States  Senate,  and  now  pending  in  the  House,  relative  to  con- 
tempts in  Federal  courts  and  providing  for  trial  by  jury  in  certain 
cases  of  contempt." 

The  subcommittee  at  St.  Louis  did  not  include  in  its  draft  any 
declaration  on  this  subject.  But  the  full  committee  under  Mr. 
Bryan's  inspiration  adopted,  and  there  appears  in  the  platform, 
what  is  practically  a  repetition  of  the  odious  utterance  of  1896 
and  1900  in  these  words:  "We  approve  the  measure  which 
passed  the  United  States  Senate  in  1896,  but  which  a  Republican 
Congress  has  ever  since  refused  to  enact,  relating  to  contempts 


THE   DEMOCEATIC   PLATFORM    AND   CANDIDATE.  499 

In  Federal  courts  and  providing  for  trial  by  jury  in  cases  of  indi- 
rect contempt."  The  measure  thus  approved  would  nullify,  and 
is  intended  to  nullify,  the  power  of  the  courts  to  punish  for  con- 
tempt and  so  would  destroy  its  power  to  protect  the  public  peace 
by  judicial  process.  The  renewed  declaration  for  it  shows  that 
the  virus  of  Bryanism  still  thoroughly  taints  the  party. 


THE   PHILIPPINES. 


Among  the  most  positive  utterances  of  the  platform  is  the 
promise  of  independence  to  the  people  of  the  Philippine  Islands. 
"It  is  our  duty,"  says  the  platform,  "to  make  that  promise  now, 
and  upon  suitable  guarantees  of  protection  to  citizens  of  our  own 
and  other  countries  resident  there  at  the  time  of  our  withdrawal 
set  the  Filipino  people  upon  their  feet,  free  and  independent  to 
work  out  their  own  destiny."  The  unfortunate  and  mischievous 
effect  of  such  a  promise  at  this  time  cannot  be  fully  estimated. 
Whatever  may  be  our  ultimate  purpose,  such  an  expression  just 
now  can  only  have  an  injurious  influence.  The  administrations 
of  Presidents  McKinley  and  Roosevelt  have  given  the  Filipinos 
the  largest  measure  of  freedom  and  home  rule  compatible  with 
their  safety  and  welfare.  The  work  of  educating  and  training 
them  for  self-government  is  going  on.  Their  self-rule  has  been 
steadily  extended  as  they  were  fitted  for  it.  Every  observer 
knows  that  these  millions  of  ignorant  people  only  recently  emerged 
from  centuries  of  barbarism,  are  not  yet  prepared  for  independ- 
ence, and  that  to  "set  them  upon  their  feet  free  and  independent 
to  work  out  their  own  destiny,  would  be  to  plunge  them  into  in- 
ternecine war,  to  deliver  them  over  to  every  kind  of  internal 
strife,  and  to  make  them  the  prey  of  some  other  power,  which 
would  eagerly  seize  what  we  should  abandon.  Whatever  may  be 
deemed  best  when  the  preparation  and  advancement  of  these  peo- 
ple have  been  carried  further,  a  present  and  premature  promise 
can  only  be  hurtful  to  themselves.  Besides,  such  a  policy  would 
be  disastrous  to  our  national  prestige  and  influence  in  the  East. 
Our  country  has  gained  great  eclat  in  the  Orient  and  high  stand- 
ing among  the  great  nations  in  determining  the  affairs  of  that 
portion  of  the  world.  It  took  a  leading  part  in  the  Boxer  diffi- 
culties of  1900  and  prevented  the  dismemberment  of  China.  It 
has  secured  the  principle  of  "the  open  door"  in  the  East.  It  led 
the  nations  at  the  outbreak  of  the  Russo-Japanese  war  in  obtain- 
ing a  guarantee  of  the  neutrality  of  China  and  in  localizing  the 
war  to  the  immediate  belligerents.  Through  this  new  position  in 
the  East  we  have  the  assurance  of  great  commercial  advantages. 
All  this  has  come  through  our  possession  of  the  Philippines,  which 
made  the  United  States  an  eastern  power.  If  now  there  were 
Democratic  success  with  this  promise  it  would  impair  our  stand- 
ing beyond  calculation.  The  nations  would  feel  that  the  American 
people  were  of  infirm  and  unstable  purpose.  They  would  regard  it 
as  unsettling  our  whole  policy  in  the  East,  and  the  loss  of  influ- 
ence, respect,  and  advantage  would  be  immeasurable. 

EVASION    OF   THE    TRUST    QUESTION. 

The  declaration  of  the  platform  respecting  trusts  and  combina- 
tions is  naturally  of  an  indefinite  character.  As  the  Democratic 
party  has  never  done  anything  against  trusts  either  in  legislation 
or  in  administration,  it  could  not  be  expected  to  say  anything  of 
a  specific  nature.  All  that  has  been  done  on  the  subject  by  either 
the  enactment  or  the  enforcement  of  law  has  been  done  by  Re- 
publicans. This  is  clearly  shown  in  other  chapters  of  this  volume. 
The  only  definite  proposition  of  the  Democratic  platform  is  a  de- 
mand for  "the  enlargement  of  the  powers  of  the  Interstate  Com- 
merce Commission  to  the  end  that  the  traveling  public  and  ship- 
pers of  this  country  may  have  prompt  and  adequate  relief  from 
the  abuses  to  which  they  are  subjected  in  the  matter  of  transpor- 
tation." Just  such  a  measure,  enlarging  the  powers  of  the  Inter- 
state Commerce  Commission,  was  passed  by  a  Republican  Con- 
gress and  approved  by  the  President  February  19,  1903.  It 
strengthens  the  provision  against  rebates,  increases  the  penalty, 
assures  swifter  prosecution,  and  establishes  more  complete  safe- 
guards. The  record  shows  that  the  Republicans  have  acted  while 
the  Democrats  have  only  talked. 

The  remainder  of  the  platform  consists  only  of  empty  ex- 
pressions.    It  favors  the  upbuilding  of  a  merchant  marine, -but 


500  THE   DEMOCRATIC   PLATFOBM    AND   CANDIDATE.  • 

denounces  every  measure  for  accomplishing  It.  It  deprecates  the 
race  question,  but  condemns  any  proceeding  against  the  disfran- 
chisement of  a  race.  It  holds  up  the  promise  of  pensions  to  the 
oar,  but  breaks  it  to  the  hope  of  any  practical  step.  In  all  its 
leading  features  the  platform  shows  that  the  Democratic  party  is 
unchanged. 

ST.  LOUIS-  ESOPUS  EPISODE. 

EVASION  OF  LEADING  ISSUES  BY  PLATFORM,  CONVENTION,  AND 
CANDIDATE. 

In  order  that  the  real  meaning  of  the  joint  performance  at 
St.  Louis  with  reference  to  the  relation  of  the  Democratic  party 
and  its  candidate  to  the  currency  question  may  be  understood, 
the  incidents  pertaining  thereto  are  here  enumerated  in  their 
chronological  order.  That  it  was  the  deliberate  purpose  to 
deceive  the  voters  of  the  United  States  with  reference  to  the 
real  attitude  of  the  Democratic  party  on  the  currency  question 
cannot  be  doubted.  Indeed  Mr.  Bryan,  who  has  been  on  two 
previous  occasions  the  spokesman  of  that  party  and  whose  per- 
sonality absolutely  dominated  and  controlled  the  convention  upon 
this  question,  says  openly  "It  was  a  plain  and  deliberate  attempt 
to  deceive  the  party." 

Taking  up  the  matter  chronologically,  the  first  subject  for 
consideration  is  Judge  Parker's  history  with  reference  to  politics. 
The  New  York  Tribune  of  July  13,  1904  says: 

"While  Judge  Parker  was  still  a  young-  man  and  free  to  choose 
the  political  leaders  and  associates  to  whom  he  might  look  for 
preferment,  he  consented  to  manage  Hill's  first  campaign  for  Gov- 
ernor and  was  rewarded  with  an  appointment  to  the  Supreme 
Court  bench.  *  *  *  In  due  time  he  became  Hill's  candidate  for 
Chief  Judge  of  the  Court  of  Appeals." 

EVASION   ON   THE   SILVER   QUESTION. 

It  was  during  this  candidacy  for  the  Judgeship  of  the  Court 
of  Appeals,  in  1897,  a  candidacy  made,  according  to  the  above 
quotation,  under  Mr.  Hill's  management,  that  Judge  Parker 
made  his  first  "record"  on  one  of  the  vital  subjects  of  this 
campaign.  At  that  time  the  Bryan  silver  influence  in  New  York 
was  very  strong  and  was  represented  by  Hon.  Elliott  Danforth, 
Chairman  of  the  Democratic  State  Committee.  In  order,  appar- 
ently, to  placate  that  element,  Mr.  Danforth  urged  Mr.  Parker 
to  express  himself  on  the  silver  question  and  he  did  so  in  the  fol- 
lowing letter  declaring  that  he  had  supported  Bryan  and  free 
silv.er  in  both  national  campaigns.  It  will  be  seen  by  an  exam- 
ination of  the  letter  that  it  was  prepared  with  the  especial  pur- 
pose of  giving  his  opinion  to  that  element  of  the  party  in  New 
York  which  he  designates  as  "the  sincere  friends  of  Mr.  Bryan." 

"New  York,  Sept.  20,  1897. 
"The  Hon.  Eliot  Danforth,  Chairman  of  the  Democratic  Committee: 
"My  Dear  Mr.  Danforth — It  was  entirely  right  for  you  to  bring 
to  my  attention  the  question  which  the  sincere  friends  of  Mr. 
Bryan  are  pressing  upon  you.  I  can  say  to  you  frankly  and  sin- 
cerely that  you  can  assure  them  that  I  voted  for  the  last  national 
nominees  of  the  Democratic  party,  as  I  have  voted  for  all  the  reg- 
ular Democratic  nominees  since  I  had  a  vote. 

.  "Yours,  very  sincerely, 

"ALTON  B.    PARKER." 

It  will  be  noted  that  while  this  letter  states  that  he  "voted 
for  the  last  national  nominees  of  the  party,"  it  is  singularly  like 
the  recent  telegram  to  St.  Louis  in  that  it  omits  any  expression 
of  his  personal  views  on  the  real  question  at  issue. 

EVASION   ON   THE    TRUST    QUESTION. 

Judge  Parker's  next  record  was  made  by  the  platform  of  the 
New  York  State  convention  of  1904,  in  the  preparation  of  which 
he  personally  aided,  and  which  the  New  York  Evening  Post 
(Democratic)  says  he  revised  and  attested.  The  New  York  Times 
said  of  the  platform,  "It  is  understood  to  have  full  approval  of 
Judge  Parker." 

That  platform,  like  the  one  at  St.  Louis,  was  silent  on  the 
money  question  and  upon  the  question  of  trusts  was  "State's 
rights"  to  a  degree  which  must  have  delighted  the  heart  of  the 
southern  element  which  supported  him  so  cordially  at  the  St. 
Louis  convention.  It  stated  explicitly  that  "corporations  chartered 
by  the  state  must  be  subject  to  just  regulation  by  the  state** 


THE   DEMOCRATIC   PLATFORM    AND    CANDIDATE.  501 

This  proposition  with  reference  to  trusts — to  relegate  the  entire 
question  to  the  states — means  of  course  to  do  nothing,  and  is  as 
complete  an  evasion  of  the  trust  question  on  the  part  of  dem- 
ocracy of  New  York  as  was  the  evasion  of  the  St.  Louis  plat- 
form on  the  money  question.  For  three  months  Judge  Parker 
stood  contentedly  on  this  platform  made  by  his  friends  and  by 
the  state  convention  which  nominated  him  as  its  candidate  for 
the  Presidency,  uttering  no  word  of  dissatisfaction  with  its 
evasions  of  the  chief  issues  of  the  campaign.  So  unsatisfactory 
was  this  platform  and  the  candidate -whose  views  it  was  under- 
stood to  represent  that  Mr.  Bryan,  in  an  address  at  Chicago  on 
April  23,  1904,  denounced  him  as  unfitted  to  receive  the  support 
of  the  party,  saying  that  "the  Democrats  of  the  nation  ought  to 
defeat  as  an  aspirant  for  the  Democratic  nomination  any  man 
who  would  be  willing  to  have  it  go  forth  as  a  declaration  of  his 
views  on  public  questions"  and  added  that  in  his  opinion,  "Judge 
Parker  is  not  a  fit  man  to  be  nominated  by  the  Democratic 
party." 

MORE    EVASION    ON    THE    MONEY    QUESTION. 

Mr.  Hill  went  to  St.  Louis  prior  to  the  opening  of  the  con- 
vention as  Judge  Parker's  accredited  representative.  When  the 
Committee  on  Platform  met,  Mr.  Hill  and  other  representatives 
of  Judge  Parker  urged  the  adoption  of  the  plank  on  the  money 
question  as  follows: 

"The  discoveries  of  gold  within  the  past  few  years  and  the 
great  increase  in  the  production  thereof,  adding-  two  thousand  mil- 
lion dollars  to  the  world's  supply,  of  which  seven  hundred  millions 
falls  to  the  share  of  the  TJ'nited  States,  has  contributed  to  the 
maintenance  of  a  money  standard  of  value  no  longer  open  to  ques- 
tion, removing  that  issue  from  the  field  of  political  contention." 

The  above  statement  was,  by  implication  at  least,  false  and 
misleading.  The  Democratic  party  in  1900  reiterated  its  declara- 
tion in  behalf  of  the  free  and  unlimited  coinage  of  silver,  basing 
that  proposition  upon  the  claim  that  only  by  the  unlimited  use 
of  silver  as  money  metal  could  the  world's  requirement  for  cur- 
rency metal  be  properly  met.  Since  that  declaration  of  1900  the 
world's  production  of  gold  has,  according  to  the  annual  estimates 
of  the  Director  of  the  Mint,  amounted  to  $1,142,000,000  or  only 
$112,000,000  more  than  during  the  four  years  immediately  pre- 
ceding the  declaration  of  1900  when  the  Democratic  party 
demanded  the  free  and  unlimited  coinage  of  silver  upon  the  theory 
that  the  gold  supply  was  insufficient.  In  other  words,  the  plank 
proposed  by  Mr.  Hill  attempted  to  show  that  the  change  of  senti- 
ment in  the  party  since  its  last  declaration  was  due  to  an 
enormous  increase  in  the  production  of  gold,  while  in  fact  the 
increase  in  the  production  of  gold  since  that  last  declaration  in 
1900  has  been  only  $112,000,000  more  than  that  of  the  four  years 
preceding  the  declaration  of  1900.  The  world's  production  of 
gold  in  the  four  years  immediately  preceding  the  Democratic 
convention  of  1900  which  declared  for  the  free  and  unlimited 
coinage  of  silver  upon  the  claim  that  the  production  of  gold  was 
insufficient  to  meet  the  requirements,  amounted  to  $1,030,000,000 
while  in  the  four  vears  since  the  Democratic  convention  of  1900 
the  world's  gold  production  has  been  $1,142,000,000. 

GOLD    PLANK    REJECTED    BY    MORE    THAN    TWO-THIRDS    VOTE. 

The  above  plank  proposed  by  Mr.  Hill  and  other  supporters  of 
Judge  Parker,  declaring  that  the  increased  production  of  gold 
removes  the  money  question  from  the  field  of  political  contention, 
was  rejected  by  the  committee,  after  a  19-hours'  struggle,  by  a 
vote  of  35  to  15,  and  an  agreement  was  reached  that  the  platform 
should  contain  no  reference  to  the  money  question. 

NEWS   MUST   HAVE  REACHED  ESOPUS  EARLY  ON  FRIDAY. 

This  rejection  of  the  gold  plank  and  conclusion  to  omit  the 
money  question  from  the  platform  occurred  according  to  the  New 
York  Evening  Post  at  4.40  o'clock  on  Friday  morning  as  a  result 
of  the  all-night  session  of  the  committee.  The  news  was  flashed 
over  the  country  by  telegraph  with  remarkable  promptness  and 
was  in  the  mouths  of  the  people  in  every  part  of  the  United 
States  as  soon  as  the  business  of  the  day  had  opened.  It  was 
known  in  the  newspaper  offices  of  New  York  and  Albany  by  the 
time  Judge  Parker  had  breakfasted  on  Friday  and  had  of  course 


502  THE   DEMOCRATIC   PLATFORM    AND   CANDIDATE. 

boon  telephoned  nnd  telegraphed  to  the  bevy  of  newspaper  cor- 
respondents which  constantly  surrounded  Judge  Parker's  house, 
and  it  seems  Impossible  to  suppose  that  the  information  should 
have  failed  to  reach  him  personally  very  early  on  Friday  morn- 
ing, either  through  those  correspondents  or  by  personal  cora- 
niunications  from  his  friends  in  St.  Louis  or  from  the  newspaper 
olHces,  especially  those  supporting  his  candidacy  and  which  were 
able  to  communicate  instantly  with  him  on  that  important  sub- 
ject. It  was  the  talk  of  the  town  early  in  the  forenoon  of  Friday 
in  all  New  York,  in  Washington  and  every  other  city  in  which 
any  interest  was  felt  on  the  subject.  The  New  York  Evening 
Post,  the  most  urgent,  of  his  supporters,  in  its  issue  of  that  date, 
announced  in  startling  headlines:  "No  Money  Plank"  Thus 
people  of  all  classes  in  the  United  States  who  were  at  all  inter- 
ested in  this  subject  knew,  in  the  early  part  of  Friday,  that  the 
Platform  Committee  had  decided,  by  a  more  than  two-thirds  vote, 
to  recommend  that  no  utterance  be  made  on  the  money  question 
and  there  was  reason  to  believe  that  the  convention  would  adopt 
that  proposition,  and  it  seems  impossible  to  suppose  that  Judge 
Parker  could  have  failed  to  receive  this  information  very  early 
in  the  day  on  Friday.  The  New  York  and  Albany  afternoon 
papers  containing  the  announcement  were  doubtless  at  Esopus 
long  before  the  close  of  the  day  and  certainly  during  many  hours 
of  Friday  afternoon  and  night  during  which  the  convention  was 
in  session. 

PARKER  PRESS    URGING   ACTION  ON  FRIDAY  NIGHT. 

The  editors  of  the  New  York  papers  which  had  been  support- 
ing his  candidacy  wrote  on  Friday  night,  for  their  Saturday 
morning  issues,  vigorous  editorials,  not  only  denouncing  the  omis- 
sion of  the  money  question  from  the  platform,  but  stating  that 
such  omission  would  destroy  the  possibility  of  party  success. 
The  New  York  World  said  "to  reject  this  resolution  and  refusing 
to  make  any  utterance  on  the  question  that  has  twice  defeated 
the  party  is  to  invite  another  overthrow." 

The  New  York  Sun  said  that  "HilVs  sinister  methods  have 
intervened  at  the  critical  moment  to  overcloud  hopes  that  were 
bright  and  to  turn  possible  victory  into  probable  defeat." 

Even  the  New  York  Evening  Post  of  Friday  had  said:  "On 
anything  but  an  affirmation  of  the  gold  standard  Judge  Parker 
cannot  stand;  short  of  it  the  party  has  not  a  gleam  of  hope 
before  it." 

But  most  striking  of  all  these  demands  which  his  editorial 
friends  wrote  on  Friday  night,  while  he  persisted  in  remaining 
silent,  was  that  of  the  New  York  Times,  which  said: 

"On  Bryan's  platform  Judge  Parker  will  never  be  elected.  He 
must  make  his  own  and  make  it  promptly  if  he  would  stay  the 
tide  of  defection.  The  convention  expressly  refused  to  declare  for 
gold,  thereby  confessing-  that  the  Democracy  is  not  cured  of  the 
free  silver  craze.  *  *  *  The  blunder  can  be  amended,  so  far  as  it 
iK  amendable  at  all,  only  by  the  candidate — and  at  this  hour  of 
writing,  before  the  taking  of  the  ballot,  we  are  assuming  the  nom- 
ination of  Parker.  He  must  at  once  declare  *  *  that  the  gold 
monetary  standard,  as  now  established  by  law,  is  permanent  and 
no  longer  open  to  question.  We  do  not  say  that  by  such  a  declar- 
ation Judge  Parker  would  avert  defeat;  we  fear  it  is  too  late  for 
that." 

Note  the  similarity  of  the  wording  of  this  declaration,  de- 
manded while  the  nomination  was  pending,  and  complied  with 
after  the  nomination  had  been  secured.  The  demand  is  that  he 
"at  once"  declare  that  "the  monetary  standard,  as  now  estab- 
lished by  law,  is  permanent  and  no  longer  open  to  question." 
The  next  day,  after  the  editorial  had  been  read  and  digested,  and 
lite  nomination  had  been  secured.  Judge  Parker  followed  the  ad- 
vice  in  almost  the  lnnguage  dictated,  by  declaring  that  "I  regard 
the  gold  standard  as  firmly  and  irrevocably  established." 

It  can  scarcely  be  possible  that  while  these  personal  friends 
and  supporters  of  Judge  Parker  were  writing  these  things  about 
him  on  Friday  afternoon  and  evening  they  failed  to  communicate 
their  views  to  him  in  a  personal  way.  Reports  of  the  incidents 
at  Judge  Parker's  home  during  this  time,  published  in  the  New 
York  papers,  indicate  that  messages  were  being  constantly 
received  in  his  house  by  telephone,  thus  indicating  that  he  was 
not  at  any  moment  so  isolated  from  the  public  as  to  prevent 
his   receiving   full    information   of  what  was   in   progress   either 


THE   DEMOCRATIC   PLATFORM    AND   CANDIDATE.  503 

through  the  bulletins  from  St.  Louis  which  were  being  sent  freely 
in  all  directions  or  through  direct  communications  from  his  friends 
in  St.  Louis  and  New  York.  That  this  information  did  reach 
him  on  Friday  is  now  practically  confessed  in  a  statement  from 
Esopus,  published  in  the  New  York  Times  and  other  papers  on 
July  12,  which  is  given  as  from  a  "near  friend"  of  Judge  Parker. 
It  says: 

Even  when  the  news  came  Friday  that  the  Resolutions'  Com- 
mittee had  agreed  on  a  platform  Which  contained  no  financial 
piank,  a  full  conception  of  what  seemed  to  be  his  duty  did  not 
form  itself  in  Judge  Parker's  mind.  *  *  *  Even  if  he  had  a 
vague  notion,  as  he  admitted  yesterday,  of  the  awkward  position 
in  which,  he  would  be  placed,  holding  as  he  did  such  decided  views 
on  the  money  question,  should  he  be  put  at  the  head  of  the  ticket 
on  a  platform  which  did  not  commit  itself  on  that  vital  issue,  the 
gravity  of  such  a  situation  did  not  at  first  clearly  present  itself  to 
him. 

ANOTHER   EVASIVE   RESPONSE. 

Yet  with  all  this  information  forced  upon  him  through  these 
numerous  avenues  which  he  could  not  possibly  have  escaped,  he 
was  silent  until  his  friends  had  absolutely  secured  for  him  the 
nomination,  and  the  convention,  worn  out  with  the  night  of 
struggle,  had  taken  a  recess  until  Saturday  afternoon  when  it 
should  complete  its  work  by  nominating  his  running  mate.  Then 
the  nomination  having  been  secured,  and  fully  24  hours  after 
he  must  have  known  of  the  Platform  Committee's  action  and 
the  probability  that  the  convention  would  ignore  the  money  ques- 
tion, he  sent  the  following  telegram: 

Esopus,  N.  Y.,  July  9,  1904. 
Hon.  Wm.  F.  Sneehan,  Hotel  Jefferson: 

I  regard  the  gold  standard  as  firmly  and  irrevocably  estab- 
lished, and  shall  act  accordingly  if  the  act  of  the  convention  to- 
day shall  be  ratified  by  the  people. 

As'  the  platform  is  silent  on  the  subject,  my  view  should  be 
known  to  the  convention;  and  if  it  is  proved  to  be  unsatisfactory 
to  the  majority,  I  request  you  to  decline  the  nomination  for  me, 
so  that  another  may  be  nominated  before  adjournment. 

(Signed)  ALTON    B.    PARKER. 

Note  again  the  similarity  of  this  telegram  and  the  1897  letter 
to  Mr.  Danforth — In  each  case  there  is  an  evasion,  a  sphinx-like 
silence  on  the  real  question  of  the  writers'  views  as  to  the  vital 
issue  of  the  silver  question.  He  says  he  thinks  the  question 
irrevocably  settled,'  but  does  not  say  whether  he  thinks  it  property 
and  rightfully  settled,  any  more  than  he  said  in  his  letter  to  Mr. 
Danforth  that  he  did  or  did  not  believe  in  the  silver  standard 
in  1896  and  1900  when  he  voted  for  the  party  nominee. 

THE    CONVENTION    DISREGARDED    PARKER'S    DECLARATION. 

When  Judge  Parker's  telegram  reached  St.  Louis  in  the  after- 
noon of  Saturday,  the  convention  was  not  in  session.  It  had 
remained  in  session  all  of  Friday  night  to  nominate  him,  and, 
having  accomplished  this,  at  5.48  on  Saturday  morning,  had 
taken  a  recess  until  2  p.  m..  Just  before  that  hour,  the  receipt  of 
the  telegram  from  Judge  Parker  threw  the  leaders  into  confusion 
and  there  was  necessity  of  a  conference  as  to  what  course  should 
be  pursued.  So  the  convention  was  persuaded  to  take  another 
recess  until  5  o'clock,  which  it  did.  By  this  time  news  of  the 
real  cause  of  the  second  recess  had  begun  to  leak  out  and 
threw  the  leaders  and  members  into  a  turmoil  and  rage  seldom  if 
ever  seen  in  a  national  gathering  of  this  kind.  The  southern 
members,  who  with  Mr.  Bryan  had  been  the  chief  participants 
in  the  proceedings,  were  especially  vigorous  in  their  denuncia- 
tion of  the  telegram  and  its  author.  The  New  York  Sun,  in  its 
report  of  the  scene,  says  that  "At  the  Jefferson,  Planters',  and 
Southern  hotels,  many  of  the  delegates  tore  off  their  Parker 
badges  and  flung  them  on  the  floor  and  stamped  on  them."  Sena- 
tor Tillman,  according  to  the  same  authority,  said  that  Judge 
Parker's  action  should  be  repudiated  if  the  party  was  to  be 
saved  and  that  no  man  had  a  right  to  put  himself  above  the 
action  of  the  convention  which  nominated  him.  Senator  Culber- 
son, of  Texas,  according  to  the  same  authority,  said  that  the 
delegates  from  his  state  were  furious  and  would  not  allow  them- 
selves to  be  bullied  or  bulldozed.  Governor  Vardeman  of  Missis- 
sippi agreed  with  Senator  Culberson,  and  said  that  the  platform 
as  adopted  should  stand,  and  the  delegates  from  Tennessee  con- 
curred in  the  sentiments  of  Culberson,  Tillman,  and  Vardeman. 


504  THE    DEMOCRATIC    PLATFORM    AND    CANDIDATE. 

Governor  Dockery  of  Missouri,  the  Sun  says,  remarked  that 
"Judge  Parker  should  go  and  take  another  bath  in  the  Hudson." 
The  New  York  World  reports  Senator  Tillman  as  asking  if  the 
committee  on  resolutions  was  to  be  kicked  and  cuffed  about  as  if 
it  wore  nothing,  and  adding,  "The  Democratic  party  can  always 

be  relied  upon  to  make  a  fool  of  itself  at  the  right  time." 

The  same  authority  reports  Ollie  James  of  Kentucky  as  saying 
that  if  a  gold-standard  plank  were  adopted  his  state  would  give 
a  majority  of  100,000  Republican.  Ex-Senator  Jones,  Chairman 
of  the  Democratic  National  Committee,  is  reported  by  the  same 
paper  as  saying,  "I  consider  the  gold  plank  proposition  as  fake 
politics,"  and  it  adds  that  Chairman.  Cowherd,  of  the  Deniocratic 
Congressional  Committee,  remarked  that  "Any  attempt  to  dis- 
credit the  decision  taken  in  1896  and  1000  would  be  a  mistake." 
The  New  York  Herald  reports  Senator  Tillman  as  saying,  "If 
Judge  Parker  sent  this  message,  I  am  in  favor  of  moving  to 
withdraw  the  vote  of  South  Carolina  which  nominated  him;  I 
stood  for  peace,  but  the  last  concession  has  been  made."  Repre- 
sentative Vandiver  of  Missouri,  according  to  the  same  authority, 
remarked,  "We  have  got  what  we  deserved  for  nominating  a 
clam,"  and  Mr.  Sheehan,  according  to  the  World  dispatch,  said 
to  the  delegates  who  surrounded  him,  "Please  let  me  alone;  I 
am  half  crazy." 

THE  BEPLY  OF  THE  CONVENTION. 

When  the  convention  re-assembled  at  5.30,  the  leaders  were 
not  yet  ready  with  their  reply  to  Judge  Parker,  and  another 
recess  was  taken  until  9  o'clock.  When  the  members  of  the  con- 
vention came  together  again  at  9  o'clock  it  waited  a  full  hour 
and  at  10  o'clock  on  Saturday  night  Judge  Parker's  telegram 
was  read  to  the  delegates  wearied  with  two  nights'  struggle  over 
platform  and  nomination  and  the  following  reply  proposed: 

"The  platform  adopted  by  this  convention  is  silent  on  the  ques- 
tion of  the  monetary  standard  because  It  is  not  regarded  by  us  as 
a  possible  issue  in  this  campaign,  and  only  campaign  issues  were 
mentioned  in  the  platform.  Therefore  there  is  nothing  in  the 
views  expressed  by  you  in  the  telegram  just  received  which  would 
preclude  a  man  entertaining  them  from  accepting  the  nomination 
on  said  platform. 

This  proposed  telegram  and  flat  refusal  to  subscribe  to  any 
sentiments  expressed  in  Judge  Parker's  message  was  urged  upon 
the  convention  by  Tillman,  Williams,  and  others.  Mr.  Bryan, 
hearing  of  the  situation,  left  his  sick  bed  and  appeared  on  the 
floor  of  the  convention  at  10.30  p.  m.,  and  after  a  speech  in  which 
he  reflected  upon  Judge  Parker  by  saying,  "It  is  a  manly  thing 
for  a  man  to  express  his  opinion  before  the  convention  adjourns ; 
it  would  have  been  manlier  to  have  expressed  it  before  the  con- 
vention met,"  withdrew  objection,  and  the  convention,  wearied 
with  two  all-night  sessions  and  a  third  night  now  half  spent, 
voted  to  authorize  the  chairman  to  send  a  reply  and  consider 
the  matter  at  an  end. 

So  insistent  and  all-powerful  were  the  silver  men  in  committee 
and  convention  that  after  the  gold  plank  had  been  stricken  out 
in  the  committee,  Mr.  Bryan  called  attention  to  the  fact  that  the 
final  section  of  the  platform  in  its  appeal  to  the  public  invoked 
the  support  of  "all  our  fellow  citizens  who,  disregarding  past 
differences  upon  questions  no  longer  an  issue,  desire  the  perpet- 
uation of  our  constitutional  government,"  etc.  He  insisted  that 
the  words  "upon  questions  no  longer  an  issue"  be  stricken  out, 
lest  they  might  be  regarded  as  referring  to  the  silver  question, 
and  it  was  agreed  in  committee  that  this  should  be  done.  After 
the  committee  had  adjourned,  it  was  discovered  that  the  plat- 
form had  been  given  to  the  press  with  these  words  still  retained, 
and  Mr.  Bryan  again  sharply  called  attention  to  the  matter ;  and 
as  a  result  the  copy  of  the  platform  when  furnished  to  the  official 
reporters  showed  that  the  wdrds  "upon  questions  no  longer  an 
issue"  had  been  stricken  out. 

WHAT    DID   THE   PARKER   TELEGRAM    MEAN? 

Now  for  an  analysis  of  Judge  Parker's  telegram.  In  it  Judge 
Parker  says:  "I  regard  the  gold  standard  as  firmly  and  irre- 
vocably established  and  shall  act  accordingly  if  the  act  of  the 
convention  to-day  shall  be  ratified  by  the  people."  The  Century 
Dictionary    gives    the    meaning    of    the    word    "irrevocably"    as 


THE  .DEMOCRATIC    PLATFOEM    AND    CANDIDATE.  505 

"beyond  recall ;  so  as  to  preclude  recall  or  repeal."  The  purpose 
of  Judge  Parker's  telegram  then  must  have  been  to  assert  that 
the  gold  standard  was,  in  his  opinion,  established  beyond  repeal, 
and  the  meaning  of  his  statement  that  he  would  "act  accordingly 
if  the  act  of  the  convention  to-day  shall  be  ratified  by  the  people" 
was  apparently  intended  to  convey  the  impression  that  he  would 
interpose  his  veto  in  case  of  a  repeal  of  the  gold  standard  act 
by  the  party  which  had  refused  in  convention  in  1904  to  with- 
draw its  advocacy  of  the  free  and  unlimited  coinage  of  silver. 

WAS   THE  IMPLIED   PLEDGE  ONE  THAT   COULD   BE    MADE  EFFECTIVE? 

While  this  implied  assertion  is  quite  out  of  line  with  that  made 
to  Chairman  Danforth  in  1897  when  Judge  Parker  went  out  of 
the  way  to  gain  silver  votes  by  announcing  that  he  had  twice 
supported  Mr  Bryan  and  free  silver,  its  absolute  worthlessness  as 
an  assurance  of  ability  to  maintain  the  gold  standard,  even  if 
he  were  perfectly  sincere  in  that  wish,  is  shown  by  the  latest 
record  of  the  Democratic  party  in  Congress  upon  this  question. 

DEMOCRATIC    RECORD   ON   LAW    ESTABLISHING   GOLD    STANDARD. 

That  latest  record  was  made  in  the  vote  upon  the  bill  offered 
by  the  Republican  party  in  1899  establishing  the  gold  standard. 
In  the  vote  in  the  House  of  Representatives  on  that  bill  (Decem- 
ber 18,  1899)  eleven  (11)  Democrats  voted  for  the  bill  and  142 
against  it,  and  in  the  Senate  on  the  same  measure  (February  15, 
1900)  two  (2)  Democrats  voted  for  the  bill  and  23  Democrats 
against  it.  Thus  on  the  test  vote  in  1899  and  1900  on  the  bill 
establishing  the  gold  standard,  more  than  nine-tenths  of  the  Dem- 
ocrats in  the  House  and  Senate  voted  against  the  proposition 
and  less  than  one-tenth  voted  for  it.  With  this  record  of  the  party 
on  a  distinct  proposition  to  establish  and  maintain  the  gold 
standard,  of  what  value  is  Judge  Parker's  implied  promises  that 
he  would  veto  a  bill  repealing  the  gold  standard?  A  two-thirds 
vote  in  the  House  and  Senate  would  pass  such  a  measure  over  his 
veto  and  the  record  of  his  own  party  in  Congress  is  that  nine- 
tenths  of  its  members  voted  in  1900  against  the  gold  standard  act, 
and,  it  may  be  assumed,  would  vote  to  override  a  veto  of  the 
bill  repealing  that  act  against  which  they  thus  voted.  The  abso- 
lute unwillingness  of  the  Democratic  party  to  be  at  all  guided 
by  the  views  of  a  President  of  its  own  selection  is  shown  in  the 
fact  that  it  passed  in  House  and  Senate  in  1894,  a  tariff  act  so 
unsatisfactory  to  its  President  that  he  not  only  denounced  it  in 
unmeasured  terms  during  its  consideration  but  withheld  his  signa- 
ture when  it  was  finally  forced  upon  him  by  his  own  party. 

WAS   SILENCE  ON  THE.  MONEY  QUESTION  A  PREARRANGED  PLAN? 

Not  only  did  the  St.  Louis  convention  of  1904  decline  to  make 
an  expression  on  the  money  question  even  after  the  receipt  of 
Judge  Parker's  telegram,  but  there  are  facts  which  indicate  that 
this  was  the  settled  purpose  of  the  supporters  of  Judge  Parker 
from  the  beginning.  The  Hon.  John  Sharp  Williams,  leader  of 
the  Democratic  party  in  Congress,  an  avowed  supporter  of  Judge 
Parker,  in  his  speech  as  Temporary  Chairman  on  the  opening  of 
the  convention  announced  that  the  party  would  present  its  can- 
didate "upon  a  platform  ignoring  dead  issues."  This  announce- 
ment was  made  before  the  Platform  Committee  had  met.  His 
early  assertion  that  the  party  would  "ignore  dead  issues"  indi- 
cates that  it  was  the  intention  of  this  leader  of  the  party  in  the 
House  of  Representatives  and  his  associates  that  the  party  would 
ignore  and  pass  by  in  silence  this  silver  question,  to  which  it 
would  in  fact  still  be  pledged  unless  it  should  in  some  definite  man- 
ner revoke  its  former  action  upon  this  subject.  That  it  was  the 
intention  of  the  party  leaders  from  the  first  to  omit  reference 
to  this  important  subject  and  also  to  make  it  appear  that  this 
treatment  of  the  question  in  the  platform  of  the  party  would 
have  Judge  Parker's  approval  or  at  least  his  tacit  consent  is 
•further  indicated  by  the  fact  that  Mr.  Littleton,  in  his  speech 
nominating  Judge  Parker  (which  speech  had  of  course  been  sub- 
mitted to  that  gentleman  before  its  presentation)  said: 

"If  you  ask  me  why  he  has'  been  silent,  I  tell  you  it  is  be- 
cause he  does  not  claim  to  be  the  master  of  the  Democratic  party, 
but  is  content  to  be  its  servant.  If  you  ask  me  why  he  has  not 
outlined  a  policy  for  this  convention,  I  tell  you  that  he  does  not 


606  THE  DEMOCRATIC   PLATFORM    AND   CANDIDATE. 

believe  that  policies  should  be  dictated,  but  that  the  sovereignty 
of  the  party  Is  in  the  untrammeled  judgment  and  wisdom  of  its 
members;  If  you  ask  me  what  his  policy  will  be,  if  elected,  I  tell 
you  that  it  will  be  that  policy  which  finds  expression  in  the  plat- 
form of  his  party." 

In  addition  to  this,  attention  is  again  called  to  the  silence  on 
the  money  question  of  the  Now  York  state  platform  framed  with 
the  co-operation  and  full  approval  of  Mr.  Parker  and  with  the 
purpose  of  making  it  the  basis  for  his  presentation  to  the  con- 
vention as  candidate  of  New  York  state. 

But  say  his  supporters,  "he  did  express  himself  despite  the 
refusal  -of  the  convention  to  consider  the  money  question  and 
despite  the  assertion  of  his  spokesman  that  "his  policy  will  be 
that  which  finds  expression  in  the  platform  of  his  party."  Yes 
he  did  express  himself,  but  that  expression  was  withheld  until 
his  nomination  was  safely  within  his  grasp  and  until  he  had  been 
on  the  other  hand  warned  by  tho  leading  newspapers  of  his 
party  that  without  such  an  expression  from  him  they  would 
refuse  to  support  him  and  his  "possible  victory  would  be  turned 
into  defeat" 

EX-ATTORNEY    GENERAL    KNOX    ON   JUDGE    PARKER'S    DECLARATION. 

Ex-Attorney  General  Knox  in  an  interview  in  the  Philadelphia 
Press  of  July  15,  said: 

"Judge  Parker's  recognition  of  the  fact  that  the  gold  standard 
has  been  irrevocably  established  Is  nothing  but  an  acknowledg- 
ment of  the  accomplishment  of  that  great  fact  by  the  Republican 
party  against  the  repeated  protest  of  his  party  and  against  his* 
personal  vote  every  time  the  issue  was  before  the  people. 

"It  could  hardly  be  expected  that  a  man  of  his  position  would 
exhibit  less  intelligence  than  was'  manifested  by  his  prompt 
avowal  of  his  knowledge  of  that  fact  after  being  prodded  to  do  so 
by  the  Democratic  and  Mugwump  New  York  press.  It  was  pointed 
out  to  him  that  failure  to  do  so  meant  defeat. 

"It  would  be  just  as  silly  to  extol  an  acknowledgment  of  the 
fact  that  the  earth  is  round  as  the  fact  that  this  country  is'  irre- 
vocably upon  a  gold  basis.  That  it  is  irrevocably  so  is  because 
the  people  will  not  give  the  Democracy  the  chance  to  revoke,  at 
least,  until  the  good  faith  of  the  party  rests  upon  something  more 
substantial  than  the  self-serving  assertion  of  one  man  against  the 
deliberate,  sullen  silence  of  the  whole  party. 

"I  have  heard  of  no  expression  yet  that  either  Judge  Parker  or 
his  party  regards  the  money  question  as  settled  right.  The  fair 
inference  from  his  vote  and  his  party's  attitude  is  that  they  only 
regard  it  as'  settled  for  the  purpose  of  this  campaign. 

"We  have  the  authority  of  Mr.  Littleton,  who  nominated  Mr. 
Parker  in  a  speech,  which,  of  course,  Mr.  Parker  saw  before  its  de- 
livery, that  'no  candidate  is  greater  than  his  party  and  no  party 
greater  than  its  principles.'  " 

THE  TRUSTS  AND  JUDGE  PARKER. 

That  Judge  Parker  owes  his  nomination  as  the  Democratic 
candidate  for  the  Presidency  to  certain  powerful  financial  inter- 
ests in  Wall  street  is  a  matter  of  record.  The  chief  promoter  of 
his  candidacy  was  August  Belmont 

PARKER   HELPED    MAKE  THE  ALBANY  PLATFORM. 

On  April  15,  three  days  before  the  assembling  of  the  New  York 
Democratic  State  Convention,  which  instructed  a  delegation  to  the 
National  Convention  to  vote  as  a  unit  for  him,  Judge  Parker  paid 
a  visit  to  New  York  City.  The  object  of  that  visit,  and  what 
occurred  at  the  conferences  which  attended  it,  were  set  forth  fully 
and  frankly  in  the  New  York  Times,  an  ardent  Parker  supporter, 
on  the  following  day.    Appended  is  an  extract  from  its  report : 

"Judge  Alton  B.  Parker  spent  several  hours  in  this  city  yes- 
terday In  consultation  with  William  F.  Sheehan  and  others',  dis- 
cussing principally  the  draft  of  the  platform  which  has  been  pre- 
pared by  ex-Senator  David  B.  Hill  for  adoption  at  next  Monday's 
Democratic   State   convention. 

"Judge  Parker,  Mr.  Sheehan  and  August  Belmont  lunched  to- 
gether, and  late  in  the  afternoon  Judge  Parker,  accompanied  by 
Mr.  Sheehan,  left  for  his  home  at  Esopus,  where  he  will  remain 
until  after  the  State  convention.  Mr.  Sheehan  will  remain  at 
Judge  Parker's  home  until  some  time  to-day,  when  he  will  go  to 
Albany  to  take  the  approved  draft  of  the  platform  back  to  Senator 
Hill.     *     •     • 

"As  it  stands,  the  platform  is'  understood  to  have  the  full  ap- 
proval of  Judge  Parker,  all  of  the  propositions  advanced  by  Sen- 
ator Hill  as  being  likely  to  attract  the  radical  vote  having  b«en 
eliminated  at  the  wish  of  the  prospective  candidate  for  the  Presi- 
dency.    •     •     • 

"The  platform  which  has  been  approved,  and  which  will  be  pre- 
sented to  the  convention  on  Monday,  is  understood  to  be  drawn  on 


THE  DEMOCRATIC  PLATFORM   AND   CANDIDATE.  507 

ultra-conservative  lines',   and  to  avoid  all  references  to  the  rocks 
on  which  the  party  split  in  the  last  two  national  campaigns." 

TRUSTS    TO    BE    LET    ALONE. 

The  fourth  plank  of  the  platform  thus  approved  and  subse- 
quently adopted  by  the  convention,  reads  as  follows: 

"Corporations  chartered  by  the  State  must  be  subject  to  just 
regulation  by  the  State  in  the  interest  of  the  people." 

There  is  no  mistaking  the  meaning  of  that  declaration.  It 
abolishes  national  control  of  trusts  and  all  similar  combinations. 
If  embodied  in  law  it  would  compel  the  repeal  of  the  statute  under 
which  the  Northern  Securities  suit  was  brought  and  won  by 
President  Roosevelt.  It  is  absurd  to  suppose  that  Judge  Parker, 
who  is  nothing  if  not  an  able  and  experienced  lawyer,  could 
have  read  and  approved  this  declaration  without  fully  compre- 
hending its  meaning.  It  is  equally  absurd  to  suppose  that  David 
B.  Hill  and  Mr.  Belmont  were  not  fully  aware  of  its  intent,  and 
of  its  effect  in  operation  were  it  to  become  a  law.  No  question 
that  was  to  come  before  the  New  York  convention  was  calcu- 
lated to  command  more  careful  consideration  from  Judge  Parker 
;and  his  friends  in  this  conference  than  that  of  trusts.  Nobody 
|  knew  better  than  they  that  the  only  reason  for  taking  the  Dem- 
ocratic nominee  for  the  Presidency  from  the  State  of  New  York 
was  that  President  Roosevelt  had  incurred  the  bitter  hostility  of 
Wall  street  because  of  his  uncompromising  conduct  in  enforcing 
the  law  against  the  trusts.  The  Democratic  hope  relied  solely 
upon  finding  a  candidate  who  would  be  acceptable  to  the  trusts, 
and  who  would  not  only  get  them  votes,  but  their  money  in  the 
campaign.  Judge  Parker  knew  this,  and  Mr.  Belmont  knew  it. 
The  only  safe  course  was  to  put  in  a  declaration  favorable  to 
the  trusts,  and  this  was  done. 

After  the  convention  had  been  held  and  the  platform  had  been 
adopted,  the  Democratic  State  Committee  met  on  April  30  to 
organize  for  the  campaign.  In  the  interim  not  a  word  came  from 
Judge  Parker  expressing  dissatisfaction  with  the  platform  which, 
aside  from  its  trust  deliverance,  was  weak  and  meaningless. 
There  had  been  much  discussion  as  to  the  chairmanship  of  the 
committee,  and  several  candidates  for  the  position  had  been  sug- 
gested. The  Parker  influence  was  exerted  for  Cord  Meyer,  and 
he  was  elected.  The  same  influence  was  exerted  for  Patrick  H. 
McCarren  for  chairman  of  the  executive  committee,  and  he  also 
was  elected. 

PARKER'S    REAL  BACKERS. 

Who  is  Cord  Meyer,  and  who  is  Patrick  H.  McCarren?  Let 
e  record  tell  the  story: 

Cord  Meyer  was  one  of  the  original  stockholders  in  the  first 
rganization  of  the  Sugar  Trust  in  1897.  Sixteen  refining  com-' 
anies  entered  the  combination,  with  a  total  value  of  $6,590,000. 
he  second  company  to  enter  was  the  Dick  J.  Meyer  Company, 

which  Cord  Meyer  was  interested.  This  company  was  put  in 
t  $200,000,  and  to  it  was  issued  a  total  of  several  millions  m  trust 
ertiflcates.  That  was  the  usual  trust  method  of  procedure,  as 
own  in  the  Shipbuilding  Trust  exposure.  Havermeyer,  testify- 
g  before  a  trust  investigation,  which  was  conducted  by  a  joint 
jommittee  of  the  two  houses  of  the  New  York  Legislature  in  1897, 
said  with  his  usual  frankness,  that  the  Sugar  Trust  was  formed 
:o  control  the  price  and  the  production  of  sugar  in  the  United 
States.  Evidence  was  presented  at  the  same  investigation  that 
he  Trust  controlled  the  sugar  business,  even  down  to  the  retailer, 
>y  a  system  of  factors'  agreements,  and  that  grocers  who  would 
lot  sign  these  factors'  agreements  to  sell  sugar  at  the  price  dic- 
:ated  by  the  Trust  had  their  supply  shut  off.  It  was  shown  that 
iven  with  the  tremendous  capitalization  the  Trust  paid  divi- 
iends  of  12  per  cent.  It  was  also  shown  that  seven  or  eight  large 
•efineries  were  shut  down,  and  that  between  5,000  and  6,000  men 
vere  thrown  out  of  employment  permanently. 

In  their  report  the  investigation  committee,  which  had  gone 
nto  the  Tobacco,  Rubber  and  Wall  Paper  Trusts,  as  well  as  the 
Sugar  Trust,  declared  that  "every  such  combination  was  accom- 
panied by  enormous  capitalization,  and  was  generally  followed 
)y  a  successful  effort  to  distribute  its  stock  to  the  public  through 
[he  channels  of  speculation.    Every  such  combination  was  followed 


508  THI   DEMOCRATIC    PLATFORM    AND    CANDIDATE. 

by   the  closing  and  dismantling  of  factories,  the  discharge  of 

labor    and    the    Concentration    of    the    business    of    many    separate 

organizations  into  a  (tew  of  the  many  lactones  controlled  by  th< 

combination." 

To  this  report  all  the  members  of  the  committee,  save  one 
affixed  his  signature.  The  dissenting  member  was  Patrick  II 
McCarren,  who  made  a  minority  report  defending  the  trusts,  anc 
especially  the  Sugar  Trust,  as  beneficent  institutions. 

Was  it  by  mere  accident  that  these  two  trust  beueficiaries 
and  defenders  were  put  in  charge  of  the  Democratic  campaigt 
in  New  York?  Meyer,  in  addition  to  having  been  a  stockholdei 
in  the  Sugar  Trust,  is  a  director  in  a  half-dozen  or  more  othei 
trusts.  He  is  a  millionaire  and  is  personally  acquainted  witl 
the  magnates  of  Wall  street.  No  sooner  wms  the  New  York  dele 
gation  secured  for  Parker  than  Meyer  began  to  "pass  the  hat' 
in  WmII  street  for  funds  to  promote  the  Parker  CMndidacy,  sayinp 
that  Belmont  had  borne  all  the  expense  to  date,  and  that  other* 
should  help  in  order  to  get  Parker  nominated.  His  function  is 
to  collect  the  money  from  the  trusts,  while  McCarren  is  to  spenc 
it  where  it  "will  do  the  most  good." 

One  other  point  remains  to  be  tMken  from  the  record.  At  th< 
Democratic  State  convention,  which  chose  the  Parker  delega 
tion,  four  Presidential  eleetors-at-large  for  the  State  were  elected 
One  of  these  was  James  T.  Woodward,  President  of  the  Hanovei 
National  Bank  of  New  York,  another  was  Henry  Payne  Whitney 
son  of  the  late  William  C.  Whitney,  and  a  third  was  Isadoi 
Straus.  These  withdrew  several  weeks  later  under  a  loud  out 
cry  from  the  Democratic  press,  led  by  the  New  York  World 
because  one  as  President  of  a  National  Bank  and  the  others  as 
directors  in  such  institutions,  were  ineligible  under  the  law.  Thej 
were  put  on  the  ticket,  for  the  same  reason  that  Meyer  mtk' 
McCarren  were  put  in  charge  of  the  campaign  work,  to  invite 
the  confidence  and  contributions  of  the  moneyed  interests  of  Wal 
street. 

It  is  said  that  the  Democrats  will  be  able  to  collect  a  large 
campaign  fund  this  year  for  the  first  time  in  many  years.  When 
will  they  get  it?  From  the  trusts  which  are  angry  at  Presided 
Roosevelt  because  he  refused  to  allow  them  to  violate  the  law 
or  to  look  upon  them  as  above  the  law.  Will  the  trusts  give 
money  to  Parker,  In  view  of  the  anti-trust  plank  of  the  St.  Louis 
platform?  Why  should  they  not?  That  is  not  his  plank,  bui 
Bryan's.  Parker's  plank  is  in  the  New  York  platform,  and  the 
trusts  can  easily  get  assurance  from  Belmont  and  Meyer  that  he 
will  stand  by  that 

RECORD  OF  THE  DEHOCRATIC  PARTY  ON  THE  ACT  ES- 

TABLISHINQ  THE  GOLD  STANDARD. 

Analysis  of  the  Vote  la.  the  House  and  Senate  Upon  that  Act. 

Judge  Parker's  telegram  to  the  St.  Louis  convention  statee: 
that  he  regards  "the  gold  standard  as  firmly  and  irrevocablj 
established  and  shall  act  accordingly." 

How  little  he  is  in  accord  with  his  party  on  this  subject  is 
shown  not  only  by  the  fact  that  the  convention  declined  bott 
before  and  after  his  telegram  to  repudiate  in  any  way  the  silvei 
platform  of  1896  and  1900,  but  is  also  shown  by  the  vote  of  the 
Democratic  party  in  Congress  on  the  act  establishing  the  gold 
standard.  That  measure  was  passed  in  the  House  of  Representa- 
tives December  18,  1899 ;  was  amended  in  the  Senate  and  passed 
February  15,  1900,  and  the  conference  report  which  presented 
the  bill  in  the  form  in  which  it  became  a  law  was  voted  upon  in 
the  Senate  March  6,  1900,  and  in  the  House  March  13,  1900.  Thi 
votes  on  this  measure  at  its  various  stages  are  summarized  bj 
Representative  T.  C.  McRae,  of  Arkansas,  a  Democrat,  on  pages 
3034  and  3035  of  the  daily  Congressional  Record  of  March  14,  1900 
(page  2842  of  bound  record)  as  follows: 

Vote  on  passage  in  the  House,  December  18,  1899 : 

Yeas — 179  Republicans,  11  Democrats. 

Nays' — 142  Democrats,   5  Populists,  3  S'ilverites. 

Vote  on  passage  in  the  House,  December  18.  1809: 

Yeas — 44  Republicans,   2  Gold  Democrats. 

Nays — 23  Democrats,  3  Silverites,  2  Populists,  1  Republican. 


THE   DEMOCBATIC    PLATFOEM    AND    CANDIDATE. 


509 


Vote  in  Senate  on  Conference  Report,  March  6,  1900: 

Teas — 43   Republicans,   1   Democrat. 

Nays — 21  Democrats,   2  S'il writes,  2  Populists,  1  Republican. 

Vote  on  Conference  Report  in  House  ,of  Representatives,  March 
13,   1900: 

Yeas — 157  Republicans,  9  Democrats. 

Nays — 114  Democrats',   4  Populists,   2  Sllverltes. 


THE   VOTE   AGAINST   THE   GOLD   STANDARD   ACT. 

The  vote  against  the  bill  on  its  original  passage  in  the  House 
on  December  18,  1899,  with  the  politics  of  each  member  as  stated 
in  the  Congressional  Directory  for  1900,  is  summarized  in  the 
Congressional  Record  of  March  14,  1900,  by  Hon.  Thomas  C. 
Mcliae,  a  Democratic  Congressman  from  Arkansas,  as  follows: 


Adamson,  Ga.,  Dem. 
Allen,   Ky.,   Dem. 
Allen,   Miss.,  Dem. 
Atwater,  N.  C,  Dem. 
Bailey,  Tex.,  Dem. 
Ball,   Tex.,   Dem. 
Bankhead,  Ala.,  Dem. 
Barber,  Pa.,  Dem. 
Bartlett,    Ga.,    Dem. 
Bell,  Col.,  Pop. 
Benton,  Mo.,  Dem. 
Berry,  Ky.,  Dem. 
Bradley,  N.   Y.,  Dem. 
Brantley,    Ga.,    Dem. 
Braezale,  La.,  Dem. 
Brenner,  O.,  Dem. 
Brewer,  Ala.,  Dem. 
Brundidge,  Ark.,  Dem. 
Burke,    Tex.,    Dem. 
Burleson,  Tex.,   Dem. 
Burnett,   Ala.,   Dem. 
Caldwell,  111.,  Dem. 
Carmack,  Tenn.,  Dem. 
Chanler,   N.   Y.,   Dem. 
Clark,  Mo.,  Dem. 
Clayton,   Ala.,  Dem. 
Cochran,    Mo.,    Dem. 
Cooney,  Mo.,  Dem. 
Cooper,  Tex.,  Dem. 
Cowherd,    Mo.,    Dem. 
Cox,  Tenn.,  Dem. 
Crawford,  N.   C,  Dem. 
Crowley,  111.,  Dem. 
Cummings,  N.  Y.,  Dem. 
Cusack,  111.,  Dem. 
Daly,   N.   J.,  Dem. 
Davenport,  S.  W.  Pa.,  Dem. 
Davis,   Fla.,   Dem. 
DeArmond,   Mo.,   Dem. 
DeGraffenreid,  .Tex.,   Dem. 
DeVries,  Cal.,  Dem. 
Dinsmore,   Ark.,   Dem. 
Dougherty,  Mo.,  Dem. 
Elliott,  S.  C,  Dem. 
Epes,  Va.,   Dem. 
Finley,   S.   C,   Dem. 
Fitzgerald     Mass.,    Dem. 
Fitzpatrick,   Ky.,   Dem. 
Fleming,    Ga.,   Dem. 
Foster,    111.,    Dem. 
Fox,  Miss.,  Dem. 
Gaines,  Tenn.,  Dem. 
Gaston,   Pa.,   Dem./ 
Gilbert,  Ky.,  Dem. 
Glynn,  N.  Y.,   Dem. 
Gordon,   O.,  Dem. 
Green,  Pa.,  Dem. 
Griffith,  Ind.,  Dem. 
Griggs,  Ga.,  Dem. 
Hall,  Pa.,  Dem. 
Hay,   Va.,   Dem. 
Henry,  Miss.,  Dem. 
Henry,  Tex.,  Dem. 
Howard,  Ga.,  Dem. 
Jett,  I'll.,  Dem. 
Johnston,   W.  Va.,   Dem. 
Jones,  Va.,  Dem. 
Kitchln,  N.   C,   Dem. 
Kleberg1,   Tex.,   Dem. 
Kluttz,    N.    C,    Dem. 
Lamb,   Va.,   Dem. 
Lanham,    Tex.,    Dem. 
Latimer,   S.   C,   Dem. 
Lentz,    O.,    Dem*. 
Lester,  Ga.,  Dem. 


Lewis,   Ga.,  Dem. 
Little,  Ark.,  Dem. 
Livingston,  Ga.,  Dem. 
Lloyd,    Mo.,    Dem. 
McClellan,  N.  Y.,  Dem. 
McCulloch,   Ark.,   Dem. 
McDowell,   O.,  Dem. 
McLain,    Miss.,   Dem. 
McRae,  Ark.,  Dem. 
Maddox,  Ga.,   Dem. 
May,  N.  Y.,  Dem. 
Meekison,  O.,  Dem. 
Meyer,   La.,    Dem. 
Miers,    Ind.,    Dem. 
Moon,  Tenn.,  Dem. 
Muller,  N.  Y.,  Dem. 
Naphen,  Mass.,  Dem 
Neville,   Neb.,  Pop. 
Newlands,    Nev.,    Sil. 
Noonan,  111.,  Dem. 
Norton,   111.,  Dem. 
Norton,   S.   C,   Dem. 
Otey,    Va.,    Dem. 
Pierce,  Tenn.,  Dem. 
Polk,    Pa.,    Dem. 
Quarles,  Va.,  Dem. 
Randsdell,    La.,    Dem. 
Rhea,   Ky.,  Dem. 
Rhea,  Va.,  Dem. 
Richardson,   Tenn.,   Dem. 
Ridgely,    Kan.,   Pop. 
Riordan,  N.   Y.,  Dem. 
Rixey**  Va.,   Dem. 
Robb,   Mo.,   Dem. 
Robbins',   Ala.,   Dem. 
Robinson,  Ind.    Dem. 
Robinson,  Neb.,  Dem. 
Rucker,    Mo.,    Dem. 
Ryan,   N.   Y.,  Dem. 
Ryan,   Pa.,   Dem. 
Salmon,   N.   J.,   Dem. 
Shackelford,  Mo.,  Dem.   - 
Shafroth,   Col.,   Sil. 
Sheppard,    Tex.,   Dem. 
Sibley,  Pa.,  Dem. 
Sims,   Tenri.,   Dem. 
Slayden,   Tex.,  Dem. 
Small,  N.  C,  Dem. 
Smith,  Ky.,  Dem. 
Snodgrass,  Tenn.,  Dem. 
Sparkman,  Fla.,  Dem. 
Spight,  Miss.,  Dem. 
Stark,   Neb.,  Pop. 
Stephens,  Tex.,  Dem. 
Stokes,   S.    C,   Dem. 
Sulzer,  N.   Y.,  Dem. 
Sutherland,  Neb.,  Pop. 
Swanson,  Va.,   Dem. 
Talbert,  S.  C,  Dem. 
Tate,  Ga.,  Dem. 
Taylor,   Ala.,  Dem. 
Terry,   Ark.,   Dem. 
Thomas,  N.   C,  Dem. 
Turner,   Ky.,   Dem. 
Underwood,    Ala.,    Dem. 
Vandiver,  Mo.,  Dem. 
Wheeler,  Ky.,  Dem. 
Williams,    J.    R.,    111.,    Dem. 
Williams,    Miss'.,    Dem. 
Williams,    W.   E.,   111.,   Dem. 
Wilsom    Ida.,    Sil. 
Young,*  Va.,   Dem. 
Zenor,    Ind.,    Dem. 
Zlegler,   Pa.,   Dem. 


510  THE    DEMOCRATIC   PLATFORM    AlfD   CANDIDATE. 

The  vote  against  the  bill  on  its  original  passage  in  the  Senate, 
February  15,  1900,  and  the  politics  of  each  Senator,  were  as 
follows : 

©ate,  Tenn.,  Dem.  McEnery,  La.,  Dem. 

Berry,  Ark.,  Dem.  McLaurln,    S.    C,    Dem. 

Butler,  N.  C,  Pop.  Martin,    Va.,    Dem. 

Chandler    N.  H.,  Rep.  Money,    Miss.,    Dem. 

Chilton,  Tex.,   Dem.  Morgan,    Ala.,    Dem. 

Clark,  Mont.,  Dem.  Pettus,  Ala.,  Dem. 

Clay,   Ga.,   Dem.  Rawlins,    Utah,    Dem. 

Cockrell,  Mo.,  Dem.  Stewart,   Nev.,    Sil. 

Culberson,  Tex., 'Dem.  Sullivan,  Miss.,  Dem. 

Daniel,  Va.,  Dem.  Taliferro,   Fla.,  Dem. 

Harris,   Kan.,   Pop.  Teller,   Col.,   Sil. 

Heitfeld,   Ida.,   Pop.  Tillman,  S.  C,  Dem. 

Jones,   Ark.,    Dem.  Turley,  Tenn.,  Dem. 

Jones,  Nev.,   Sil.  Vest,  Mo.,  Dem. 
Kenney,  Del.,  Dem. 

Even  the  Democratic  Representatives  in  the  New  England  and 
Middle  States  which  now  pose  as  supporters  of  the  gold  standard 
voted  generally  against  the  act  establishing  the  gold  standard. 
In  the  original  vote  on  the  bill  in  the  House  of  Representatives, 
December  18,  1899,  23  of  the  33  Democratic  representatives  from 
the  northeastern  section  of  the  United  States, — including  in  that 
term  Pennsylvania,  Delaware,  New  Jersey,  New  York,  and  the 
New  England  States — voted  against  the  aql.  Of  the  18  Demo- 
cratic members  from  New  York  who  are  reported  as  having  voted 
upon  this  act,  10  are  recorded  as  having  voted  against  it,  as 
follows :  Messrs.  George  B.  McClellan,  Sulzer,  Cummings,  Bradley, 
Riordan,  Muller,  May,  Chanler,  Glynn,  and  Ryan.  Of  the  10 
Democratic  Representatives  from  Pennsylvania  who  are  reported 
as  having  voted  on  the  bill,  9  are  recorded  as  having  voted  against 
it,  viz. :  Messrs.  Barber,  Green,  Davenport,  Ryan,  Polk,  Ziegler, 
Gaston,  Sibley,  and  Hall.  Of  the  3  Democratic  Representatives 
from  Massachusetts  who  are  reported  as  voting  on  the  bill,  two — 
Messrs.  Fitzgerald  and  Naphen — are  recorded  as  voting  against 
it.  The  two  New  Jersey  Democrats — Messrs.  Salmon  and  Daly — 
reported  as  voting  are  also  recorded  in  the  negative. 

Thus  in  the  one  section  of  the  United  States  whose  Democracy 
poses  as  the  "gold  wing"  of  the  Democratic  party,  23  of  the  33 
who  voted  in  the  House  of  Representatives  upon  this  measure 
establishing  the  gold  standard  are  recorded  in  the  official  reports 
of  the  Congressional  proceedings  as  having  voted  against  it  and 
only  10  for  it.  In  other  words,  in  the  one  section  of  the  United 
States  in  which  the  Democracy  claims  its  greatest  strength  for 
the  gold  standard,  more  than  two-thirds  of  the  Democratic  mem- 
bers of  Congress  when  put  to  the  test  voted  against  the  act  estab- 
lishing the  gold  standard.  If  this  be  true  of  that,  section  of  the 
Democracy  in  which  the  gold  standard  is  in  greatest  favor,  what 
value  wourd  the  views  of  Mr.  Parker  or  his  veto  as  a  President 
prove  upon  any  measure  relating  to  this  subject,  since  In  that 
part  of  the  country  which  claims  the  greatest  strength  for  the 
gold  standard  the  vote  was  more  than  two-thirds  against  its 
establishment. 

That  is  the  record  of  the  vote  in  Congress  on  the  gold  standard 
act  by  the  party  whose  newspapers  and  Presidential  candidate 
are  now  trying  to  make  the  people  believe  that  it  is  a  gold 
standard  party  or  that  it  is  abandoning  in  any  way  its  opposition 
to  the  gold  standard. 

LATEST  DEMOCRATIC  UTTERANCES  ON  THE 
MONEY  QUESTION. 

Hore  are  the  latest  official  utterances  of  the  Democratic  party 
in  national  convention  on  the  money  question,  the  money  planks 
of  their  platforms  in  1896  and  1900,  also  the  rejected  plank  of 
1904: 

ADOPTED    BY    THE    DEMOCRATIC     NATIONAL    CONVENTION     AT    CHICAGO, 
JULY   8,    1896. 

Recognizing-  that  the  money  system  is  paramount  to  all  others 
at  this  time,  we  invite  attention  to  the  fact  that  the  Federal  Con- 
stitution names  silver  anfl  gold  together  as  the  money  metals'  of 
the  United  States,  and  that  the  first  coinage  law  passed  by  Con- 
gress under  the  Constitution  made  the  silver  dollar  the  monetary 
unit,  and  admitted  gold  to  free  coinage  at  a  ratio  based  upon  the 
silver  dollar  unit.     We  declare  that  the  act  of  1873   demonetizing 


THE   DEMOCBATIC   PLATFORM    A  WD   CANDIDATE.  511 

silver  without  the  knowledge  or  approval  of  the  American  people 
has  resulted  in  the  appreciation  of  gold  and  a  corresponding  fall 
in  the  prices  of  commodities  produced  by  the  people;  a  heavy  in- 
crease in  the  burden  of  taxation  and  of  all  debts,  public  and  pri- 
vate; the  enrichment  of  the  money-lending-  class  at  home  and 
abroad;  prostration  of  industry  and  impoverishment  of  the  people. 
We  are  unalterably  opposed  to  gold  monometallism,  which  has 
locked  fast  the  prosperity  of  an  industrial  people  in  the  paralysis 
of  hard  times.  Gold  monometallism  is  a  British  policy,  and  its' 
adoption  has  brought  other  nations  into  financal  servitude  to  Lon- 
don. It  is  not  only  un-American  but  anti-American,  and  it  can  be 
fastened  on  the  United  States  only  by  the  stifling  of  that  spirit 
and  love  of  liberty  which  proclaimed  our  political  independence 
in  1776  and  won  it  in  the  war  of  the  Revolution. 

ADOPTED  BY  THE  DEMOCBATIC  NATIONAL  CONVENTION  AT  KANSAS  CITY, 
JULY  5,    1900. 

We  reaffirm  and  indorse  the  principles  of  the  National  Demo- 
cratic platform  adopted  at  Chicago  in  1896,  and  we  reiterate  the 
demand  of  that  platform  for  an  American  financial  system,  made 
by  the  American  people  for  themselves,  which  shall  restore  and 
maintain  a  bimetallic  price  level,  and  as  part  of  such  system  the 
immediate  restoration  of  the  free  and  unlimited  coinage  of  silver 
and  gold  at  the  pres'ent  ratio  of  16  to  1,  without  waiting  for  the 
aid  or  consent  of  any  other  nation.  We  denounce  the  Currency  bill 
enacted  at  the  last  session  of  Congress  as  a  step  forward  in  the 
Republican  policy  which  aims  to  discredit  the  sovereign  right  of 
the  National  Government  to  issue  all  money,  whether  coin  or  paper 
and  to  bestow  upon  national  banks  the  power  to  issue  and  control 
the  volume  of  paper  money  for  their  own  benefit.  A  permanent  na- 
tinal  bank  currency,  secured  by  Government  bonds,  must  have  a 
permanent  debt  to  rest  upon,  and  if  the  bank  currency  is  to  in- 
crease with  population  and  business  the  debt  nvust  als'o  increase. 
The  Republican  currency  statement  is,  therefore,  a  statement  for 
fastening  upon  the  taxpayers  a  perpetual  and  growing  debt  for  the 
benefit  of  the  banks.  We  are  opposed  to  this  private  corporation 
paper  circulated  as  money,  but  without  legal  tender  qualities',  and 
demand  the  retirement  of  the  national  bank  notes  as  fast  as  Gov- 
ernment paper  or  silver  certificates  can  be  substituted  for  them. 

PLANK  REJECTED  IN  PLATFORM   COMMITTEE  AT  DEMOCBATIC  NATIONAL 
CONVENTION  AT  ST.  LOUIS,  JULY  8,  1904,  BY  VOTE  OF  35  TO  15. 

The  money  question:  The  discoveries  of  gold  within  the  past 
few  years'  and  the  great  increase  in  the  production  thereof,  adding 
$2,000,000,000  to  the  world's  supply,  of  which  $700,000,000  falls  to 
I  the  share  of  the  United  States,  has  contributed  to  the  maintenance 
of  a  money  standard  of  value,  no  longer  open  to  question,  removing 
that  issue  from  the  field  of  political  contention. 

Not  only  was  the  above  plank  rejected  In  the  committee  by  a 
vote  of  35  to  15,  but  the  convention  unanimously  adopted  the 
platform  which  made  no  declaration  on  the  money  question, 
thus  leaving  the  declarations  of  1896  and  1900  still  the  official 
utterances  of  the  party  upon  this  question. 

The  refusal  of  the  platform  committee  and  of  the  convention 
to  in  any  way  revise  or  modify  the  declarations  of  1896  and  1900 
on  the  money  question  was  emphasized  by  a  further  refusal  to 
in  any  way  act  upon  the  question  after  the  receiving  of  Judge 
Parker's  telegram.  Judge  Parker's  telegram  and  the  resolution 
of  response  adopted  by  the  convention  are  as  follows: 

JUDGE    PABKEB'S    TELEGRAM. 

I  regard  the  gold  standard  as  firmly  and  irrevocably  established 
and  shall  act  accordingly  if  the  action  of  the  convention  to-day 
shall  be  ratified  by  the  people. 

As  the  platform  is  silent  on  the  subject  my  view  should  be 
jmade  known  to  the  convention,  and  if  it  is  proved  to  be  unsatisfac- 
tory to  the  majority  I  request  you  to  decline  the  nomination  for 
Ime  at  once,  s'o  that  another  may  be  nominated  before  adjournment 

I  ALTON  B.  PARKER. 

The  platform  adopted  by  this  convention  is  silent  on  the  ques- 
tion of  the  monetary  standard,  because  it  is  not  regarded  by  us  as 
;a  possible  issue  in  this  campaign,  and  only  campaign  issues  were 
■mentioned  in  the  platform.  Therefore  there  is  nothing  in  the 
■views  expressed  by  you  in  the  telegram  just  received  which  would 
•preclude  a  man  entertaining  them  from  accepting  a  nomination  on 
Ijsaid  platform. 

The  currency  act  of  March  14,  1900,  establishing  the  gold 
jntandard,  upon  which  the  Democratic  party  in  House  and  Senate 
'Jmade  the  record  above  quoted — a  record  reported  by  a  leading 
jIDemocratic  member  of  Congress  and  placed  in  the  Congressional 
(Record — is  as  follows: 


EESPONSE  OF  THE  CONVENTION. 


612  THE   DEMOCRATIC    PLATFORM    AND    CANDIDATE. 

THE    GOLD    STANDARD    CURRENCY    LAW,    ENACTED    BY    THE    FIFTY-SIXTH 
CONGRESS,  AND  VOTED  AGAINST  BY  PRACTICALLY  ALL  DEMOCRATS. 

[Official   Copy. J 

An  act  to  define  and  fix  the  standard  of  value,  to  maintain  the 
parity  of  all  forms  of  money  issued  or  coined  by  the  United  States, 
to  refund  the  public  debt,  and  for  other  purposes. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the 
United  States  of  America  in  Congress  assembled,  That  the  dollar 
consisting  of  twenty-five  and  eight-tenths  grains  of  gold  nine- 
tenths  fine,  as  established  by  section  thirty-five  hundred  and  eleven 
of  the  Revised  Statutes'  of  the  United  States,  shall  be  the  standard 
unit  of  value,  and  all  forms  of  money  issued  or  coined  by  the 
United  States  shall  be  maintained  at  a  parity  of  value  with  this 
standard,  and  it  shall  be  the  duty  of  the  Secretary  of  the  Treas- 
ury to  maintain  such  parity. 

Sec.  2.  That  United  States  notes  and  Treasury  notes  issued 
under  the  act  of  July  fourteenth,  eighteen  hundred  and  ninety, 
when  presented  to  the  Treasury  for  redmption,  shall  be  redeemed 
in  gold  coin  of  the  standard  fixed  in  the  first  section  of  this  act, 
and  in  order  to  secure  the  prompt  and  certain  redemption  of  such 
notes  as  herein  provided  it  shall  be  the  duty  of  the  Secretary  of 
the  Treasury  to  set  apart  in  the  Treasury  a  reserve  fund  of  one 
hundred  and  fifty  million  dollars  in  gold  coin  and  bullion,  which 
fund  shall  be  used  for  such  redemption  purposes  only,  and  when- 
ever and  as  often  as  any  of  said  notes  shall  be  redeemed  from  said 
fund  it  shall  be  the  duty  of  the  Secretary  of  the  Treasury  to  use 
said  notes  so  redeemed  to  restore  and  maintain  such  reserve  fund 
in  the  manner  following,  to  wit:  First,  by  exchanging  the  notes 
so  redeemed  for  any  gold  coin  in  the  general  fund  of  the  Treasury; 
second,  by  accepting  deposits  of  gold  coin  at  the  Treasury  or  at 
any  sub-treasury  in  exchange  for  the  United  States  notes  so  re- 
deemed; third,  by  procuring  gold  coin  by  the  use  of  said  notes,  in 
accordance  with  the  provisions'  of  section  thirty-seven  hundred  of 
the  Revised  Statutes  of  the  United  States.  If  the  Secretary  of  the 
Treasury  is  unable  to  restore  and  maintain  the  gold  coin  in  the  re- 
serve fund  by  the  foregoing  methods,  and  the  amount  of  such  gold 
coin  and  bullion  in  said  fund  shall  at  any  time  fall  below  one  hun- 
dred million  dollars,  then  it  shall  be  his'  duty  to  restore  the  same 
to  the  maximum  sum  of  one  hundred  and  fifty  million  dollars  by 
borrowing  money  on  the  credit  of  the  United  States,  and  for  the 
debt  thus  incurred  to  issue  and  sell  coupon  or  registered  bonds  of 
the  United  States  in  such  form  as  he  may  prescribe,  in  denomina- 
tions of  fifty  dollars  or.  any  multiple  thereof,  bearing  interest  at 
the  rate  of  not  exceeding  three  per  centum  per  annum,  payable 
quarterly,  such  bonds  to  be  payable  at  the  pleasure  of  the  United 
States  after  one  year  from  the  date  of  their  issue,  and  to  be  pay- 
able, principal  and  interest,  in  gold  coin  of  the  present  standard 
value,  and  to  be  exempt  from  the  payment  of  taxes  or  duties  of  the 
United  States,  as  well  as  from  taxation  in  any  form  by  or  under 
State,  municipal,  or  local  authority;  and  the  gold  coin  received 
from  the  sale  of  said  bonds  shall  first  be  covered  into  the  general 
fund  of  the  Treasury  and  then  exchanged,  in  the  manner  here- 
inbefore provided,  for  an  equal  amount  of  the  notes  redeemed  and 
held  for  exchanged,  and  the  secretary  of  the  Treasury  may,  in  his 
discretion,  use  said  notes  in  exchange  for  gold,  or  to  purchase  or 
redeem  any  bonds  of  the  United  States,  or  for  any  other  lawful 
purpose  the  public  interests  may  require,  except  that  they  shall 
not  be  used  to  meet  deficiencies  in  the  current  revenues.  That 
United  States  notes  when  redeemed  in  accordance  with  the  pro- 
visions of  this  section  shall  be  reissued,  but  shall  be  held  In  the 
reserve  fund  until  exchanged  for  gold,  as  herein  provided;  and  the 
gold  coin  and  bullion  in  the  reserve  fund,  together  with  the  re- 
deemed notes  held  for  use  as  provided  in  this  section,  shall  at  no 
time  exceed  the  maximum  sum  of  one  hundred  and  fifty  million 
dollars. 

Sec.  3.  That  nothing  contained  in  this  Act  shall  be  construed 
to  affect  the  legal  tender  quality  as  now  provided  by  law  of  the 
silver  dollar,  or  of  any  other  money  coined  or  issued  by  the  United 
States. 

Sec.  4.  That  there  be  established  in  the  Treasury  Department, 
as  a  part  of  the  office  of  the  Treasurer  of  the  United  States,  divi- 
sions to  be  designated  and  known  as  the  division  of  issue  and  the 
division  of  redemption,  to  which  shall  be  assigned,  respectively, 
under  such  regulations  as  the  Secretary  of  the  Treasury  may  ap- 
prove, all  records  and  accounts  relating  to  the  issue  and  redemp- 
tion of  United  States  notes,  gold  certificates,  silver  certificates,  and 
currency  certificates.  There  shall  be  transferred  from  the  ac- 
counts of  the  general  fund  of  the  Treasury  of  the  United  States, 
and  taken  up  on  the  books  of  said  divisions,  respectively,  accounts 
relating  to  the  reserve  fund  for  the  redemption  of  United  States 
notes  and  Treasury  notes,  the  gold  coin  held  against  outstanding 
gold  certificates,  the  United  States  notes  held  against  outstanding 
currency  certificates,  and  the  silver  dollars  held  against  outstand- 
ing silver  certificates,  and  each  of  the  funds  represented  by  these 
aocounts  shall  be  used  for  the  redemption  of  the  notes  and  certifi- 
cates for  which  they  are  respectively  pledged,  and  shall  be  used 
for  no  other  purpose,  the  same  being  held  as  trust  funds. 

Sec.  5.  That  It  shall  be  the  duty  of  the  Secretary  of  the  Treas- 
ury, as  fast  as  standard  silver  dollars  are  coined  under  the  pro- 
visions of  the  Acts  of  July  fourteenth,  eighteen  hundred  and  ninety, 


THE  DEMOCRATIC   PLATFORM   AND  CANDIDATE.  513 

and  June  thirteenth,  eighteen  hundred  and  ninety-eight,  from  bul- 
lion purchased  under  the  Act  of  July  fourteenth,  eighteen  hundred 
and  ninety,  to  retire  and  cancel  an  equal  amount  of  Treasury  notes 
whenever  received  into  the  Treasury,  either  by  exchange  in  ac- 
cordance with  the  provisions'  of  this  act  or  in  the  ordinary  course 
of  business,  and  upon  the  cancellation  of  Treasury  notes  silver 
certificates  shall  be  issued  against  the  silver  dollars  so  coined. 

Sec.  6.  That  the  Secretary  of  the  Treasury  is  hereby  author- 
ized and  directed  to  receive  deposits  of  gold  coin  with  the  Treas- 
urer or  any  assistant  treasurer  of  the  United  States  in  sums  of  not 
less  than  twenty  dollars,  and  to  issue  'gold  certificates  therefor  in 
denominations  of  not  less  than  twenty  dollars,  and  the  coin  so  de- 
posited shall  be  retained  in  the  Treasury  and  held  for  the  payment 
of  such  certificates  on  demand,  and  used  for  no  other  purpose. 
Such  certificates  shall  be  receivable  for  customs,  taxes,  and  all 
public  dues,  and  when  so  received  may  be  reissued,  and  when  held 
by  any  national  banking  association  may  be  counted  as  a  part  of 
its  lawful  reserve:  Provided,  That  whenever  and  so  long  as  the 
gold  coin  held  in  the  reserve  fund  in  the  Treasury  for  the  redemp- 
tion of  United  States  notes  and  Treasury  notes  shall  fall  and  re- 
main below  one  hundred  million  dollars  the  authority  to  issue  cer- 
tificates as  herein  provided  shall  be  suspended:  And  provided 
further,  •That  whenever  and  so  long  as  the  aggregate  amount  of 
United  States  notes  and  silver  certificates  in  the  general  fund  of 
the  Treasury  shall  exceed  sixty  million  dollars  the  Secretary  of 
the  Treasury  may,  in  his  discretion,  suspend  the  issue  of  the  cer- 
tificates herein  provided  for:  And  provided  further,  That  of  the 
amount  of  such  outstanding  certificates  one-fourth  at  least  shall 
be  in  dei|g>minations  of  fifty  dollars  or  less:  And  provided  further, 
That  the  Secretary  of  the  Treasury  may,  in  his  discretion,  issue 
certificates  in  denominations  of  ten  thousand  dollars,  payable  to 
order.  And  section  fifty-one  hundred  and  ninety-three  of  the  Re- 
vised Statutes  of  the  United  States  is  hereby  repealed. 

Sec.  7.  That  hereafter  silver  certificates  shall  be  issued  only 
of  denominations  of  ten  dollars'  and  under,  except  that  not  exceed- 
ing in  the  aggregate  ten  per  centum  of  the  total  volume  of  said 
certificates,  in  the  discretion  of  the  Secretary  of  the  Treasury,  may 
be  issued  in  denominations  of  twenty  dollars,  fifty  dollars,  and  one 
hundred  dollars;  and  silver  certificates  of  higher  denomination 
than  ten  dollars',  except  as  herein  provided,  shall,  whenever  re- 
ceived at  the  Treasury  or  redeemed,  be  retired  and  canceled,  and 
certificates  of  denominations  of  ten  dollars  or  less  shall  be  substi- 
tuted therefor,  and  after  such  substitution,  in  whole  or  in  part,  a 
like  volume  of  United  States  notes'  of  less  denomination  than  ten 
dollars  shall  from  time  to  time  be  retired  and  canceled,  and  notes 
of  denominations  of  ten  dollars  and  upward  shall  be  reissued  in 
substitution  therefor,  with  like  qualities  and  restriction*'  as  those 
retired  and  cancelled. 

Sec.  8.  That  the  Secretary  of  the  Treasury  is  hereby  authorized 
to  use,  at  his  discretion,  any  silver  bullion  in  the  Treasury  of  the 
United  States  purchased  under  the  Act  of  July  fourteenth,  eighteen 
hundred  and  ninety,  for  coinage  into  s'uch  denominations  of  subsi- 
diary silver  coin  as  may  be  necessary  to  meet  the  public  require- 
ments for  such  coin:  Provided,  That  the  amount  of  subsidiary  sil- 
ver coin  outstanding  shall  not  at  any  time  exceed  in  the  aggregate 
one  hundred  millions  of  dollars.  Whenever  any  silver  bullion 
purchased  under  the  Act  of  July  fourteenth,  eighteen  hundred  and 
ninety,  shall  be  used  in  the  coinage  of  subsidiary  silver  coin,  an 
amount  of  Treasury  notes  issued  under  said  Act  equal  to  the  cost 
of  the  bullion  contained  in  such  coin  shall  be  canceled  and  not 
reissued. 

Sec.  9.  That  the  Secretary  of  the  Treasury  is  hereby  author- 
ized and  directed  to  cause  all  worn  and  uncurrent  subsidiary  silver 
coin  of  the  United  States  now  in  the  Treasury,  and  hereafter  re- 
ceived, to  be  recoined,  and  to  reimburse  the  Treasurer  of  the 
United  States  for  the  difference  between  the  nominal  or  face  value 
of  such  coin  and  the  amount  the  same  will  produce  in  new  coin 
from  any  moneys  in  the  Treasury  not  otherwise  appropriated. 

Sec.  10.  That  section  fifty-one  hundred  and  thirty-eight  of  the 
Revised  Statutes  is  hereby  amended  so  as  to  read  as  follows: 

"Section  5138.  No  association  shall  be  organized  with  a  less 
capital  than  one  hundred  thousand  dollars,  except  that  banks  with 
a  capital  of  not  less  than  fifty  thousand  dollars  may,  with  the 
approval  of  the  Secretary  of  the  Treasury,  be  organized  in  any 
place  the  population  of  which  does  not  exceed  six  thousand  in- 
habitants, and  except  that  banks  with  a  capital  of  not  less  than 
twenty-five  thousand  dollars  may,  with  the  jp&ction  of  the  Secre- 
tary of  the  Treasury,  be  organized  in  any  praee  the  population  of 
which  does  not  exceed  three  thousand  inhabitants.  No  association 
shall  be  organized  in  a  city  the  population  of  which  exceeds  fifty 
thousand  persons  with  a  capital  of  less  than  two  hundred  thousand 
dollars." 

Sec.  11.  That  the  Secretary  of  the  Treasury  is  hereby  author- 
ized to  receive  at  the  Treasury  any  of  the  outstanding  bonds  of 
the  United  States  bearing  interest  at  five  per  centum  per  annum, 
payable  February  first,  nineteen  hundred  and  four,  and  any  bonds 
of  the  United  States  bearing  interest  at  four  per  centum  per 
annum,  payable  July  first,  nineteen  hundred  and  seven,  and  any 
bonds  of  the  United  States  bearing  interest  at  three  per  centum, 
payable  per  annum,  payable  August  first,  nineteen  hundred 
and  eight,  and  to  issue  in  exchange  therefor  an  equal 
amount  of  coupon  or  registered  bonds  of  the  United  States 
in  such  form  as  he  may  prescribe,  in  denominations  of 
fifty    dollars    or    any    multiple    thereof,    bearing    interest    at    the 


514  THE    DEMOCRATIC    PLATFORM    AND    CANDIDATE. 

rate  of  two  per  centum  per  annum,  payable  quarterly,  such  bonds 
to  be  payable  at  the  pleasure  of  the  United  States  after  thirty 
years  from  the  date  of  their  issue,  and  said  bonds  to  be  payable, 
principal  and  interest,  in  gold  coin  of  the  present  standard  value, 
and  to  be  exempt  from  the  payment  of  all  taxes  or  duties  of  the 
United  States,  as  well  as'  from  taxation  in  any  form  by  or  under 
State,  municipal,  or  local  authority:  Provided,  That  such  outstand- 
ing bonds  may  be  received  in  exchange  at  a  valuation  not  greater 
than  their  present  worth  to  yield  an  income  of  two  and  one- 
quarter  per  centum  per  annum;  and  in  consideration  of  the  reduc- 
tion of  interest  effected,  the  Secretary  of  the  Treasury  is  author- 
ized to  pay  to  the  holders  of  the  outstanding  bonds  surrendered 
for  exchange,  out  of  any  money  in  the  Treasury  not  otherwise 
appropriated,  a  sum  not  greater  than  the  difference  between  their 
present  worth,  computed  as  aforesaid,  and  their  par  value,  and 
the  payments  to  be  made  hereunder  shall  be  held  to  be  payments 
on  account  of  the  sinking  fund  created  by  section  thirty-six  hun- 
dred and  ninety-four  of  the  Revised  Statutes:  And  provided 
further,  That  the  two  per  centum  bonds  to  be  issued  under  the 
provisions  of  this  act  shall  be  issued  at  not  less  than  par,  and  they 
shall  be  numbered  consecutively  in  the  order  of  their  issue,  and 
when  payment  is*  made  the  last  numbers  issued  shall  be  first  paid, 
and  this  order  shall  be  followed  until  all  the  bonds  are  paid,  and 
whenever  any  of  the  outstanding  bonds  are  called  for  payment  in- 
terest thereon  shall  cease  three  months  after  such  call;  and  there 
is  hereby  appropriated  out  of  any  money  in  the  Treasury  not 
otherwise  appropriated,  to  effect  the  exchanges  of  bonds'  provided 
for  in  this  act,  a  sum  not  exceeding  one-fifteenth  of  one  per 
centum  of  the  face  value  of  said  bonds,  to  pay  the  expensfe  of  pre- 
paring and  issuing  the  same  and  other  expenses  incident  thereto. 

Sec.  12.  That  upon  the  deposit  with  the  Treasurer  of  the 
United  States',  by  any  national  banking  association,  of  any  bonds 
of  the  United  States  in  the  manner  provided  by  existing  law,  such 
association  shall  be  entitled  to  receive  from  the  Comptroller  of 
the  Currency  circulating  notes  in  blank,  registered  and  counter- 
signed as  provided  by  law,  equal  in  amount  to  the  par  value  of 
the  bonds  so  deposited;  and  any  national  banking  association  now 
having  bonds  on  deposit  for  the  security  of  circulating  notes,  and 
upon  which  an  amount  of  circulating  notes  has  been  issued  less 
than  the  par  value  of  the  bonds',  shall  be  entitled,  upon  due  appli- 
cation .to  the  Comptroller  of  the  Currency,  to  receive  additional 
circulating  notes  in  blank  to  an  amount  which  will  increase  the 
circulating  notes  held  by  such  association  to  the  par  value  of  the 
bonds  deposited,  such  additional  notes  to  be  held  and  treated  in  the 
same  way  as  circulating  notes  of  national  banking  associations 
heretofore  issued,  and  subject  to  all  the  provisions  of  law  affecting 
such  notes':  Provided,  That  nothing  herein  contained  shall  be  con- 
strued to  modify  or  repeal  the  provisions  of  section  fifty-one  hun- 
dred and  sixty-seven  of  the  Revised  Statutes  of  the  United  States, 
authorizing  the  Comptroller  of  the  Currency  to  require  additional 
deposits  of  bonds  or  of  lawful  money  in  case  the  market  value 
of  the  bonds'  held  to  secure  the  circulating  notes  shall  fall  below 
the  par  value  of  the  circulating  notes  outstanding  for  which  such 
bonds  may  be  deposited  as'  security:  And  provided  further,  That 
the  circulating  notes  furnished  to  national  banking  associations 
under  the  provisions  of  this  act  shall  be  of  the  denominations 
prescribed  by  the  law,  except  that  no  national  banking  association 
shall,  after  the  passage  of  this'  act,  be  entitled  to  receive  from  the 
Comptroller  of  the  Currency,  or  to  issue  or  reissue  or  place  in 
circulation,  more  than  one-third  in  amount  of  its  circulating  notes 
of  the  denomination  of  five  dollars:  And  provided  further,  That  the 
total  amount  of  such  notes  issued  to  any  such  association  may 
equal  at  any  time  but  shall  not  exceed  the  amount  at  such  time  of 
its  capital  stock  virtually  paid  in:  And  provided  further,  That  un- 
der regulations  to  be  prescribed  by  the  Secretary  of  the  Treasury 
any  national  banking  association  may  substitute  the  two  per 
centum  bonds  issued  under  the  provisions  of  this  act  for  any  of 
the  bonds  deposited  with  the  Treasurer  to  secure  circulation  or  to 
secure  deposits  of  public  money;  and  so  much  of  an  act  entitled 
"An  Act  to  enable  national  banking  associations  to  extend  their 
corporate  existence,  and  for  other  purposes,"  approved  July 
twelfth,  eighteen  hundred  and  eighty-two,  as'  prohibits  any  na- 
tional bank  which  makes  any  deposit  of  lawful  money  in  order  to 
withdraw  its  circulating  notes  from  receiving  any  increase  of  its 
circulation  for  the  period  of  six  months  from  the  time  it  made 
such  deposit  of  lawful  money  for  the  purpose  aforesaid,  is  hereby 
repealed,  and  all  otlk  acts  or  parts'  of  acts  inconsistent  with  .'ie 
provisions  of  this  slroon  are  hereby  repealed. 

Sec.  13.  That  every  national  banking  association  having  on 
deposit  as  provided  by  law,  bonds  of  the  United  States  bearing  in- 
terest at  the  rate  of  two  per  centum  per  annum,  issued  under  the 
provisions  of  this  act,  to  secure  its  circulating  notes,  shall  pay  to 
the  Treasurer  of  the  United  States,  in  the  months  of  January  and 
July,  a  tax  of  one-fourth  of  one  per  centum  each  half  year  upon 
the  average  amount  of  such  of  its  notes  in  circulation  as  are  based 
upon  the  deposit  of  said  two  per  centum  bonds;  and  such  taxes 
shall  be  in  lieu  of  existing  taxes  on  its  notes  in  circu*ation  imposed 
by  section  fifty-two  hundred  and  fourteen  of  the  Revised  Statutes. 

Sec.  14.  That  the  provisions  of  this  act  are  not  intended  to  pre- 
clude the  accomplishment  of  international  bimetallism  whenever 
conditions  shall  make  it  expedient  and  practical  to  secure  the  same 
by  concurrent  action  of  the  leading:  commercial  nations  of  th« 
world  and  at  a  ratio  which  shall  insure  permanence  of  relative 
value  between  gold  and  silver. 

Approved,  March  14,  1900. 


THE   DEMOCRATIC    PLATFORM    AND    CANDIDATE.  515 

CURRENCY  RECORD  OF  THE  TWO  PARTIES. 

Republican  Party  Always  In  Favor  of  Sound  Money — The  Demo- 
crats Always  Supporters  of  Unsound  Financial  and  Currency 
Schemes. 

[Extract  from  speech   by  Hon.   Leslie  M.   Shaw,  Secretary  of  the 
Treasury,  at  College  Point,  Long  Island,  July  23,  1904.] 

No  one  has  a  right  to  claim  for  the  Republican  party  that  all 
of  its  adherents  have  intuitively  and  primarily  been  right  on  every 
proposition.  Neither  has  it  a  right  to  claim  that  each  and  all  of 
its  political  opponents  have  been  intuitively  and  primarily  wrong 
on  all  propositions.  But  the  Republican  party  has  the  right  to 
claim,  and  does  claim,  that  the  consensus  of  mature  Republican 
judgment  has  been  reasonably  sound  and  measurably  consistent. 
It  also  has  a  right  to  claim,  and  does  claim,  that  the  consensus 
of  opposing  opinion  has  usually  been  wrong,  and  if  not  wrong 
primarily  it  has  become  wrong  after  mature  deliberation,  and 
that  it  has  seldom  been  consistent  with  itself  for  any  great  num- 
ber of  consecutive  years. 

In  proof  of  these  logical,  and  I  hope  not  altogether  unphilo- 
sophical,  propositions,  I  have  time  to  refer  to  the  record  of  the 
two  principal  parties  on  only  one  general  subject.  There  is  no 
question  so  essential  to  the  prosperity  and  commercial  advance- 
ment of  a  people  as  sound  financial  policies.  Great  Britain,  Ger- 
many, France,  and  most  commercial  countries  of  Europe,  have 
great  central  government  banks,  such  as  the  "Bank  of  England," 
the  "Imperial  Bank  of  Germany,"  the  "Bank  of  France,"  etc. 
These  institutions,  under  appropriate  legislative  restrictions,  issue 
currency  (as  distinguished  from  coin)  for  the  use  of  the  people, 
and  therefore  in  aid  of  commerce. 

EARLY    FINANCIAL    AND    CURRENCY    HISTORY. 

An  act  drawn  by  Hamilton,  passed  by  Congress  in  1791,  and 
signed  by  Washington,  authorized  the  organization  of  the  Bank 
of  the  United  States,  but  when  the  charter  was  about  to  expire, 
in  1811,  a  bill  to  renew  it  was  defeated.  In  1816  another  United 
States  bank  was  chartered,  and  in  1832  a  bill  to  renew  its 
charter  passed  both  Houses,  but  was  vetoed  by  President  Jack- 
son. Upon  this  one  veto,  more  than  upon  any  other  single  act 
of  his  administration,  within  the  ranks  of  the  Democratic  party, 
rests  the  fame  of  this  patron  saint  of  that  party.  Having  killed 
what  was  designed  to  be  something  analogous  to  the  Bank  of 
England  and  the  Bank  of  France,  it  would  not  have  seemed 
irregular  had  he  recommended  something  in  its  place ;  but  Gen- 
eral Jackson  recommended  nothing.  In  the  absence  of  a  recom- 
mendation the  then  Democratic  Congress  might,  with  propriety, 
have  evolved  a  financial  scheme,  but  it  did  not. 

i  When  the  Republican  party  came  into  power  it  evolved  a  plan. 
Instead  of  creating  a  great  central  government  bank  patterned 
after  European  institutions,  it  authorized  a  large  number  of 
national  banks,  placed  them  under  the  supervision  of  the  Treas- 
ury Department,  and  gave  them  authority' to  issue  redeemable 
currency  under  appropriate  safeguards  and  restrictions.  With- 
out claiming  that  the  national-banking  act  is  perfect,  or  that  our 
currency  system  is  free  from  objection,  I  think  the  world  unites 
in  the  verdict  that  it  is  the  best  system  known  to  man.  For  its 
existence  the  people  are  indebted  to  the  Democratic  party  for  an 
aggregate  of  only  3  votes  in  the  two  Houses  of  Congress.  I  cite 
the  fact  as  an  illustration  that  the  consensus  of  mature  Republi- 
can judgment  on  banking  and  currency  is  reasonably  sound,  and 
that  the  consensus  of  mature  judgment  of  the  opposition  party 
on  the  same  great  question  is  both  unsound  and  inconsistent,  and 
also  indefinite. 

DEPOSITS    OF    GOVERNMENT    FUNDS. 

There  being  no  authorized  Government  bank  during  Demo- 
cratic supremacy  in  which  the  revenues  of  the  Government  could 
be  appropriately  kept,  it  became  necessary  to  establish  subtreas- 
uries,  which  was  done  in  1846.  Such  credit  as  is  due  anyone 
for  the  original  creation  of  subtreasuries,  for  the  segregation  of 
whatever  revenues  the  Government  may  collect,  is  due  the  Demo- 
cratic party,  but  in  criticism  of  that  party  I  cite  the  fact  that  no 


516  THE   DEMOCRATIC    PLATFORM    AND    CANDIDATE. 

provision  was  ever  made  by  a  Democratic  Congress,  and,  so  far 
as  I  can  discover,  no  recommendation  was  ever  submitted  by  a 
Democratic  President,  to  autborize  tbe  deposit  of  public  moneys 
in  any  class  or  kind  of  banks.  In  otber  words,  our  opponents 
developed  uo  plan  whatever,  but  simply  allowed  tbe  Government 
to  collect  Its  revenues,  and,  having  thus  taken  the  funds  out  of 
circulation;  kept  them  in  its  strong  box  out  of  reach  of  the 
people. 

It  is  due  President  Jackson,  however,  to  say  that,  following 
his  veto  of  the  bill  to  renew  the  charter  of  the  Bank  of  tbe 
United  States,  he  did  deposit  public  money  in  State  banks,  but  he 
did  so  without  any  act  of  Congress  authorizing  it,  and  he  did  it 
without  taking  security  of  any  kind.  But  this  was  in  1834,  before 
the  creation  of  the  subtreasuries. 

The  first  and  only  provision  for  the  return,  to  the  channels  of 
trade,  of  the  money  collected  by  the  Government  and  not  imme- 
diately needed,  was  passed  by  a  Republican  Congress,  and  fifty- 
three  Democrats  voted  against  the  measure,  and  only  three  in  Its 
favor.  The  consensus  of  Democratic  opinion,  after  fifty  years  of 
experience,  was  manifestly  wrong. 

Having  destroyed  the  United  States  Bank,  and  failing  to  pro- 
vide a  substitute,  the  Democratic  party  allowed  the  country  to 
drift  as  it  would.  No  act  of  Congress,  until  1861,  ever  authorized 
tbe  issuance  of  a  single  dollar  of  currency  by  the  Government, 
and,  barring  the  charters  authorizing  the  two  United  States 
banks,  no  act  of  Congress  prior  to  1863  ever  authorized  the  issu- 
ance of  a  dollar  of  currency  by  any  bank.  The  same  act  which 
authorized  the  issuance  of  national-bank  currency  was  the  first 
act  of  Congress  that  ever  placed  any  restriction  upon  State 
banks  or  industrial  corporations  or  private  firms  from  issuing 
currency  of  any  kind  or  character,  and  in  any  volume,  which  the 
people  could  be  induced  to  accept. 

Having  no  financial  policy  except  a  strong  box  In  which  the 
revenues  of  the  Government,  when  it  had  any,  were  to  be  kept 
out  of  reach  of  the  people,  the  country  was  allowed  to  take  care 
of  itslf.  I  suppose  the  reason  for  this  and  for  the  repeated 
demands  for  the  repeal  of  parts  or  all  of  the  national-banking 
act  is  the  Democratic  fiction  against  paternalism.  The  absence 
of  paternalism,  as  represented  in  Government  supervision  of 
banks,  means  "wildcat  money"  of  the  wildest  and  fiercest  species. 

The  recollection  of  the  experiences  of  the  people  under  this 
Democratic  no-policy  period  still  seems  to  be  an  insurmountable 
objection  within  both  parties  to  the  issuance  even  of  a  limited 
volume  of  credit  currency  by  banks  directly  under  the  super- 
vision of  the  Government,  with  every  possible  safeguard,  and  witb 
ample  provision  for  its  redemption  in  gold  safeguarded  and 
guaranteed  by  the  Government.  In  other  words,  the  experience 
in  those  Democratic  times  was  so  appalling,  and  the  embargo 
upon  commerce  so  great,  and  the  chains  which  retarded  our  de- 
velopment were  so  heavy,  so  cruel,  and  so  unbreakable,  that  the 
American  people,  even  at  this  late  date,  shudder  at  the  suggestion 
of  anything  that  recalls  the  past. 

THE    NATIONAL    BANKS. 

The  act  of  Congress  under  which  national  banks  are  chartered, 
and  which  authorizes  the  issuance  of  national-bank  notes  secured 
by  a  deposit  of  Government  bonds,  received  the  negative  vote  of 
90  per  cent  of  the  Democrats  in  both  Houses. 

The  national-banking  act  taxes  out  of  existence  all  State  and 
private  bank'  currency.  It  levies  a  10  per  cent  tax  upon  every- 
thing, except  national-bank  notes,  designed  to  circulate  as  money. 
The  opposition,  in  its  platform  of  1892,  demanded  the  repeal  of 
this  10  per  cent  tax,  and  the  consequent  return  to  the  nonpaternal 
policy  of  letting  anybody  and  everybody  issue  anything  and  every- 
thing that  the  people  can  be  induced  to  accept.  In  harmony  with 
this  platform,  in  1900,  pending  the  bill  to  establish  the  gold 
standard,  the  Democrats  in  the  Senate  proposed  an  amendment 
removing  this  tax  upon  "wildcat  currency,"  and  supported  it  19 
to  1. 

This  wa*  the  position  of  the  Democratic  party  in  1892.  Four 
years  later  it  denounced  the  "Issuance  of  notes  intended  to  cir- 
culate as  money  by  national  banks  as  In  derogation  of  the  Con- 


THE  DEMOCRATIC   PLATFORM    AND   CANDIDATE.  517 

stitution,"  and  In  1900  it  demanded  "the  retirement  of  national- 
bank  notes  as  fast  as  Government  paper  or  silver  certificates  can 
be  substituted  for  them."  These  are  the  last  official  utterances 
of*  the  party  on  the  subject,  and  represent  the  attitude  of  the 
opposition  on  the  great  question  of  banking  and  currency.  Our 
philosophical  stranger,  if  still  in  the  country,  would  possibly  cite 
this  in  proof  of  his  original  deduction  that  the  longer  some  people 
study  a  question  the  more  thoroughly  wrong  they  become. 

CUBBENCY  OF  THE    WAE  PEEIOD. 

The  Republican  party,  when  it  came  into  power,  found  the 
Treasury  depleted,  Government  credit  practically  exhausted,  and 
no  banks  under  Government  supervision,  and  therefore  no  author- 
ized and  stable  currency,  as  distinguished  from  coin,  in  the  hands 
of  the 'people.  During  the  Civil  War,  which  immediately  fol- 
lowed Republican  accession,  the  Government,  in  addition  to  the 
issuance  of  bonds,  made  a  forced  loan  of  $400,000,000  in  United 
States  notes,  commonly  called  greenbacks.  These  notes,  though 
not  expressly  redeemable  in  gold,  were  always  recognized  by  the 
party  responsible  for  their  issuance,  and  by  the  business  com- 
munity generally  as  a  debt,  for  the  ultimate  redemption  of  which 
in  that  metal  the  Government  stood  morally  bound. 

Not  being  redeemable  on  demand,  these- notes  fluctuated  in  cur- 
rent value  as  the  prospect  of  actual  redemption  appeared  more 
or  less  remote.  Gold,  being  at  a  premium,  was  out  of  circulation, 
and  the  country  did  its  business  on  a  fluctuating  currency. 

EETUEN    TO    SPECIE    PAYMENTS — PARTY    RECORDS    THEREON. 

After  protracted  discussion,  the  Republican  party  recognized 
the  necessity  of  resuming  specie  payment,  and  in  1875  passed  the 
well-known  resumption  act.  By  this  act  the  Secretary  of  the 
Treasury  was  authorized  to  sell  bonds  to  replenish  the  Treasury, 
and  he  was  directed,  from  and  after  January  1,  .1879,  to  redeem 
these  United  States  notes  in  coin  on  demand. 

The  vote  by  which  this  resumption  act  was  passed  was  strictly 
partisan.  Every  Republican  voted  for  it  and  every  Democrat 
against  it.  To  show  how  even  a  good  and  perhaps  a  great  man 
may  reach  wrong  cqpclusions  on  questions  of  the  greatest  moment, 
through  unfortunate  association,  I  cite  the  fact  that  the  present 
Democratic  nominee  for  Vice-President  actually  voted  against  the 
resumption  of  specie  payment. 

The  Democratic  national  platform  the  next  year  demanded 
the  repeal  of  the  resumption  act,  and,  in  harmony  with  the  plat- 
form, the  Democratic  House,  in  1877,  actually  passed  a  bill 
repealing  it.  The  Republican  Senate  passed  a  substitute,  which 
was  sent  to  the  House,  and  laid  on  the  Speaker's  table  until 
after  the  resumption  act  actually  went  into  effect.  Shortly  after 
resumption  had  become  an  accomplished  fact,  General  Ewing,  a 
leading  opposition  Congressman  from  Ohio,  sought  to  amend  the 
bill  by  inserting  a  provision  denying  the  Secretary  of  the  Treas- 
ury the  power  to  borrow  money  to  sustain  resumption.  General 
Garfield  moved  to  lay  the  whole  matter  on  the  table,  and  the 
motion  prevailed  against  107  Democratic  votes.  It  thus  appears 
that  the  intuitive  judgment  of  the  opposition  on*  the  subject  of 
resumption  of  specie  payment  was  wrong  at  the  time  the  resump- 
tion act  was  passed,  and  that  the  consensus  of  mature  Demo- 
cratic judgment  became  confirmed  in  its  error  after  the  act  went 
into  effect  and  as  soon  as  greenbacks  were  worth  their  face  in  gold. 

FREE   AND   UNLIMITED   COINAGE    OF    SILVER. 

Agitation  for  the  free  and  unlimited  coinage  of  silver  begins 
as  early  as  1877,  and  since  that  date  the  sentiment  of  Congress, 
in  one  way  or  another,  has  been  expressed  on  no  less  than  ten 
occasions.  Neither  party  can  claim  to  have  been  originally  united 
either  for  or  against  the  proposition,  though  every  vote  taken 
shows  a  larger  proportion  of  Democrats  than  Republicans  favor- 
ingj  free  and  unlimited  coinage.  The  bill  to  repeal  -the  pur- 
chasing clause  of  the  so-called  Sherman  act,  for  instance,  though 
passed  by  an  opposition  Congress  and  on  the  recommendation  of 
a  Democratic  President,  nevertheless  received  the  support  of  78 
per  cent  of  the  Rpublicans  who  votd  on  the  question  and  only  61 


518  THE    DEMOCRATIC    PLATFORM    AND    CANDIDATE. 

per  cent  of  the  Democrats  who  voted.  The  bill  establishing  the 
gold  standard  in  1900  had  an  aggregate  vote  in  its  favor  of  235, 
only  iJ  of  whom  were  Democrats,  and  an  aggregate  of  179  votes 
against  it,  only  1  of  whom  was  a  Republican ;  while  a  fr^e  silver 
amendment  to  the  bill  was  supported  23  to  2  by  the  Democrats 
of  the  Senate.  * 

Thus  gradually  the  sentiment  in  favor  of  the  single  gold 
standard  within  the  Republican  party  increased,  and  the  senti- 
ment in  the  opposition  party  correspondingly  diminished.  When 
the  issue  was  fairly  presented  in  189G,  a  new  alignment  occurred. 
Those  who  intuitively  recognized  the  logical  impossibility  of  the 
maintenance  of  parity  between  coins  of  different  metals  when 
both  are  coined  free  of  expense  to  the  owner  of  the  bullion,  and 
in  unlimited  quantity,  whatever  the  ratio,  together  with  those 
who  by  study  and  research  reached  the  same  conclusion,  and 
those  who  profited  by  the  historic  fact  that  no  country  ever  suc- 
ceeded in  maintaining,  for  a  period  of  six  months  at  a  time, 
the  parity  in  metallic  value  of  coin  of  different  material,  coined 
freely  and  unlimitedly,  gradually  allied  themselves  with  the  Re- 
publican party ;  while  those  whose  intuitions  were  wrong,  and 
whose  research  confirmed  them  in  their  error,  allied  themselves 
with  the  opposite  party. 

This  new  alignment  may  or  may  not  prove  permanent,  but  it 
tends  to  establish  one  of  the  propositions  which  I  laid  down  in 
the  beginning,  that  the  consensus  of  mature  judgment  of  the 
Republican  party  is  usualiy  rignt,  and  that  the  consensus  of 
mature  judgment  of  the  Democratic  party  is  usually  wrong.  On 
this  subject  the  Republican  party  wabbled  for  a  time,  and 
stumbled  once  or  twice,  but,  as  in  other  instances,  ultimately 
regained  its  equilibrium.  The  Democratic  party,  on  the  contrary, 
after  wabbling  for  a  time,  and  stumbling  frequently,  finally 
expressed  its  mature  judgment  in  its  Chicago  platform  of  1896, 
which  it  re-affirmed  in  1900,  and  neither  retracted  nor  apologized 
for  it  in  1904. 


We  know  -what  we  mean  when  we  speak  of  an  honest  and  staple 
currency.— -From  President  Roosevelt's  speech  of  acceptance. 

<  m 

Protection  alone  insures  American  labor  against  European 
pauper  wages.— Former  Senator  Casey,  in  the  American  Economist. 

No  one  suffers  so  much  from  cheap  money  as  the  farmers  and 
laborers;  they  are  the  first  to  feel  its  bad  effects  and  the  last  to 
recover  from  them.— Maj.  McKlnley's  letter  of  acceptance,  1896. 

Prosperity  has  come  at  home;  the  national  honor  and  interest 
have  been  upheld  abroad. — From  President  Roosevelt's  speech  of 
acceptance. 

The  civilized  world  substantially  protects  itself,  thus  forcing 
us  to  protect  ourselves. — Hon.  D.  B.  Henderson,  in  the  American 
Economist. 

We  shall  altoays  need  protective  duties  as  long  as  our  people 
insist  upon  a  higher  standard  of  wages  and  scale  of  living  than 
prevail  abroad. — Jas.  M.  Swank. 

All  I  ask  is  a  square  deal  for  every  man.  Give  him  a  fair 
chance.  Do  not  let  him  wrong  any  one,  and  do  not  let  him  be 
wronged.— President  Roosevelt  at  Grand  Canyon,  Arizona,  May  0, 
1003. 

The  dollar  paid  to  the  farmer,  the  wage-earner,  and  the  pen- 
sioner must  continue  forever  equal  in  purchasing  and  debt-paying 
power  to  the  dollar  paid  to  any  Government  creditor. — Maj.  Mc- 
Klnley  to  Notification  Committee,  1806. 

We  have  prospered  marvelously  at  home.  As  a  nation  we 
stand  in  the  very  forefront  in  the  giant  international  competition 
of  the  day.  We  can  not  afford  by  any  freak  or  folly  to  forfeit  the 
position  to  which  we  have  thus  triumphantly  attained.— President 
Roosevelt  at  Minneapolis,  April  4,  1008. 


THE   DEMOCRATIC    PLATFORM    AND    CANDIDATE. 


519 


Commerce  of  the  gold  and  silver  standard  countries  of  the  world, 
and  commerce  of  United  States  with  each  country. 

GOLD  STANDARD  COUNTRIES. 


Population. 

Total 
commerce. 

Commerce  with  United 
States. 

Total. 

Imports  from 
U.  S. 

Algeria 

4,739.000 

45,405,000 

6,694,000 

3,358.000 

4,560,000 

37,000 

5,592,000 

1.583.000 

3,744,000 

313,000 

1,573,000 

2,465,000 

35,736,000 

1,204,000 

9.734,000 

38,962,000 

58,549.000 

41,961,000 

154,000 

297,927,000 

32,475.000 

45,862,000 

5,347,000 

2,263,000 

4,610,000 

5,913,000 

141,000.000 

2.744,000 

2,536,000 

5.199.000 

3.356,000 

24,932,000 

959,000 

80,372,000 

7,590.000 

$125,032,000 

737,688,000- 

831,092,000 

345.457,000 

538.881,000 

2,591,000 

439,432,000 

68,989,000 

33.762,000 

10,076,000 

136,675,000 

236.923.000 

167,663,000 

15,840.000 

160,310,000 

•  1,668,697.000 

2,451,186,000 

3,950,6^9,000 

(b)   37,083,000 

755.354,000 

626,895.000 

262,648.000 

1,607.872,000 

123,466,000 

3U,000,000 

127,026,000 

697,829,000 

84,308,000 

22,570,000 

239,759,000 

386,544,000 

176,206,000 

58,221,000 

2,517,950,000 

66,064,000 

$550,000 

35,697,000 

70,387,000 

21.592,000 

46,296,000 

1,326,000 

182.601,000 

23,872,000 

193,000 

4,989,000 

88,472,000 

23,360,000 

11,694,000 

3,171,000 

6,799,000 

129,893.000 

319.413,000 

733,491,000 

37,083,000 

35,051,000 

74,905,000 

64,172.000 

137.187,000 

3,891,000 

5,399,000 

139,000 

20,049,000 

1,000 

214,000 

2,792,000 

32.924,000 

2.714,000 

4,152,000 

$383,000 

Austria-Hungary 

27,569,000 
53,237,000 

British  Africa  (a) 

British  Australasia 

British  Honduras 

British  North  America. . 
British  West  Indies 

21,557,000 
30,702,000 
731,000 
131.711,000 
12,666,000 
58,000 

1,697,000 

Cuba 

25,714,000 

19,157.000 

Dutch  East  Indies 

965.000 
1,823.000 

Egypt 

974,000 

France 

81.993.000 

Germany 

212,534,000 

617,859,000 

10,840.000 

India  and  Ceylon 

Italy 

4,264.000 
40,740.000 

24,229.000 

94,220,000 

3,333,000 

2,573,000 

139.000 

17.984,000 

1,000 

181,000 

2,792.000 

S  witzerland 

11,890,000 

354,000 

2,148,000 

Philippine  Islands 

17.807,000 

3,944.000 

Total #.... 

929,448,000 

19,749,818,000 

2,142,196,000 

1,460.962,000 

GOLD  STANDARD  COUNTRIES  ON  A  PAPER  BASIS. 


4.794,000 
14.334,000 
3.051,000 
4,000,000 
2,434,000 
1.294,000 
5,429,000 
18,618,000 
2,445,000 
610,000 

$272,638,000 
290,611,000 
116,182.000 
29,570,000 
45.259,000 
18,260,000 
90.753.000 
342.045,000 
26,522.000 
8,211,000 

$22,525,000 
82,739,000 
9.029,000 
7,733,000 
1.670,000 
3,084.000 
5,107,000 
25.913,000 
9,347,000 
5,061,000 

$12,838,000 

Brazil 

11,156.000 

Chile 

5.254,000 

2,923,000 

561.000 

Haiti 

1,956,000 

4.308.000 

Spain 

22,446.000 

Venezuela 

2,737.000 

Santo  Domingo 

1,700,000 

Total 

57,009,000 

1,240,051,000 

172,208,000 

65,879,000 

Total   gold  standard 

9^,457,000 

20,988,869,000 

2.314,404,000 

1,526.841.000 

SILVER  STANDARD  COUNTRIES. 


1,816.000 

407,253,000 

775,000 

12.000,000 

13,545,000 

9.500.000 

1,007.000 

5,000,000 

572,000 

$16,663,000 

339.488,000 

4.029.000 

10.886,000 

141,804,000 

36.946,000 

6.550,000 

36,885,000 

271.423,000 

$79,000 

34,644,000 

2,106.000 

257.000 
96,490,000 

$77,000 

China 

18,957,000 

Honduras 

970,000 

257,000 

39,017,000 

1,452.000 

114.000 

16,850,000 

868,000 

106,000 

Straits  Settlements 

833,000 

Total 

451,468.000 

864,674,000 

151,992,000 

61,085,000 

SILVER  STANDARD  COUNTRIES  ON  A  PAPER  BASIS. 


Ecuador 

1,204,000 

1.647,000 

500.000 

636,000 

$15,840,000 
10,152,000 
5,428.000 
6.057,000 

$3,171,000 

3,318,000 

3.564.000 

19,000 

$1,348,000 

Guatemala 

1.128,000 

1,365,000 

Paraguay 

15,000 

Total .■ 

3,987,000 

37,477,000 

10,072.000 

3.856.000 

Total  silver  standard 
couutries 

455.455,000 

902.151,000 

162.064.000 

64.941,000 

520 


THE    DEMOCRATIC    PLATFORM    AND    CANDIDATE. 


Prodmot  of  gold  and  silver  in  the  United  States  from  1792  to  1844, 
and  annually  since. 

[From  the  report  of  the  Director  of  the  Mint.] 


Years. 


April  2, 1792-July  31,  1834. 
July  81,  1834-Dec.  31,  1844. 

1846 

1846 

1847 

1848 

1849 


1851. 

1852. 

1863. 

1854. 

1855 

1856. 

1857- 

1858. 

1858. 

186) 

1861. 

1862. 

1863. 

1864 

1865. 

1866 

1867. 

1868. 

1869. 

1870. 

1871. 

1872. 

1873 

1874. 

1875. 

1876. 

1877 

1878. 

1879 

1880. 

1881. 

1882 

1888. 

1884. 

1885. 

1886. 

1887. 

1888. 

1889. 

1890. 

1891 

1892. 

1898. 

1894 

1895. 

1896. 

1897 

1898. 

1899 

1900 

1901. 

1902 


Total. 


Gold. 


Silver 
(coining  value). 


•14 


,000,000 


,500,000 
,0»8,000 
,140,000 
889,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,200,000 
,000,000 
,100,000 
,225,000 
,500,000 
,725,000 
,000,000 
,500,000 
,000,000 
,500,000 
,000,000 
,000,000 
,500,000 
,400,000 
,900,000 
,900,000 
,200,000 
,900,000 
,000,000 
,700,000 
,500,000 
,000,000 
,800,000 
,800,000 
,000,000 
,000,000 
,175,000 
,800,000 
,845,000 
,175,000 
,000,000 
35,955,000 
39,500,000 
46,610,000 
53,088,000 
57,368,000 
64,463,000 
71,053,000 
79,171,000 
78,667,000 
80,000,000 


55, 
55, 
55, 
50, 
50, 
46, 
43, 
39, 
40, 
46, 
53, 
53, 
51, 
48, 
49, 
50, 
43, 
K, 
36, 
33, 
33, 


2,543,752,000 


Insignificant. 

$250,000 

50,000 

60,000 

60,000 

60,000 

60,000 

60,000 

60,000 

60,000 

50,000 

50,000 

60,000 

60,000 

50,000 

500,000 

100,000 

150,000 

2,000,000 

4,500,000 

8,500,000 

11,000,000 

11,250,000 

10,000,000 

18,500,000 

12,000,000 

12,000,000 

16,000,000 

28,000,000 

28,750,000 

35,750,000 

37,300,000 

31,700,000 

38,800,000 

89,800,000 

45,200,000 

40,800,000 

89,200.000 

43.000,000 

46,800,000 

46,200,000 

48,800,000 

51,600,000 

51,000,000 

53,350,000 

69,195,000 

64,646,000 

70,465,000 

75,417,000 

82,101,000 

77,576,000 

64,000,000 

72,051,000 

76,069,000 

69,637,000 

70,384,000 

70,807,000 

-74,533,000 

^71,888,000 

71,758,000 


1,878,477,000 


We  have  kept  of  the  same  mind  for  a  sufficient  length  of  time 
to  give  oar  policy  coherence  and  sanity.— -From  President  Roose- 
velt's speech  of  acceptance. 

I  helieve  in  the  reciprocity  of  Blaine  and  McKinley,  reciprocity 
in  non-competitive  goods,  but  not  in  reclnrocity  in  competitive 
goods,  which  is  simply  free  trade.— Hon.  Andrew  J.  Volstead,  in 
Congress,  Feb.  8,  1904. 


When  we  legislate  for  Alaska  we  are  acting  within  the  clearly 
granted  authority  of  the  Constitution,  and  when  we  legislate  for 
the  Philippines  we  are  likewise  within  the  scope  and  plain  purpose 
of  the  Constitution*— Hon.  C.  VV.  Fairbanks,  in  XI;  S.  Senate,  Febru- 
ary 23,  1008. 


THE    DEMOCBATIO   PLATFORM    AND    CANDIDATE. 


521 


Value  of  gold  coin  and  bullion  imported  into  and  exported  from 
the  United  States,  fiscal  years  since  1825. 


Year  ending 

Imports 

Exports 

Excess  of 

imports  over 

exports 

Excess  of 

exports  over 

imports 

September  30— 

1825 

%  529, 277 

678,740 

1,110  448 

808.220 

810  606 

821.146 

932,029 

716.686 

611,852 

3,766,172 

2,325  196 

7,231,862 

2,431,814 

11.674*83 

1.164,580 

3,085.157 

1.269  449 

757.294 

17,066,437 

1,613.304 

818,850 

910.413 

21574,931 

3.408,7i  5 

4.06«. 647 

1.770.7(6 

3,569.090 

8.658.059 

2.427,356 

3,031,964 

1,092,802 

990.305 

6.654,636 

11,506,068 

2.125,397 

2  508,786 

42,291,930 

I3.9n7.011 

5,530,538 

11,176,769 

6.498,228 

8,196.261 

17,024  866 

8,737.443 

14,132,568 

12,056,950 

6,883,561 

8,717,458 

8.082.447 

19  503  137 

13.090.793 

7  992,709 

20,240,284 

13,330,215 

5,624,948 

80,758,396 

100,031,259 

34,377,054 

17,734,149 

22,831,317 

26.691,096 

20,743.349 

42,910.601 

43,934.317 

10,284,858 

12.943,342 

18,232,507 

49.099.454 

21.174.881 

72  449,119 

30,381.760 

33,525,065 

85.014,780 

120  391,074 

88.954,603 

44,573,184 

66,051,187 

52,021,254 

44,982,027 

$315,672 
1,056,088 
1,872,489 
1,035,084 
1,573.268 
1,422,664 
2,979  529 
2,049,406 

889,505 

690.180 
1,355,280 

647,455 
3,213,735 
1.213.204 
4,800,668 
3,703,373 
2.589,869 
2,304, 756 

407,687 

1  366,521 
3,055,425 
2,053,199 
1,037  921 

11.071,197 
1.972,233 
4.560,627 
22.830,913 
40,073,979 
25,442,858 
40,470,260 
55.109,215 
45,000,977 
65,232,653 
50.002  804 
61,108,053 
58  446,039 
97  423  973 

35  439,903 
62' 162,838 

100*661,634 
5S'381,033 
71  197,309 
39  028,627 
73'396,344 

36  003,498 
33'635,902 
66  086,208 
49  548,760 
44  866,715 
34  042,420 
66*980  977 
31 '177,050 
26,590,374 

9  204  455 
4'5S7,614 
3' 639, 025 

2  505  132 
32'587,880 
11  600,888 
41,081 ,957 

8,477,892 
42  952,191 
9,701,187 
18  376,234 
59,952.285 
17,274,491 
86,362,654 
50,195,327 

108.680,844 
76,5-78,061 
66,408,481 

112,409,947 
40,361,580 
15,406,391 
37,522,086 
48,266,759 
53,185,177 
48,568,950 
47,090,695 

$213,605 

1826  

$377,348 

1827 

762  041 

1828 

826  864 

1829 

756.592 
601  518 

1830 

1831 

2  047  500 

1832 

1,332.720 

1833  

277,653 

1834 

3,075.992 

969,916 

6,684,407 

1835 

1836 

1837 

781,921 

1838 

10.461,679 

1839 

3,636,088 
618,216 

1840 

1  1841  

2,320  420 

1842 

1,547  462 

1843 

16,658  750 
246.783 

1844 

1845 

2,236.675 

1846 

1,142  786 

1847 

20,537,010 

184S 

7,662,442 

1849 

2,096,414 

1850 

2  783  921 

1851 

19  207  823 

1852 

36,415,920 
23  015  M)2 

1853 

1854 

37  438  296 

1855 

54,016  418 

44,010,672 
68  578  017 

1856 

1857 

1858 

38.436,736 
58,982.656 
56,937,258 

1859 

1860 a 

1801  

14,867,967 

1862 

21,632  892 

1803 

56,632.300 

1864 

89,484  865 

1865 

51,882,805 

1866 

63,001,048 

1867 

22  001.761 

1868 

64  658,901 

21,870,930 

1870 

21,579.012 

1871 

69,802,647 

1872 

40,831,302 

1873 

36,174,268 

1874 

14,539.283 

1875 

53,284,184 

1876 

23,184,341 

1877 

844,140 

1878 

4,125,760 
1,037,334 
77,119,371 
97,466,127 
1,789,174 
6,133,261 

1879  .... 

1880 

1881 

1882 , 

1883     .. 

1884 

18,250,640 

1885 

18,213,404 

1886 

22,208,842 

1887 >... 

33,209,414 
25,558.083 

1888 

1889 

49,667,427 

1890 

4  331  149 

1891 

68,130,087 

1892 

495,873 

1893 

87,506,463 

1894 

4,528,942 

1895 

30,083,721 

1896 

78,884,882 

1897 

44,653,200 
104,985,283 
61.432,517 

1898 

1899 

1900 

3,693,675 

1901 

12,866.010 
3,452,304 

1902 

1803 

2,108.568 

Our  policy  is  one  of  fair  aud  equal  justice  to  all  men,  paying  no 
heed  to  whether  he  is  rich  or  poor  nor  heeding?  his  race,  his  creed 
or  his  birthplace. — From  President  Roosevelt's  speech  of  accep- 
tance. 


522 


COMMERCE  BETWEEN   THE  UNITED  STATES  AND   CANADA. 


COMMERCE    BETWEEN    THE    UNITED    STATES    AND 
CANADA,  1850  to  1904. 

Values  of  merchandise  imported  into  and  exported  from  the 
United  -States  in  its  trade  with  the  British  North  American 
Provinces  from  1850  to  1872,  inclusive,  and  tbith  the  Dominion 
of  Canada  from  1873  to  1903,  inclusive.  (Newfoundland  not 
included  after  1872.) 

[Official  figures  from  Bureau  of  Statistics.] 


Year  ending 

Exports 
to  Canada. 

Imports 
from  Canada. 

Excess  of— 

June  30— 

Exports. 

Imports. 

1850 

Dollars. 
9.515.991 
11,771.092 
10.229,608 
12,432,597 
24,073,408 
27,741,808  . 
29.025.349 
24.138,482 
23.604.526 
28,109.494 
22.695.928 
22,676.513 
20.573.070 
27.619.814 
26,574,624 
28,829,402 
24,828.880 
21,020,302 
24,080,777 
23,381,471 
25,339.254 
32.276,176 
29,411.454 
32.534.984 
41.827,904 
34,547,219 
33.375,719 
37,418,315 
37,146,682 
29,604,385 
29,460.257 
37.903,322 
36,500,403 
44,417,110 
44,306,196 
38.245.634 
33.462,800 
34,988,110 
35,882,383 
40,607,561 
40,282,108 
38,147,778 
43,299,787 
46.794,332 
56,664,094 
52,854.769 
59,687,921 
64,928,821 
83,714,086 
87,974.961 
95,319,970 

105,789.214 
•     109.642.993 

123.266,788 

Dollars. 
5.179.500 
5.279.718 
5,469.445 
6.527.559 
8.784.412 
15.118.289 
21,276.614 
22.108,916 
15,784,836 
19,287.565 
23.572.706 
22.724,489 
18511,025 
17.484,786 
29.608.736 
33,264.403 
48,528.628 
25,044,005 
26,261,379 
29,293.766 
36,265,328 
32.542,137 
36,346,930 
37,175.254 
34,173,586 
27.867,615 
28,805,964 
24,164,755 
25.044,811 
25.719.771 
32,988.564' 
37.684.101 
50,775.581 
44.294,158 
38,399,835 
36.695,685 
37,304.036 
37,847.277 
42,924.554 
42,738.074 
39,042,977 
39,087,782 
34,954.203 
37,777,463 
30.790.916 
36.574.327 
40,887,565 
40,309,371 
31.870,486 
31,220,967 
39,369,074 
42,482,163 
48,076,124 
54,781.418 

Dollars. 

4,336,491 
6.490.374 
4.760. 163 
5.905.038 
15,288.996 
12.62::.  519 
7,748,735 
2,029.566 
7.819,690 
8,821,929 

Dollars. 

1851 

1852 

1853                

1854 

1855  a 

1856  a 

1857  a 

1858  a 

A 

1859  a : 

1860  a 

876  868 

1861  a 

47,976 

1862  a 

2.062.045 
10,135.028 

1863  a 

1864  a.           

3,034,112 

1865  a 

4  485  001 

1866  a. 

23  CO1.)  HH 

1867 

4,023  703 

1868 

2  180  602 

1869 

5,912,295 

1870.... 

10,926,074 

1871 

265,961 

1872 

6,935.476 

1873 

4,640.270 

7.654,318 
6,679,604 
4,569,755 
-       13.253.560 
12,101,871 
3,884,614 

1875 

1876.          

1877 

\ 

1879 

1880 

3,528.307 

1881 

819,821 

1882 

14,275,178 

1883 

i 22, 952 
5,906.361 
1,549,949 

1885 

3,841,236 

1887 

2  859  167 

7,042,171 

1889 

2,130,513 

1.239.131 

1891 

940,004 

8,345,584 
9,016,869 
25,873.178 
16,280.442 
18,800,356 
24,619.450 
51,843,600 
56,753,994 
55,950,896 
63.307,051 
61,566,869 
68.485,370 

1893 

1895 

1897 

1899 

1900 

1901 

1902 

1903 

(a)  Period  of  reciprocal  trade. 


There  has  been  considerable  debate  as  to  whether  the  Con- 
stitution follows  the  flag.  No  matter  how  diverse  and  conflicting 
our  opinions  may  be  on  this  subject,  there  is  one  opinion  that  we 
all  entertain,  and  that  is  that  the  American  school-house  follows 
the  flag.— Hon.  C.  VV.  Fairbanks,  in  IT.  S.  Senate,  February  22, 
1002. 


Our  experience  in  the  past  has  shown  that  sweeping:  revisions 
of  the  tariff  are  apt  to  produce  conditions  closely  approaching 
panic  in  the  business  world.  Yet  it  is  not  only  possible,  but  emi- 
nently desirable,  to  combine  with  the  stability  of  our  economic 
system  a  supplementary  system  of  reciprocal  benefit  and  obligation 
with,  other  nations. — President  Roosevelt's  Annual  Message,  Fifty- 
seventh    Congress,    first    session. 


THE   DEMOCRATIC    PLATFORM    AND   CANDIDATE. 


523 


Coinage  of  the  United  States  mints  from  1846  to  1902. 
[From  the  report  of  the  Director  of  the  Mint.] 


Calendar  year. 


Total  coinage. 


Gold. 


Silver. 


Minor. 


Total. 


1846. 
1847. 
1848. 
1849. 
1850. 
1851. 
1852. 
1853. 
1854. 
1855. 
1856. 
1857. 
1858. 
1859. 
1860. 
1861. 


1864. 
1865. 


1867. 


1870. 
1871. 
1872. 
1873. 
1874. 
1875. 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 
1882. 
1883. 
1884. 
1885. 
1886. 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 


Dollars. 

4,034.177.50 
20,202.325.00 

3,775,512.50 

9,007,761.50 
31,981,738.50 
62,614,492.50 
56,846,187.50 
39,377.909.00 
25.915.962.50 
29,387,968.00 
36,857,768.50 
32,214,040.00 
22,938,413.50' 
14,780,570.00 
23,473,654.00 
83,395.530.00 
20,875,997.50 
22,445.482.00 
20,081,415.00 
28,295,107.50 
31,435,945.00 
23,828,625.00 
19,371,387.50 
17,582.987.50 
23,198,787.50 
21,032,685.00 
21,812.645.00 
57.022,747.50 
35.254.630.00 
32,951,940.00 
46,579,452.50 
43,999,864.00 
49,786,052.00 
39,080,080.00 
62.308,279.00 
96,850,890.00 
65,887,685.00 
29,241,990,00 
23,991,756.59 
27,773.012.50 
28,945,542.00 
23,972,383.00 
31,380.808.00 
21,413.931.00 
20,467,182.50 
29,222,005.00 
34,787,222.50 
56,997,020.00 
79,546.160.00 
59,616,357.50 
47,053,060.00 
76,028,485.00 
77.985.757.00 
111,344,220,00 
99,272,942.50 
101.735,187.50 
47,184,932.50 


Dollars. 

2,558,580.00 

2,374,450.00 

2,040,050.00 

2,114,950.00 

1,866,100.00 

774,397.00 

999,410.00 

9,077,571.00 

8,916,270.00 

3,501,245.00 

5,142,240.00 

5,478,760.00 

8,495,370.00 

3,284,450.00 

2,259.390.00 

3,783.740.00 

1,252,51650 

809,267.80 

609,917.10 

691,005.00 

982,409.25 

908,876.25 

1,074,343.00 

1,266,143.00 

1,378,255.50 

3,104,038.30 

2,504,488.50 

4,024,747.60 

6,851,776.70 

15,347,893.00 

24,503,307.50 

28,393,045.50 

28,518,850.00 

27,569,776,00 

27,411,693.75 

27,940,163.75 

27,973,132.00 

29,246,968.45 

28.534,866.15 

28,962,176,20 

32,086,709.90 

35,191,081.40 

33,025,606.45 

35,496,683.15 

39,202,908.20 

27,518,856.60 

12,641,078.00 

8,802,797.30 

9,200,350.85 

5,698.010.25 

23,089,899.05 

18.487,297.30 

23,034,933.45 

26,061,519.90 

36,345,321.45 

30,838.46075 

30,028,167.20 


Dollars. 

41,208.00 

61,836.69 

64,157.99 

41,984.32 

44,467.50 

99,635.43 

50,630.94 

67,059.78 

42,638.35 

16,030.79 

27,106,78 

178,010.46 

246,000.00 

364,000.00 

205,660.00 

101,000.00 

280,750.00 

498,400.00 

926,887.14 

968,t>52.86 

1,042,960.60 

1,819,910.00 

1,697,150.00 

963,000.00 

350,325.00 

99,890.00 

369,380.00 

379.455.00 

342,475.00 

246,970.00 

210,800.00 

8,525.00 

58,186.50 

165,003.00 

391,395.95 

428.151.75 

960,400,00 

1,604,770.41 

796,483.78 

191,622.04 

343.186.10 

1,215.686^26 

912.200.78 

1,283,408.49 

1,384,792.14 

1,312,441.00 

961,480.42 

1,134,931.70 

438,177.92 

882,430.56 

832,718.93 

1,526,100.05 

1,124,835.14 

1,837.451.86 

2,031,137.39 

2,120,122.08 

2,447,796.17 


Dollars. 
6,633,965.50 
22,638.611.69 
5,879,720.49 
11,164,695.82 
33,892,306.00 
63,488,524.93 
57,896,228.44 
48,522.539.78 
34,577,870.85 
32,905,243.79 
42,027,115.26 
37,870,810.46 
31,679, 783. 50 
18.429,020.00 
25,938,704.00 
87,280,270.00 
22,409,264.00 
23,753.149.80 
21,618,019.24 
29.954.665.36 
33,461,314.25 
26,557,411.25 
22,142,880.50 
19,812.130.50 
24,927,368.00 
24,236,613.30 
24,686,513.50 
61,426,950.10 
42,448,881.70 
48,546,803.00 
71,293,560.00 
72,401,434.50 
78,363,088.50 
66,814,859.00 
90,111,368.70 
125,219,205.50 
94,821,217.00 
60,093  728.86 
53,323,106.43 
56,926,810.74 
61,375,438.00 
60,379,150.66 
65,318.615.23 
58,194,022.64 
61,054,882.84 
58,053,302.60 
48,389,780.92 
66,934,749.00 
89,184,688.77 
66,196,798.31 
70,975,677.98 
96,041,882,35 
102,144,625.59 
139,243.191.76 
137,649,401.34 
134,693,770.33 
79,660,895,87 


Republican  reciprocity  is  reciprocity  in  non-competing  articles 
and  in  nothing;  else.— Hon.  John  Dalzell,  in  Congress,  March  1,  1004. 

The  national  credit  is  of  too  paramount  importance  and  noth- 
ing should  be  done  to  tarnish  or  impair  It.— Hon.  W.  McKinley,  in 
House  of  Representatives*  April  15,  1878. 

The  biggest  corporation,  like  the  humblest  private  citizen, 
ntust  be  held  to  strict  compliance  with  the  will  of  the  people  as 
expressed  in  the  fundamental  law. — President  Roosevelt  at  Cin- 
cinnati, Ohio,   September  20,  1002. 


Remembering  those  Republican  promises  and  their  fulfillment 
In  the  years  since,  calling  to  mind  the  unfilled  Democratic  prom- 
ises and  the  bitter  years  of  1803-1806,  what  will  you  gain  by  vot- 
ing the  Democratic  ticket  in  1904? — Representative  Chas.  Dick,  of 
Ohio,  in  Congress,  Jan.  5,  1904. 


524 


QOLO    AND   SII/VKK    PRODUCTION  OF  THE   WORLD 


Production  of  gold  and  silver  in    the  world  since   the   discovery 
of  America, 

[From  1493  to  1885,  from  a  table  of  averages  compiled  by  Dr.  Adolph  Soetbeer; 
Btnoe  the  latter  date,  the  annual  estimate  of  the  Director  of  the  Mint.] 


Percentage 

Golc 

Silver 

of 

production. 

Period. 

Total  for  period. 

Total  for  period. 

By  weight. 

Ounces.flne 

Value. 

Ounces,  fine. 

Coining  value. 

Gold. 

Silver. 

Dollars. 

Dollars. 

1493-1520.... 

5,221,160 

107,931 .000 

42*809,400 

54.703.000 

11.0 

89.0 

1521-1544.... 

5,524,656 

114,806,000 

69.598.820 

89.980. 000 

7.4 

92.6 

1545-1560.... 

4,377,544 

90.492,000 

160.2H7.04O 

207.240.000 

2.7 

97.3 

1561-1580.... 

4.398.120 

90,917,000 

198.578.500 

248.990.000 

2.2 

97.8 

1581-1600.... 

4,745.340 

98,095,000 

269.352.700 

348.254.000 

1.7 

98.8 

1601-1620.... 

5,478.360 

113.248,000 

271.924,700 

351.579.000 

2.0 

98.0 

1621-1640.... 

5.336.900 

110.824,000 

858.084,800 

327,221.000 

2.1 

97.9 

1641-1660.... 

5,639.110 

116.571.000 

235.530.900 

304.525.000 

2.3 

97.7 

1661-1680.... 

5.954,180 

123,084.000 

210.691,000 

280.166.000 

2.7 

97.3 

1681-1700.... 

6.921.895 

143,088.000 

219.841,700 

284.210,000 

3.1 

96.9 

1701-1720.... 

8.243.260 

170.403.000 

228.650,800 

295.629,000 

3.5 

96.5 

1721-1740.... 

12.268,440 

253,61 1 .000 

277.261,600 

358.480.000 

42 

95.8 

1741-1760.... 

15.824.230 

327.116.000 

342,812.235 

443.232.000 

4.4 

95.6 

1761-1780.... 

13,313,315 

275.21 1 .000 

419.711.820 

542.658.000 

3.1 

96.9 

1781-1800.... 

.11.438.970 

236.464.000 

565.235.580 

730.810.000 

2.0 

98.0 

1801-1810.... 

5.715.627 

118.152.000 

287.469.225 

371.677.000 

1.9 

98.1 

1811-1820.... 

3,679,568 

•  76.063.000 

173,857,555 

224.786.000 

2.1 

97.9 

1821-1830.... 

4.570.444 

94.479.000 

148.070,040 

191.444.000 

3.0 

97.0 

1831-1840.... 

6.522,913 

134.841.000 

191.758,675 

247.930.000 

3.3 

96.7 

1841-1850.... 

17.605,018 

363.928.000 

250.903,422 

342.400.000 

6.6 

93.4 

1851-1855.... 

32.p51.621 

00:2. 566, 000 

142.442,986 

184.109,000 

18.4 

81.6 

1850-1860.... 

32,431.312 

670,415.000 

145,477,142 

188.4)98.000 

18.2 

81.8 

1861-1865.... 

29,747,913 

614,944,000 

177,009,862 

228.801 .000 

14.4 

85.6 

1866-1870.... 

31,350,430 

648.07 1,000 

215.257.914 

278,313.000 

12.7 

87.3 

1871-1875.... 

27,955.008 

577.883,000 

316,585.009 

409.322.000 

8.1 

91.9 

1876-1880.... 

27.715.550 

572,931 ,000 

393.878,009 

509.856.000 

6.6 

93.4 

1881-1885.... 

23,973,773 

495,582,000 

400.019,722 

594,773.000 

5.0 

95.0 

1886-1890.... 

27.306.411 

564,474,000 

544,557,155 

704.074.000 

4.8 

95.2 

1891-1895.... 

39.412.823 

814,736.000 

787.906.050 

1,018,708,000 

4.8 

95.2 

1896  

9.783,914 

202.251.000 

157,061.370 

203.069,200 

5.9 

94.1 

1897  

11,420.068 

236,073.700 

160.421.082 

207.413.000 

6.7 

93.3 

1898  

13.877,800 

286,879,700 

169,055,253 

218.576,800 

7.6 

92.4 

1899  

14.837.775 

306,724.100 

168.337.453 

217,648,200 

8.1 

91.9 

1900  

12.315.135 

254.556.300 

173.591.364 

224.441,200 

6.6 

93.4 

1901    

12.692,300 

202.373,300 

173.011,283 

223.691,300 

6.8 

93.2 

1902  

14,313,660 

295,889.600 

166,955,639 

215,861,800 

7.9 

92.1 

Total.... 

513,964,609. 

10,624.093,300 

9,168,497,971 

11.854,213,500 

5.3 

94.7 

Production  of  gold  and  silver  by  principal  countries,  in  1902. 

[Includes  all  countries  having  a  product  of  more  than  $1 ,000,000  of  either  gold 

or  silver.] 


Gold. 

Silver. 

Country. 

Value. 

Coining 
Value.  . 

Commercial 
value. 

North  America: 

$80,000,000 
10,153,100 
20,741,200 
39,023,700 
81,578,800 

22,533,400 

2.171,300 

62,500 

5,300 

10,200 

$71,757,600 
77,804,100 
5,564,500 

$29,415,000 

31,893,000 

2,281,000 

10,377,100 

205,200 
2,432,200 
7,399,000 
1,246,800 
4,784,100 
1,409,500 

16,798,600 
4,611,600 
2,297,000 

4,253,800 

Europe: 

"  Russia 

84,100 
997,000 

3,033,000 

Italy 

511,100 

1,961,100 

577,800 

South  America: 

Bolivia 

4,700 
575,200 
2,522,600 
1,994,600 
1,808,600 
2,420,200 
2,32^,100 
2,001,900 

1,287,000 
8,731,800 
3,500,000 
9,588,100 
1,027,100 

6,886,100 

Chile 

1,890,400 

941,600 

Guiana  (British) 

5,513,700 
1,255,800 

505.000 

2,260,200 

514,800 

Asia: 

207,000 

East  Indies  (British) . . . 

THE   DEMOCRATIC    PLATFOBM    AND   CANDIDATE. 


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526  passport  pkiviu  r,i:s  ONIPORM. 


PASSPORT    PRIVILEGES    UNIFORM. 

Statement  by  Con»crcNRnmii  William*  at   St.   I.oiiIn  Wholly 
MiHleadlng:. 

Hon.  John  Sharp  Williams  said  in  his  speech  at  St.  Louis: 

"Our  fellow-citizens  of  Russian  birth  and  Jewish  extraction 
who  cannot  procure  from  the  State  Department  a  passport  to 
revisit  Knssia  without  being  cautioned  that  they  will  not  be  pro- 
tected there  will  read  this  part  of  the  Republican  platform,  con- 
sidering its  source,  with  singular  astonishment." 

"This  statement  is  wholly  misleading.  When  an  American 
citizen  of  Russian  origin  receives  a  passport  from  the  State 
Department  he  receives  a  notice  showing  what  are  the  provisions 
of  Russian  law  liable  to  affect  him,  in  order  that  he  may  be  fore- 
armed not  to  incur  danger  through  ignorance. 

An  American  citizen  of  German  origin  receives  a  similar 
notice  as  to  German  law  when  a  passport  is  granted  to  him ;  a 
citizen  of  Austrian  origin  receives  one  as  to  Austria ;  of  Turkish 
origin  as  to  Turkey ;  of  Portuguese  origin  as  to  Portugal ;  of 
Italian  origin  as  to  Italy,  and  so  on  for  all  countries  which  have 
laws  liable  to  affect  a  naturalized  American  citizen  when  he 
returns. 

Mr.  Williams's  statement  is  disproved  by  Document  No.  590, 
LVIIth  Congress,  first  session.  This  was  the  resolution  of  Repre- 
sentative Goldfogle,  of  New  York,  calling  upon  the  Secretary  of 
State  to  state  (1)  whether  American  citizens  of  Jewish  faith 
were  prevented  from  entering  Russia,  and  (2)  whether  Russia 
had  any  regulations  applying  especially  to  the  exclusion  of  Ameri- 
can Jews.     Secretary  Hay's  reply,  printed  in  this  document,  said : 

"The  second  question  may  be  categorically  answered  in  the 
negative.  Such  discrimination,  if  it  were  made,  would  call  forth 
immediate  action  of  protest  from  this  Government. 

"This  department  has  no  information  remotely  indicating  that 
American  Jews  stand  upon  a  footing  different  from  that  occupied 
by  the  Jews  of  other  countries  in  the  administration  of  Russian 
law. 

"The  exclusion  of  naturalized  citizens  of  Russian  origin  and  of 
Jews  from  Russia  was  thus  commented  upon  by  Secretary  Olney 
in  his  report  to  the  President  for  the  year  1896: 

"The  published  correspondence  for  a  number  of  years  back  ha.3 
shown  the  persistence  of  the  United  States  in  endeavoring  to  ob- 
tain for  its  citizens,  whether  native  or  naturalized,  and  irrespective 
of  their  faith,  the  equality  of  prvilege  and  treatment  stipulated 
for  all  American  citizens  in  Russia  by  existing  treaties.  Holding  to 
the  old  doctrine  of  perpetual  allegiance;  refusing  to  lessen  its 
authority  by  concluding  any  treaty  recognizing  the  naturalization 
of  a  Russian  subject  without  prior  imperial  consent;  aserting  the 
extreme  right  to  punish  a  naturalized  Russian  on  return  to  his  na- 
tive jurisdiction,  not  merely  for  unauthorized  emigration,  but  also 
specifically  for  the  unpermitted  acquisition  of  a  foreign*  citizenship; 
and  sedulously  applying,  at  home  and  through  the  official  acts  of  its 
agents  abroad,  to  all  persons  of  the  Jewish  belief,  the  stern  re- 
strictions enjoined  by  the  Russian  law,  the  government  of  Russian 
takes  ground  not  admitting  of  acquiescence  by  the  United  States, 
because  at  variance  with  the  character  of  our  institutions,  the 
sentiments  of  our  people,  the  provisions  of  our  statutes,  and  the 
tendencies  of  modern  international  comity. 

"Under  these  circumstances  conflict  between  national  laws, 
each  absolute  within  the  domestic  sphere  and  inoperative  beyond 
it,  is  hardly  to  be  averted." 

"Since  this  report  the  position  of  the  department  has  not 
changed,  and  its  efforts  to  secure  uniform  treatment  for  Ameri- 
can citizens  in  Russia,  begun  many  years  ago,  have  continued, 
although  they  have  not  been  attended  with  encouraging  success. 

"The  Department  of  State  now  sends  to  all  persons  of  Russian 
birth  who  receive  passports  an  unofficial  notice  showing  what  are 
the  provisions  of  Russian  law  liable  to  affect  them,  in  order  that 
they  may  not  incur  danger  through  ignorance.  In  transmitting 
a  copy  of  this  notice  to  the  Ambassador  of  the  United  States  at 
St.  Petersburg,  for  his  information,  he  was  instructed  on  February 
15,  1901,  as  follows: 

The  State  Department  grants  to  every  American  citizen,  native 
or  naturalized,  Christian  or  Jew,*  the  same  passport,  and  insists 
that  all  foreign  governments  shall  accept  it  is  prima  facie  proof 


PASSPORT  PRIVILEGES  UNIFORM.  527 

that  the  person  it  describes  is  a  citizen  of  the  United  States  and 
entitled  to  protection  as  such.  Any  statements,  therefore,  that 
Jews  are  refused  passports  or  that  when  they  receive  passports 
they  are  notified  that  they  will  not  be  protected  in  any  foreign 
country  is  absolutely  without  foundation  in  fact. 

For  the  past  four  years  the  State  Department  has  furnished 
every  American  citizen  of  foreign  birth  who  receives  a  passport 
with  an  unofficial  statement  showing  the  general  provisions  of  the 
law  of  the  country  of  his  birth  which  may  affect  him  if  he  re- 
turns, and  which,  therefore,  it  is  important  for  him  to  know  be- 
fore he  goes  abroad.  Before  these  notices  were  issued  naturalized 
citizens  frequently  put  themselves  in  a  dangerous  position  through 
ignorance,  and  complained  that  had  they  known  what  the  laws 
were  which  would  be  likely  to  affect  them  they  would  have 
avoided  danger  or  taken  steps  to  overcome  it ;  but  there  can  be 
no  ground  for  such  complaint  now.  When  a  Jew  receives  one  of 
these  notices  it  is  because  he  was  born  abroad  and  not  because 
he  is  a  Jew.  The  State  Department  requires  no  man  to  state  his 
religion  and  never  knows  that  the  applicant  for  a  passport  is  a 
Jew,  unless  he  volunteers  the  information. 

In  order  that  the  notices  sent  to  naturalized  citizens  with 
their  passports  might  not  possibly  be  construed  into  meaning  that 
this  Government  was  disposed  to  relax  its  equal  protection  to  all 
American  citizens  traveling  abroad,  Secretary  Hay  sent  the  fol- 
lowing instruction  to  every  American  minister  as  soon  as  the  no- 
tices were  prepared,  the  instruction  to  the  Ambassador  at  St. 
Petersburg  being  quoted  as  an  example : 

"The  inclosed  notice  to  American  citizens  formerly  subjects 
of  Russia  who  contemplate  returning  to  that  country  the  depart- 
ment is  sending-  to  all  persons  born  in  Russia  who  receive  pass- 
ports. Tt  is  sent  to  you  merely  for  your  information,  and  you  are 
instructed  that  it  is  not  intended  to  mean  that  there  has  been  any 
abatement  on  the  part  of  this  Government  in  its  policy  of  protecting1 
equally  naturalized  and  native  born  Americans  during  their  travels 
or  sojourn  abroad,  as  the  law  requires.  Nor  does'  the  notice  fore- 
shadow any  mitigation  of  such  dissent  as  this  Government  may 
have  expressed  to  the  laws  or  regulations  of  Russia  which  may 
deny  equality  of  treatment  to  all  lawabiding  citizens,  regardless 
of  their  place  of  birth." 

It  is  also  a  standing  instruction  to  each  American  minister  and 
consul  to  protect  every  American  Jew  from  unjust  molestation, 
and  this  Government's  attitude  towards  the  Russian  Government's 
position  on  this  subject  is  one  of  permanent  and  oft-repeated 
protest. 

Indeed,  there  has  never  been  a  case  brought  to  the  State  De- 
partment's attention  of  the  arrest  or  ill-treatment  of  an  American 
Jew  in  Russia  that  interposition  in  his  behalf  has  not  been  made. 
As  recently  as  June  13,  1904,  our  Ambassador  at  St.  Petersburg 
was  again  directed  to  reopen  the  question  and  to  present  the  House 
resolution  of  April  21  to  the  Russian  Government  as  evidence  of 
the  popular  support  in  this  country  of  this'  Government's  position, 
and  the  Secretary  of  State  has  over  and  over  again  pressed  the 
matter  upon  the  attention  of  the  Russian  Ambassador  at  Wash- 
ington, presenting  it  anew  on  July  1  of  the  present  year. 

The  Democratic  platform  trades  upon  Republican  measures  in 
many  of  its  features.  For  example,  it  pledges  the  party  to  insist 
upon  equal  protection  abroad  of  all  American  citizens,  whether 
native  or  naturalized,  and  demands  that  negotiations  be  begun  to 
secure  equal  treatment  of  all  Americans  from  those  foreign  gov- 
ernments which  do  not  now  accord  it. 

On  March  27,  1899,  Secretary  Hay  sent  a  circular  instruction 
to  all  the  diplomatic  and  consular  officers  of  the  United  States,  in 
which  he  said: 

"This  Government  does  not  discriminate  between  native-born 
and  naturalized  citizens  in  according  them  protection  while  they 
are  abroad,  equality  of  treatment  being  required  by  the  laws  of 
the  United  States  (Sees.  1999  and  2000  R.  S.),"  and  later  In  the 
same  circular:  "It  is  not  to  be  understood  by  this  that  natur- 
alized American  citizens  returning  to  the  country  of  their  origin 
are  to  be  refused  the  protection  of  a  passport.  On  the  contrary, 
full  protection  should  be  accorded  to  them,  until  they  manifest  an 
effectual  abandonment  of  their  residence  and  domicile  In  the 
United  States."  (See  Foreign •  Relations  of  the  United  States, 
1902,  p.  1.)    These  ordeTS  to  our  agents  abroad  have  been  repeated 


528  PASSPORT  PRIVILEGES  UNIFORM. 

again  and  again,  and  are  as  well  known  to  them  as  any  other 
fundamental  rule  of  conduct  laid  down  for  them. 

Sections  1999  and  2000  of  the  Revised  Statutes  of  the  United 
States  to  which  Secretary  Hay  alludes  declare  that  the  right  of 
expatriation  is  an  inherent  right  of  all  men,  and  that  "all  natur- 
alized citizens  of  the  United  States,  while  in  foreign  countries, 
are  entitled  to  and  shall  receive  from  this  Government  the  same 
protection  of  persons  and  property  which  Is  accorded  to  native- 
born  citizens."  Both  of  these  laws  were  passed  In  1868  by  a  Re- 
publican Congress. 

The  platform  also  says :  "We  demand  that  all  over  the  world 
a  duly  authenticated  passport  issued  by  the  Government  of  the 
United  States  shall  be  proof  of  the  fact  that  he  Is  an  American 
citizen  and  shall  entitle  him  to  the  treatment  due  him  as  such." 

In  1897,  when  John  Sherman  was  Secretary  of  State,  there  was 
printed  by  the  State  Department  for  its  own  use  and  that  of 
American  diplomatic  and  consular  officers  a  handbook  entitled 
"The  American  Passport,"  in  which  on  page  106  the  following 
language  occurs:  "A  passport  is  prima  facie  evidence  that  the 
person  holding  it,  while  traveling  abroad,  is  a  citizen  of  the 
United  States;  and  the  agents  of  foreign  governments  are  ex- 
pected to  so  receive  it." 

This  merely  stated  a  standing  rule  as  old  as  the  passport  itself 
and  insisted  upon  again  and  again  by  Republican  Secretaries  of 
State. 


Yon  cannot  get  consumers  through  the  mints;  yon  get  them 
through  the  factories. — MaJ.  McKinley  to  delegation  of  farmers, 
Aug.  24,  1896. 

Every  dollar  sent  ahroad  to  purchase  goods  that  we  can  pro- 
duce at  home  makes  us  a  dollar  the  poorer.— II.  K.  Thurber,  in  the 
American  Economist. 

Protection  brings  together  diversified  Industries  which  never 
fall  to  vastly  Increase  the  personal  intelligence,  industry,  and  wage 
earnings  of  the  people.— lion.  Justin   S.  Morrill. 

The  mechanism  of  modern  business  Is  tremendous  in  Its  size 
and  complexity,  and  ignorant  intermeddling  with  it  wonld  be  dis- 
astrous.— President  Roosevelt  at  Cincinnati,  Ohio,  September  20, 
1902. 

I  believe  It  Is  a  good  deal  better  to  open  the  mills  of  the 
United   States  to  the   labor  of  America  than  to  open  the  mints  of 

the  United  States  to  the  silver  of  the  world MaJ.  McKinley  to  his 

comrades  of  the  23d  Ohio  Regiment,  at  Canton,  August  12,  1896. 

The  construction  of  the  canal  Is  now  an  assured  fact;  but  most 
certainly  it  is  unwise  to  entrust  the  carrying  out  of  so  momentous 
a  policy  to  those  who  have  endeavored  to  defeat  the  whole  under- 
taking.—President  Roosevelt's  speech  accepting  1904  nomination. 

We  ought  to  let  the  tariff  alone;  we  ought  to  defend  It  against 
all  comers  for  the  good  of  the  nation.  We  are  doing  more  than 
well  and  need  not  hunt  for  disaster.  That  will  come  In  dne  time. 
— Hon.  Thos.  B.  Reed,  in  the  North  American  Review  for  Decem- 
ber,  1902. 

Those  foreign  countries  which  have  adopted  protection  have,  in 
the  elements  by  which  you  have  been  accustomed  to  test  the  pros- 
perity of  a  nation,  improved  in  a  greater  ratio  and  more  rapidly 
than  we  have  orirselves;  and  I  have  also  to  point  out  that  this  ten- 
dency, which  has  become  so  manifest  in  recent  years,  is  likely,  as 
every  sensible  man  of  business  knows,  to  be  accentuated  as  time 
goes  on.— Hon.  Jos.  Chamberlain,  at  Liverpool,  Oct.  27,  1903. 

We  ara  winning  headship  among  the  nations  of  the  world  be- 
cause our  people  art  able  to  keep  their  high  average  of  Individual 
citizenship  and  to  show  their  mastery  in  the  hard,  complex,  posh- 
ing life  of  the  age.  There  will  be  fluctuations  from  time  to  time 
In  our  prosperity,  but  it  will  continue  to  grow  Just  so  long  as  we 
keep  up  this  high  average  of  individual  citizenship  and  permit  it  to 
work  out  its  own  salvation  under  proper  economic  legislation— 
President  Roosevelt  at  Minneapolis,  April  4,  1903. 


SPEECH  OF  HON.  WM.  TENNINCS  BRYAN.  529 


SPEECH  OF  HON.  WM.  JENNINGS  BRYAN 

At  Chicago,  April  23,  1904,  on  Judge  Parker  and  the  Albany  Platform. 


"As  it  is  somewhat  unusual  for  a  political  speech  to  be  made  as  this 
one  is  to-night,  let  me  preface  my  remarks  with  an  explanation.  I  have 
hired  this  hall  and  I  introduced  myself  because  I  do  not  care  to  speak 
under  the  auspices  of  any  club  or  organization  which  is  committed  to 
any  particular  aspirant  for  office.  My  concern  is  not  about  the  name 
or  the  personality  of  the  nominee,  but  about  the  principles  for  which 
the  Democratic  party  is  to  stand.  While  many  of  the  papers  seem  to 
assume  that  the  contest  for  the  Democratic  nomination  is  neccessarily 
between  Judge  Parker  and  Mr.  Hearst,  and  that  every  Democrat  must 
either  be  for  one  or  the  other,  such  a  position  is  illogical  and  without 
foundation. 

"Those  who  are  classed  as  reorganlzers— and  by  that  I  mean  those 
who  would  carry  the  party  back  to  the  position  that  it  occupied  under 
Mr.  Cleveland's  Adminstiration— are  not  entirely  agreed  among  them- 
selves as  to  the  proper  candidate  upon  whom  to  concentrate  their  votes, 
and  so  those  who  are  in  sympathy  with  the  spirit  of  our  recent  plat- 
forms may  differ  as  to  the  relative  availability  of  those  who  represent 
the  progressive  element  of  the  party.  My  own  position  is  one  of  neu- 
trality. I  regard  as  available  all  candidates  who  are  in  favor  of  making 
the  Democratic  party  an  honest,  earnest,  and  courageous  exponent  of 
the  rights  and  interests  of  the  masses;  and  I  regard  as  unavailable  all 
who  are  in  sympathy  with  or  obligated  to  the  great  corporations  that 
to-day  dominate  the  policy  of  the  Republican  party  and  seek  through 
the  reorganizers  to  dominate  the  policy  of  the  Democratic  party.  I  have 
no  favorites  among  those  on  our  side  and  no  special  antagonism  to  those 
who  represent  the  reorganizers.  I  belive  that  the  line  should  be  drawn 
between  princi^'  -".  not  between  men,  and  that  men  should  only  be  con- 
sidered as  they  uiay  be  able  to  advance  or  retard  the  progress  of  Dem- 
ocracy. 

WANTS   A   LARGE   AUDIENCE. 

"I  have  come  to  Chicago  because  from  this  point  I  can  reach  a  large 
number  of  voters  in  the  Mississippi  Valley  and  I  have  expressed  a  de- 
sire to  have  the  ministers  attend,  because  they  can  and  should  exert  an 
influence  in  behalf  of  honesty  and  fairness  in  politics.  When,  some  two 
years  ago,  I  became  satisfied  that  ex-Senator  David  B.  Hill  was  planning 
to  be  a  candidate  I  pointed  out  the  objections  to  his  candidacy.  When 
the  Cleveland  boom  was  launched  I  pointed  out  the  objections  to  his 
candidacy,  and  now  that  Mr.  Parker  seems  to  be  the  leading  candidate 
(though  not  the  only  candidate)  among  the  reorganizers,  I  desire  to  pre- 
sent some  reasons  why  he  can  not  be  considered  as  an  available  can- 
didate for  a  Democratic  nomination,  and  I  find  these  reasons  not  in 
his  personality;  but  in  his  position  upon  public  questions.  For  a  year 
he  has  been  urged  to  speak  out  and  declare  himself  upon  the  important 
issues  of  the  coming  campaign,  but  he  has  remained  silent. 

"If  this  silence  meant  that  nobody  knew  his  views,  those  who  have 
been  loyal  to  the  party  in  recent  years  would  stand  upon  an  equal  foot- 
ing with  those  who  deserted,  but  it  is  evident  now  that  while  to  the 
public  generally  his  views  are  unknown  they  are  well  known  to  those 
who  are  urging  his  nomination.  Whatever  doubt  may  have  existed  on 
this  subject  heretofore  has  been  dispelled  by  the  platform  adopted  by 
the  New  York  State  convention,  and  taking  this  platform  as  a  text  I 
am  sanguine  enough  to  believe  that  I  can  prove  to  every  unbiased  mind 
that  Judge  Parker  is  not  a  fit  man  to  be  nominated  either  by  the  Dem- 
ocratic party  or  by  any  other  party  that  stands  for  honesty  and  fair 
dealing  in  politics.  I  can  not  hope  to  convince  those  who  favor  decep- 
tion and  fraud  in  politics,  but  I  am  satisfied  that  we  now  have  evidence 
sufficient  to  convict  Judge  Parker  of  absolute  unfitness  for  the  nomina- 
tion. If  he  did  not  know  of  the  platform  in  advance,  if  he  did  not  him- 
self dictate  it  or  agree  to  it,  he  has  allowed  it  to  go  out  as  his  utterance, 
for  the  convention  was  dominated  by  his  friends  and  adopted  a  resolu- 
tion presenting  him  as  the  candidate  of  the  state. 

DISCUSSES    NEW    YORK    PLATFORM. 

"This  platform,  then,  can  fairly  be  regarded  as  his  declaration  upon 
public  questions,  and  what  does  the  platform  say?    The  first  plank  reads: 

"  'This  is  a  Government  of  laws,  not  of  men;  one  law  for  Presidents, 
cabinets,  and  people;  no  usurpation;  no  executive  encroachment  upon  the 
legislative  or  judicial  department.' 

"This  is  a  general  plank  that  says  nothing  definitely.  It  is  probably 
intended  as  a  condemnation  of  the  President's  pension  order,  but  the  idea 
is  so  vaguely  expressed  that  those  who  support  the  platform  can  deny 
that  any  criticism  was  intended  if  they  find  that  such  criticism  is  un- 
popular. 

"The  second  plank  reads: 

"  'We  must  keep  inviolate  the  pledges  of  our  treaties;  we  must  renew 
and  reinvigorate  within  ourselves  that  respect  for  law  and  that  love  of 
liberty  and  of  peace  which  the  spirit  of  military  domination  tends  inev- 
itably to  weaken  and  destroy.' 

"This  is  probably  intended  as  a  rebuke  to  the  President  for  his  action 
in  the  Panama  matter,  but  this,  too,  is  so  indefinite  that  the  supporters 
of  the  platform  can  repudiate  any  such  intention  if  it  ever  becomes  con- 
venient to  do  so. 


530  SI'IKCH   OF  HON.    WM.  jtiNNINCS   BRYAN. 

"The  third  plank  reads: 

"'Unsteady  national  policies  and  a  restless  spirit  of  adventure  en- 
gender alarms  thai  check  our  commercial  growth;  let  dj  have  peace,  to 
the  end  thut  business  confidence  may  be  restored  and  that  our  people  may 
again  in  tranquillity  enjoy  the  gains  <>r  their  toil.' 

"This  possibly  is  intended  as  a  criticism  of  the  rashness  of  the  Presi- 
deni  ami  of  ins  emotional  temperament,  and  yet  it  is  so  Impersonal  lh.it 
those  who  support  Ihe  platform  can  very  plausibly  insist  that  it  has  no 
particular  reference  to  any  person,  nut  is  intended  as  a  eery  broad  sla  le- 
nient of  a  eery  general  principle. 

"The  fourth  plank  reads: 

"  'Corporations  chartered  by  the  state  must  be  subject  to  just  regula- 
tion by  the  state  in  the  interest  of  the  people;  taxation  for  public  pur- 
poses only;  no  Government  partnership  with  protected  monopolies.' 

"This  plank  might  find  a  welcome  place  in  any  platform.  It  would  be 
ditlicull  to  conceive  of  a  party  that  would  object  to  'just  regulations  by 
the  state  in  the  interest  of  the  people,'  nor  is  there  any  party  that  is 
likely  to  defend  taxation  for  any  other  than  a  public  purpose.  Kven  the 
Republican  party  has  never  declared  Itself  in  favor  of  'Government  part- 
nership with  protected  monopolies.'  The  plank,  therefore,  has  no  mean- 
ing at  all  as  It  stands,  unless  there  Is  a  secret  suggestion  that  the  regu- 
lation of  corporations  must  be  left  entirely  to  the  states.  This  Is  the 
position  that  Is  taken  by  the  trust  magnates.  Whenever  Congress  at- 
tempts to  interfere  with  a  trust  the  friends  of  the  trust  at  once  insist 
that  the  state  must  do  the  regulating.  That  is  the  position  taken  by  the 
dissenting  members  of  the  Supreme  Court  in  the  merger  case,  and  if  this 
plank  means  anything  it  is  an  indorsement  of  the  minority  members  of 
the  court  rather  than  an  indorsement  of  the  decision  of  the  majority. 
The  fact  that  the  platform  is  silent  about  the  merger  decision  lends  color 
to  this  construction. 

TAKES   UP  ANTITRUST  PLANK. 

"The  fifth  plank  reads: 

"  'Opposition  to  trusts  and  combinations  that  oppress  the  people  and 
stifle  healthy  industrial  competition.' 

"This  is  the  antitrust  plank  of  the  platform!  At  least  it  is  the  only 
plank  in  which  the  trust  is  mentioned  by  name.  The  plank  contains  four- 
teen words  and  it  will  be  noted  that  the  opposition  is  not  to  all  monopo- 
lies, or  even  to  all  trusts,  but  simply  to  those  that  'oppress  the  people 
and  stifle  healthy  industrial  competition.'  That  is  the  position  taken  by 
Judge  Brewer  in  his  separate  opinion.  He  contends  that  the  Sherman 
law  was  not  intended  to  prevent  all  restraint  of  trade,  but  only  'unrea- 
sonable restraint,'  and  so  Mr.  Hill  and  the  other  New  York  friends  of 
Judge  Parker  so  have  worded  their  trust  plank  as  to  make  their  meaning 
uncertain.  They  have  so  worded  the  plank  as  to  present  the  trust  view 
of  the  question,  rather  than  the  view  entertained  by  the  people  at  large. 

"In  order  to  excite  the  opposition  of  the  friends  of  Judge  Parker  the 
trust  must  be  shown  to  be  'oppressive.'  It  must  be  shown  that  it  is  not 
only  stifling  industrial  competition,  but  that  it  is  stifling  a  'healthy  indus- 
trial competition.'  The  trust  magnates  claim  that  the  object  of  the  trust 
is  to  stifle  unhealthy  industrial  competition  and  to  promote  a  'healthy  in- 
dustrial competition.'  The  qualifying  words  used  in  this  very  brief  and 
ambiguous  plank  destroy  whatever  vitality  it  might  have  bad  without 
them.  The  Kansas  City  platform  declared  a  private  monopoly  to  be  hide 
fensible  and  intolerable.  It  not  only  arraigned  private  monopoly  as  an 
unmitigated  evil,  but  it  pointed  out  specific  remedies  for  the  destruction 
of  this  evil.  Compare  the  Kansas  City  platform  with  the  cowardly  and 
straddling  antitrust— or  rather  trust— plank  of  the  New  York  platform  and 
you  will  understand  why  Mr.  Hill  and  Judge  Parker  are  so  afraid  of  the 
Kansas  City  platform. 

"The  sixth  plank  reads: 

"  'A  check  upon  extravagance  in  public  expenditures;  that  the  burden 
of  people's  taxes  may  be  lightened.' 

"There  is  another  plank  that  is  as  meaningless  as  those  that  have  pre- 
ceded it.  Who  advocates  extravagance?  Even  when  the  Republican 
party  is  guilty  of  the  largest  appropriations  it  insists  that  it  is  not  ex- 
travagant, but  that  it  is  simply  legislating  for  a  large  country. 

CALLS  TARIFF  PLANK  EVASIVE. 

"The  seventh  plank  reads: 

"  'Reasonable  revision  of  the  tariff;  needless  duties  upon  imported  raw 
material  weigh  upon  the  manufacturer,  are  a  menace  to  the  American 
wa^o-earner,  and  by  increasing  the  cost  of  production  shut  out  our  prod- 
ucts from  foreign  markets.' 

"This  plank  is  also  evasive.  The  tariff  revision  must  be  'reasonable.' 
What  party  ever  advocated  what  it  believed  to  be  unreasonable  on  any 
subject?  The  duties  upon  raw  material  must  not  be  'needless'  duties. 
What  party  ever  admitted  that  it  put  needless  duties  on  anything?  This 
plank  justifies  the  criticism  of  one  of  the  leading  Republican  papers  of 
the  West,  which  says  that  the  platform  'does  not  even  dare  to  recommend 
the  abandonment  of  the  Republican  doctrine  of  protection  of  home  indus- 
tries, which  had  been  fondly  supposed  by  the  old-fashioned  Jeffersonian 
fellows  to  be  about  the  only  tiling  the  party  dared  to  cheep  about  at  St. 
Louis.' 

"The  eighth  plank  is  as  follows: 

"  'The  maintenance  of  state  rights  and  home  rule;  no  centralization.' 

"Now,  here  is  a  plank  that  is  a  model  of  obscurity  and  brevity.  Only 
ten  words  in  the  plank.  To  what  issue  is  it  to  be  applied?  How  is  it  to 
be  construed? 

"The  ninth  plank  reads: 

"  'Honesty  in  public  service,  vigilance  in  the  prevention  of  fraud, 
firmness  in  the  punishment  of  guilt  when  detected.' 

"As  President  Roosevelt  prides  himself  upon  his  enthusiastic  advocacy 
of  honesty  in  the  public  service,  and  as  his  friends  boast  of  his  vigilance 


SPEECH  OF   HON.   WM.  JENNINGS  BRYAN.  531 

in  the  prevention  of  fraud  and  his  firmness  in  the  punishment  of  guilt, 
that  plank  might  be  regarded  as  an  indorsement  of  him  but  for  the  fact 
that  it  is  contained  in  a  platform  that  suggests  a  candidate  to  oppose  him. 

FAILS    AS    TO   LABOR. 

"The  tenth  plank  reads: 

*«  'The  impartial  maintenance  of  the  rights  of  labor  and  of  capital;  no 
unequal  discrimination;  no  abuse  of  the  powers  of  law  for  favoritism  or 
oppression.' 

"Senator  Allison  has  a  reputation  of  being  able  to  walk  on  eggs  with- 
out breaking  them,  and  this  plank,  if  it  appeared  anywhere  else  than  in 
a  Democratic  platform,  might  be  attributed  to  him,  for  it  is  about  as  nice 
a  piece  of  balancing  as  has  appeared  in  many  a  day.  The  party  stands 
'impartially'  between  labor  and  capital.  If  any  discrimination  is  made  it 
must  be  an  'unequal'  discrimination.  That  is,  if  the  party  discriminates 
in  favor  of  one  side,  it  must  offset  it  by  an  equal  discrimination  in  favor 
of  the  other  side.  There  must  be  no  abuse  of  the  powers  of-  the  law 
either  for  favoritism  or  oppression.  Why  this  prodigality  in  the  use  of 
type?  If  the  convention  has  said  that  it  was  in  favor  of  doing  right  as 
between  capital  and  labor  the  plank  would  have  been  just  as  clear  and 
just  as  useful  as  a  guide  to  the  party.  In  fact,  the  whole  platform  is  so 
noncommittal,  so  absolutely  colorless,  and  so  capable  of  being  construed 
in  any  way  that  'we  will  do  right'  would  have  answered  as  well  for  the 
whole  platform.  A  Republican  could  run  on  that  platform  and  after  the 
election  construe  it  as  an  indorsement  of  every  policy  for  which  the  Re- 
publican party  stands,  or  at  least  he  could  find  nothing  in  that  platform 
that  would  rebuke  him  for  doing  anything  that  a  Republican  might  want 
to  do. 

"What  are  the  issues  before  the  country?  The  trust  question  is  cer- 
tainly an  issue,  and  yet  there  is  nothing  in  that  platform  that  gives  any 
encouragement  to  the  opponents  of  the  trusts.  There  is  not  a  word  or 
syllable  that  binds  a  person  elected  on  such  a  platform  to  do  anything 
that  trusts  are  unwilling  to  have  done.  The  Kansas  City  platform  stated 
the  party's  position  on  the  trust  question,  but  the  New  York  platform  not 
only  fails  to  indorse  the  last  national  platform,  but  also  fails  to  propose 
any  definite  or  positive  plan  of  relief. 

LACKS    ANTI-IMPERIALISM    PLANK. 

"Imperialism  is  an  issue.  Our  Government  is  now  administering  a 
colonial  policy  according  to  the  political  principles  employed  by  George 
III  a  century  and  a  quarter  ago,  and  yet  there  is  not  in  this  platform  a 
single  word  relating  to  the  question  of  imperialism,  not  a  plank  that  de- 
fines the  party's  position  on  that  subject,  not  a  protest  against  the  sur- 
render of  the  doctrines  of  self-government.  The  Kansas  City  platform 
stated  the  party's  opposition  to  a  colonial  policy,  but  the  New  York  plat- 
form not  only  fails  to  indorse  the  Kansas  City  platform,  but  fails  to  take 
any  position  on  this  important  question. 

"The  labor  question  is  an  issue.  The  laboring  men  have  been  before 
the  numerous  committees  of  Congress  endeavoring  to  secure  three  impor- 
tant measures.  One  is  the  arbitration  of  differences  between  corporations 
engaged  in  interstate  commerce  and  their  employees.  Both  the  Chicago 
and  Kansas  City  platforms  declared  in  favor  of  arbitration,  but  the  New 
York  platform  not  only  fails  to  refer  to  the  arbitration  plank  of  these 
platforms,  but  it  fails  to  write  a  new  plank  covering  this  subject. 

"The  laboring  men  are  also  trying  to  secure  an  eight-hour  day,  but  the 
New  York  platform  is  silent  on  this  subject. 

"The  laboring  men  are  trying  to  secure  the  abolition  of  government  bv 
injunction.  Both  the  Chicago  and  Kansas  City  platforms  contained 
planks  on  this  subject,  but  the  New  York  platform  dodges  this,  as  it  does 
all  other  vital  questions.  As  the  capitalists  now  have  what  they  want 
and  are  in  the  position  of  defendants  in  a  suit,  while  the  laboring  men 
are  in  the  attitude  of  plaintiffs  seeking  relief,  the  failure  of  the  New  York 
platform  to  advocate  what  the  laboring  men  desire  is  really  a  declaration 
against  them. 

"On  the  tariff  question  no  issue  is  joined.  It  was  reasonable  to  sup- 
pose that  on  this  question,  at  least,  something  would  be  said,  but  Mr.  Hill 
and  Judge  Parker  seem  to  be  as  much  afraid  of  the  tariff  question  as  of 
other  issues. 

SILENT  AS    TO    MONEY. 

"The  money  question  is  ignored  entirely.  No  reference  is  made  to 
bimetallism  at  any  ratio— not  even  to  international  bimetallism  to  what 
Mr.  Hill  seemed  to  be  so  attached  in  the  Chicago  convention.  No  refer- 
ence is  made  to  the  measure  now  before  Congress  to  melt  up  nearly 
(500,000,000  legal  tender  silver  dollars  into  subsidiary  coin  that  is  only  a 
limited  legal  tender.  Nothing  is  said  about  the  asset  currency  which  is 
a  part  of  the  scheme  of  the  financiers.  Nothing  is  said  about  the  Aldrich 
bill  which  proposes  to  subsidize  the  banks  into  opposition  to  tax  reduction 
by  loaning  them  the  surplus  money  in  the  Treasury.  There  is  no  con- 
demnation of  the  corruption  that  such  a  system  would  lead  to.  The  plat- 
form does  not  antagonize  the  proposition  now  before  Congress  to  give  the 
national  banks  unlimited  control  over  the  volume  of  paper  money.  In 
other  words,  there  is  not  a  line  in  the  platform  that  is  written  in  behalf 
of  the  people,  not  a  line  that  will  excite  criticism  in  Wall  street. 

"The  platform  ignores  the  income  tax;  it  fails  to  indorse  the  election 
of  Senators  by  direct  vote  and  also  omits  the  plank  of  the  Kansas  City 
platform  denouncing  corporate  domination  in  politics. 

"The  New  York  platform  is  a  dishonest  platform,  fit  only  for  a  dis- 
honest party.  No  one  but  an  artful  dodger  would  stand  upon  it.  The 
submission  of  such  a  platform  to  the  voters  of  a  state  is  an  insult  to  their 
intelligence,  for  it  is  intended  to  deceive  them,  and  a  deliberate  attempt 
to  deceive— especially  so  clumsy  an  attempt  as  this  platform  is— is  a  re- 
flection upon  the  brains  of  those  to  whom  it  is  submitted. 


632  SPEECH    OK  HON.,  \VM.  JENNINR8  BRYAN. 

OPPOSES    EVERV     ItlM'dKM. 

"This  platform  proves  thnt  tho  opposition  to  the  Kansas  City  platform 
Is  not  opposition  to  silver,  hut  opposition  to  every  needed  reform  and  op- 
position to  all  that  the  masses  desire. 

"I  had  expected  that  a  platform  prepared  by  Mr.  Hill  for  Judge 
Parker  would  be  evasive  and  lacking  in  frankness,  but  I  did  not  conceive 
that  any   body   of   men   calling   themselves    Democrats   would    present    such 

a  platform  as  a  recommendation  of  a  candidate.  If  we  are  to  take  the 
New  York  platform  as  an  indication  of  what  the  next  Democratic  plat- 
form is  to  be,  In  case  the  reorganizes  control  the  convention,  then  who 
will  be  able  to  deny  the  secret  purpose  of  the  reorganize™  to  turn  the 
party  over  to  predatory  wealth?  It  is  to  this  danger  that  I  desire  to  call 
your  attention  to-night.  With  such  a  platform  and  a  candidate  who 
would  be  willing  to  run  upon  it  the  party  could  secure  as  large  a  cam- 

fialgn  fund  as  the  Republican  party  has  ever  secured,  but  in  securing  it 
t  would,  like  the  Republican  party,  secretly  pledge  the  administration 
to  a  construction  of  the  platform  satisfactory  to  the  corporations  and  the 
combinations. 

CITES   H.   O.   HAVEMEYER. 

"If  you  would  know  why  the  corporations  contribute  to  campaign 
funds,  read  the  testimony  given  by  H.  O.  Havemeyer  before  the  Senate 
committee  in  the  spring  of  1894.  The  answers  made  by  Mr.  Havemeyer 
to  Senator  Allen's  questions  are  conclusive  as  to  the  purpose  of  the  cam- 
paign contributions  made  by  the  great  corporations: 

"  'Senator  Allen.  Therefore  you  feel  at  liberty  to  contribute  to  both 
parties?  , 

"  'Mr.  Havemeyer.  It  depends.  In  the  state  of  New  York,  where  the 
Democratic  majority  is  between  40,000  and  50,000,  we  throw  it  their  way. 
In  the  state  of  Massachusetts,  where  the  Republican  party  is  doubtful, 
they  probably  have  the  call. 

"  'Senator  Allen.  In  the  state  of  Massachusetts,  do  you  contribute 
anything? 

"  'Mr.  Havemeyer.     Very  likely. 

"  'Senator  Allen.  What  is  your  best  recollection  as  to  contributions 
made  by  your  company  In  the  state  of  Massachusetts? 

"  'Mr.  Havemeyer.     I  could  not  name  the  amount. 

"  'Senator  Allen.  However,  in  the  state  of  New  York  you  contribute 
to  the  Democratic  party,  and  in  the  commonwealth  of  Massachusetts  you 
contribute  to  the  Republican  party? 

"  'Mr.  Havemeyer.  It  is  my  impression  that  wherever  there  is  a  domi- 
nant party,  wherever  the  majority  is  very  large,  that  is  the  party  that 
gets  the  contribution,  because  that  is  the  party  which  controls  the  local 
matters. 

"  'Senator  Allen.  Then  the  sugar  trust  Is  a  Democrat  in  a  Demo- 
cratic state  and  a  Republican  in  a  Republican  state? 

"  'Mr.  Havemeyer.  As  far  as  local  matters  are  concerned,  I  think  that 
Is  about  It. 

"  'Senator  Allen.  In  the  state  of  your  nativity,  or  the  nativity  of 
your  corporation,  New  Jersey,  where  do  your  contributions  go? 

"  'Mr.  Havemeyer.     I  will  have  to  look  that  up. 

"  'Senator  Allen.  I  understand  New  Jersey  is  invariably  a  Democratic 
state.     It  would  naturally  go  to  the  Democratic  party? 

"  'Mr.  Havemeyer.  Under  the  theory  I  have  suggested  if  they  were 
there  it  would  naturally  go  to  them.' 

"Here  we  have  the  head  of  the  sugar  trust  admitting  that  his  cor- 
poration contributes  to  campaign  funds  and  that  its  contribution  is  deter- 
mined, not  by  political  convictions,  but  by  its  desire  to  stand  in  with  the 
winning  party.  Senator  Allen  tried  to  ascertain  the  amounts  contributed 
to  the  various  campaign  funds,  but  Mr.  Havemeyer  refused  to  answer. 

DEMOCRATS    BLOCK    INQUIRY. 

"The  two  Republican  members  of  the  committee,  Senator  Davis  and 
Senator  Lodge,  joined  Senator  Allen  in  calling  the  matter  to  the  attention 
of  the  Attorney-General  for  the  District  of  Columbia.  Senator  Allen  indi- 
vidually reported  a  resolution  in  favor  of  calling  the  witness  before  the 
Senate  for  contempt,  but  Senator  Gray  and  Senator  Lindsay,  both  gold 
Democrats,  presented  a  minority  report  in  which  they  opposed  taking  any 
action  in  regard  to  the  witness. 

"If  you  desire  further  testimony  in  regard  to  the  purpose  of  corpora- 
tions in  contributing,  you  will  find  it  in  a  letter  sent  by  A.  B.  Hepburn, 
of  the  National  City  Bank,  of  New  York,  to  Lyman  J.  Gage,  Secretary  of 
the  Treasury.  The  letter  bears  date  of  June  5,  1897,  and  is  published  in 
House  document  264  of  the  first  session  of  the  Fifty-sixth  Congress.  In 
closing  the  letter,  after  asking  for  deposits,  Mr.  Hepburn  says:  'Ofi 
course  the  bank  Is  very  strong  and  if  you  will  take  the  pains  to  look  at 
our  list  of  directors  you  will  see  that  we  also  have  great  political  claims 
in  view  of  what  was  done  in  the  campaign  of  last  year.' 

"Here  is  the  president  of  the  most  influential  bank  in  the  country 
calling  attention  to  political  service  rendered  by  the  directors  of  the  bank 
as  a  reason  why  the  bank  should  be  remembered  in  the  distribution  of 
Government  money.  Now,  with  the  testimony  of  the  head  of  one  of  the 
great  trusts  and  the  testimony  of  an  official  of  one  of  the  great  banks, 
can  anyone  doubt  that  contributions  are  made  by  the  corporations  for  the 
purpose  of  controlling  the  policy  of  the  party  after  election?  Can  anyone 
doubt  that  with  such  a  platform  as  was  adopted  in  New  York,  and  with 
a  candidate  whose  conscience  would  permit  him  to  run  upon  such  a  plat- 
form—does anyone  doubt  that  with  such  a  platform  and  candidate  the 
party  would  be  mortgaged  beforehand  to  the  corporations  that  are  now 
using  the  Government  as  a  private  asset  and  plundering  the  people  at 
will? 

DISCUSSES   MERGER  CASE. 

"But  there  is  another  reason  why  the  Democratic  party  can  not  afford 
to  go  before  the  country  with  an  ambiguous  platform  and  an  uncertain 


SPEECH  OF  HON.  WM.  JENNINGS  BRYAN.  533 

candidate.  No  matter  how  people  may  differ  as  to  the  relative  impor- 
tance of  Issues,  all  must  recognize  that  the  trust  question  to-day  presents 
an  important  phase  of  the  great  conflict  between  plutocracy  and  democ- 
racy. We  have  recently  had  a  Supreme  Court  decision  on  the  merger 
case.  This  decision  was  rendered  by  a  bare  majority  of  one,  and  that 
one  [Judge  Brewer]  in  a  separate  opinion  has  stated  his  position  in  such 
a  way  as  to  leave  no  doubt  that  in  the  first  case  involving  a  trust  he  may 
join  the  minority  and  defeat  the  Sherman  law.  Judge  Brewer  construes 
the  antitrust  law  to  apply  only  to  reasonable  restraint  of  trade.  He 
would  have  the  court  decide  whether  the  restraint  is  reasonable  or  unrea- 
sonable. His  decision,  taken  in  connection  with  the  dissenting  opinions 
of  Justices  Fuller,  Peckhain,  White,  and  Holmes,  shows  that  the  appoint- 
ment of  a  new  judge  might  throw  the  decision  to  the  one  side  or  the 
other. 

"The  judges  of  the  Supreme  Court  are  appointed  by  the  President, 
and  the  President  to  be  elected  this  fall  will  doubtless  have  the  appoint- 
ment of  one  or  two,  and  possibly  three,  Supreme  Court  judges.  If  his 
sympathies  are  with  the  corporations  he  will  doubtless  appoint  judges 
satisfactory  to  the  corporations,  especially  if  obligated  to  the  corporations 
by  large  campaign  contributions,  and  these  judges  can  make  it  impossible 
to  secure  any  remedial  legislation  for  years  to  come.  If  four  years  hence 
the  people  should  secure  a  President,  a  Senate,  and  a  House  opposed  to 
private  monopolies,  they  may  find  themselves  unable  to  get  any  remedial 
legislation  past  the  Supreme  Court  for  several  years. 

"The  opinion  filed  by  Judge  White  and  concurred  In  by  the  others  de- 
nies the  power  of  Congress  over  monopolies  organized  In  a  state.  These 
dissenting  judges  insist  that  Congress  has  no  power  to  regulate  or  re- 
strain the  creation  of  a  monopoly  within  a  state.  It  will  be  remembered 
that  the  decision  in  the  Knight  case,  known  as  the  sugar-trust  case, 
turned  upon  that  very  question.  It  was  admitted  In  that  case  that  the 
sugar  trust  controlled  the  production  of  sugar,  but  the  court  held  that  the 
Sherman  law  did  not  prevent  the  buying  up  of  the  individual  refineries, 
even  though  the  product  of  the  refineries  might  ultimately  enter  Into 
Interstate  commerce. 

MAKES   STATES   HELPLESS 

"The  division  of  the  Supreme  Court  In  the  merger  case  shows  the 
cleavage  on  the  trust  question.  The  dissenting  judges  would  deny  the 
power  of  Congress  to  prevent  a  private  monopoly,  and  when  the  power 
of  Congress  to  destroy  monopolies  is  denied  the  people  are  left  helpless 
because  some  of  the  states,  such  as  Delaware  and  New.  Jersey,  find  it 
profitable  to  permit  the  creation  of  these  monopolies,  and  so  long  as  they 
are  created  and  can  evade  Federal  laws  no  separate  state  can  fully  pro- 
tect Itself  against  them. 

"The  dissenting  judges  In  the  merger  case  refuse  to  draw  a  distinc- 
tion between  an  indlvadual  and  a  corporation.  Justice  White  says:  'The 
principle  that  the  ownership  of  property  is  embraced  within  the  power  of 
Congress  to  regulate  commerce  whenever  that  body  deems  that  a  particu- 
lar character  of  ownership,  If  allowed  to  continue,  may  restrain  com- 
merce between  the  states  or  create  a  monopoly  thereof,  is,  In  my  opinion, 
in  conflict  with  the  most  elementary  conceptions  of  rights  of  property,' 
and  Justices  Fuller,  Peckham,  and  Holmes  concur. 

"  'Rights  of  property'  are,  according  to  the  dissenting  judges,  supreme, 
and  when  Congress  tries  to  prevent  a  monopoly  it  is  interfering  with 
'the  most  elementary  conception  of  the  rights  of  property.'  The  issue 
presented  to-day  in  the  trust  question,  and  in  all  the  other  questions  with 
which  we  have  to  deal,  is  the  question  between  human  rights  and  so- 
called  'property  rights,'  or,  more  properly  speaking,  between  ordinary 
people  and  the  great  corporations.  Those  who  believe  that  property 
rights  are  supreme  take  the  side  of  the  trusts.  If  we  have  a  President 
who  is  in  sympathy  with  this  theory  it  means  that  the  dollar  will  be 
given  consideration  before  the  man.  It  means  that  organized  wealth  can 
continue  to  trample  upon  the  rights  of  the  people.  It  means  that  the 
Instrumentalities  of  government  can  be  used  for  the  protection  of  every 
scheme  of  exploitation  that  the  capitalists  can  conceive. 

"I  for  one  am  not  willing  that  the  Democratic  party  shall  become  the 
tool  of  the  corporations.  I  am  not  willing  that  it  shall  be  the  champion 
of  organized  wealth.  And  it  is  because  I  believe  that  the  party  has  a 
higher  mission  than  to  be  the  exponent  of  plutocracy  that  I  am  protesting 
against  the  schemes  of  those  who  would  put  it  into  competition  with  the 
Republican  party  for  the  support  of  Wall  street  financiers.  It  is  for  this 
reason  that  I  protest  against  mortgaging  the  party  to  the  capitalists  to 
secure  an  enormous  corruption  fund. 

"If  any  who  are  present  to-night  or  who  read  what  I  say  think  that  I 
am  trying  to  interfere  with  Democratic  success,  let  me  answer  that  no 
Democrat  is  more  anxious  for  the  party  to  succeed  than  I  am.  No  one 
has  suffered  more  from  dissensions  and  divisions  in  the  party,  and  no 
-one,  I  believe,  is  more  eager  for  the  country  to  enjoy  the  great  benefits 
which  a  triumph  of  real  Democracy  would  bring.  But  I  do  not  desire 
that  the  party  shall  win  offices  only.  If  that  is  the  only  purpose  of  the 
party,  let  its  principles  be  abandoned  and  let  its  platform  simply  declare 
the  party  hungry  for  the  patronage.  The  lesson  of  1894  shows  the  folly 
<ftf  hoping  to  win  by  a  surrender  to  the  corporations:  but  even  if  success 
could  be  bought  in  such  a  way,  it  would  not  be  worth  the  price. 

"No  one  can  defend  the  Democratic  party  without  defending  Its  prin- 
ciples, and  its  principles  ought  to  be  so  clearly  set  forth  as  to  be  easily 
understood.  We  ought  to  appeal  to  the  conscience  of  the  public  and  ar- 
raign Republican  policies  as  hostile  both  to  the  principles  of  free  govern- 
ment and  to  the  principles  of  morality.  We  have  an  opportunity  to  make 
the  Democratic  party  a  power  in  this  country,  not  only  a  power,  but  a 
power  for  good.  Let  us  array  the  party  against  every  abuse  of  govern- 
ment and  against  every  policy  that  is  hurtful  to  the  people.  Let  us  drive 
out  of  the  party  every  Democrat  who  betrays  his  trust,  every  official  who 
would  administer  the  office  for  his  private  advantage.  Let  us  make 
Democracy  stand  not  only  for  good  government— for  honest  government— 
but  for  a  government  'of  the  people,  by  the  people,  and  for  the  people.' 


634  fePBBCS  OB  mon.  \vm.  |i;nnin(.s  bryan. 

And  the  first  stop  In  this  direction  Is  the  adoption  of  a  platform  that 
recognise*  the  ri^ht  of  the  people  bo  deckle  public  questions  as  well  as 
their  capacity  for  understanding  public  questions.  T<>  present,  a  platform 
which  is  evasive  and  SmMgQOUB  shows  (bill  those  who  write  the  platform 
either  distrust  the  people  who  are  to  act  upon  it  or  have  purposes  that 
they  desire  to  conceal. 

CALLS  PLATFORM   A  DISGRACE. 

"The  New  York  platform  Is  ambiguous,  uncertain,  evasive,  and  dis- 
honest. It  would  disgrace  the  Democrats  of  the  nation  to  adopt  such  a 
platform,  and  it  ought  to  defeat  ;is  an  aspirant  for  a  Democratic  nomi- 
nation any  man  who  would  be  willing  to  have  it  go  forth  as  a  declaration 
of  his  views  on  public  questions.  In  Illinois,  in  Wisconsin,  in  Michigan, 
in  Minnesota,  in  Indiana,  in  Ohio,  and  in  every  other  state  that  has  not 
acted  it  behooves  the  Democrats  to  arouse  themselves  and  organize  to 
the  end  that  they  may  prevent  the  consummation  of  the  schemes  of  the 
reorganizers.  Their  scheme  begins  with  the  deception  of  the  rank  and 
file  of  the  party.  It  is  to  be  followed  up  by  the  debauching  of  the  public 
with  a  campaign  fund  secured  from  thfe  corporations,  and  it  is  to  be  con- 
summated by  the  betrayal  of  the  party  organisation  and  of  the  country 
into  the  hands  of  those  who  are  to-day  menacing  the  liberties  of  the 
country  by  their  exploitations  of  the  producers  of  wealth." 


The  tariff  affects  trusts  only  as  It  affects  all  other  interests. 
It  makes  all  these  interests,  large  or  small,  profitable;  and  Its 
benefits  can  he  taken  from  the  large  only  under  penalty  of  taking 
them  from  the  small  also. — President  Roosevelt  at  Minneapolis, 
Minn.,  April  7,  1903. 

The  general  tariff  policy  to  which,  without  regard  to  changes 
in  detail,  I  believe  this  country  to  he  irrevocably  committed  is 
fundamentally  based  upon  ample  recognition  of  the  difference  in 
labor  cost ,  here  and  abroad. — President  Roosevelt  at  New  York, 
November  11,  1902. 

The  guns  that  thundered  off  Manila  and  Santiago  left  us  echoes 
of  glory,  but  they  also  left  us  a  legacy  of  duty.  If  we  drove  out  a 
mediaeval  tyranny  only  to  make  room  for  savage  anarchy,  we  had 

better  not  have  begun  the  task  at  all President  Roosevelt  In  The 

Strenuous  Life,  p.  11. 

Unreadiness  for  war  is  merely  rendered  more  disastrous  by 
readiness  to  bluster;  to  talk  defiance  and  advocate  a  vigorous  policy 
in  words,  while  refusing  to  back  up  these  words  by  deeds  is  cause 
for  humiliation. — From  Presiilent  Roosevelt's  "Washington's  for- 
gotten maxim,"  American  Ideals,  p.  274. 

We  freely  extend  the  hand  of  welcome  and  of  good-fellowship 
to  every  man,  no  matter  what  his  creed  or  birthplace,  who  comes 
here  honestly  intent  on  becoming  a  good  United  States  citizen  like 
the  rest  of  us. — President  Roosevelt  on  "True  Americanism,"  in  his 
book  on  American  Ideals,  p.  45. 

Corporations  that  are  handled  honestly  and  fairly,  so  far  from 
being  an  evil,  are  a  natural  business  evolution  and  make  for  the 
general  prosperity  of  our  land.  We  do  not  wish  to  destroy  corpo- 
rations, but  we  do  wish  to  make  them  subserve  the  public  good. — 
President  Roosevelt  at  Cincinnati,  Ohio,  September  20,  1902. 

Our  aim  should  be  to  preserve  the  policy  of  a  protective  tariff, 
In  which  the  nation  as  a  whole  has  acquiesced,  and  yet  wherever 
and  whenever  necessary  to  change  the  duties  in  particular  para- 
graphs or  schedules  as  matters  of  legislative  detail  if  such  change 
is  demanded  by  the  Interests  of  the  nation  as  a  whole. — President 
Roosevelt   at   Minneapolis,   Minn.,   April  4,  1903. 

If  necessary  for  our  welfare,  then  of  course  Congress  must 
consider  the  question  of  changing  the  laws  as  a  whole  or  changing 
any  given  rates  of  duty,  but  we  must  remember  that  whenever 
even  a  single  schedule  is  considered  some  interests  will  appear  to 
demand  a  change  in  almost  every  schedule  In  the  law;  and  when 
It  comes  to  upsetting  the  schedules  generally  the  effect  upon  the 
business  Interests  of  the  country  would  he  ruinous. — President 
Roosevelt  at  Minneapolis,  April  4,  1903. 


THE  PRESIDENT'S  SPEECH   OF  ACCEPTANCE,  535 


PRESIDENT   ROOSEVELT    TO    NOTIFICATION 
COMMITTEE. 


Speech  Delivered  at  Oyster  Bay,  New  York,  Julyj26,  1904,  Accepting  the  Re- 
publican Nomination  for  the  Presidency. 

Mr.  Speaker  and  Gentlemen  of  the  Notification  Committee: 
I  am  deeply  sensible  of  the  high  honor  conferred  upon  me  by  the 
representatives  of  the  Republican  party  assembled  in  convention, 
and  I  accept  the  nomination  for  the  Presidency  with  solemn  real- 
ization of  the  obligations  I  assume.  I  heartily  approve  the  declara- 
tion of  principles  which  the  Republican  National  Convention  has 
adopted,  and  at  some  future  day  I  shall  communicate  to  you,  Mr. 
Chairman,  more  at  length  and  in  detail  a  formal  written  accept- 
ance of  the  nomination. 

m'kinley's  policies  sustained. 

Three  years  ago  I  became  President  because  of  the  death  of 
my  lamented  predecessor.  I  then  stated  that  it  was  my  purpose 
to  carry  out  his  principles  and  policies  for  the  honor  and  the 
interest  of  the  country.  To  the  best  of  my  ability  I  have  kept  the 
promise  thus  made.  If  next  November  my  countrymen  confirm  at 
the  polls  the  action  of  the  convention  you  represent,  I  shall, 
under  Providence,  continue  to  work  with  an  eye  single  to  the  wel- 
fare of  all  our  people. 

PLEDGES    HAVE  BEEN   FULFILLED. 

A  party  is  of  worth  only  in  so  far  as  it  promotes  the  national 
interest,  and  every  official,  high  or  low,  can  serve  his  party  best 
by  rendering  to  the  people  the  best  service  of  which  he  is  capable. 
Effective  government  comes  only  as  the  result  of  the  loyal  co- 
operation of  many  different  persons.  The  members  of  a  legis- 
lative majority,  the  officers  in  the  various  departments  of  the  ad- 
ministration, and  the  legislative  and  executive  branches  as  towards 
each  other,  must  work  together  with  subordination  of  self  to  the 
common  end  of  successful  government.  We  who  have  been  en- 
trusted with  power  as  public  servants  during  the  past  seven  years 
of  administration  and  legislation  now  come  before  the  people  con- 
tent to  be  judged  by  our  record  of  achievement.  In  the  years  that 
have  gone  by  we  have  made  the  deed  square  with  the  word;  and 
if  we  are  continued  in  power  we  shall  unswervingly,  follow  out  the 
great  lines  of  public  policy  which  the  Republican  party  has  already 
laid  down ;  a  public  policy  to  which  we  are  giving,  and  shall  give, 
a  united,  and  therefore  an  efficient,  support. 

REPUBLICAN    AND    DEMOCRATIC    APPEALS    CONTRASTED. 

In  all  of  this  we  are  more  fortunate  than  our  opponents,  who 
now  appeal  for  confidence  on  the  ground,  which  some  express  and 
some  seek  to  have  confidentially  understood,  that  if  triumphant 
they  may  be  trusted  to  prove  false  to  every  principle  which  in  the 
last  eight  years  they  have  laid  down  as  vital,  and  to  leave  undis- 
turbed those  very  acts  of  the  administration  because  of  which 
they  ask  that  the  administration  itself  be  driven  from  power. 
Seemingly  their  present  attitude  as  to  their  past  record  is  that 
some  of  them  were  mistaken  and  others  insincere.  We  make  our 
appeal  in  a  wholly  different  spirit.  We  are  not  constrained  to 
keep  silent  on  any  vital  question;  we  are  divided  on  no  vital  ques- 
tion; our  policy  is  continuous,  and  is  the  same  for  all  sections 
and  localities.  ■  There  is  nothing  experimental  about  the  govern- 
ment we  ask  the  people  to  continue  in  power,  for  our  performances 
in  the  past,  our  proved  governmental  efficiency,  is  a  guarantee  as 
to  our  promises  for  the  future.    Our  opponents,  either  openly  or 


536  the  president's  speech  of  acceptance. 

secretly,  according  to  their  several  temperaments,  now  ask  the 
people  to  trust  their  present  promises  in  consideration  of  the  fact 
that  they  intend  to  treat  their  past  promises  as  null  and  void.  We 
know  our  own  minds  and  we  have  kept  of  the  same  mind  for  a 
sufficient  length  of  time  to  give  to  our  policy  coherence  and  sanity. 
In  such  a  fundamental  matter  as  the  enforcement  of  the  law  we 
do  not  have  to  depend  upon  promises,  but  merely  to  ask  that  our 
record  be  taken  as  an  earnest  of  what  we  shall  continue  to  do. 
In  dealing  with  the  great  organization  known  as  trusts,  we  do  not 
have  to  explain  why  the  laws  are  not  enforced,  but  to  point  out 
that  they  actually  have  been  enforced  and  that  legislation  has 
been  enacted  to  increase  the  effectiveness  of  their  enforcement. 
We  do  not  have  to  propose  to  "turn  the  rascals  out,"  for  we  have 
shown  in  very  deed  that  whenever  by  diligent  investigation  a 
public  official  can  be  found  who  has  betrayed  his  trust  he  will  be 
punished  to  the  full  extent  of  the  law  without  regard  to  whether 
he  was  appointed  under  a  Republican  or  a  Democratic  administra- 
tion. This  is  the  efficient  way  to  turn  the  rascals  out  and  to  keep 
them  out,  and  it  has  the  merit  of  sincerity.  Moreover,  the  be- 
trayals of  trust  in  the  last  seven  years  have  been  insignificant  in 
number  when  compared  with  the  extent  of  the  public  service. 
Psever  has  the  administration  of  the  government  been  on  a  cleaner 
and  higher  level;  never  has  the  public  work  of  the  nation  been 
done  more  honestly  and  efficiently. 


REPUBLICANS    EVADE    NO    ISSUES. 

•  Assuredly  it  is  unwise  to  change  the  policies  which  have  worked 
so  well  and  which  are  now  working  so  well.  Prosperity  has  come 
at  home.  The  national  honor  and  interest  have  been  upheld 
abroad.  We  have  placed  the  finances  of  the  nation  upon  a  sound 
gold  basis.  We  have  done  this  with  the  aid  of  many  who  were 
formerly  our  opponents,  but  who  would  neither  openly  support 
nor  silently  acquiesce  in  the  heresy  of  unsound  finance;  and  we 
have  done  it  against  the  convinced,  the  violent  opposition  of  the 
mass  of  our  present  opponents  who  still  refuse  to  recant  the  un- 
sound opinions  which  for  the  moment  they  think  it  inexpedient  to 
assert.  We  know  what  we  mean  when  we  speak  of  an  honest  and 
stable  currency.  We  mean  the  same  thing  from  year  to  year.  We 
do  not  have  to  avoid  a  definite  and  conclusive  committal  on  the 
most  important  issue  which  has  recently  been  before  the  people, 
and  which  may  at  any  time  in  the  near  future  be  before  them 
again.  Upon  the  principles  which  underlie  this  issue  the  convic- 
tions of  half  of  our  number  do  not  clash  with  those  of  the  other 
haif.  So  long  as  the  Republican  party  is  in  power  the  gold 
standard  is  settled,  not  as  a  matter  of  temporary  political  expedi- 
ency, not  because  of  shifting  conditions  in  the  production  of  gold 
in  certain  mining  centers,  but  in  accordance  with  what  we  regard 
as  the  fundamental  principles  of  national  morality  and  wisdom. 


GOVERNMENT  FINANCES   IN  A   SATISFACTORY  CONDITION. 

Under  the  financial  legislation  which  we  have  enacted  there  is 
now  ample  circulation  for  every  business  need ;  and  every  dollar 
of  this  circulation  is  worth  a  dollar  in  gold.  We  have  reduced  the 
kiterest-bearing  debt  and  in  still  larger  measure  the  interest  on 
that  debt.  All  of  the  war  taxes  imposed  during  the  Spanish  war 
have  been  removed  with  a  view  to  relieve  the  people  and  to  pre- 
vent the  accumulation  of  an  unnecessary  surplus.  The  result  is 
that  hardly  ever  before  have  the  expenditures  and  income  of  the 
Government  so  closely  corresponded.  In  the  fiscal  year  that  has 
just  closed  the  excess  of  income  over  the  ordinary  expenditures 
was  nine  millions  of  dollars.  This  does  not  take  account  of  the 
fifty  millions  expended  out  of  the  accumulated  surplus  for  the 
purchase  of  the  isthmian  canal.  It  is  an  extraordinary  proof  of 
the  sound  financial  condition  of  the  nation  that  instead  of  follow- 
ing the  usual  course  in  such  matters  and  throwing  the  burden 
upon  posterity  by  an  issue  of  bonds,  we  were  able  to  make  the 
payment  outright,  and  yet  after  it  to  have  in  the  treasury  a  sur- 
plus of  one  hundred  and  sixty-one  millions.  Moreover,  we  were 
able  to  pay  this  fifty  millions  of  dollars  out  of  hand  without  caus- 
ing the  slightest  disturbance  to  business  conditions. 


THE  PRESIDENT'S   SPEECH   OF  ACCEPTANCE.  537 

PROTECTIVE   PRINCIPLE    MUST   BE    MAINTAINED. 

We  have  enacted  a  tariff  law  under  which  during  the  past  few 
years  the  country  has  attained  a  height  of  material  well-being 
never  before  reached.  Wages  are  higher  than  ever  before.  That 
whenever  the  need  arises  there  should  be  a  readjustment  of  the 
tariff  schedules  is  undoubted;  but  such  changes  can  with  safety 
be  made  only  by  those  whose  devotion  to  the  principle  of  a  pro- 
tective tariff  is  beyond  question ;  for  otherwise  the  changes  would 
amount  not  to  readjustment  but  to  repeal.  The  readjustment 
when  made  must  maintain  and  not  destroy  the  protective  prin- 
ciple. To  the  farmer,  the  merchant,  the  manufacturer  this  is 
vital ;  but  perhaps  no  other  man  is  so  much  interested  as  the 
wage-worker  in  the  maintenance  of  our  present  economic  system, 
both  as  regards  the  finances  and  the  tariff.  The  standard  of  liv- 
ing of  our  wage-workers  is  higher  than  that  of  any  other  country, 
and  it  cannot  so  remain  unless  we  have  a  protective  tariff  which 
shall  always  keep  as  a  minimum  rate  of  duty  sufficient  to  cover 
the  difference  between  the  labor  cost  here  and  abroad.  Those 
who,  like  our  opponents,  "denounce  protection  as  a  robbery," 
thereby  explicitly  commit  themselves  to  the  proposition  that  if 
they  were  to  revise  the  tariff  no  heed  would  be  paid  to  the  neces- 
sity of  meeting  this  difference  between  the  standards  of  living  for 
wage- workers  here  and  in  other  countries ;  and  therefore  on  this 
point  their  antagonism  to  our  position  is  fundamental.  Here  again 
we  ask  that  their  promises  and  ours  be  judged  by  what  has  been 
done  in  the  immediate  past.  We  ask  that  sober  and  sensible  men 
compare  the  workings  of  the  present  tariff  law  and  the  conditions 
which  obtain  under  it  with  the  workings  of  the  preceding  tariff 
law  of  1893  and  the  conditions  which  that  tariff  of  1893  helped  to 
bring  about. 

m'kinley  reciprocity  approved. 

We  believe  in  reciprocity  with  foreign  nations  on  the  terms 
outlined  in  President  McKinley's  last  speech,  which  urged  the  ex- 
tension of  our  foreign  markets  by  reciprocal  agreements  when- 
ever they  could  be  made  without  injury  to  American  industry  and 
labor.  It  is  a  singular  fact  that  the  only  great  reciprocity  treaty 
recently  adopted — that  with  Cuba — was  finally  opposed  almost 
alone  by  the  representatives  of  the  very  party  which  now  states 
that  it  favors  reciprocity.  And  here  again  we  ask  that  the  worth 
of  our  words  be  judged  by  comparing  their  deeds  with  ours.  On 
this  Cuban  reciprocity  treaty  there  were  at  the  outset  grave  dif- 
ferences of  opinion  among  ourselves ;  and  the  notable  thing  in  the 
negotiation  and  ratification  of  the  treaty,  and  in  the  legislation 
which  carried  it  into  effect, -was  the  highly  practical  manner  in 
which,  without  sacrifice  of  principle,  these  differences  of  opinion 
were  reconciled.  There  was  no  rupture  of  a  great  party,  but  an 
excellent  practical  outcome,  the  result  of  the  harmonious  coopera- 
tion of  two  successive  Presidents  and  two  successive  Congresses. 
This  is  an  illustration  of  the  governing  capacity  which  entitles  us 
to  the  confidence  of  the  people,  not  only  in  our  purposes  but  in 
our  practical  ability  to  achieve  those  purposes.  Judging  by  the 
history  of  the  last  twelve  years,  down  to  this  very  month,  is  there 
justification  for  believing  that  under  similar  circumstances  and 
with  similar  initial  differences  of  opinion,  our  opponents  would 
have  achieved  any  practical  result? 

EQUAL  JUSTICE  TO  LABOR  AND  CAPITAL. 

We  have  already  shown  in  actual  fact  that  our  policy  is  to  do 
fair  and  equal  justice  to  all  men,  paying  no  heed  to  whether  a 
man  is  rich  or  poor ;  paying  no  heed  to  his  race,  his  creed,  or  his 
birthplace. 

We  recognize  the  organization  of  capital  and  the  organization 
of  labor  as  natural  outcomes  of  our  industrial  system.  Each  kind 
of  organization  is  to  be  favored  so  long  as  it  acts  in  a  spirit  of 
justice  and  of  regard  for  the  rights  of  others.  Each  is  to  be 
granted  the  full  protection  of  the  law,  and  each  in  turn  is  to  be 
held  to  a  strict  obedience  to  the  law ;  for  no  man  is  above  it  and 
no  man  below  it.  The  humblest  individual  is  to  have  his  rights 
safeguarded  as  scrupulously  as  those  of  the  strongest  organiza- 
tion, for  each  is  to  receive  justice,  no  more  and  no  less.     The 


538  THE  president's  speech  of  acceptance. 

problems  with  which  we  liavc  to  deal  in  our  modern  industrial  and 
social  life  are  manifold;  but  the  spirit  In  which  it  is  necessary  to 
approach  their  solution  is  simply  the  spirit  of  honesty,  of  courage, 
and  of  common  sense. 

IRRIGATION. 

In  inaugurating  the  great  work  of  irrigation  in  the  west  the 
administration  has  been  enabled  by  Congress  to  take  one  of  the 
longest  strides  ever  taken  under  our  Government  toward  utilizing 
our  vast  national  domain  for  the  settler,  the  actual  home-maker. 

PANAMA    CANAL   RECORD    AN    HONORABLE    ONE. 

Ever  since  this  continent  was  discovered  the  need  of  an  isth- 
mian canal  to  connect  the  Pacific  and  the  Atlantic  has  been  recog- 
nized; and  ever  since  the  birth  of  our  nation  such  a  canal  has 
been  planned.  At  last  the  dream  has  become  a  reality.  The  isth- 
mian canal  is  now  being  built  by  the  Government  of  the  United 
States.  We  conducted  the  negotiation  for  its  construction  with 
the  nicest  and  most  scrupulous  honor,  and  in  a  spirit  of  the  largest 
generosity  toward  those  through  whose  territory  it  was  to  run. 
Every  sinister  effort  which  could  be  devised  by  the  spirit  of  fac- 
tion or  the  spirit  of  self-interest  was  made  in  order  to  defeat  the 
treaty  with  Panama  and  thereby  prevent  the  consummation  of 
this  work.  The  construction  of  the  canal  is  now  an  assured  fact ; 
but  most  certainly  it  is  unwise  to  entrust  the  carrying  out  of  so 
momentous  a  policy  to  those  who  have  endeavored  to  defeat  the 
whole  undertaking. 

FOREIGN    POLICY    COMMANDS    RESPECT. 

Our  foreign  policy  has  been  so  conducted  that  while  not  one 
of  our  just  claims  has  been  sacrificed  our  relations  with  all  for- 
eign nations  are  now  of  the  most  peaceful  kind ;  there  is  not  a 
cloud  on  the  horizon.  The  last  cause  of  irritation  between  us  and 
any  other  nation  was  removed  by  the  settlement  of  the  Alaskan 
boundary. 

In  the  Caribbean  Sea  we  have  made  good  our  promises  of  inde- 
pendence to  Cuba,  and  have  proved  our  assertion  that  our  mission 
in  the  island  was  one  of  justice  and  not  of  self-aggrandizement; 
and  thereby  no  less  than  by  our  action  in  Venezuela  and  Panama 
we  have  shown  that  the  Monroe  Doctrine  is  a  living  reality,  de- 
signed for  the  hurt  of  no  nation,  but  for  the  protection  of  civiliza- 
tion on  the  western  continent  and  for  the  peace  of  the  world. 
Our  steady  growth  in  power  has  gone  hand  in  hand  with  a 
strengthening  disposition  to  use  this  power  with  strict  regard  for 
the  rights  of  others,  and  for  the  cause  of  international  justice  and 
good-will. 

We  earnestly  desire  friendship  with  all  the  nations  of  the  new 
and  old  worlds ;  and  we  endeavor  to  place  our  relations  with  them 
upon  a  basis  of  reciprocal  advantage  instead  of  hostility.  We 
hold  that  the  prosperity  of  each  nation  is  an  aid  and  not  a 
hindrance  to  the  prosperity  of  other  nations.  We  seek  interna- 
tional amity  for  the  same  reasons  that  make  us  believe  in  peace 
within-  our  own  borders ;  and  we  seek  this  peace  not  because  we 
are  afraid  or  unready,  but  because  we  think  that  peace  is  right  as 
well  as  advantageous. 

American  interests  in  the  Pacific  have  rapidly  grown.  Ameri- 
can enterprise  has  laid  a  cable  across  this,  the  greatest  of  oceans. 
We  have  proved  in  effective  fashion  that  we  wish  the  Chinese 
Empire  well  and  desire  its  integrity  and  independence. 

THE    PHILIPPINE  POLICY. 

Our  foothold  in  the  Philippines  greatly  strengthens  our  posi- 
tion in  the  competition  for  the  trade  of  the  east ;  but  we  are  gov- 
erning the  Philippines  in  the  interest  of  the  Philippine  people 
themselves.  We  have  already  given  them  a  large  share  in  their 
government,  and  our  purpose  is  to  increase  this  sharp  as  rapidly 
as  they  give  evidence  of  increasing  fitness  for  the  task.  The  great 
majority  of  the  officials  of  the  islands,  whether  elective  or  ap- 
pointive, are  already  native  Filipinos.    We  are  now  providing  for 


FAIRBANKS'   SPEECH   OF   ACCEPTANCE.  539 

a  legislative  assembly.  This  is  the  first  step  to  be  taken  in  the 
future ;  and  it  would  be  eminently  unwise  to  declare  what  our 
next  step  will  be  until  this  first  step  has  been  taken  and  the  re- 
sults are  manifest.  To  have  gone  faster  than  we  have  already 
gone  in  giving  the  islanders  a  constantly  increasing  measure  of 
self-government  would  have  been  disastrous.  At  the  present  mo- 
ment to  give  political  independence  to  the  islands  would  result  in 
the  immediate  loss  of  civil  righlys,  personal  liberty  and  public 
order,  as  regards  the  mass  of  the  Filipinos,  for  the  majority  of 
the  islanders  have  been  given  these  great  boons  by  us  and  only 
keep  them  because  we  vigilantly  safeguard  and  guarantee  them. 
To  withdraw  our  government  from  the  islands  at  this  time  would 
mean  to  the  average  native  the  loss  of  his  barely-won  civil  free- 
dom. We  have  established  in  the  islands  a  government  by  Ameri- 
cans assisted  by  Filipinos.  We  are  steadily  striving  to  transform 
this  into  self-government  by  the  Filipinos  assisted  by  Americans. 

CONTENT  TO  STAND  OB  FALL  BY  RECORD    MADE. 

The  principles  which  we  uphold  should  appeal  to  all  our  coun- 
trymen, in  all  portions  of  our  country.  Above  all  they  should  give 
us  strength  with  the  men  and  women  who  are  the  spiritual  heirs 
of  those  who  upheld  the  hands  of  Abraham  Lincoln;  for  we  are 
striving  to  do  our  work  in  the  spirit  with  which  Lincoln  ap- 
proached his.  During  the  seven  years  that  have  just  passed  there 
is  no  duty,  domestic  or  foreign,  which  we  have  shirked ;  no  neces- 
sary task  which  we  have  feared  to  undertake,  or  which  we  have 
not  performed  with  reasonable  efficiency.  We  have  never  pleaded 
impotence.  We  have  never  sought  refuge  in  criticism  and  com- 
plaint instead  of  action.  We  face  the  future  with  our  past  and 
our  present  as  guarantors  of  our  promises ;  and  we  are  content 
to  stand  or  to  fall  by  the  record  which  we  have  made  and  are 
making. 


SENATOR    FAIRBANKS    TO    NOTIFICATION 
COMMITTEE. 

Mr.  Root  and  Gentlemen  of  the  Committee: 

I  thank  you  for  the  very  generous  terms  in  which  you  have 
conveyed  the  official  notification  of  my  nomination  for  Vice  Pres- 
ident of  the  United  States.  The  unsolicited  and  unanimous  nom- 
ination by  the  Republican  party  is  a  call  to  duty  which  I  am 
pleased  to  obey. 

I  accept  the  commission  which  you  bring  with  a  profound 
sense  of  the  dignity  and  responsibilities  of  the  exalted  position  for 
which  I  "have  been  nominated.  My  utmost  endeavor  will  be  to 
discharge  in  full  measure  the  trust,  if  the  action  of  the  conven- 
tion shall  meet  the  approval  of  the  American  people. 

THE   PLATFORM. 

The  platform  adopted  by  the  convention  is  an  explicit  and 
emphatic  declaration  of  principles  in  entire  harmony  with  those 
policies  of  our  party  which  have  brought  great  honor  and  pros- 
perity to  our  common  country,  and  which,  if  continued,  will 
bring  us  like  blessings  in  the  future. 

THE  MONETARY  POLICY. 

The  monetary  and  economic  policies  which  have  been  so 
forcibly  reannounced,  lie  at  the  very  foundation  of  our  industrial 
life,  and  are  essential  to  the  fullest  development  of  our  national 
strength.  They  give  vitality  to  our  manufactures  and  commerce, 
and  if  impaired  or  overthrown,  there  would  inevitably  ensue  a 
period  of  industrial  depression,  to  the  serious  injury  of  the  vast 
interests  of  both  labor  and  capital. 

The  Republican  party,  since  it  preserved  the  integritv  of  the 
Republic  and  gave  freedom  to  the  oppressed,  never  rendered  a 
more  important  service  to  the  country  than  when  it  established 
the  gold  standard.  Under  it  we  have  increased  our  currency 
supply  sufficiently  to  meet  the  normal  requirements  of  business 
It  is  gratifying  that  the  convention  made  frank  and  explicit 
declaration  of  the  inflexible  purpose  of  the  party  to  maintain  the 


540  FAIRBANKS'   BPBECH    Of    /kCCEPTANCE. 

gold  standard.  It  is  essential  not  only  that  the  standard  should 
he  as  good  as  the  hest  in  the  world,  but  that  the  people  should 
have  the  assurance  that  it  will  be  so  maintained. 

The  enemies  of  sound  money  were  powerful  enough  to  sup- 
press mention  of  the  gold  standard  in  the  platform  lately  adopted 
by  the  Democratic  national  convention.  The  leader  of  Democracy 
in  two  great  national  campaigns  has  declared  since  the  adjourn- 
ment of  the  convention  that  as  soon  as  the-  election  is  over,  he 
will  undertake  to  organize  the  forces  within  the  Democratic 
party  for  the  next  national  contest,  for  the  purpose  of  advancing 
the  radical  policies  for  which  his  element  of  the  party  stands. 
He  frankly  says  that  the  money  question  is  for  the  present  "in 
abeyance."  In  view  of  these  palpable  facts,  it  is  not  the  part 
of  wisdom  to  abandon  our  vigilance  in  safeguarding  the  integ- 
rity of  our  monetary  system.  We  must  have  not  only  a  Presi- 
dent who  is  unalterably  committed  to  the  gold  standard,  but 
both  Houses  of  Congress  in  entire  accord  with  him  upon  the 
subject. 

In  Congress  and  not  with  the  President  rests  the  supreme 
power  to  determine  the  standard  of  our  money.  Though  the  Chief 
Executive  should  oppose,  the  Congress,  acting  within  its  inde- 
pendent constitutional  authority,  could  at  any  time  overthrow  or 
change  the  monetary  standard. 

THE    PROTECTIVE    POLICY. 

The  wisdom  of  our  protective  policy  finds  complete  justifica- 
tion in  the  industrial  development  of  the  country.  This  policy  has 
become  a  most  vital  part  of  our  industrial  system  and  must  be 
maintained  unimpaired.  When  altered  conditions  make  changes 
in  schedules  desirable,  their  modification  can  be  safely  en- 
trusted to  the  Republican  party.  If  they  are  to  be  changed  by 
the  enemies  of  the  system  along  free  trade  lines,  uncertainty 
would  take  the  place  of  certainty,  and  a  reaction  would  surely 
follow  to  the  injury  of  the  wage  earners  and  all  who  are  now 
profitably  employed.  Uncertainty  undermines  confidence  and  loss 
of  confidence  breeds  confusion  and  distress  in  commercial  affairs. 

PRESIDENT  ROOSEVELT'S  RECORD. 

The  convention  was  wise  not  only  in  its  enunciation  of  party 
policies,  but  in  its  nomination  of  a  candidate  for  the  Presidency. 
During  the  last  three  years,  President  Roosevelt  has  been  con- 
fronted with  large  and  serious  questions.  These  he  has  met  and 
solved  with  high  wisdom  and  courage.  The  charges  made  against 
him  in  the  Democratic  platform  find  an  irrefutable  answer  in  his 
splendid  administration,  never  surpassed  in  all  the  history  of  the 
Republic,  and  never  equalled  by  the  party  which  seeks  to  dis- 
credit it. 

The  election  of  the  President  is  imperatively  demanded  by 
those  whose  success  depends  upon  the  continuance  of  a  safe,  con- 
servative and  efficient  administration  of  public  affairs. 

RECORD  OF  THE  REPUBLICAN  PARTY. 

We  have  an  ample  record  of  deeds  done,  of  beneficent  things 
accomplished  in  the  public  interest.  The  vast  business  of  the 
government  has  been  well  administered.  The  laws  have  been 
enforced  fearlessly  and  impartially.  The  treasury  has  been  ade- 
quately supplied  with  revenue  and  the  financial  credit  of  the 
government  was  never  better.  Our  foreign  trade  balance  con- 
tinues to  increase  our  national  wealth.  We  have  adopted  an 
irrigation  policy  which  will  build  homes  in  the  arid  regions  of 
the  west.  The  Panama  canal,  the  hope  of  centuries,  is  in  course 
of  construction,  under  the  sole  protection  of  the  American  flag. 

We  have  peace  and  great  prosperity  at  home  and  are  upon 
terms  of  good  neighborhood  with  the  entire  world.  These  con- 
ditions constitute  the  strongest  possible  assurance  for  the  future. 

Later  I  shall  avail  myself  of  a  favorable  opportunity  to  sub- 
mit to  you,  and  through  you,  to  my  fellow  citizens,  a  fuller  ex- 
pression of  my  views  concerning  the  question  now  in  issue. 

Permit  me  again  to  thank  you  and  to  express  the  belief  that 
we  may  confidently  submit  our  cause  to  the  candid  and  patriotic 
judgment  of  our  countrymen. 


JUDGE   PARKER  TO  NOTIFICATION  COMMITTEE.  541 


JUDGE  PARKER  TO  NOTIFICATION  COMMITTEE. 


Speech  Delivered  at  Esopus,  N.  Y.,  August  10th,   1904,  Accepting  the 
cratic  Nomination  for  the  Presidency. 

Mr.  Chairman  and  Gentlemen  of  the  Committee : 

I  have  resigned  the  office  of  chief  judge  of  the  Court  of  Appeals  of 
this  State  in  order  that  I  may  accept  the  responsibility  that  the  great 
convention  you  represent  has  put  upon  me,  without  possible  prejudice  to 
the  court  to  which  I  had  the  honor  to  belong,  or  to  the  eminent  members 
of  the  judiciary  of  this  State,  of  whom  I  may  now  say  as  a  private  citizen 
I  am  justly  proud. 

At  the  very  threshold  of  this  response  and  before  dealing  with  other 
subjects,  I  must,  in  justice  to  myself  and  to  relieve  my  sense  of  gratitude, 
express  my  profound  appreciation  of  the  confidence  reposed  in  me  by  the 
convention.  After  nominating  me  and  subsequently  receiving  a  communi- 
cation declaring  that  I  regarded  the  gold  standard  as  firmly  and  irrevo- 
cably established,  a  matter  concerning  which  I  felt  it  incumbent  upon  me 
to  make  known  my  attitude  so  that  hereafter  no  man  could  justly  say 
that  his  support  had  been  secured  through  indirection  or  mistake,  the  con- 
vention reiterated  its  determination  that  I  should  be  the  standard  bearer 
of  the  party  in  the  present  contest.  This  mark  of  trust  and  confidence 
I  shall  ever  esteem  as  the  highest  honor  that  could  be  conferred  upon  me 
— an  honor  that,  whatever  may  be  the  fate  of  the  campaign,  the  future 
can  in  no  degree  lessen  or  impair. 

The  admirable  platform  upon  which  the  party  appeals  to  the  country 
for  its  confidence  and  support  clearly  states  the  principles  which  were 
so  well  condensed  in  the  first  inaugural  address  of  President  Jefferson, 
and  points  out  with  force  and  directness  the  course  to  be  pursued  through 
their  proper  application  in  order  to  insure  needed  reforms  in  both  the 
legislative  and  administrative  departments  of  the  Government.  While  un- 
hesitating in  its  promise  to  correct  abuses  and  to  right  wrongs  wherever 
they  appear  or  however  caused  ;  to  investigate  the  several  administrative 
departments  of  the  Government,  the  conduct  of  whose  officials  has  created 
scandals,  and  to  punish  those  who  have  been  guilty  of  a  breach  of  their 
trust ;  to  oppose  the  granting  of  special  privileges  by  which  the  few  may 
profit  at  the  expense  of  the  many ;  to  practice  economy  in  the  expen- 
diture of  the  moneys  of  the  people,  and  to  that  end  to  return  once  more 
to  the  methods  of  the  founders  of  the  republic  by  observing  in  disbursing 
the  public  funds  the  care  and  caution  a  prudent  individual  observes  with 
respect  to  his  own ;  still  the  spirit  of  the  platform  assures  conservative, 
instead  of  rash  action ;  the  protection  of  the  innocent  as  well  as  the 
punishment  of  the  guilty  ;  the  encouragement  of  industry,  economy  and 
thrift ;  the  protection  of  property  and  a  guarantee  of  the  enforcement  for 
the  benefit  of  all  of  man's  inalienable  rights,  among  which,  as  said  in  the 
Declaration  of  Independence,  are  "life,  liberty  and  the  pursuit  of  happi- 
ness." Liberty,  as  understood  in  this  country,  means  not  only  the  right 
of  freedom  from  actual  servitude,  imprisonment  or  restraint,  but  the  right 
of  one  to  use  his  faculties  in  all  lawful  ways,  to  live  and  work  where 
he  will  and  to  pursue  any  lawful  trade  or  business.  These  essential 
rights  of  life,  liberty  and  property  are  not  only  guaranteed  to  the  citizen 
by  the  Constitution  of  each  of  the  several  states,  but  the  states  are  by 
the  Fourteenth  Amendment  to  the  Constitution  of  the  United  States  for- 
bidden to  deprive  any  person  of  any  one  of  them  without  due  process 
of  law. 

THE    CONSTITUTION. 

Occasionally,  by  reason  of  unnecessary  or  impatient  agitation  for  re- 
forms, or  because  the  limitations  placed  upon  the  departments  of  govern- 
ment by  the  Constitution  are  disregarded  by  officials  desiring  to  accom- 
plish that  which  to  them  seems  good,  whether  the  power  exists  in  them 
or  not,  it  becomes  desirable  to  call  attention  to  the  fact  that  the  people, 
in  whom  all  power  resides,  have  seen  fit,  through  the  medium  of  the  Con- 
stitution, to  limit  the  governmental  powers  conferred  and  to  say  to  de- 
partments created  by  it :     "Thus  far  shalt  thou  go  and  no  farther."     To 


.1  JUDGE  PARKEK   TO  NOTIFICATION   COMMITTEE. 

■won  the  ends  sought  the  people  have  l>y  the  Constitution  separated 
and  distributed  among  the  three  departments  of  government — the  execu 
tivc  legislative  and  judicial  certain  powers,  and  it  is  the  duty  of  those 
administering  each  department  bo  i<>  ad  as  to  preserve,  rather  than  to 
destroy,  the  potency  of  the  coordinate  branches  of  the  government,  and 
thus  secure  the  exercise  of  all  the  powers  conferred  by  the  people. 

Thomas  Jefferson,  in  a  letter  to  William  C.  Jarvls,  couching  the  per- 
petuity of  our  institutions,  written  many  years  after  he  had  retired  to 
private  life,  said:  "If  the  three  powers  of  our  government  maintain 
their  mutual  Independence  of  each  other,  it  may  last  long,  hut  not  so 
if  eithtr  can  assume  the  authority  Of  the  other.  It  must  be  confessed 
that  in  the  course  of  our  history  executives  have  employed  powers  not 
belonging  to  them ;  statutes  have  been  passed  that:  were  expressly  for- 
bidden by  the  Constitution  and  statutes  have  been  set  aside  as  unconsti- 
tutional when  it  was  difficult  to  point  out  the  provisions  said  to  be  of- 
fended against  in  their  enactment;  all  this  has  been  done  with  a  good 
purpose,  no  doubt,  but  In  disregard,  nevertheless,  of  the  fact  that  ours  is 
a  government  of  laws,  not  of  men,  deriving  its  "just  powers  from  the 
consent  of  the  governed."  If  we  would  have  our  government  continue 
during  the  ages  to  come,  for  the  benefit  of  those  who  shall  succeed  us,  we 
must  ever  be  on  our  guard  against  the  danger  of  usurpation  of  that 
authority  which  resides  in  the  whole  people,  whether  the  usurpation  be 
by  officials  representing  one  of  the  three  great  departments  of  govern- 
ment, or  by  a  body  of  men  acting  without  a  commission  from  the  people. 

Impatience  of  the  restraints  of  law,  as  well  as  of  its  delays,  is  be- 
coming more  and  more  manifest  from  day  to  day.  Within  the  past  few 
years  many  instances  have  been  brought  to  our  attention,  where  in  differ- 
ent parts  of  our  beloved  country  supposed  criminals  have  been  seized 
and  punished  by  a  mob,  notwithstanding  the  fact  that  the  Constitution 
of  each  State  guarantees  to  every  person  within  its  jurisdiction  that  his 
life,  his  liberty  or  his  property  shall  not  be  taken  from  him  without  due 
process  of  law. 

In  a  struggle  between  employers  and  employees,  dynamite  is  said  to 
have  been  used  by  the  latter,  resulting  in  the  loss  of  life  and  thedestruc- 
tion  of  property.  The  perpetrators  of  this  offense  against  the  laws  of  God 
and  man,  and  all  others  engaged  in  the  conspiracy  with  them,  should, 
after  due  trial  and  conviction,  have  had  meted  out  to  them  the  most 
rigorous  punishment  known  to  the  law.  This  crime,  added  perhaps  to 
others,  led  to  the  formation  of  a  committee  of  citizens  that,  with  the 
support  of  the  military  authority,  deports  from  the  State,  without  trial, 
persons  suspected  of  belonging  to  the  organization  of  which  the  perpe- 
trators of  the  dynamite  outrages  were  supposed  to  be  members.  In  both 
cases  the  reign  of  law  gave  way  to  the  reign  of  force.  These  illustrations 
present  some  evidence  of  the  failure  of  government  to  protect  the  citizen 
and  his  property,  which  not  only  justified  the  action  of  your  convention 
in  this  regard,  but  made  it  its  duty  to  call  attention  to  the  fact  that 
Constitutional  guarantees  are  violated  whenever  any  citizen  is  denied  the 
right  to  labor,  to  acquire  and  to  enjoy  property,  or  to  reside  where  his 
interests  or  inclination  may  determine  :  and  the  fulfillment  of  the  assur- 
ance to  rebuke  and  punish  all  denials  of  these  rights,  whether  brought 
about  by  individuals  or  government  agencies,  should  be  enforced  by  every 
official  and  supported  by  every  citizen.  The  essence  of  good  government 
lies  in  strict  observance  of  constitutional  limitations,  enforcement  of  law 
and  order  and  rugged  opposition  to  all  encroachment  upon  the  sovereignty 
of  the  people.  »  ... 

The  foregoing  suggestions  but  emphasize  the  distinction  which  exists 
between  our  own  and  many  other  forms  of  government.  It  has  been  well 
said,  in  substance,  that  there  are  but  two  powers  in  government,  one  the 
power  of  the  sword,  sustained  by  the  hand  that  wields  it,  and  the  other 
the  power  of  the  law,  sustained  by  an  enlightened  public  sentiment.  The 
difference  in  these  powers  is  the  difference  between  a  republic — such  as 
ours,  based  on  law  and  a  written  constitution,  supported  by  intelligence, 
virtue  and  patriotism — and  a  monarchy — sustained  by  force  exerted  by  an 
individual,  uncontrolled  by  laws  other  than  those  made  or  sanctioned  by 
him  ;  one  represents  Constitutionalism,  the  other  Imperialism. 

THE     TARIFF. 

The  present  tariff  law  is  unjust  in  its  operation,  excessive  in  many 
of  its  rates  and  so  framed  in  particular  instances  as  to  exact  inordinate 
profits  from  the  people.  So  well  understood  has  this  view  become  that 
many  prominent  members  of  the  Republican  party,  and  at  least  two  of 
its  State  conventions,  have  dared  to  voice  the  general  sentiment  on  that 
subject.  That  party  seems,  however,  to  be  collectively  able  to  harmonize 
only  upon  a  plank  that  admits  that  revision  may  from  time  to  time  be 
necessary,  but  it  is  so  phrased  that  it  is  expected  to  be  satisfactory  to 
those  in  favor  of  an  increase  of  duty,  to  those  who  favor  a  reduction 
thereof,  and  to  those  opposed  to  any  change  whatever. 

Judged  by  the  record  of  performance,  rather  than  that  of  promise,  on 
the  part  of  that  party  in  the  -past,  it  would  seem  as  if  the  outcome,  in 
the  event  of  its  success,  would  be  to  gratify  the  latter  class.  With  abso- 
lute control  of  both  the  Legislative  and  executive  departments  of  the 
government  since  March  4th,  1807,  there  has  been  neither  reduction  nor 
an  attempt  at  reduction  in  tariff  duties.  It  is  not  unreasonable  to  as- 
sume, in  the  light  of  that  record,  that  a  future  Congress  of  that  party 
will  not  undertake  a  revision  of  the  tariff  downward  in  the  event  that  it 
shall  receive  an  endorsement  of  its  past  course  on  that  subject  by  the 
people.  It  is  a  fact  and  should  he  frankly  conceded  though  our  party 
be  successful  in  the  coming  contest  we  cannot  hope  to  secure  a  majority 
in  the  Senate  during  the  next  four  years,  and  hence  we  shall  be  unable 
to  secure  any  modification  in  the  tari<f  save  that  to  which  the  Republican 
majority  in  the  Senate  may  consent.  While,  therefore,  we  are  unable  to 
give  assurances  of  relief  to  the  people  from  such  excessive  duties  as  bur- 
den them,  it  is  due  to  them  that  we  should  state  our  position  to  be  in 


JUDGE  PARKER  TO  NOTIFICATION  COMMITTEE.  54-o 

favor  of  a  reasonable  reduction  of  the  tariff ;  that  we  believe  that  it  is 
demanded  by  the  best  interests  of  both  manufacturer  and  consumer,  and 
that  a  wise  and  beneficent  revision  of  the  tariff  can  be  accomplished  as 
soon  as  both  branches  of  Congress  and  an  executive  in  favor  of  it  ax-e 
elected,  without  creating  that  sense  of  uncertainty  and  instability  that 
has  on  other  occasions  manifested  itself.  This  can  be  achieved  by  pro- 
viding that  such  a  reasonable  period  shall  intervene,  between  the  date 
of  the  enactment  of  the  statute  making  a  revision  and  the  date  of  its 
enforcement,  as  shall  be  deemed  sufficient  for  the  industry  or  business 
affected  by  such  revision  to  adjust  itself  to  the  changes  and  new  conditions 
imposed.  So  confident  am  1  in  the  belief  that  the  demand  of  the  people 
for  a  reform  of  the  tariff  is  just,  that  I  indulge  the  hope  that  should  a 
Democratic  House  of  Representatives  and  a  Democratic  executive  be 
chosen  by  the  people,  even  a  Republican  Senate  may  heed  the  warning 
and  consent  to  give  at  least  some  measure  of  relief  to  the  people. 

TRUSTS. 

The  combinations,  popularly  called  trusts,  which  aim  to  secure  a 
monopoly  of  trade  in  the  necessaries  of  life  as  well  as  in  those  things 
that  are  employed  upon  the  farm,  in  the  factory  and  in  many  other 
fields  of  industry,  have  been  encouraged  and  stimulated  by  excessive  tariff 
duties.  These  operate  to  furnish  a  substantial  market  in  the  necessities 
of  eighty  millions  of  people,  by  practically  excluding  competition.  With 
so  large  a  market  and  highly  remunerative  prices  continuing  long  after 
the  line  of  possible  competition  would  naturally  be  reached,  the  tempta- 
tion of  all  engaged  in  the  same  business  to  combine  so  as  to  prevent 
competition  at  home  and  a  resulting  reduction  of  prices,  has  proved  irre- 
sistible in  a  number  of  cases.  All  men  must  agree  that  the  net  result 
of  enacting  laws  that  foster  such  inequitable  conditions,  is  most  unfor- 
tunate for  the  people  as  a  whole,  and  it  would  seem  as  if  all  ought  to 
agree  that  the  effective  remedy  would  be  to  appropriately  modify  the 
offending  law.  The  growth  of  monopoly,  of  which  complaint  is  justly 
made,  cannot  be  laid  at  the  doors  of  the  courts  of  this  country.  The 
decisions  of  the  Supreme  Court  of  the  United  States,  the  Court  of  Ap- 
peals of  this  State  and  the  courts  of  last  resort  in  many  other  States, 
warrant  the  assertion  that  the  common  law  as  developed  affords  a  com- 
plete legal  remedy  against  monopolies.  The  fact  that  they  have  multi- 
plied in  number  and  increased  in  power  has  been  due,  not  to  the  failure 
of  the  courts  to  apply  the  law  when  properly  moved  by  administrative 
officials  or  private  individuals,  but  to  the  failure  of  officials  charged  with 
the  duty  of  enforcing  the  law  to  take  the  necessary  procedure  to  procure 
the  judgments  of  the  courts  in  the  appropriate  jurisdiction,  coupled  with 
the  fact  that  the  legislative  departments  of  some  of  our  State  govern- 
ments, as  well  as  Congress  in  the  manner  already  referred  to,  have,  by 
legislation,  encouraged  their  propagation.  What  is  needed — in  addition 
to  the  passage  of  a  statute  revising  the  tariff  duties  to  a  reasonable  basis 
— is  not  so  much  other  and  different  laws,  as  officials  having  both  the  dis- 
position and  the  courage  to  enforce  existing  law.  While  this  is  my  view 
of  the  scope  of  the  common  law,  if  it  should  be  made  to  appear  that  it  is 
a  mistaken  one,  then  I  favor  such  further  legislation  within  constitutional 
limitations  as  will  give  the  people  a  just  and  full  measure  of  protection. 

THE    PHILIPPINES. 

It  is  difficult  to  understand  how  any  citizen  of  the  United  States, 
much  less  a  descendant  of  Revolutionary  stock,  can  tolerate  the  thought 
of  permanently  denying  the  right  of  self-government  to  the  Filipinos. 
Can  we  hope  to  instill  into  the  minds  of  our  descendants  reverence  and 
devotion  for  a  government  by  the  people,  while  denying  ultimately  that 
right  to  the  inhabitants  of  distant  countries,  whose  territory  we  have 
acquired  either  by  purchase  or  by  force?  Can  we  say  to  the  Filipinos, 
"Your  lives,  your  liberty,  and  your  property  may  be  taken  from  you 
without  due  process  of  law  for  all  time,"  and  expect  we  will  long  glory 
in  that  feature  of  Magna  Charta,  which  has  become  incorporated,  in 
substance  and  effect,  into  the  constitution  of  every  state,  as  well  as  into 
the  Fourteenth  Amendment  to  the  Constitution  of  the  United  States? 
Can  we  hope  for  the  respect  of  the  civilized  world,  while  proudly  guar- 
anteeing to  every  citizen  of  the  United  States  that  no  law  shall  be  made 
or  enforced  which  shall  abridge  the  privileges  or  immunities  of  citizens 
of  the  United  States,  or  deny  to  any  person  the  equal  protection  of  the 
laws,  and  at  the  same  time  not  only  deny  similar  rights  to  the  inhabi- 
tants of  the  Philippines,  but  take  away  from  them  the  right  of  trial  by 
jury,  and  place  their  lives  and  the  disposition  of  their  property  in  the 
keeping  of  those  whom  we  send  to  them  to  be  their  governors?  We  shall 
certainly  rue  it  as  a  nation  if  we  make  any  such  attempt.  Viewing  the 
question  even  from  the  standpoint  of  national  selfishness,  there  is  no 
prospect  that  the  twenty  millions  of  dollars  expended  in  the  purchase 
of  the  islands  and  the  six  hundred  and  fifty  millions  said  to  have  been 
since  disbursed  will  ever  come  back  to  us.  The  accident  of  war  brought 
the  Philippines  into  our  possession  and  we  are  not  at  liberty  to  disre- 
gard the  responsibility  which  thus  came  to  us,  but  that  responsibility 
will  be  best  subserved  by  preparing  the.  islanders  as  rapidly  as  possible 
for  self-government  and  giving  to  them  the  assurances  that  it  will  come 
as  soon  as  they  are  reasonably  prepared  for  it.  There  need  be  no  fear 
that  the  assertion  so  often  made  of  late,  that  we  have  now  become  a 
world  power,  will  then  be  without  support.  Ours  is  a  world  power,  and 
as  such  it  must  be  maintained,  but  I  deny  that  it  is  at  all  recently  that 
the  United  States  has  attained  that  eminence.  Our  country  became  a 
world  power  over  .a  century  ago,  when,  having  thrown  off  foreign  domina- 
tion, the  people  established  a  free  government,  the  source  of  whose  au- 
thority sprung,  and  was  continuously  to  proceed,  from  the  will  of  the 
people  themselves.  It  grew  as  a  world  power  as  its  sturdy  citizens,  to 
whose  natural  increase  were  added  immigrants  from  the  old  world  seek- 


JUDGE   PARKER  TO  NOTIFICATION  COMMITTEE. 

In*  t<>  obtain  hriv  the  liberty  and  prosperity  denied  them  in  their  own 
countries,  spread  over  the  face  of  tne  land,  reduced  the  prairies  and  for 

csts  to  cultivation,  built  cities.  Constructed  Highways  and  railroads,  till 
now  a  nation  which  at  the  formation  of  the  government  numbered  only 
three  millions  in  population,  lias  become  eighty  millions,  and  from  ocean 
to  ocean  and  the  lakes  to  the  gulf,  the  country  is  the  abode  of  a  free 
and  prosperous  people,  advanced  in  the  highest  degree  in  the  learning  and 
arts  of  civilization.  It  is  the  liberty,  the  advancement,  ami  the  pros- 
perity of  its  citizens,  not  any  career  of  conquest,  that  make  the  country 
8    world    power.      This   condition    we    owe    to    the   bounty    of    Providence. 

unfolded  in  the  great  natural  resources  of  the  country,  to  the  wisdom  Of 

our  fathers  manifested  in  the  form  of  government  established  by  them. 
to  the  energy,  industry,  moral  character  and  law-abiding  spirit  of  the 
people  themselves. 

THE   MILITARY 

We  are  not  a  military  people,  bent  on  conquest,  or  engaged  in  extend- 
ing our  domains  in  foreign  lands,  or  desirous  of  securing  natural  ad- 
vantages, however  great,  by  force;  but  a  people  loving  peace,  not  only 
for  ourselves,  but  for  all  the  nations  of  the  earth. 

The  display  of  great  military  armaments  may  please  the  eye  and,  for 
the  moment,  excite*  the  pride  of  the  citizen,  but  it  cannot  bring  to  the 
country  the  brains,  brawn,  and  muscle  of  a  single  Immigrant,  nor  induce 
the  Investment  here  of  a  dollar  of  capital.  Of  course  such  armament  as 
may  be  necessary  for  the  security  of  the  country  and  the  protection  of 
the  rights  of  its  citizens,  at  home  or  abroad,  must  be  maintained.  Any 
other  course  would  be  not  only  false  economy,  but  pusillanimous.  I  pro- 
test, however,  against  the  feeling,  now  far  too  prevalent,  that  by  reason 
of  the  commanding  position  we  have  assumed  in  the  world,  we  must 
take  part  in  the  disputes  and  broils  of  foreign  countries:  and  that  be-~ 
cause  we  have  grown  great  we  should  intervene  in  every  important  ques- 
tion that  arises  in  other  parts  of  the  world.  I  also  protest  against  the 
erection  of  any  such  military  establishment  as  would  be  required  to  main- 
tain the  country  in  that  attitude.  We  should  confine  our  international 
activities  solely  to  matters  in  which  the  rights  of  the  country  or  of  our 
citizens  are  directly  involved.  That  is  not  a  situation  of  isolation,  but 
of  independence. 

The  Government  of  the  United  States  was  organized  solely  for  the 
people  of  the  United  States.  While  it  was  contemplated  that  this  coun- 
try should  become  a  refuge  for  the  oppressed  of  every  land,  who  might 
be  fit  to  discharge  the  duties  of  our  citizenship,  and  while  we  have1 
always  sympathized  with  the  people  of  every  nation  in  their  struggles 
for  self-government,  the  government  was  not  created  for  a  career  of 
political  or  civilizing  evangelization  in  foreign  countries  or  among  alien 
races.  The  most  efficient  work  we  can  do  in  uplifting  the  people  of  other 
countries  is  by  the  presentation  of  a  happy,  prosperous,  self-governing 
nation  as  an  ideal  to  be  emulated,  a  model  to  be  followed.  The  general 
occupation  of  our  citizens  in  the  arts  of  peace,  or  the  absence  of  large 
military  armaments,  tends  to  impair  neither  patriotism  nor  physical 
courage,  and  for  the  truth  of  this  I  refer  the  young  men  of  today  to  the  his- 
tory of  the  Civil  War.  For  50  years,  with  the  exception  of  the  war  with  Mex- 
ico, this  country  had  been  at  peace,  with  a  standing  army  most  of  the  time 
of  less  than  ten  thousand  men.  He  who  thinks  that  the  nation  had 
grown  effeminate  during  that  period  should  read  the  casualty  rolls  of 
the  armies  on  either  side  at  Shi  lob,  Antietam,  Fredericksburg,  and  Get- 
tysburg, at  Stone  River  and  Chickamauga.  I  would  be  the  last  man  to 
pluck  a  single  laurel  from  the  crown  of  any  one  of  the  military  heroes 
to  whom  this  country  owes  so  much,  but  I  insist  that  their  most  heroic 
deeds  proceeded  infinitely  more  from  devotion  to  the  country  than  from 
martial  spirit. 

As  I  have  already  proceeded  at  too  great  length,  other  questions  sug- 
gested in  the  platform  must  await  my  letter  of  acceptance. 

Mr.  Chairman,  in  most  graceful  speech  you  have  reminded  me  of  the 
great  responsibility,  as  well  as  the  great  honor  of  the  nomination  be- 
stowed upon  me  by  the  convention  you  represent  this  day.  Be  assured 
that  both  are  appreciated— so  keenly  appreciated  that  I  am  humbled  in 
their  presence. 

ONE    TERM     ONLY. 

I  accept,  gentlemen  of  the  committee,  the  nomination,  and  if  the 
action  of  the  convention  shall  be  endorsed  by  an  election  by  the  people, 
I  will,  God  helping  me,  give  to  the  discharge  of  the  duties  of  that  exalted 
office  the  best  service  of  which  I  am  capable  and  at  the  end  of  the  term 
retire  to  private  life.  I  shall  not  be  a  candidate  for,  nor  shall  I  accept 
a  renomination.  Several  reasons  might  be  advanced  for  this  position,  but 
the  controlling  one  with  me  is  that  I  am  fully  persuaded  that  no  incum- 
bent of  that  office  should  ever  be  placed  in  a  situation  of  possible  temp- 
tation to  consider  what  the  effect  of  action  taken  by  him  In  an  adminis- 
trative matter  of  great  importance  might  have  upon  his  political  for- 
tunes. Questions  of  momentous  consequence  to  all  of  the  people  have 
been  in  the  past  and  will  be  in  the  future  presented  to  the  President  for 
determination,  and  in  approaching  their  consideration,  as  well  as  in 
weighing  the  facts  and  the  arguments  bearing  upon  them,  he  should  be 
unembarrassed  by  any  possible  thought  of  the  influence  his  decision  may 
have  upon  anything  whatever  that  may  affect  him  personally.  I  make 
this  statement,  not  in  criticism  of  any  of  our  Presidents  from  Washing- 
ton down  who  have  either  held  the  office  for  two  terms  or  sought  to  suc- 
ceed themselves:  for  strong  arguments  can  be  advanced  in  support  of  the 
re-election  of  a  President.  It  is  simply  my  judgment  that  the  interests 
of  this  country  are  now  so  vast  and  the  questions  presented  are  fre- 
quently of  such  overpowering  magnitude  to  the  people  that  it  is  indis- 
pensable to  the  maintenance  of  a  befitting  attitude  before  the  people,  not 
only  that  the  Chief  Magistrate  should  be  independent  but  that  that  inde- 
pendence should  be  known  of  all  men. 


54b 

Fundamentally  the  cause  of  expansion  is  the  cause  of  peace. — 
President  Roosevelt  on  "Expansion  and  peace,"  in  Strenuous  Life, 
p.  34. 

We  must  approach  a  matter  of  such  prime  economic  impor- 
tance as  the  tariff  from  the  standpoint  of  our  husiness  needs. — 
President  Roosevelt  at  Minneapolis,  April  4,  1903. 

The  present  phenomenal  prosperity  has  heen  won  under  a 
tariff  which  was  made  to  protect  the  interests  of  the  American 
producer,  business  man,  wage-worker,  and  farmer  alike. — Presi- 
dent Roosevelt  at  Minneapolis,  April  4,  1903. 

The  nation  has  appreciated  the  valor  and  patriotism  of  the 
black  men  of  the  United  States.  They  not  only  fought  in  Cuba, 
but  in  'the  Philippines,  and  they  are  still  carrying  the  flag  as  the 
symbol  of  liberty  and  hope  to  an  oppressed  people. — President  Mc- 
Kinley  to  colored  citizens,  at  Chicago,  Oct.  8,  1899. 

At  all  hazards,  and  no  matter  what  else  is  sought  for  or  ac- 
complished by  changes  of  the  tariff,  the  American  workingman 
must  be  protected  in  his  standard  of  wages — that  is,  in  his  stand- 
ard of  living — and  must  be  secured  the  fullest  opportunity  of  em- 
ployment.— President  Roosevelt  at  Logansport,  Ind.,  September, 
1902. 

If  a  tariff  law  has  on  the  whole  worked  well  and  If  business 
has  prospered  under  it  and  is  prospering,  it  may  be  better  to  en- 
dure some  inconveniences  and  inequalities  for  a  time  than  by  mak- 
ing changes  to  risk  causing  disturbance  and  perhaps  paralysis  in 
the  industries  and  business  of  the  country. — President  Roosevelt  at 
Minneapolis,  Minn.,  April  4,  1903. 

The  Republican  party  was  dedicated  to  freedom  forty-four 
years  ago.  It  has  been  the  party  of  liberty  and  emancipation  from 
that  hour;  not  of  profession  but  of  performance. — President  Mc- 
Kinley,  at  Canton,  July  12,  1900. 

The  American  flag  stands  for  orderly  liberty,  and  it  stands  for 
it  abroad  as  it  stands  for  it  at  home. — President  Roosevelt  at  Mem- 
phis, Tenn.,  Nov.  19,  1902. 

We  all  of  us  earnestly  hope  that  the  occasion  for  war  may  not 
arise,  but  if  it  has  to  come  then  this  nation  must  win. — President 
Roosevelt  at  Annapolis,  Md.,  May  2,  1902. 

The  well-being  of  the  -wage-worker  is  a  prime  consideration  of 
our  entire  policy  of  economic  legislation. — President  Roosevelt's 
Annual  Message,  Fifty-seventh   Congress,  first  session. 

The  fact  that  a  change  of  a  given  rate  of  duty  may  be  thought 
desirable  does  not  settle  the  question  whether  it  is  advisable  to 
make  the  change  immediately. — President  Roosevelt  at  Minneapolis, 
April  4,  1903. 

The  success  of  the  capitalist,  and  especially  of  the  banker,  is 
conditioned  upon  the  prosperity  of  both  workingman  and  farmer. — 
President  Roosevelt  on  the  Law  of  Civilization  and  Decay — Ameri- 
can  Ideals,   p.  367. 

No  nation  has  ever  prospered  as  we  are  prospering  now,  and 
we  must  see  to  it  that  by  our  folly  we  do  not  mar  this  prosperity. 
—President  Roosevelt  at  Union  League  banquet,  Philadelphia,  Pa., 
November  22,  1902. 

The  United  States  has  not  the  slightest  wish  to  establish  a 
universal  protectorate  over  other  American  States,  or  to  become 
responsible  for  their  misdeeds. — From  President  Roosevelt's  The 
Monroe  Doctrine,  American  Ideals,  p.  248. 

It  would  be  hard  to  find  in  modern  times  a  better  example  of 
successful  constructive  statesmanship  than  the  American  repre- 
sentatives have  given  to  the  Philippine  Islands. — President  Roose- 
velt at  Providence,  R.  I.,  August  23,  1902. 

There  are  many  qualities  which  we  need  alike  in  private  citi- 
zen and  in  public  man,  but  three  above  all — three  for  the  lack  of 
which  no  brilliancy  and  no  genius  can  atone — and  those  three  are 
courage,  honesty,  and  common  sense. — President  Roosevelt  at  An- 
tictam,  Md.,  Sept.  17,  1903, 


546 

The  period  of  war  1m  but  n  frn.ctlon.nl  pnrt  of  the  life  of  our 
Republic,  nnd  I  earnestly  hope  .-mil  believe  tbnt  it  will  be  nn  even 
siiiiillrr  pnrt  la  the  future  thnn  It  linn  been  in  the  pnst.— — President 
Roosevelt  nt  Chnttunoogu,  Trim.,  Sept.  8,  1002. 

The  business  world — thnt  Is,  the  entire  American  world— can 
not  afford,  If  it  has  any  regard  for  its  own  welfare,  even  to  con- 
sider the  advisability  of  abandoning  the  present  [protection]  sys- 
tem.— President  Roosevelt  at  Minneapolis,  April  4,  1003. 

It  is  a  {good  lesson  for  nations  and  individuals  to  learn  never 
to  hit  If  it  can  be  helped,  and  then  never  to  hit  softly.  I  think  it 
is  getting:  to  be  fairly  understood  that  that  is  our  foreign  policy.— 
President  Roosevelt  at  San  Francisco,  Cal.,  May  13,  1003. 

As  a  nation  we  stand  in  the  very  forefront  in  the  giant  inter- 
national industrial  competition  of  the  day.  We  can  not  afford  by 
any  freak  or  folly  to  forfeit  the  position  to  which  we  have  thus 
triumphantly  attained.— President  Roosevelt  at  Minneapolis,  Minn., 
April    1,   1003. 


REPUBLICAN   NATIONAL  COMMITTEE.  *,_0 

REPUBLICAN  NATIONAL  COMMITTEE 
1904. 

George  B.  Cortelyou,  New  York,  Chairman. 
Elmer  Dover,  Ohio,  Secretary. 
Cornelius  N.  Bliss,  New  York,  Treasurer. 
William  F.  Stone,  Maryland,  Sergeant-at-Arms. 

members  of  the  committee. 

Alabama— Charles  H.  Scott,  Montgomery. 

Arkansas— Powell  Clayton,  Eureka  Springs  and  City  of 
Mexico. 

California— George  A.  Knight,  San  Francisco. 

Colorado— A.  M.  Stevenson,  Denver. 

Connecticut— Charles  F.  Brooker,  Ansonia. 

Delaware— John  Edward  Addicks,  Wilmington. 

Florida— J.  N.  Coombs,  Apalachicola, 

Georgia — Judson  W.  Lyons,  Augusta  and  Washington,  D.  C. 

Idaho — W.  B.  Heyburn,  Wallace. 

Illinois— Frank  O.  Lowden,  Chicago. 

Indiana— Harry  S.  New,  Indianapolis. 

Iowa— Ernest  E.  Hart,,  Council  Bluffs. 

Kansas— David  W.  Mulvane,  Topeka. 

Kentucky— John  W.  Yerkes,  Danville  and  Washington,  D.  C. 

Louisiana — 

Maine — John  F.  Hill,  Augusta. 

Maryland— Louis  E.  McComas,  Hagerstown. 

•Massachusetts— W.  Murray  Crane,  Dal  torn 

Michigan— John  W.  Blodgett,  Grand  Rapids. 

Minnesota— Frank  B.  Kellogg,  St.  Paul. 

Mississippi— L.  B.  Moseley,  Jackson. 

Missouri— Thomas  J.  Akins,  St.  Louis. 

Montana — John  D.  Waite,  Lewiston. 

Nebraska— Charles  H.  Morrill,  Lincoln. 

Nevada — Patrick  L.  Flanigan,  Reno. 

New  Hampshire — Frank  S.  Streeter,  Concord. 

New  Jersey — Franklin  Murphy,  Newark. 

New  York— William  L.  Ward,  Port  Chester. 

North  Carolina—  E.  C.  Duncan,  Raleigh. 

North  Dakota— Alexander  McKenzie,  Bismarck. 

Ohio— Myron  T.  Herrick,  Cleveland. 

Oregon— Charles  H.  Carey,  Portland. 

Pennsylvania— Boies  Penrose,  Philadelphia  and  Washington, 
D.  C. 

Rhode  Island— Charles  R.  Brayton,  Providence. 

South  Carolina — John  G.  Capers,  Charleston. 

South  Dakota— J.  M.  Greene,  Chamberlain. 

Tennessee— Walter  P.  Brownlow,  Jonesboro  and  Washing- 
ton, D.  C. 

Texas— Cecil  A.  Lyon,  Sherman. 

Utah— C.  E.  Loose,  Provo. 

Vermont— James  W.  Brock,  Montpelier. 

Virginia— George  E.  Bowden,  Norfolk. 

Washington— Levi  Ankeny,  Walla  Walla  and  Washington, 
D.  C. 

West  Virginia— N.  B.  Scott,  Wheeling  and  Washington,  D.  C. 

Wisconsin— Henry  C.  Payne,  Milwaukee  and  Washington, 
D.  C. 

Wyoming— George  E.  Pexton,  Evanston. 

The    Territories,    District    of    Columbia,    Hawaii,    Porto    Rico,    and 
Philippine  Islands. 

Alaska— John  G.  Heid,  Juneau. 

Arizona — W.  S.  Sturges,  Phoenix. 

New  Mexico— Solomon  Luna,  Los  Lunas. 

Oklahoma — C.  M.  Cade,  Shawnee. 

Indian  Territory — P.  L.  Soper,  Vinita. 

District  of  Columbia— Robert  Reyburn,  Washington,  D.  <S. 

Hawaii— A.  G.  M.  Robertson,  Honolulu. 

Porto  Rico— R.  H.  Todd,  San  Juan. 

Philippine  Islands— Henry  B.  McCoy. 


548  REPUBLICAN    CONGRESSIONAL    COMMITTEE. 


REPUBLICAN  CONGRESSIONAL  COMMITTEE— 1904. 

OiliocrN. 

Representative  Joseph  W.  Barcock,  Wisconsin,  Chairman. 
Representative  James  S.  Sherman,  New  York,  Vice-Chairman. 
Representative  Jesse  Overstreet,  Indiana,  Secretary. 
Colonel  William  B.  Thompson,  Washington,  D.  C,  Treasurer. 

Executive   Committee. 

Representative  A.  T.  Hull,  of  Iowa. 
Representative  H.  C.  Loudenslager,  of  New  Jersey. 
Representative  William  Connell,  of  Pennsylvania. 
Representative  Victor  H.  Metcalf,  of  California. 
Representative  E.  C.  Burleigh,  of  Maine. 
Representative  J.  A.  Tawney,  of  Minnesota. 
Representative  J.  R.  Mann,  of  Illinois. 
Representative  Nicholas  Longworth,  of  Ohio. 
Representative  George  L.  Lilley,  of  Connecticut 

Members. 

California— Representative   Victor  H.   Metcalf,   Oakland. 
Colorado — Representative  Franklin  E.  Brooks,  Colo.  Springs. 
Connecticut — Representative  George  L.  Lilley,  Waterbury. 
Delaware— Senator  J.  Frank  Allee,  Dover. 
Idaho— Representative  Burton  L.  French,  Moscow. 
Illinois— Representative  James  R.  Mann,  Chicago. 
Indiana— Representative  Jesse  Overstreet,  Indianapolis. 
Iowa— Representative  J.  A.  T.  Hull,  Des  Moines. 
Kansas— Representative  J.  D.  Bowersock,  Lawrence. 
Kentucky— Representative  W.  G.  Hunter,  Burkesville. 
Maine — Representative  E.  C.  Burleigh,  Augusta. 
Maryland— Representative  Sidney  E.  Mudd,  La  Platte. 
Massachusetts — Representative  William  C.  Lovering,  Taunton. 
Michigan— Representative  Joseph  W.  Fordney,  Saginaw. 
Minnesota— Representative  James  A.  Tawney,  Winona. 
Missouri— Representative  Richard  Bartholdt,  St.  Louis. 
Montana— Representative  Joseph  M.   Dixon,   Missoula. 
Nebraska— Representative  John  J.  McCarthy,  Ponca. 
New   Hampshire — Representative   Cyrus   A.    Sulloway,    Man- 
chester. 

New  Jersey — Representative  H.  C.  Loudenslager,  Paulsboro. 
New  York— Representative  James  S.  Sherman,  Utica. 
North  Dakota— Representative  B.  F.  Spalding,  Fargo. 
Ohio — Representative  Nicholas  Longworth,  Cincinnati. 
Oregon— Senator  J.  H.  Mitchell,  Portland. 
Pennsylvania— Representative  William   Connell,   Scranton. 
Rhode  Island— Representative  Adin  B.  Capron,  Stillwater. 
South  Dakota— Representative  Charles  H.  Burke,  Pierre. 
Tennessee— Representative  H.  R.  Gibson,  Knoxville. 
Utah — Representative  Joseph  Howell,  Logan. 
Vermont — Representative  Kittredge  Haskins.  Brattleboro. 
Virginia— Representative  Campbell  Slemp,  Big  Stone  Gap. 
Washington— Representative  W.  E.  Humphreys,  Seattle. 
West  Virginia — Representative  B.  B.  Dovenor,  Wneeiing. 
Wisconsin— Representative  Joseph  W.  Babooek,  Necedah. 
Wyoming— Representative  Frank  W.  Mondell,  Newcastle. 

Territories. 

Hawaii— Delegate  J.  K.  Kalanianaole,  Honolulu. 
New  Mexico— Delegate  B.  S.  Rodey,  Albuquerque. 
Oklahoma— Delegate  Bird  S.  McGuire,  Guthrie. 


540 


Electoral  votes  of  the  states  in  1904,  as  apportioned  by  act 
proved  January  16,  1901. 


ap 


Alabama 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Florida 

11 

9 

10 

5 

7 

3 

5 

13 

3 

27 

15 

13 

10 

13 

9 

6 

8 

16 

14 

11 

10 

18 

Nebraska 

Nevada 

New  Hampshire 

New  Jersey 

New  York 

North  Carolina 

8 

3 

4 

12 

39 

12 

4 

Georgia 

Idaho 

Illinois 

Indiana 

Ohio 

Oregon 

Pennsylania 

Rhode  Island 

23 

4 

34 

4 

Iowa 

South  Carolina 

9 

Kansas 

South  Dakota 

4 

Louisiana 

Maine 

Maryland 

Michigan 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

12 

18 

3 

4 

12 

Minnesota 

West  Virginia 

7 

Mississippi 

Wisconsin 

Wyoming 

13 

8 

Montana 

3 

Total  electorial  vote 476. 

Necessary  to  a  choice  239. 


Presidential  vote  and  political  record  by  states,  1864  to  1900. 


Votes,  1904. 


Party  receiving  electoral  vote  in- 


'80 

'84 

D 

D 

D 

D 

tD 

R 

R 

R 

R 

D 

D 

D 

D 

D 

D 

D 

• 

* 

R 

R 

R 

D 

R 

R 

R 

R 

D 

D 

D 

D 

R 

R 

D 

D 

R 

R 

R 

R 

R 

R 

D 

D 

D 

D 

• 

• 

R 

R 

D 

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Alabama  11 

Arkansas 9 

California 10 

Colorado 5 

Connecticut 7 

Delaware 3 

Florida 5 

Georgia 13 

Idaho 3 

Illinois 27 

Indiana 15 

Iowa 13 

Kansas 10 

Kentucky 13 

Louisiana 9 

Maine 6 

Maryland 8 

Massachusetts 16 

Michigan  14 

Minnesota 11 

Mississippi 10 

Missouri 18 

Montana 3 

Nebraska 8 

Nevada 3 

New  Hampshire...  4 

New  Jersey 12 

New  York 39 

North  Carolina....  12 

North  Dakota 4 

Ohio 23 

Oregon 4 

Pennsylvania 34 

Rhode  Island 4 

South  Carolina 9 

South  Dakota 4 

Tennessee 12 

Texas 18 

Utah 3 

Vermont 4 

Virginia 12 

Washington 5 

West  Virginia .  7 

Wisconsin 13 

Wyoming 3 


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jFive  electoral  votes  given  to  opposing  party. 


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